I am often asked how does a short sale or foreclosure will impact someone's credit score. A new report from syndicated writer Kenneth Harney now reveals the damage.
Before we go further, please note that these figures below are compiled based on your Vantage credit score. The Vantage score is a fake score manufactured by the three main credit bureaus -- Equifax, Experian and TransUnion. It is not the official score used by most lenders. Yet it still give you a good indication of what to expect with your true credit score.
• A short sale will ding your credit score by 120-130 points.•
For the full article click the link: Foreclosure or Short Sale
Tuesday, August 31, 2010
Thursday, August 26, 2010
Free Credit Report
Don't fall for sites that offer "free" credit reports, which often end up enrolling you in expensive credit-monitoring programs that you usually don't need. You can get a free copy of your credit report from each of the three credit bureaus (Experian, Equifax and TransUnion) once every 12 months at www.annualcreditreport.com. It's a good idea to stagger your reports -- getting a free one from each bureau every four months -- to keep an eye on the status of your credit and spot potential ID theft throughout the year.
Tuesday, August 24, 2010
5 Warning signs that you may be in financial trouble
Here are five early-warning signs of credit troubles that could make it a good time to get help from a credit-counseling agency -- or at least make some major changes in your spending habits.
1. Paying only the minimum amount due on your credit-card balances for two months in a row. Paying just the minimum kills you with interest charges and can extend your debt for more than a decade. If you have a $1,000 balance on a card that charges 18% interest, for example, and you pay the minimum of 2% of your balance each month, it would take 19 years for you to pay off the debt and cost nearly $2,000 extra in interest (twice as much in interest as you owed for the original balance). Many lenders have been boosting their minimum payments from 2% to 4% or 5%. But that could be tough to pay on time if you aren't prepared, leaving you with late fees, a higher interest rate and a lower credit score -- and making it even tougher to get out of debt.
For the full article click the link: 5 Warning signs that you may be in financial trouble
1. Paying only the minimum amount due on your credit-card balances for two months in a row. Paying just the minimum kills you with interest charges and can extend your debt for more than a decade. If you have a $1,000 balance on a card that charges 18% interest, for example, and you pay the minimum of 2% of your balance each month, it would take 19 years for you to pay off the debt and cost nearly $2,000 extra in interest (twice as much in interest as you owed for the original balance). Many lenders have been boosting their minimum payments from 2% to 4% or 5%. But that could be tough to pay on time if you aren't prepared, leaving you with late fees, a higher interest rate and a lower credit score -- and making it even tougher to get out of debt.
For the full article click the link: 5 Warning signs that you may be in financial trouble
Subscribe to:
Comments (Atom)