In the US, your credit rating is extremely important. Having a good score opens doors for you and an unsatisfactory score will slam them in your face. Your credit score actually represents the risk that the lender assumes in order to loan you money and determines how big your loan can be. So what are the factors that help calculate credit scores?

1. Payment history. The record of payments you have made to all of your creditors is the biggest factor (35% of your score) that’s taken into consideration when figuring out your credit rating. It doesn’t take much to lower your rating. Even late payments take their toll. Of course, missed payments and defaults on debts will make a bigger mark. Any bad marks on your credit report will stay there for seven years, with generally no exception. Even if you’ve paid off the debt, it will most likely not be erased from your report until the 7-year period is up.

2. credit card usage ratio. Your credit card usage ratio (30% of your score) compares the amount of credit you have available to you to the amount you are using. Your score is better (higher) if you are not using all of your credit. If you think that paying off an account and closing it is a good idea, think again. That could actually drop your score in this department. The best solution is to have several accounts open and not use all of them. This is viewed upon as an advantage by potential lenders.

3. credit history length. How long you have been using credit is another issue when it comes to how to calculate credit scores–it accounts for about 15% of the total. Again, if you remember that your credit score is what lenders are looking at to determine your loan eligibility, you can understand why this is important. They tend to view someone who has long credit history and a few marks against him/her as more favorable than someone with a short, perfect credit history. This is a good reason to have your kids start making credit history early (and in a responsible way with your guidance).

4. credit variety. This makes up about 10% of your score. Believe it or not, it helps your score if you have many types of debt (credit cards, mortgage, car loans, etc).

5. Your stability. This includes how long you’ve been at your job, how solid the job is and how long you’ve been living at your current address. If you’ve been at your address for less than three years, this is viewed as less than stable.

Now you know what factors are used to calculate credit scores. Understanding them is important because it allows you to take action on certain aspects that you have the power to change. Hopefully you can use these guidelines to establish good credit or bring your current credit score up a notch or two.

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Do you want to profit from the poor real estate market? If so, examine foreclosure short sales. foreclosure short sales occur when a mortgage lender agrees, in conjunction with the current homeowner, to sell a property for less than the amount owed. For example, a mortgage has an outstanding total of $150,000; the home may sell for $125,000 or less. In most cases, just the outstanding mortgage is taken into consideration not the home’s value.

As nice as it is to know what a foreclosure short sale is, you may be looking for more information. Namely, who benefits. Honestly, everyone involved. Without a short sale, the home will enter into foreclosure. So, who does benefit and how?

The Homeowner

When a homeowner gets their mortgage lender to agree to a short sale, the home is listed for sale immediately. This is done either through a professional real estate, for sale by owner, or for sale by the mortgage lender. Since the home is reduced significantly in price, it will usually sell. The homeowner is able to escape foreclosure. Yes, they still must relocate, but they do so of their own free will. There is no formal eviction notice sent.

Since the soon-to-be foreclosed home will sell just like any other home, the homeowners are able to salvage their credit rating. Yes, it will appear that they did not pay their entire mortgage, but some is better than none. A foreclosure short sale also shows that the homeowner did not avoid the problem by hoping it went away. Instead, they took action. In as little as two years, the homeowner could get financing for a personal loan, new home loan, or automobile loan.

Most who have their homes foreclosed on, find themselves in a pinch. That foreclosure will appear on their credit report for at least seven years. This comprises their ability to get a job that requires a credit check, buy a new automobile, receiving financing for a new home, and so forth. In fact, the consequences of foreclosure are endless. That prompts may to file for bankruptcy. Bankruptcy is not the solution. It also appears on credit reports. By agreeing to a foreclosure short sale, this is all avoided.

The Homebuyer

The homebuyer, which could and should be you, benefits the most from foreclosure short sales. As previously stated, a foreclosure short sale involves selling a property for less than the outstanding mortgage. This gives you the opportunity to get a fantastic deal. Essentially, mortgage lenders just want their money. If a homeowner already paid $50,000 towards their $100,000 home, they are in a good position. They still received a good percentage of their money, but they want more. In desperate situations, that mortgage lender may accept anywhere from $30,000 to $40,000.

The Mortgage Lender

Many people wonder why a mortgage lender would agree to a short sale. Wouldn’t they rather get the full amount of the outstanding mortgage or resell the home for its appraised value? Yes, they would, but the current state of the real estate market makes this difficult, if not impossible. For that reason, most agree to a short sale.

A foreclosure short sale saves mortgage lenders both time and money. It is no secret that foreclosure proceedings are timely and costly. A home can spend months in foreclosure. A lender is responsible for all costs associated with foreclosures, including attorney fees, filing fees, and the cost of eviction. This cuts into their profits. A foreclosure short sale is a cheaper and quicker alternative.

Not only does a foreclosure short sale save a lender time and money, but it also gets them money. When the property sells, the money goes directly to the mortgage lender. Since these properties are rarely on the market for long, due to their reduced price, the mortgage lender receives their money quicker than they would through foreclosure proceedings.

As you can see, everyone profits from a foreclosure short sale. So, if you are new to buying real estate, don’t worry about the homeowners or mortgage lenders. There is no need to feel bad. Actually, you are doing them a favor and making a profit at the same time!

What are credit score agencies and why do you need to know about them? In the US, your credit rating is extremely important. It determines whether or not you can own a house, a car, or any other big-ticket item and the amount of interest you will pay in order to maintain the acquire. credit scores are compiled by agencies (otherwise known as credit bureaus). Understanding what they are, what they do, and why they are so important can help you improve your credit worthiness or maintain your current credit standing.

The three most prominent credit score agencies are TransUnion, Equifax and Experian. Their purpose is to provide credit scores to lenders.

These agencies collect any kind of information relative to credit, personal debts, loan information, etc., and hand this data over to lenders, banks and even employers who use it to evaluate your risk. Just some of the information a credit bureau collects includes personal information such as your name, previous and current addresses; financial data such as how much credit you use with respect to how much is available to you; payment history (whether your bills are paid on time); the types of credit you presently have; and any bankruptcies or tax liens.

Where do these agencies get this kind of information? From creditors, lenders, utility departments, debt collection agencies, and open records. Both positive and negative information is turned in such as data relative to when bills are late, debts are paid off, or the account has been maintained well for a long time.

Once a credit bureau has all the information, it is collected and put through a complex algorithm to come up with a number: your credit score. Any lender, bank, insurance company or employer who requests to check your credit can then obtain your score and your detailed credit report through the agency.

Of course you too can have access to your own credit score for free. You are only allowed to access this information one time per year so that you can check how you are doing and make sure that everything is on the up and up. credit bureaus must grant you this as stipulated by the Fair credit Reporting Act (FCRA) which is enforced by the Federal Trade Commission (FTC).

If you are interested in more information about the three main credit bureaus, you can also contact them directly:

Here is the TransUnion address and contact number: Trans Union Consumer Disclosure Center P.O. Box 1000 Chester, PA 19022 (800) 916-8800 or (800) 888-4213

Here is the Experian address (keep in mind that this agency was previously called TRW) and contanct number: Experian P.O. Box 2104 Allen, TX 75013-2104 (888) 397-3742

Here is the Equifax address and contact number: Equifax P.O. Box 105873 Atlanta, GA 30348 (800) 685-1111

Hopefully the above information has provided you with a better understanding of credit score agencies and how you can raise your credit score.

Every one of us deserves a better way of life. Wondering what is the best way to go about making a legal fortune? Here is a solution for you. Visit home foreclosure auctions and fight for a win with a maximum value in mind. foreclosures are the legal way in which a bank or creditor that is owed money can sell or repossess a house or any piece of property due to you non payment on a promissory note.

Upon winning a foreclosure one can choose to:

- Make an investment by renting it out which will earn you a monthly profit – Invest money into eternal value. This ensures you can use your invested money later when for example there is a bear market now and you are very sure that in a few months the market will become bull – Sell it immediately after the auction thereby getting you your money back

Get a Win-Win deal always – Easy steps to come out on Top of the Game

Selling a home is one of the hardest things to do. Some people have not sold a house for more than 2-3 years. These simple steps will get you a win-win deal always on you dealings.

Once you list or buy these pre-foreclosure homes, you have to sell them in order to make any money. The best way to go about doing this:

# Raise the selling price of the house # Make Contact with the buyers # Make your offer and Price at that opportune moment # Show sensitivity while negotiating, but always stand your ground

This way,  the seller is able to get out from under a defaulted mortgage without destroying his or her credit rating, the lender is saved the time and expense of foreclosing on the property, and the buyer gets a below-market price on a home.

Most often pre-foreclosure properties can often be purchased for prices well below market value because the owner is very motivated to sell and has a limited timeframe in which to sell.

home foreclosures – An ethical way to make profit

One might also wonder if forcing people out of their homes is considered ethical. It all depends on which perspective a person views it from. A person may require an urgent need of a huge sum of money. It might be for a long pending surgery or a sudden loss of job, maybe even because of high carry over costs.

foreclosures are a perfectly ethical way of ensuring the buyer and the seller make the most out of this deal. It may seem so at first appearance, but ever so often, one is left with very little choice.

Pre-closures – Getting prepared for the big game

Pre-closures are possibly the best way to go to ensure that the buyer has gained prior to the actual foreclosure auction. One can buy a house at a value much lesser than market value and then put it up at an auction to get back the money needed. The seller can be assured of getting a good deal out of it even before the actual foreclosure auction.

This is probably the best time to invest in foreclosure properties as prices are down, interest rates are extremely attractive, and the selection of available homes couldn’t be better.

What is your credit score meaning? Most of us realize how important your credit score is when it comes to buying a home, car or getting some kind of loan for anything. But when you say the word “credit score”, what does it actually signify? A credit score is compiled from your credit report and grants a lender the power to decide whether they should give you a loan for their product or service.

First of all, it’s worth pointing out that credit score and credit report are not the same thing, although they are connected. Your credit score is a number defined by the credit bureaus and it is designed to indicate to the lender the risk associated with taking you on as a debtor. In contrast, a credit report is the summary of your credit history and credit rating. Most financial institutions and even many employers will determine your eligibility by the report and score combined.

What you may already know about your credit score meaning is that your credit score is called your FICO score. The name was derived from the company (Fair Isaac) that designed the software which enables your score to be calculated. The number is calcuated by taking into account your credit history and it is used regularly by many institutions.

Your credit report lists all of your credit requests, any bankruptcy, your payment history, how much credit you use and how many accounts you presently have open. What the credit report does not contain is your FICO (credit score). It’s important to keep in mind that you can only request your credit report one time each year to check if there have been any changes to your credit history. It is recommended that you do check your report in case there are errors or misunderstandings that need to be taken care of.

If you want to get a copy of your credit report, you can request it at Trans Union, Equifax, and Experian and it will be free of charge. You can get your FICO score online or from a variety of other institutions.

FICO scores may fall between the range of 300 and 850. The higher your score, the more likely you will be able to get loans for those expenses that you need to pay off gradually like cars, homes or other expensive items. And, the higher your FICO score, the lower your interest rate will be on the loan. In short, you are very much rewarded for establishing and maintaining good credit. If your credit score is low, you are more likely to be declined for loans and, if you are accepted, the interest rate you pay will be higher. Your score also determines how much of a loan you can get. The higher your score, the more loan you qualify for.

It’s a good idea to keep these basics about the credit score meaning in mind. While being late on a bill every once in a while will not affect your score dramatically, especially if you have a fairly long credit history, constant delays, missed payments, too much debt or general instability can take their toll on your credit score.