Do You Sincerely Want to Improve Your Credit?

Credit has become a noose to many first time home buyer.  There are ways to loosen that noose.

One way is to ga copy of your credit report from all three credit bureaus.  The credit bureaus are required to furnish a free copy of your credit report once a year and to provide a copy if you are denied credit.  To get your copy simply write, call, or apply on line:

• Equifax Post Office Box 740241 Atlanta, Georgia 30374 or call at  800 685 1111  www.equifax.com/fcra
• Transunion Post Office Box 1000 Chester, PA 19022 800 916 8800 www.transunion.com
• Experian Post Office Box 2104 Allen, TX 75013 800 493 1058 www.experian.com

You will need to provide proof of who you are.  You can accomplish that by providing a copy of your:

• driver’s license
• social security card
• addresses for the last five years

Still yet, another way that you can improve your credit is:

• pay your debt on time
• only use 30 percent of your debt
• do not cancel credit cards that you have had for years
• do not apply for new credit
• get and maintain different types of credit (ie home, car, credit cards, etc)

To learn more about improving your credit also read:

Credit How Important Is It

Related articles on credit

• History of Credit Bureaus: Equifax, Experian, TransUnion & Innovis (bargaineering.com)
• FTC Approves Federal Register Notice Announcing Increase in the Ceiling on Allowable Charges Required By Section 612(f) of the Fair Credit Reporting Act (ftc.gov)
• ‘Free’ credit reports scam (tech.bl0x.info)
• Should You Sign Up for a Credit Monitoring Service? (hsh.com)
• How to Prepare Your Credit for a Home Loan (homeloans.org)

A Bankruptcy Does Not Have to End Your Credit Life

A bankruptcy does not have to end your credit life.  Did you know that you can apply for a mortgage after only four years if you file a Chapter 7, 11, or 12 bankruptcy and two years after a Chapter 13 bankruptcy?  However, to be eligible you must do certain very simple but important things.

First, you must re-establish your credit right away.

Secondly, send a copy of the discharge letter and list of creditors included in the bankruptcy to all three credit bureaus, and request that the bureaus update your credit report to show all creditors involved in the bankruptcy balance as zero and request the bureau to list all creditors involved in the bankruptcy.  By completing the latter it will demonstrate that the creditor is no longer owed.  Once this update is complete you should receive an updated copy of your credit report.

Once again, the three credit bureaus are:

• Experian
• Equifax
• Transunion

Do not give up on every purchasing a home just because life happened and you had to file a bankruptcy.  Just remember, that paying your rent on time for at least 24 months gives you alternative credit that may help you to be able to qualify to buy a home.

Still yet, paying your utilities, car insurance, cell phone bill, etc. on time are also alternative credit or industry termed alternate trade-lines of credit.

If you are interested in more tips similar to the tips above, then purchase and read, Dale Robyn Siegel’s new book, The New Rules for Mortgages.

She has 28 pages dedicated to help you improve or maintain your credit so you can purchase or refinance a home.  Purchase it today at a bookstore near you.

Related articles on bankruptcy

• Can unpaid consumer debt speed recovery? Don’t bank on it (dailyfinance.com)
• Corporate insolvency rate ‘will rise again’ warn experts (telegraph.co.uk)
• Asset Resolution LLC Files for Chapter 11 (netdocketsblog.com)
• CIT Group Files for Chapter 11 Protection (netdocketsblog.com)
• History of Credit Bureaus: Equifax, Experian, TransUnion & Innovis (bargaineering.com)
• ‘Free’ credit reports scam (tech.bl0x.info)
• 5 Ways To Kill Your Credit Scores (creditra.blogspot.com)
• Bankruptcy dilemma: Will the real Ellen Tracy please stand up! (dailyfinance.com)
• Bankruptcies spike 33% (money.cnn.com)
• Bankruptcies in Canada decline 27 per cent (thestar.com)
• Debt Settlement Company Rivals Credit Counseling Debt Consolidation with Superior Debt Relief Benefit to Help Unemployment Victims Avoid Bankruptcy and Foreclosure (prweb.com)

Consider Your Federal Income Taxes When Buying a Home

Can you believe that buying a home is a big financial decision?  Can you guess why?  Did you know that the purchase of a home can affect your federal income taxes?  How you ask?  Let’s examine.

In recent years, many mortgage brokers have convinced buyers to commit to large loans with large interest rates.  The mortgage brokers, however, did not discuss the financial burden and/or the federal income tax consequences. 

Misconception about Mortgages

Some buyers came to the mortgage broker asking for or under the misconception that having a higher mortgage interest rate would give them higher write offs on their federal income taxes.  However, many of those same buyers discovered at tax time that due to alternative minimum taxes the write offs were not what they expect and they did not reduce their federal income taxes at all.

Still yet, others did not consider that the pre-approval they received did not account for their utilities, grocery bill, clothing, entertainment, etc. as a result the purchase of their new home became financially overwhelming very quickly.  The reason for this is the pre-qualification only evaluates bills and credit that is reported to the credit bureau.  It does not reflect all of the expenses necessary to operate a home like the utilities, grocery bill, entertainment, etc. 

Consider an Accountant Before Buying Your Home

If you are concerning purchasing a house contact your financial advisor or accountant, then the mortgage broker, then the Realtor to avoid most of the financial mistakes that are plaguing the market right now.  If you already own your home consider contacting a financial advisor or accountant before refinancing your home, as well.