Debt

Why is my credit score going down?

There are many reason why a consumers credit scores go down even with the work we are doing:

1. They can go down if you are applying for credit during our work. If you apply for credit it is called and inquiry and inquiries are negative when too many are made or if you are having credit pulled in the middle of our work as the credit bureaus put all disputed information in dispute which causes a false reading when a creditor looks at your credit reports.

2. They can go down if you were not being scored properly from the beginning. For instance, let’s say you had several negative accounts when you came to us for help yet your credit scores where on average 610, this is more than likely not a correct credit score since people with negative credit score in the 300 to 500 range. When we send a dispute in and they correct, remove and make things positive scores are going to be reevaluated and updated too which can mean you will now go to a correct score making it lower than what you started with.

3. Having a mortgage company pull your scores from a third party software such as Credco can make your scores go down because the third party software is usually thirty to sixty days behind updated information in credit bureau files. This is a problem for those of you trying to get a mortgage. We suggest you check your own scores or have us check them for you online as the scores are the most recent scores available through TRUE CREDIT or CONSUMERINFO.COM You should check or have us check all three scores as they are given as a package called three reports three scores. You can find out more information on this at: Credit Scores Your scores are good but the software used with these third party credit report and score companies are sometimes not updated. They will be updated in time but if you are trying to get a mortgage now it isn’t going to help. Suggest to your mortgage person to run online scores to check them and see that they are good then hold off running your credit for about 30 days or so when the credit scores have been updated through the third party software.

Apply For Home Mortgage Loan Online With Bad Credit – Things To Consider

By: Carrie Reeder

So, you’ve found the perfect home. You’ve already decided where to place each piece of your furniture inside the home, and in your mind, all of your family photographs are hanging alongside the stairwell. But wait—do you know that even if you believe that your credit report is spotless, it could negatively affect your chances of getting that home mortgage approval? The credit bureaus handle hundreds of thousands of credit reports, and it’s only logical that they will make mistakes.

In fact, studies show us that there are some types of errors on at least 50 percent of all credit reports. Could an error be lurking on your report? Here’s a simple step-by-step guide to ensure that your credit report reflects exactly what it should.

Step One:
Avoid a Bad Credit Report by Requesting a Copy of It Under the law, you are entitled to a copy of your credit report from each of the three credit reporting agencies. You should simply submit a request in writing or visit their web sites and request a copy.

Step Two:
Check the Personal Information Maybe your name is Jane Smith, but the agencies have you listed as Jayne Smith. If you don’t think that it matters, you’d better think again. If the agencies have a miss-spelling in your name, the wrong address, reversed digits on your social security number, or even wrong employer information, it could mean bad news for your report. If the person who they have you confused with makes a late payment, then it will appear on your report. What’s worse, if they file for bankruptcy or default on a car loan, it will take some time to sort out the erroneous information once it’s found its way onto your report. Avoid all of this, and report any bad information now.

Step Three:
The Credit Information It may be too late, and you may find that there are loans or other items on your report that you’ve never taken out. In addition, you may find that late payments are on your credit report when you’re sure that you made them on time. If you find such erroneous information, then you’ll need to send the credit reporting agencies a letter explaining the error, along with any proof or documents that you have that will back up your claim. They are required to investigate your complaint and report back to you with their findings. It’s important to do all of this before you apply for a home mortgage. It will not only reduce the amount of time that it takes to get an approval, but it could positively affect the interest rate that you end up with.

About the Author: To see a list of recommended bad credit mortgage loan companies, visit this page: www.abcloanguide.com/lessthanperfectcredit.shtml. Carrie Reeder is the owner of ABC Loan Guide. It is an informational loan website, with informative articles and the latest finance news.

Having more negative credit added to your credit reports

If you have had more negative credit added to your credit reports from the time we have started working on them then this will definitely lower your scores. Even a thirty day late payment will cause considerable damage to a credit score if it is new so you must be careful not to pay anything late … ever. Some tips that may help you if you come to a place where you don’t have enough money to pay for things for a month are:

- Always pay auto and home loans no matter what they are the most damaging when paid late.

- A way to keep from getting a late payment added to either a home loan or car loan is to call and ask if you can pay the principle and have the interest added to the end of the loan.

Some companies will do this from 1 to 4 times in a 12 month period of time and by doing this you are making a small payment compared to the full amount yet you are still going to keep from having a late payment added to the account and then reported to the credit bureaus. For example … a car loan that you would normally pay $400 a month for would probably only cost you $75 to $100 if you pay only the principle so you save $325 to $300 that you can put towards another bill. If you can do this on a home and car loan it can be a substantial savings that can get you out of a bind when you have a bad month.

- You can also try this with any lender, however, some creditors will not do this and you should always ask if by paying the principle is it going to cause you to have a late payment added to your account.

Only about 50% of credit card companies will even entertain this type of payment but it is worth a try as it can give you money to actually pay another month of bills.Credit Scores will fluctuate during the credit repair process so don’t get stressed out over these changes. The important thing and most common results will be that your credit scores are a lot better. I

f negative information is removed then the only logical result is that your credit scores will go up NOT DOWN.

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