According to Carrie Coghill, Director of Consumer Education for FreeScore.com, a consumer’s 2011 New Year’s goal should be to have his or her credit scores add up to at least 2,011.

Coghill stated, “You have three credit scores from the three major bureaus: TransUnion, Experian, and Equifax. If those scores total 2,011, you’ll have an average score of 670, which is a solid ‘B’ and acceptable for getting loans.”

According to FreeScore.com, “Directional letter grades associated with credit scores are as follows:”
Grade*    Score Range
A    741 – 850
B    641 – 740
C    541 – 640
D    451 – 540
F    300 – 450

*These are guideline-only grade ranges for scores. These grade ranges are simply directional and cannot be used as a “rule.” They are designed to help consumers better understand credit scores by translating them into rough “grade ranges.”

Recent mortgage lending tables from the fourth quarter of 2010 show how a lower credit score can cost mortgage applicants:

Credit Score/Interest Rate    
720+         4.30%    
700-719    4.44%
680-699    4.56%
660-679    4.60%
640-659    4.73%
620-639 4.90%

On a $ 200,000, 30-year, fixed-rate mortgage, the difference between a 4.375% interest rate and a 4.875% interest rate — just half a percentage point — amounts to $ 59.85 per month. That translates into over $ 21,500 over the life of the loan, which is more than 10 percent of the original loan amount.

For consumers to put themselves in position for better interest rates, Coghill recommends the following dos and don’ts:

1. DO pay all bills on time, every time. Every bill paid late can affect credit scores, while every bill paid on time builds a consumer’s standing.

2. DO keep all financial documents. That includes bills, bank and credit card statements, receipts, canceled checks, and so on for the last several years. This documentation will help a person dispute errors on a credit report, including unauthorized charges. If a consumer ever has to deal with identity theft, this information will help as well.

3. DO get credit reports. Consumers need to review their credit report from each of the major credit bureaus, TransUnion, Experian, and Equifax.

4. DO clean up errors on a credit report. Once a consumer has their credit reports, disputing negative items is the fastest, easiest way to remove them and thereby make certain that their credit scores reflect an accurate financial history.

5. DO reduce the level of debt. Focus on paying off credit cards, both because they have high interest rates and because they affect a credit score a lot.

6. DO minimize the number of inquiries on a credit report. Single inquiries (as from new credit applications you make) won’t have a big impact, but a number of inquiries in a short time period can damage credit scores.

7. DO keep open but unused credit card accounts, especially older ones. The longer the average account age and credit history, the better, so keeping old but unused accounts open can help because it shows a consumer to have a long credit history. Unused credit also improves a consumer’s ratio of used to available credit.

8. DON’T apply for or take on new revolving credit unless it is really necessary. If a consumer is already maxing out his or her available credit, new applications and additional debt may hurt a person’s credit standing. For example, FreeScore.com consumers ran “what-if” credit simulations and found that increasing credit on a credit card can drop a credit score by more than 50 points.

9. DON’T go bankrupt if there is any possible way to avoid it. Bankruptcy can take hundreds of points off a credit score — and years to overcome.

About FreeScore.com

FreeScore.com is the leading online consumer credit site, providing consumers with affordable, unlimited access to all three of their credit scores and complete credit profile. Launched in 2009 with an award-winning advertising campaign featuring actor, economist, and lawyer Ben Stein, FreeScore.com has serviced more than 750,000 members. Members have unlimited access to their credit scores from all three bureaus, a complete credit profile, and expert tips, articles, videos and other educational information about credit management. For more information, go to FreeScore.com.

“Like” FreeScore on Facebook
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The articles and information available are for educational and reference purposes only. They do not constitute, and should not be construed as, legal or financial advice. Any legal or financial principles discussed here are for general information purposes only and may differ substantially in individual situations and/or in different states or countries. For specific legal or financial advice, please consult a licensed attorney or a financial professional. FreeScore does not control or guarantee the accuracy of any information provided through external links from the articles on this website to any other website, nor does the FreeScore Privacy Policy apply to any personal information that may be collected via the external links.

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©Copyright 1997- , Vocus PRW Holdings, LLC. Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

“People are finding out that credit is affecting almost every aspect of their financial lives” says Scott Brown a fair credit reporting advocate and author of a web site named “Credit Repair” (http://selfhelpcreditrepair.blogspot.com).

Credit repair information is in high demand these days and for good reasons. Deleting negative items on your credit report can save you hundreds of thousands dollars in mortgage interest alone. With your credit rating affecting other things such as insurance premiums, credit card and auto apr’s, getting an apartment, or even getting a job, it could be financial suicide not to optimize one’s credit report.

Until recently doing credit repair was left up to attorneys or services that specialized in it.

“Credit repair has been a well kept secret. Until the last 4 or 5 years consumers were left in the dark when it came to understanding their credit reports and credit scores” Scott goes on to say.

Scott also attributes much of the thirst for credit knowledge to Identity Theft which affected nearly 10 million consumers last year.

For more information on credit repair and other credit related issues you can go to Scott’s free credit repair site at:

http://selfhelpcreditrepair.blogspot.com
http://creditrepaireducation.com

Or become a member of his new Yahoo discussion group for credit repair:

http://finance.groups.yahoo.com/group/creditrepair/

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©Copyright 1997- , Vocus PRW Holdings, LLC. Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

Answer by Starte M
FORGET CREDIT. Are you a FICO score? Endeavor to live debt-free and put that credit nonsense in the toilet where it belongs.

It is unwise to attempt to ruin anybody’s magnanimous spirit with the approach of the holidays. This is the time for giving and exchanging of gifts, and what an immense feeling of contentment that is derived knowing that gifts have gone to help somebody in need!

Unfortunately, too, this is the time of the year to be most fearful of. Consumers over-stretch their budgets, max out their credit cards and some even over-spend their credit limits with disastrous consequences on their credit report scores. Others have their identities stolen and they don’t realize it until it is too late.

Everywhere, consumers are encouraged to throw caution to the winds and are lured into spending like there is no tomorrow. Even the press gets in on it with daily analysis of whether or not this is going to be a bumper harvest for retailers and, for that reason, an indicator of consumer confidence and of a strong economy. Spending wisely and frugally at all times is better than spending a lot at any time. If consumers would only spend wisely all the time, there would be a sustained strong economy.

The time to be most vigilant about credit report scores is the holidays period. Consumers who have not ordered their credit reports should do so around this time. Maybe, some have resolved, with the coming of the new year, to buy a new house or a new car or go back to school. Good credit is needed for that. The problem is that a lot of consumers will over-spend and this will result in damaging their credit report scores, thus shattering any hopes of achieving their resolution for the coming year. Another issue to be vigilant about is identity thieves. Scrutinizing credit card statements would allow consumers to catch any unauthorized activity early so that major problems are avoided along the line.

It is important for consumers to order their credit reports, to know what is in them, and to fix their credit scores and free themselves from financial ruin. One of the best times to do this is just before the start of the holidays and/or shortly after the ushering in of the New Year.

For more information about credit report scores, please visit: http://www.aba-online-credit.com

Happy Holidays to All!

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©Copyright 1997- , Vocus PRW Holdings, LLC. Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

Information is key for consumers who want to turn the corner on bad credit. The first step is to check all three of your credit scores and reports. According to FIC Inc., 25.5% of consumers, or nearly 43.4 million people, now have a credit score of 599 or below. Additionally, 25% of credit reports have a significant error. American consumers who check their credit scores and reports regularly to catch errors can better protect their credit histories.

According to Carrie Coghill, a Top 100 Financial Advisor and the Director of Consumer Education at FreeScore.com, “Knowing your three scores and reports allows you to see your financial problems on paper. Once you know the issues, you’re in a position to take appropriate steps to fix them yourself.”

Coghill suggests that if your budget is tight, you can improve your own credit by tightening up your spending habits. Again, information is the key to self-help. “Know what expenses you have and how much you can spend each month. Once you understand what you can afford to spend, you can contact your creditors to explain your financial situation and discuss a new payment plan. Always paying your bills on time and reducing your debt-to-credit ratio are also important factors in maintaining a high credit score,” she explained.

Coghill says another way you can improve your credit is by avoiding making drastic changes in credit cards or bank accounts. Lenders look for responsible and stable potential clients — making rash decisions, such as opening or closing a large number of bank accounts or having lots of inquiries on your credit report, can make you look like an irresponsible and unstable customer.

About FreeScore LLC

FreeScore LLC is a leading provider of online information management services that help consumers take charge of their own finances to reach their financial goals and achieve safety and security in their personal lives. FreeScore.com is a leading online consumer information site, providing its members with affordable, unlimited access to all three of their credit scores and their complete credit profile. Launched in 2009 with an award-winning marketing campaign, more than 750,000 members have joined FreeScore.com to better understand their credit scores and reports. Members have unlimited access to their credit scores from all three bureaus, a complete credit profile, credit score simulator, and expert tips, articles, videos and other educational information about managing your own credit. For more information, go to FreeScore.com.

Lets Keep in Touch

Become a Fan of Free Score on Facebook
Follow Free Score on Twitter
Check us out on YouTube

The articles and information available are for educational and reference purposes only. They do not constitute, and should not be construed as, legal or financial advice. Any legal or financial principles discussed here are for general information purposes only and may differ substantially in individual situations and/or in different states or countries. For specific legal or financial advice, please consult a licensed attorney or a financial professional. FreeScore does not control or guarantee the accuracy of any information provided through external links from the articles on this website to any other website, nor does the FreeScore privacy policy apply to any personal information that may be collected via the external links.

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©Copyright 1997- , Vocus PRW Holdings, LLC. Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

Credit scores are not universal. In other words, you could pull your credit score from all three credit bureaus and find that they not only don’t match each other, they won’t match the FICO score that your lender accesses.

“This is becoming a real problem — a lot of people simply don’t know the difference between FICO scores and other scores,” said Ginny Ferguson, co-owner of Heritage Valley Mortgage of California. “They think it’s all the same.”

Many borrowers meet the lender, only to find that their FICO scores are 50 to 100 points lower than the generic score found online.

Credit scores are often referred to as FICO scores. This is actually a company, Fair Isaac Corp., which developed the scoring system used by the mortgage industry. FICO scores range from 300 to 850. The higher a borrower’s score, the less of a risk they pose to the lender.

There are several different types of commercial scoring models available through the internet. However, most lenders will use only FICO scores to price their mortgages and loans.

Many borrowers are surprised when they go to the lender with a generic score, to find the lender says their FICO is much lower.

“The consumer assumes the broker did something to make their scores worse,” said Ferguson. “And, of course, that is not the case.”

Ferguson says that the typical FICO score is below that of the generic internet score. She says that despite what is found on the internet, the lender will go with the FICO reported by their source.

Fair Isaac has started taking notice of the disparities. In it’s own research, it found that FICO scores can be as much as 200 points lower than other scoring models.

Many credit scoring sites contain fine print that points out that the score is not “a FICO score.” Others say that they are an example of how you could be viewed by a lender.

Advisors say that keeping track of your credit score is an important aspect of financial management. Consumers should understand that most scores are just an estimate of where they are credit-wise.

About RateEmpire.com

RateEmpire.com, an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, banking, investing, taxes, debt management and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.com

Source: http://www.RateEmpire.com

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©Copyright 1997- , Vocus PRW Holdings, LLC. Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

While consumers are being constantly bombarded with solicitations of credit cards on our airwaves these days, nobody seems to be explaining the impact of credit on our financial lives. Many consumers do not appreciate or even understand the impact of credit report scores on their lives.

Obtaining credit costs money. How much your loan will cost you depends on the interest rate that you are prepared to pay on the loan. This is what differentiates the average “Joe” from a millionaire when they both apply for the extension of credit from the bank. The millionaire almost certainly has tangible collateral and presents less risk to the bank. With good credit on top of that our millionaire friend gets very low interest rates on money he borrows. Joe, on the other hand, probably has nothing to use as tangible collateral, and so in the eyes of the bank Joe’s only collateral is his credit report and fico score. He is therefore more of a credit risk than the millionaire, and this is even more so if Joe’s credit score is low. In terms of risk, consumers must therefore have a deeper appreciation of the impact of credit report scores on their financial lives. Banks don’t like giving out loans to people with low credit report scores, and even if they do, they usually charge huge interests for such loans. You are a big risk and don’t have any collateral, remember?

With this knowledge, why wouldn’t the average consumer try to improve upon his credit score profile? Any tiny piece of negative information on your credit report can ruin your credit report score or fico score. Ignorance can be very costly indeed. Obtaining your credit reports, fixing errors, and improving upon your fico or credit score should be brought up higher on our priority lists, especially for those of us who need to rely on the extension of credit from banks to make important acquisitions like a home or a car.

This is especially important for minorities. How many times have we not heard about complaints in which consumers have felt discriminated against because of denial of credit? Without attempting to pretend to have knowledge of the details of these complaints, I am willing, however, to hazard a guess that, perhaps, the underlying causes of some of these denials stem from low credit report scores. Consumers have simply not given their credit profiles the needed attention that is required.

Without making any assumptions about the financial sophistication level of its visitors, Aba Online Credit http://www.aba-online-credit.com presents information on credit report scores in very simple language so that it is not burdensome to the average consumer to understand. Please visit the website for more consumer credit information.

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©Copyright 1997- , Vocus PRW Holdings, LLC. Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

Credit score compatibility probably isn’t tops on the list of factors to weigh before popping (or answering “yes” to) the big question, reports AP9 PrivacyMatters, a leading security and privacy membership program offered by Adaptive Marketing LLC. Nevertheless, the influence that credit scores can hold over your financial future raises a legitimate question about whether your marital status can have unforeseen credit consequences.

Banks and other financial institutions use credit scores to help determine whether someone is worthy of receiving a loan or a line of credit — and at what interest rate, notes AP9 Privacy Matters. A higher credit score can lead to a more favorable (i.e., lower) interest rate. A lower score suggests a higher credit risk and typically results in a higher interest rate. Should you therefore hold off on marrying the love of your life until his or her credit score can promise more favorable credit terms?

AP9 PrivacyMatters prefers to leave any and all marriage decisions up to each couple, but we can offer a few insights about how your marital status can (and can’t) affect your credit score:

– Your marriage is none of their business. Per the Equal Credit Opportunity Act (ECOA), credit scoring systems are not allowed to use marital status as a factor. Along the same lines, banks, credit card issuers, real estate brokers and other parties who arrange financing aren’t allowed use your marital status as a factor in deciding whether to extend you credit — they’re not even allowed to inquire as to whether you’re divorced or widowed. There are exceptions to the “no questions allowed” rule (in the event, for instance, that you’re applying for a joint account or a loan that uses property as collateral), but even then, they’re limited to the terms “married,” “unmarried” or “separated.”

What this means is that your marital status won’t affect your personal credit score. However, as noted above, a bank or other creditor can include your spouse’s individual credit rating as a factor in a decision regarding joint loans or joint accounts.

– Divorce, on the other hand, can influence your credit score. It’s not the divorce itself that can affect a credit score so much as the financial behavior that occurred during (and, sometimes, after) the marriage. A credit score is a measure of a person’s credit history, and oftentimes, a married couple will set up accounts in one spouse’s name rather than in both names. The “unnamed” spouse’s credit history can all but disappear from the credit bureaus’ radar, especially for a wife who takes her husband’s name in marriage. Divorced, separated and even widowed spouses should therefore contact the three credit bureaus (TransUnion, Equifax and Experian) to ensure that his or her credit information is in his or her own file.

Alimony, child support, and other financial arrangements of a divorce can be used by creditors when making a loan or credit decision — as can late payments in any of these matters, which can be a strong motivation for making payments on time. Other factors to keep an eye out for during the divorce process include divvying up open accounts (including bank accounts and utility bills) to one party or the other; informing certain creditors that their accounts are no longer in your name; staying up-to-date on all bill payments (even those that will ultimately be assigned to your ex-spouse) to ensure that creditors don’t come after you; and closing joint accounts or removing one party’s name from them.

If you’re about to get married, you deserve wishes for a lifetime of happiness and good fortune. In any event, it’s always a good idea to keep your finances in order, reports AP9 Privacy Matters.

About AP9 PrivacyMatters
AP9 Privacy Matters is a leading membership program offered by Adaptive Marketing LLC that provides consumers with unlimited, online access to their credit reports and scores, including the option to review their credit files from all three credit reporting agencies, credit monitoring, and more. Headquartered in Norwalk, Conn., Adaptive Marketing is a category leader in membership programs, bringing value direct to consumers through an array of benefits in healthcare, discounts, security, personal property and personals. Members may access their benefits at PrivacyMatters.com. With broad online and offline distribution capabilities, Adaptive Marketing offers its corporate client partners effective tools to enhance market presence, strengthen customer affinity and generate additional value through programs such as AP9 PrivacyMatters.

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©Copyright 1997- , Vocus PRW Holdings, LLC. Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.