Credit Score

Credit Scores range from 300-900 with the average Canadian having one around the 720 range. Borrowers at the higher end of the scale get better rates, and those at the lower end get the less desirable rates due to their higher lending risk. It is interesting to note that only about 11% of Canadians have a Beacon Score above 800 and nearly no one has a perfect score of 900.

If your Beacon Score is below the magic number of 650, lenders will consider you a "B" client and will view you as someone with serious credit issues.

Home Line Of Credit

If you find yourself in the lower portion, approximately 300-580, you will find that lenders place you in the sub-prime category for lending. This means you will get horrible interest rates and high fees on any loans you take out. If you have bad credit, don't despair. You can fix your credit over time by understanding how the Beacon Score formula works and making sure to improve those areas of your personal financial situation which will also increase your Credit Score.

Credit Score

Here are some areas for you to consider:

Payment History - 35% of your Beacon Score - This is based on your payment history over the last few years. With on-time payments it will rise, and with late payments of even 30 days, it will fall. Any bankruptcy, judgments, or collection accounts are in this area of your Beacon Score.

Current Debt Load - 30% of your Beacon Score - Your current debt load is how much money you currently own and how many different creditors you owe money to. It also takes into consideration how much debt you would have if you maxed out all of your available credit.

Age of Accounts - 15% of your Credit Score - This is a rating based on how long your credit accounts have been open with longer being better. You want to ensure that you have at least 3 credit accounts which have been open for longer than one year for the best score.

Type of Credit - 10% of your Credit Score - Bank loans, credit cards, and revolving debt accounts each impact your Beacon Score in a different way.

Credit Inquiries - 10% of your Credit Score - Each time someone pulls your credit report your Beacon Score will temporarily drop. For this reason you do not want to make a ton of credit applications all at one time or prior to trying to obtain a mortgage.

There are overall three things which can kill your Credit scores like no other. They are: bankruptcy or judgments, payments over 30 days late, and maxing out your credit cards. For the best Beacon Score possible your credit card balances should always be below 50% of your credit line, or 75% at the absolute maximum. Another thing that can negatively affect your credit scores are erroneous entries on your credit report. Make sure you get a copy of your report on a regular basis and contest any entries which are incorrect. By understanding how your Beacon Score is tabulated, you can help your score to improve prior to attempting to obtain a mortgage loan. By doing so, you can ensure that you get the best mortgage loan rate possible.

Credit Score

Home Equity Loan Approval Is Swift

Quick home equity loans are easy to get and qualify for. Whether you are looking to remodel your home, pay off high-interest credit card debt, go on that dream vacation, or send your children to college, a quick home equity loan or line of credit may be the perfect solution.

Don't Rush In

Home Line Of Credit

Before you run out and sign the first offer that comes to you, here are some things to consider so that you can make sure you get a home equity loan right for your needs. Simply stated, home equity financing uses the equity you have in your home (home value minus what's owed) to secure a loan. Because of this added security, lenders typically offer better interest rates than when compared to unsecured loans, auto loans, or other loans backed by collateral that might depreciate over time.

Home Equity Loan Approval Is Swift

With most quick home equity loans, you'll be able to borrow an amount equal to 80% of your equity. For example, if your home is worth 0,000 and you still owe 0,000 then you could probably borrow up to ,000 (80% of ,000). Different than mortgage lending, home equity financing can actually take the form of two different kinds of financing, a loan or a line of credit.

A Home Equity Loan

A home equity loan, which is also known as a second mortgage, is no different than any other type of personal loan. It's simply a fixed amount of money that must be repaid over time in accordance with the terms. In almost all cases, a home equity lender will advance the full amount of your borrowing limit to you once you are approved. Then, you agree to pay a set amount each month that is based on the principal and interest, until the loan is repaid in full.

A Home Equity Line of Credit

In this scenario, you're approved for a revolving credit line up to a certain limit as decided by the lender. This means that you can borrow and then repay only what you need and only when you need it. Whether you write a check, use a "debit card" or request a bank transfer of available funds, you're allowed to obtain money during the open borrowing period. The interest rate generally varies depending on when you borrow the funds and your monthly payments will depend on the charges still outstanding on your line of credit.

A big benefit of home equity loans is that you may be able to deduct the interest paid on loans up to 0,000 if married and filing joint, or ,000 if married and filing separately. Regardless of how you use the home equity loan or line of credit, the interest you pay is generally tax deductible. This simply means that you don't have to use the home equity proceeds for capital improvements.

Home Equity Loan Approval Is Swift

Check Credit Report - Government Mandated Free Credit Report

The ability to check your credit report online has become easier than ever in recent years. The government has mandated free credit report information to be viewable to the average citizen at least once per calendar year. This has proven to be a major asset for many individuals that never truly understood their financial history and how their three digit scores were determined.

With access to their reports more people than ever are finding ways to repair their finances and strive toward solvency. Unfortunately, with the ease of this access some individuals have fallen prey to online scam companies that tout themselves as a reporting agency but really spend their time trying to lure in unsuspecting individuals. These poor unfortunate souls will avail themselves of seemingly solid financial advice or even accept a loan that seems to be in good faith. Then not long after it is accepted the interest rates rise dramatically or a large number of hidden fees are found. The individual that borrowed this money is now in worse shape than ever financially.

Home Line Of Credit

However, on a more fortunate level of business interaction there are also honest companies that specialize in helping an individual discover their rating and scores. These companies often offer free trials on a membership basis. This will allow an individual to view their credit report and get their scores as often as they like during this period for free. If they enjoy the easy access to their information they can simply keep working with the service. If they do not feel the need to continue with them then they may simply cancel their membership subscription before the trial period runs out. These sorts of companies also offer financial advice and occasionally they will negotiate debt settlements and offer consolidation loans as well. Unlike the scam sites these companies are known for their integrity and generally do not have hidden fees or highly variable interest rates. They usually work with a set interest rate and a repayment plan for the loan that is well within reason.

Check Credit Report - Government Mandated Free Credit Report

No matter what the reason an individual might have to search for their rating and scores they will find it much easier to do online. There is no need to spend time in a long bank line or have to deal with snide financial services in person. The entire process of acquiring your information happens online and in the comfort of your own home.

Check Credit Report - Government Mandated Free Credit Report

Finance and Credit, World's Apart #4 - You Don't Need a Realtor to Get a Steal

Many people are looking for a new home to buy in San Diego because the real estate market is perfect for buyers. High foreclosure rates, government aid for first time buyers, low interest rates and desperation has made it a great time to buy and you do not need a realtor to get a steal. The fact is that if you do your homework and are prepared you will be able to get the house you want at a great price. You need to take the time to find the best deal out there whether it is a foreclosure or just someone who needs to sell, and that means going through newspapers, looking on line and in magazines. San Diego is full of great deals right now, you just need to look and find them.

What you need to be aware of is how you are going to finance the house and what you need to get approved on a loan application. Most lenders demand three things, and these can not be addressed in a few days, you need to take months and years to prepare for them. First you need to have money saved up, figure at about 20% of the purchase price to be safe. If you are a first time buyer this is where you can get some help. The government has a program that will give you some money for free to put towards a down payment on a new home. Next you need to make sure you have established income. If your monthly mortgage bill will be ,000 figure that the bank wants you to earn between ,000 and ,000 a month so they know you can afford it easily.

Home Line Of Credit

Finally you need to have a good credit score not only to get approved but so you can save on the monthly payments. This may be the easiest of the three even if you have a low number because you can fix it in weeks with credit repair. Credit repair is a fast and effective way to fix your score and it works great.

Finance and Credit, World's Apart #4 - You Don't Need a Realtor to Get a Steal

By David George

Finance and Credit, World's Apart #4 - You Don't Need a Realtor to Get a Steal

Mortgage Refinancing: Home Appraisal Basics

If you are in the process of refinancing your mortgage loan, your new mortgage lender may require an appraisal prior to approving your loan. Here is what you need to know about appraisals, including tips to help maximize the equity in your home.

Your home's appraisal is a written estimate of the market value of your property. Mortgage lenders use the appraisal to determine how much of a mortgage you qualify for. When you are refinancing your mortgage, the appraisal will also determine how much equity you own in your home. If you will be borrowing against this equity, the lender will most likely require that you pay for a new appraisal prior to approving your loan.

Home Line Of Credit

The appraiser is a licensed professional that will do a market analysis of sale prices for similar properties in your neighborhood and evaluate the condition and amenities of your home. The appraisal will require a thorough inspection of your home inside and out.

Mortgage Refinancing: Home Appraisal Basics

When you are refinancing your mortgage your goal is for the appraised value to be as high as possible. There are a number of improvements you can make to your home that will improve the appraised value of your home; however, don't go overboard. New carpet and a coat of paint will go a long way to improve the appraised value. What you don't want to do is purchase top of the line appliances; these purchases rarely give you enough of a boost in your home's value to justify the expense. The best thing to do is make sure your home is up to snuff with your neighbors as far as the amenities and add-ons you invest in to improve your home's value.

When searching for a home appraiser, look for an experienced professional licensed in your area. Your realtor may be able to recommend a good one; if you are not able to find a recommendation try contacting the Appraisal Subcommittee. The ASC maintains a database you can access on their website to help you locate a licensed appraiser in your area. You can learn more about your mortgage and the appraisal of your home by registering for a free mortgage guidebook.

Mortgage Refinancing: Home Appraisal Basics

The 700 Credit Score - Is 700 a Good Credit Score?

A 700 credit score is more common that you might think. This score puts you in the medium risk category for creditors. What does that mean? It means that you will get good interest rates on most loans and credit cards.

Is 700 a good credit score? It is definitely a good credit score. It shows that you have taken efforts to build a good credit history and have good habits when it comes to managing your debt. As we had mentioned this score is fairly common and you can reach this score without difficulty if you are lower than this. If you are 700 or slightly higher, you can still take steps to boost your score. Increasing your scores by around 30-50 points can save you 1000's if not 100s of 1000s of dollars over the long term. So, you must be wondering about two things - why is my credit history so important? and how do I raise my score and start making changes today? Lets address these one at a time.

Home Line Of Credit

Why is building a good credit history important? Your creditors have to assess the risk you pose when they loan you money. The better your credit history (no late payments, no collection activity and a record of making payments on time), the better your credit score will be. Need to buy a house? Want a student loan? Looking to open an equity line of credit to finance home renovation? When you go to a bank or other financial institution to discuss your options, whats the first thing they will look at before making a decision. Thats right - your credit score (which is essentially based on your credit history).

The 700 Credit Score - Is 700 a Good Credit Score?

Now, lets discuss the other side of things. How do you raise your credit score? There are a few specific actions you can take:

1) Get your 3-in-1 credit score

Get your scores from all three bureaus - Equifax, Transunion and Experian. Most creditors will take the median score from all three agencies. When you get your scores, you will realize that your credit report from the three agencies doesn't look the same. Were you very late on a rent check? Did you pay that library fine on time? For some late payments the chances are you would be reported to only one of the bureaus.

2) Make a list of ALL your credit accounts

Create an excel spreadsheet of all your credit cards, real estate accounts, home loans or any other debt that you have. Track the monthly payments you are making in this spreadsheet along with the interest rates and the balances owed. Then use online payments to automate paying off atleast the minimum payments towards these balances. You can't afford to fall behind from this point on. The other benefit to this form of tracking is the motivation you get from seeing your loan amounts shrink.

The 700 Credit Score - Is 700 a Good Credit Score?

Gas Credit Cards - Instant Approval?

It seems as if in this world, people only want to apply for a credit card that's going to approve them on the spot. While those cards are out there, you're going to want to make sure that you're reaching certain guidelines before you set out and fill out an application.

In order to get approved for an application, you must meet the following guidelines most of the time. Keep in mind that this is going to vary from card company to company.

Home Line Of Credit

Must have a good score: If you have a score of anything less than 750, you're going to have a hard time getting instant approval. It doesn't mean that you won't get approved, it's just going to mean that you're going to have to wait. Debt to income ratio: If you have 10 credit cards and a lot of debt, they will want to dig deep into this. If you have no debt, this is another big plus. History: If you haven't established credit for not that long, what you're going to find out is that most companies will want to dig deeper into your credit history to check.

Gas Credit Cards - Instant Approval?

Where can I get an instant approval card?

The first place that you should check is online. Many credit card companies will state that you can get an approval within seconds. They love to capitalize on this one, because they know that people are going to apply. If you don't see instant approval, there's a good chance that you won't get approved.

The next place that I would check into is the bank. Whether you work with a credit union, a major bank such as Chase, BofA, etc, you can walk into any branch and ask them about any cards that they have to offer. Explain your situation and see what they will say.

Do many gas cards give out instant approvals?

Yes! Reward card companies generally give out the most in terms of instant approvals. Since those that have great credit usually apply for rewards, you're going to find that if you find that if you have great credit and you meet the expectations up above, you're going to have a good chance at landing a card right away.

What kind of gas card company should I look into?

I would look into Discover, Citi, Chase, as well as Capital One. They all have a great line of cards and they should all meet your expectations.

Gas Credit Cards - Instant Approval?