Regarding Credit !!!

This is a 2 part question regarding credit.?

First I am trying to find out what is the best way to improve my credit score for a mortgage approval to purchase a home for the first time. Currently, i have two judgements from old credit cards totaling a balance of 3k. Those have both been paid to law firms this week.

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In addition i have approximately 1000 to 1500 in various and numerous collection accounts approximately 10-15 accounts depending on which report you look at. some of them are six years old some are less than two years old and the highest balance on any one of them is $300.

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Being that i just paid off the judgements i dont have a lot of other cash lying around to pay anything else. I also have a secured credit card with a 500 limit that i never pay late or carry more than $125 on. only had that account since june. Also an auto loan just opened last month for 5k that is current and will continue to be paid on time. my scores are anywhere from 587 experian to 630 equifax and 617 transunion...how do i get over 700?




The Answer : Okey , here's the real....

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But first, to give you an idea of what you're working with, I'm going to break down what makes up your score:

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1.Payment history- 35%

2. Total debt owed vs. availalble credit- 30%

3. Length of time establishing credit- 15%

4. Types of credit established- 10%

5. Inquiries and New accounts- 10%Having said that, here's what you need to work on.

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1. Paying those judgements off will help, but it would help more if they were either changed to a favorable rating or removed altogether. Keep in mind that those judgements even though paid, will stay on your report 7 years.

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2. As for the collection accounts, there's several ways that you can go with this. You mentioned that some of the debts range anywhere from <>

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If a debt is older than 5½-6 years, there's no sense in paying it since the SOL will expire and it will stop reporting after year 7. The more recent debts, you may be able to settle. Here's a link on how to settle debts that you may find useful.

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http://creditinfocenter.com/debt/settle_...


http://creditinfocenter.com/debt/neg_rat...


http://creditinfocenter.com/debt/CanCred...


http://creditinfocenter.com/debt/ActualD...

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Now as for the accounts that you have, the car loan will help since it's an installment loan, and the secured card will end up being your ace-in-the-hole. Reason I say that is that 30% of your score depends on how much you have available versus your total debt.
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A secured credit card can help you change that because you can increase the credit line by adding to the deposit. One thing that would help your score tremendously would be to aggressively start adding to the deposit. This money would also serve as a down payment toward the house.

A credit card with a high limit and a low balance definitely helps your score. As long as you keep the balance manageable, when it comes time to convert to a regular card, you'll keep the limit you built with the deposit, which you'll get back anyway with interest attached.
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And another thing to think about is this, with the recent situation with mortgage lending, I would strongly suggest waiting some before pursuing buying a house, at least a year, if not 2. The mortgage industry's going back to what's called "common sense" lending in which other factors besides credit score will be taken into consideration.Hopefully my answer will have shed some insight for you

Good Luck!

Closing Out Credit Cards Paid in Full Lower Your Credit Score !!!

Will closing out credit cards that are paid in full lower my credit score?

I have about 3 credit cards that are paid in full and there just sitting there. i was always told that having open lines of credit available could pose a threat to future lending loans.
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i have older ones that i would keep open and i may use from time to time, so i would still have some credit to work with, but im not sure should i close the paid in full ones or not. any advice would be great.

The Answer : I am Going to break down what makes up your score:
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1. Payment history- 35%
2. Total debt owed vs. available credit- 30%
3. Length of time establishing credit- 15%
4. Types of credit established- 10%
5. Inquiries and new accounts- 10%Having said that, now this is what happens...
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When you close accounts, especially when they're paid off, you shorten the payment history, and even worse the available credit, which give the appearance that you owe more than you're capable of borrowing. Also, it shortens the average age of accounts giving the appearance that you've established credit more recently than you have.
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Keep in mind, you can make a small purchase (like $10/month) and pay it off, to show activity every month. Remember, the more available credit, the better it reports on your credit.

Get Visa Card !!!

How Can I Get A Visa Card ?!!!

I`m 18 years old, just finished high school and frequently I find myself on the internet wanting to buy cheap things in the $20-50 range, and I was wondering how and if I can get a $500-$1000 visa.

I would probably only touch $100 of it and then keep my card and not use it to obtain good credit.How would I go about this? I know that you can apply online but I'm not sure how or where...Also, how long does it usually take to get accepted and get your card.

The Answer : Secured cards are the easiest to get approved for reason being that you would place a deposit upfront as collateral to secure a line of credit. Where you bank like bdancer mentioned may offer these, a lot of the major banks (Citi, Bank of America, Wells Fargo, USBank) do.

You can think of this as building credit with a savings account, because that's basically how it works. That deposit is usually linked to a savings account or CD that gains interest while you build credit. The 2 major advantages of secured cards are the easy approval and the ability to increase the credit line yourself by adding to the deposit. For example, if you deposited $300, your credit line would be $300.

These "starter" credit cards are a perfect way to custom build a high limit credit card and save up money while you're building credit. You could very well apply for a regular card, but also run the risk of getting declined because of a lack of credit history. With a secured card, you make your history as you go, and you have more control. A good way to manage the card would be to make small purchases ($20-50 monththat can be paid off on time every month while adding to the deposit to increase the credit line as this would be extremely helpful in building credit.

High credit lines show responsiblity with credit as well as provide yourself a considerable cushion between what you owe and what you're able to borrow. Usually after a year or so of paying on time and keeping the balance low, if not 0, the card either converts over to a regular card, a better card's offered and more importantly, the deposit's no longer needed and given back.

Keep in mind that the deposit is gaining interest while you're building credit so when it does convert, you'll have interest attached when it's given back to you. I've posted several links to some secured card companies that should work for you. Hopefully, this answer helps

Good Luck!

Car Reward Credit Cards - Earn a New Vehicle Now

Car Reward Credit Cards - Earn a New Vehicle Now

With a car reward credit card, your credit card spending could be earning points towards a new car or vehicle related rewards. What reward is better than a brand new car? Here is a comparison of some of the top car reward credit cards.GM Flex Card - 1% Cash Back or 3% Towards a New GM

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•A full 1% cash back option

•Earn a full 1% toward any new vehicle

•Triple your Earnings to 3% toward an eligible, new GM vehicle

•No Annual FeeThe GM Flex Card has a name that speaks for itself. It has the flexibility of either cash back on all purchases or a vehicle rebate. You can use the rebate as 1% towards any non-GM vehicle, or 3% towards any eligible new GM vehicle.

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GM Business Card from Chase - up to 3% cash back & rebates on GM vehicles

•0% Introductory APR for up to 12 Months*

•No Annual Fee

•3% Earnings on fuel purchases, restaurants, office supply stores, and authorized GM dealers on

•GM parts and service

•1% earnings on all other purchases

•No caps or limits

•Free cards for employees

•$600 statement credit with every purchase or lease of new GM vehicle through GM Business Choice programThe GM Business Card from Chase is aimed at businesses that require company vehicles. Even if your business doesn’t plan to buy a GM vehicle, this credit card could be used to save on gas, office supplies or meals.

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The Subaru® Platinum MasterCard® from Chase - Earn SubaruBucks

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•0% Introductory APR on purchases and balance transfers for up to 6 months

•No annual fee

•3% Rewards on all purchases (up to $500/yr)

•Redeem for Subaru merchandise and servicesThe Subaru® Platinum MasterCard® from Chase can used to save towards a new Subaru or Subaru parts & service.

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The annual reward limit of $500 is still high as that is over $16000 in annual credit card purchases. The rewards program is restrictive unless you plan to purchase a Subaru or if you actually go to the dealership for service.

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Volkswagen Platinum Visa® Card with Rewards - Flexible Car Reward Credit Card

•0% Introductory APR for up to twelve months

•No Annual Fee

•2 points for every dollar on VW purchases

•1 point for every dollar spent on all other purchases

•Redeem points for VW cars, gear, service, and other rewardsThe Volkswagen Platinum Visa® Card with Rewards allows you to earn points towards a new VW, parts & service or even non-VW rewards. Other rewards include airline travel, hotel rebates, car rentals or gift certificates. You can even use your points towards an existing VW lease or loan.

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Car Reward Credit Cards Comparison The GM Flex Card is probably the best car reward credit card. It lets you choose cash back or vehicle rebates. Plus it has the lowest APR rate among these consumer credit cards. The Volkswagen Platinum Visa® Card with Rewards is a close second with a rewards program that might be even more flexible than GM’s.

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It just didn’t offer as high a vehicle cash rebate percentage. The Subaru® Platinum MasterCard® from Chase offered up to 3% rebates, but the rewards are restricted to Subaru related purchases. The Subaru credit card only has a 6 month 0% introductory rate compared to 12 months for VW or GM. For businesses,

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the GM Business Card from Chase is a good deal, especially if you purchase GM vehicles.Most car reward credit cards are very good deals. Ideally a rewards credit card offers rewards relating to your interests. So if the vehicle you drive or plan to drive offers its own credit card, why not apply? If you’re proud of your vehicle, show it with your credit card. It could earn you special discounts, cash back and other perks. Most car reward credit cards have no annual fee either. So apply online today.