Comments on: How to Improve Your Credit Score http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm Building Wealth through Saving and Investing Sat, 20 Mar 2010 23:24:29 -0400 http://wordpress.org/?v=abc hourly 1 By: How to Imrove Credit Score http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-52240 How to Imrove Credit Score Tue, 16 Sep 2008 07:50:26 +0000 http://www.milliondollarjourney.com/?p=520#comment-52240 Pay your bills on time. This is always a good practice, and it's especially critical that you make prompt payments close to the time you need a loan. That's because a late or missed payment in the last few months is likely to lower your score much more than an isolated late payment five years ago. Pay your bills on time. This is always a good practice, and it’s especially critical that you make prompt payments close to the time you need a loan. That’s because a late or missed payment in the last few months is likely to lower your score much more than an isolated late payment five years ago.

]]> By: DAvid http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-52146 DAvid Mon, 15 Sep 2008 14:53:46 +0000 http://www.milliondollarjourney.com/?p=520#comment-52146 worried wife, You may be wise to speak with a number of lending institutions (both banks & credit unions) about your situation, and see their individual responses. If your husband has no credit score because he has not used any credit, then then get busy building his credit score by using credit wisely. If on the other hand, his credit score is poor due to past behaviour, then it may take longer to make a repair than you have before you need the mortgage and you will need to take other actions. Have you someone who can guarantee the loan, say a parent? Is there any support from the builder to carry the mortgage? You also might wist to speak to a non-profit credit repair organization for options for your particular situation. DAvid worried wife,
You may be wise to speak with a number of lending institutions (both banks & credit unions) about your situation, and see their individual responses. If your husband has no credit score because he has not used any credit, then then get busy building his credit score by using credit wisely. If on the other hand, his credit score is poor due to past behaviour, then it may take longer to make a repair than you have before you need the mortgage and you will need to take other actions.

Have you someone who can guarantee the loan, say a parent?
Is there any support from the builder to carry the mortgage?

You also might wist to speak to a non-profit credit repair organization for options for your particular situation.

DAvid

]]> By: worried wife http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-52111 worried wife Mon, 15 Sep 2008 05:59:41 +0000 http://www.milliondollarjourney.com/?p=520#comment-52111 Hi, I see that all of you have good knowledge of credit scores. Please help with my current situation: My husband and I need to get a mortgage approval by July 2009 for our pre-sale home. We have about 28% down. So we're borrowing around 290-300k. My husband has a really bad credit score (0, unavailable), but his income is a lot higher than mine. Approx. 58k. He has worked in this company for 3 years, and it's a government subsidiary job. very stable. I have a very good credit score of 760, but my income is only 37k. so i can't get the mortgage by myself. My husband's current credit score is so bad that the bank won't even issue him a credit card, we had to get him a secured credit card, which is a good start. How is it possible to increase his credit score in 10 months so we'll get a mortgage approved for sure? Well, at least get a credit score high enough to get a mortgage approved. Will my good credit score help enough though he has the higher income? Please let me know! Thanks!!! Hi,
I see that all of you have good knowledge of credit scores. Please help with my current situation:

My husband and I need to get a mortgage approval by July 2009 for our pre-sale home. We have about 28% down. So we’re borrowing around 290-300k.

My husband has a really bad credit score (0, unavailable), but his income is a lot higher than mine. Approx. 58k. He has worked in this company for 3 years, and it’s a government subsidiary job. very stable.
I have a very good credit score of 760, but my income is only 37k. so i can’t get the mortgage by myself.

My husband’s current credit score is so bad that the bank won’t even issue him a credit card, we had to get him a secured credit card, which is a good start.

How is it possible to increase his credit score in 10 months so we’ll get a mortgage approved for sure? Well, at least get a credit score high enough to get a mortgage approved.
Will my good credit score help enough though he has the higher income?

Please let me know!
Thanks!!!

]]> By: dayLateDollarShort http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-46836 dayLateDollarShort Mon, 04 Aug 2008 16:30:16 +0000 http://www.milliondollarjourney.com/?p=520#comment-46836 Greetings: This is a great Topic. The advice given here is to check your credit with Equifax or Transunion regularly. I would like to do this but I am confused as to which agency to use. 1 - Do I need to query both sites? If not which one? 2 - Do I have TWO credit scores, one at each agency? 3 - Do they share information? 4 - It seems to cost money to get credit information from them. Once again, what services should I consider? Each site offers different options ranging from 8 to 24 dollars as well as 15 dollars a month. I assume that I would double this in order to evaluate both my wife and I. Any Help would be appreciated. Thanks. Greetings:
This is a great Topic. The advice given here is to check your credit with Equifax or Transunion regularly. I would like to do this but I am confused as to which agency to use.

1 – Do I need to query both sites? If not which one?

2 – Do I have TWO credit scores, one at each agency?

3 – Do they share information?

4 – It seems to cost money to get credit information from them. Once again, what services should I consider? Each site offers different options ranging from 8 to 24 dollars as well as 15 dollars a month. I assume that I would double this in order to evaluate both my wife and I.

Any Help would be appreciated.

Thanks.

]]> By: Cannon_fodder http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-45360 Cannon_fodder Thu, 24 Jul 2008 12:02:16 +0000 http://www.milliondollarjourney.com/?p=520#comment-45360 I received this response on another forum which answers my question perfectly. "My Equifax credit report+score from August 2007 has the following: Score from 0 to 549: 4% of the population. Delinquiency rate = 78% Score from 550 to 599: 4% of the population. Delinquiency rate = 60% Score from 600 to 649: 6% of the population. Delinquiency rate = 39% Score from 650 to 699: 4% of the population. Delinquiency rate = 23% Score from 700 to 749: 19% of the population. Delinquiency rate = 12% Score from 750 to 799: 27% of the population. Delinquiency rate = 5% Score from 800 to 849: 24% of the population. Delinquiency rate = 2% Score from 850+: 5% of the population. Delinquiency rate = 1% A score of 650 or more should qualify you for most loans." I received this response on another forum which answers my question perfectly.

“My Equifax credit report+score from August 2007 has the following:

Score from 0 to 549: 4% of the population. Delinquiency rate = 78%
Score from 550 to 599: 4% of the population. Delinquiency rate = 60%
Score from 600 to 649: 6% of the population. Delinquiency rate = 39%
Score from 650 to 699: 4% of the population. Delinquiency rate = 23%
Score from 700 to 749: 19% of the population. Delinquiency rate = 12%
Score from 750 to 799: 27% of the population. Delinquiency rate = 5%
Score from 800 to 849: 24% of the population. Delinquiency rate = 2%
Score from 850+: 5% of the population. Delinquiency rate = 1%

A score of 650 or more should qualify you for most loans.”

]]> By: Cannon_fodder http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-44411 Cannon_fodder Thu, 17 Jul 2008 23:48:59 +0000 http://www.milliondollarjourney.com/?p=520#comment-44411 Does anyone know how to rank themselves based on their credit score? I.E., I now know my credit score and my wife's but I don't know if we are a B+ or in the 25th percentile (or whatever other ranking metric you can think of) when compared to other Canadians. I'm trying to understand how a bank would view us and I presume they have various formulas based on credit scores. Does anyone know how to rank themselves based on their credit score? I.E., I now know my credit score and my wife’s but I don’t know if we are a B+ or in the 25th percentile (or whatever other ranking metric you can think of) when compared to other Canadians.

I’m trying to understand how a bank would view us and I presume they have various formulas based on credit scores.

]]> By: FrugalTrader http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-44345 FrugalTrader Thu, 17 Jul 2008 13:03:27 +0000 http://www.milliondollarjourney.com/?p=520#comment-44345 July, if your credit is really poor, it might be best for your husband to apply for the mortgage by himself. You should double check with a mortgage broker though to see what your options are. July, if your credit is really poor, it might be best for your husband to apply for the mortgage by himself. You should double check with a mortgage broker though to see what your options are.

]]> By: July http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-44340 July Thu, 17 Jul 2008 12:54:00 +0000 http://www.milliondollarjourney.com/?p=520#comment-44340 I recently just got married and my credit is really poor. Will that also affect my husband's credit rating also? Will it be hard for us to apply for a mortgage in the future?? I recently just got married and my credit is really poor. Will that also affect my husband’s credit rating also? Will it be hard for us to apply for a mortgage in the future??

]]> By: Brian http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-43697 Brian Sun, 13 Jul 2008 14:31:43 +0000 http://www.milliondollarjourney.com/?p=520#comment-43697 Another alternative would be having money and not bothering with playing the credit game - that one always works well. Another alternative would be having money and not bothering with playing the credit game – that one always works well.

]]> By: Faisal http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-43364 Faisal Fri, 11 Jul 2008 03:38:58 +0000 http://www.milliondollarjourney.com/?p=520#comment-43364 Margin does not seem to be reported, but it could vary from broker to broker. I was with Interactive Brokers for a couple years and my margin account has not shown up on any of my credit reports. Margin does not seem to be reported, but it could vary from broker to broker. I was with Interactive Brokers for a couple years and my margin account has not shown up on any of my credit reports.

]]> By: Cannon_fodder http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-43091 Cannon_fodder Wed, 09 Jul 2008 14:17:53 +0000 http://www.milliondollarjourney.com/?p=520#comment-43091 What about borrowing on margin at a broker? Is this easy for a credit bureau to see or is it somewhat 'hidden'? What about borrowing on margin at a broker? Is this easy for a credit bureau to see or is it somewhat ‘hidden’?

]]> By: Elvis K http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-42859 Elvis K Tue, 08 Jul 2008 03:47:00 +0000 http://www.milliondollarjourney.com/?p=520#comment-42859 FB you hit it right on...I think the credit scoring model is flawed, not based on this though, this is 100% correct as 100% utilization is still 100% utilization even if you are trying to beat the tax man :).... just one the many disadvantages of the SM, but with everything, you weight the positives against the negatives and make the best decision you can with the information at hand. FB you hit it right on…I think the credit scoring model is flawed, not based on this though, this is 100% correct as 100% utilization is still 100% utilization even if you are trying to beat the tax man :)…. just one the many disadvantages of the SM, but with everything, you weight the positives against the negatives and make the best decision you can with the information at hand.

]]> By: The Financial Blogger http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-42850 The Financial Blogger Tue, 08 Jul 2008 01:57:43 +0000 http://www.milliondollarjourney.com/?p=520#comment-42850 FP, the problem is not the HELOC itself. If you have a 200K mortage for example, you will be deemed to have a loan of 200K with a required payment (monthly for example). If you make your payments on time, your credit score will be good as the amount of the mortgage won't influence much your credit score. Only your payment assiduity. However, if you have a HELOC. You will be deemed to have a line of credit of 200K maxed out. Therefore, even if you make your payments on time, you will still be deemed to use 100% of you available credit. Right now, this hurts your credit score. the mortgage doesn't affect your total debt to available credit ratio, the HELOC does. This is why I think they should rethink the calculation of credit score. FP,

the problem is not the HELOC itself. If you have a 200K mortage for example, you will be deemed to have a loan of 200K with a required payment (monthly for example). If you make your payments on time, your credit score will be good as the amount of the mortgage won’t influence much your credit score. Only your payment assiduity.

However, if you have a HELOC. You will be deemed to have a line of credit of 200K maxed out. Therefore, even if you make your payments on time, you will still be deemed to use 100% of you available credit. Right now, this hurts your credit score.

the mortgage doesn’t affect your total debt to available credit ratio, the HELOC does. This is why I think they should rethink the calculation of credit score.

]]> By: Four Pillars http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-42848 Four Pillars Tue, 08 Jul 2008 01:39:28 +0000 http://www.milliondollarjourney.com/?p=520#comment-42848 Why wouldn't a HELOC count against your credit score - you are borrowing money. Why wouldn’t a HELOC count against your credit score – you are borrowing money.

]]> By: Elvis K http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-42836 Elvis K Tue, 08 Jul 2008 00:06:13 +0000 http://www.milliondollarjourney.com/?p=520#comment-42836 FT, it's your site and all and I respect 99% of what you say, BUT I wouldn't give advice to have a mortgage broker friend pull it, that's an inquiry you don't need unless you're buying a house. In which case I suggest checking your score ON YOUR OWN 3-6 months before making any major purchases that way you have time to polish it up to qualify for a great rate. It may cost a little money to check it, but it'll save you a lot down the road. This is one area I wouldn't cut corners by having someone else pull it just to check. FT, it’s your site and all and I respect 99% of what you say, BUT I wouldn’t give advice to have a mortgage broker friend pull it, that’s an inquiry you don’t need unless you’re buying a house. In which case I suggest checking your score ON YOUR OWN 3-6 months before making any major purchases that way you have time to polish it up to qualify for a great rate.

It may cost a little money to check it, but it’ll save you a lot down the road. This is one area I wouldn’t cut corners by having someone else pull it just to check.

]]> By: Elvis K http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-42833 Elvis K Tue, 08 Jul 2008 00:02:43 +0000 http://www.milliondollarjourney.com/?p=520#comment-42833 FB, Yeah definitely, I told him to make sure everything is reported. Sid, Go here: https://www.econsumer.equifax.ca/ and here: http://www.transunion.ca .......these are the main two bureaus in Canada (although Experian is trying to get going here). As you can see they cost money, but the benefit is, you can review your credit reports and scores without getting an inquiry, which too many of those will kill your score. Yes too much available credit can hurt your score. Although it's not being used it looks like in a time of emergency you could possibly overextend yourself financially. Too many credit cards are never a good idea, even aside from credit scores. Canadians have a ton of credit card debt, and the credit card companies like it that way. Interest is what lines their pockets. Just on a side note to everyone, if you ever go to a car dealership and test drive a car, they always ask for your license, NEVER give it to them, as soon as you do that, you've given them everything they need to run a credit check on you, and they will, even if you're not buying a car, no sense in having that extra inquiry on there....I now know more than ever before that a great credit report sets up your future by either costing or saving you tens of thousands of dollars. So guard your credit file. I suggest checking it every 6-12 months to make sure everything is accurate. You'd be surprised at the percentage of credit reports that have errors, ranging from minor to major. You need every point so keep an eye on it folks! FB,

Yeah definitely, I told him to make sure everything is reported.

Sid,

Go here: https://www.econsumer.equifax.ca/ and here: http://www.transunion.ca …….these are the main two bureaus in Canada (although Experian is trying to get going here).

As you can see they cost money, but the benefit is, you can review your credit reports and scores without getting an inquiry, which too many of those will kill your score. Yes too much available credit can hurt your score. Although it’s not being used it looks like in a time of emergency you could possibly overextend yourself financially. Too many credit cards are never a good idea, even aside from credit scores. Canadians have a ton of credit card debt, and the credit card companies like it that way. Interest is what lines their pockets.

Just on a side note to everyone, if you ever go to a car dealership and test drive a car, they always ask for your license, NEVER give it to them, as soon as you do that, you’ve given them everything they need to run a credit check on you, and they will, even if you’re not buying a car, no sense in having that extra inquiry on there….I now know more than ever before that a great credit report sets up your future by either costing or saving you tens of thousands of dollars.

So guard your credit file. I suggest checking it every 6-12 months to make sure everything is accurate. You’d be surprised at the percentage of credit reports that have errors, ranging from minor to major. You need every point so keep an eye on it folks!

]]> By: FrugalTrader http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-42831 FrugalTrader Mon, 07 Jul 2008 23:54:05 +0000 http://www.milliondollarjourney.com/?p=520#comment-42831 Sid, there are a couple ways to find your credit score. You can go on the site equifax.ca and pay to get your score. OR, if you have a mortgage broker friend, they can pull your score for you. Sid, there are a couple ways to find your credit score. You can go on the site equifax.ca and pay to get your score. OR, if you have a mortgage broker friend, they can pull your score for you.

]]> By: The Financial Blogger http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-42828 The Financial Blogger Mon, 07 Jul 2008 23:48:56 +0000 http://www.milliondollarjourney.com/?p=520#comment-42828 Elvis K, The rrsp loan is a great idea since it's easier to get than a regular loan. Just make sure that the loan is reported to your credit bureau. Some institutions tend to forget them since they are most of the time small and short term loans. Don't forget that your credit score will also affect your rate on all kind of insurance (home, life, car, etc.) Elvis K,

The rrsp loan is a great idea since it’s easier to get than a regular loan. Just make sure that the loan is reported to your credit bureau. Some institutions tend to forget them since they are most of the time small and short term loans.

Don’t forget that your credit score will also affect your rate on all kind of insurance (home, life, car, etc.)

]]> By: sid http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-42827 sid Mon, 07 Jul 2008 23:48:36 +0000 http://www.milliondollarjourney.com/?p=520#comment-42827 Is there anyway to actually find out what my credit score is? I've looked at my credit report, which does not show your score, and I have a perfect payment history and my debt is about 10% of my available credit, but what score does that translate into? I have too many credit cards because the longer you keep them open, the better your score, right? And with the older cards, they keep increasing the amount of credit available without me asking them to. Does too much available credit hurt your score? Is there anyway to actually find out what my credit score is? I’ve looked at my credit report, which does not show your score, and I have a perfect payment history and my debt is about 10% of my available credit, but what score does that translate into? I have too many credit cards because the longer you keep them open, the better your score, right? And with the older cards, they keep increasing the amount of credit available without me asking them to. Does too much available credit hurt your score?

]]> By: United First Financial http://www.milliondollarjourney.com/how-to-improve-your-credit-score.htm/comment-page-1#comment-42817 United First Financial Mon, 07 Jul 2008 21:41:41 +0000 http://www.milliondollarjourney.com/?p=520#comment-42817 yea yer best bet is to start out with what they offer, use it frequently, pay it on time, and be consistent. -Jake yea yer best bet is to start out with what they offer, use it frequently, pay it on time, and be consistent.
-Jake

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