That’s right I’ve held off and at times have been accused of being stubborn (of course that is just one woman’s opinion! ) but we can no longer wait nor deny that Facebook is right behind google for taking over the world!

Ok ok, maybe yes and maybe no, but I do know this… that it surely will be a great place to talk with so many of you wanting to know more about credit scores, debt settlement and what all you can do to improve your credit.  We’ll be adding alot of info and just daily things like testimonials and blurbs from other members that might help you improve your credit situation!

As a matter of fact you need to check out Troy’s email about his credit score jumping from 540 to 712!! CLICK HERE to read about how it’s changed his life!  I hope you’ll join our NCF fan page… you can ask questions, get some answers and learn about all the crazy things the credit bureaus are doing!

See you on facebook!   if you’re a twitter fan follow us on http://twitter.com/HerschelBentley

Be Bold!

Herschel

In today’s market place there are three major credit bureaus: Equifax, Experian and Transunion.  You’ll also find many smaller agencies that act as “affiliates” of one of the big 3 like CSC and CBCInnovis or others that service their local geographic area but have less than complete national coverage.

There are other companies like ChoiceData that act as sales agents that sell credit data that is supplied by one of the big three credit bureaus.  In addition, many companies like Credco and Kroll actually a whole army of these type companies act as a “broker” buying and selling your credit data.  Finally, other companies are consumer reporting companies as defined by federal law but let’s not confuse these with CREDIT reporting agencies.  Companies like LexisNexis and Intelius are in this category.

Now this can become quite confusing and quite frankly seem like a pretty crowded market place but follow me on this point…

This question came in recently from Janice and I started to send a reply to you but decided I’d address this in the blog for all to read.  Janice, I thank you for sending in this question as many people wonder the same thing.   Of course, you can insert foreclosure, tax lien, judgment, collections, slow pays, repossession, and the whole list of bad credit issues one might face to the question “Can you legally take a bankruptcy off a credit report?”.

The short reality is every single entry on your credit report is suspect. The Fair Credit Reporting Act (FCRA) and law that states you as a consumer have the right to challenge the credit reporting agencies (CRA’s) and demand removal of any trade lines that are reported inaccurately, that cannot be validated or simply outdated.

I just got back from spending a few days in Savannah, GA for my wife’s birthday (I’m not suppose to tell you her age!!) But what a great town.  We stayed at a Bed and Breakfast that was built back in 1862.  There is so much history in that town, so much Civil war history with the big names like General Lee and others who lived or stayed in the area during the war.  The food…WOW that was a really good time!

As I got back into the groove this morning I had several messages and one woman has called me wondering if she should begin the credit repair process with us by asking the question “Is credit repair really needed in my case, I mean won’t my scores go up over time?”

Now I must warn you that I am a bit biased but I do try to give a fair assessment to this question and in answering  this question it might be best to rephrase it and ask a few other questions first.

Now I have to be honest here and tell you that my first reaction at times is to reach through the phone and grab you by the scruff of the neck and shake you like a rag doll to knock some sense in you but I refrain from this immediate knee jerk reaction.

Today, I’d like to tell you what mortgage lenders look for in when deciding on granting your request for a new mortgage loan. Now this is not meant to be an underwriting class but a basic understanding of the process and what  you’ll want to consider as you begin thinking about buying a new home.

When you’re looking for a new mortgage many lenders evaluate your credit based on the “Three C’s.”

Credit
Is it likely that you will repay the loan? Are your payments on time and up-to-date? Are you financially stable and reliable?  What are your credit scores?  Today’s marketplace, most conventional lenders require your scores to be in the 700+ range and most FHA loans a 620 score or higher.

Capacity
Are you able to pay the loan? What kind of outstanding personal debt do you have? Do you have enough earning power and net worth to repay a mortgage or home equity line of credit?

Is there anyway to understand the FICO scoring system?

That is the hundred dollar question!  The FICO score created by the Fair Isaac Company is one of the most shall I say “guarded” secrets at the credit bureau’s.  So much so that even senior executives under oath, have sworn they do not fully understand the exact reason for score movements under certain circumstances.

I mean why does one persons credit score who is at 750 drop 15 points with one 30 day late on a charge card and other person’s whose score is at 650 drop 50 points with that same 30 day late?  No other derogatory is reported yet Mr 650 had three times the point deterioration than Ms 750!

Fair?  Well, the truth is that there are so many factors that have been put into this system that the average persons head will spin (even the not so average) like a top trying to figure it out!

Many people are concerned how their mortgage loan is affected if forced into a bankruptcy and when someone experiences financial crisis like job loss, medical crisis or business failure, it can become quite difficult for them to repay  all of their existing loans or debts. Filing bankruptcy may seem to be a viable option in order to get rid of these debts, but you should know it may become difficult to qualify for a new mortgage.  At least right away.  You should also know that your existing mortgage gets affected when you file bankruptcy.

What happens to your existing mortgage after bankruptcy filing?

When you need to declare bankruptcy, you usually will want to file either chapter 7 or chapter 13.  However, the consequences of filing chapter 7 are different from that of chapter 13.  The effects on your existing mortgage after filing bankruptcy are discussed below.

Well it is official!  The National Credit Federation Blog is alive and off to the races!!!

The intent or shall I say content of this blog is to inform and assist the reader in all things that involve credit, credit scores, and overall the trials and tribulations as well as the satisfaction realized in working to improve one’s credit.

My hope is to deliver solid information to help you better understand the whole credit scoring system created by FICO aka the Fair Isaac Company.  This is the scoring system that has truly taken over all lending decisions from mortgages to credit cards to the rates you pay for your car insurance.

There will be lively discussions on the abuses and blatant moves the credit reporting agencies (CRA’s) take to increase their profits.  Yes, I know it might be hard to believe but believe this… the credit bureaus main purpose is to make money! They are not your friend and they are not in business to help you.  Sorry, I know that can be a depressing thought but 100% truth it is!

Discussions can range from steps you can take to move towards becoming debt free to the actions you must take to insure you’re getting the best credit scores you can. Now, there will be many times this blog is going to be something I can just rant and rave on and talk about things going in our world that can affect all of us through interest rates, lending practices, or other credit policies.  So, basically what I’m saying is, whatever I want to discuss that might help I’ll throw at you…:)!

Over the next 10 days or so I will be posting some thoughts every day to get better noticed by Google.   On a new blog the more activity you throw out in the beginning the more it helps in your page rankings.

I’d like each of you to take a quick moment and respond below letting me know what you’d like to see me talk about in coming posts, as well as any additional thoughts you think would help others to know about.  Many of you have shot in your opinions and thoughts of previous Tidbits and many times those opinions have great value.  Now we have the forum for others to enjoy your thoughts as well.

Lastly, make sure to post your website URL to link to us by posting it in the comment section below, this helps the visibility of both our websites in those ol’ Google rankings! Do me a favor and do this even if you don’t have any comments to make right now.

Till tomorrow….

Be Bold!

Herschel