Monthly Archives: February 2015

Loan Options For Borrowers With Credit Scores Between 650 and 800

In our last article we discussed credit scores which fall between 300 and 649 which fall into the sub-prime borrower category. Now it is time to discuss what your credit scores mean between 650 and 850. If you fall into this range that is good, although if you fall in the range of 650-799 there is room for improvement to be sure. Lets get to it shall we?

Your Score Range: 650-799
If your credit score is in this range you are in the same category as 47 percent of all Americans. A credit score in this range is not a bad credit score, it is a good credit score, but to be sure there is room to improve and in fact you should be actively working towards a score of 750 to 850. People who fall into this score range have had some small mistakes with their credit history, small mistakes that had they not been made might have had you with a credit score of 800 plus. Mistakes that can cause your score to fall in this range include over extending your credit limit, late payments or perhaps even a bankruptcy in the past that still shows on your credit report or a short sale on your record.

If you fall into this range I need to be clear it is not an excellent credit score. Many people make the mistake of thinking that a credit score in this range as being excellent. The numbers are misleading, they seem high but they are not. The hike in interest rates may be small compared to someone in the excellent credit range but even a small hike in rates can mean the difference of thousands of dollars in interest over the lifetime of a loan. A 1% interest rate difference on a $250,000 loan can cost you more than $50,000 in added interest over the lifetime of the loan for example.

Your Score Range: 800-850
If you fall into this range you have little to worry about. When your credit score falls between 800 and 850 on the FICO scale you are in the elite class of credit users that only 18 percent of Americans fall into. You have very little room for improvement here and a credit score in this range tells lenders and creditors that you make an excellent borrower. Lenders know that they are very likely to be paid back when you borrow so your interest rates will be the lowest offered.

With a credit score in this range you will have no problem obtaining a loan whenever you need one, provided that you have not utilized most of your available credit or recently applied for a bunch of loans. You will also be eligible for larger credit lines and loans in greater amounts than those with lesser credit. You can also afford to be choosey with who you do business with as lenders will compete with one another to earn your business. Managing good credit is no secret nor is it a mystery. If you do fall into this credit score range make sure that you:

* Never miss a payment

* Utilize no more than 15% of your credit on average

* Keep balances low on credit cards

* Apply for new credit only when absolutely necessary.

Money Saving Tips For Borrowers Searching For A Refinance Mortgage

Obtaining a refinance on your mortgage will allow you to lower your mortgage payment, as well as allowing you to lower your monthly expenses at the same time. Refinancing your mortgage can save you thousands of dollars over the lifetime of your loan. A refinance can also potentially lower the amount of time that it will take you to pay off your mortgage entirely, depending on how much your new payment is and possibly paying more than that payment per month. All of these things can put more cash flow in your budget every month, allowing you to reallocate funds towards a savings account, a retirement account such as your 401(k) or Roth retirement account or just put towards your lifestyle expenses.


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All you need to do is to find the right refinance offer, which can be easier said than done. You need to find just the right lender offering you the best possible rates. While it is true that your local bank may be a good place to start doing a little research into other lending sources could be well worth your time and effort when it comes to finding the best possible rates as banks are not always the best place to go for a refinance. While it is true that banks and credit unions both offer refinances for homeowners looking to save some money, they are not the only game in town when it comes to refinancing your mortgage.

Where else could you look? Consumer finance companies are one place to look. Savings and loan institutions also offer mortgages and refinances, so do some online entities. It can take quite some time to sort through all of the available options out there, but taking this extra time can mean the difference in thousands of dollars saved in fees to obtain a loan as well as the added interest over the lifetime of your new loan.

You can also make use of a mortgage broker to help you find the best available rate. They do this by helping you to compare the rates of a multitude of lenders and work with you to secure the best rate possible. They make their money by charging you a fee to find the right loan for you and also helping with the loan origination process. They also receive a fee from the lender due to bringing that lender business. They make there money by closing the deal much like a bank loan officer. While often times it may seem the interest rates savings they can obtain for you are small, even a small rate saving can save you thousands of dollars, you can also save on the up front fees involved by going through a mortgage broker.

You should pay close attention to the terms of any loan you apply for. key points to look for are your interest rate, if a penalty is assessed if you pay off your mortgage early, how many years will the loan be, what the monthly payment will be, the P & I (principle plus interest), and what fees you will be paying. You can obtain a lot of information from the the good faith estimate that your lender is legally obligated to provide you, which is a legally mandated document that outlines all of the costs and fees involved with a loan. It will include closing costs, points costs, legal fees, filing fees and processing fees. This is useful so to as to compare to your other offers on the table to make the best possible choice out of all of your options.

Identity Thieves Can Do More Than Ruin Your Credit Scores

What can identity thieves really do with your information?

When most of us think about identity theft, we picture a thief using our credit card data to buy a big screen TV or an iPad. But actual identity theft crimes can be much more complex. With all the possible ways these crimes can be committed, it’s amazing that there isn’t already a crime show on TV focusing on identity theft. Here’s some of the things that an identity thief can do with your personal information:

Go on a spending spree – In some cases purchases are made in a matter of hours, before you have a chance to report your credit cards as stolen. Thieves may also use your identity to purchase firearms during their spending spree.

Drain your checking account and savings – A thief can also use your personal data to withdraw money from your bank account, transfer your savings or steal your investments.

Open new accounts – Usually, this involves opening credit cards and maxing them out. In some cases, thieves have opened bank accounts, utility accounts, insurance accounts, loans, and more using stolen identities.

Obtain government documents – An identity thief may apply for a driver’s license or Social Security card using your information. They could do this just for the purpose of obtaining the document or they could use these documents for more complex fraud. For example, a thief could obtain a driver’s license with your name and their photo on it and then use this identification to access your loan and bank accounts.

Obtain a cell phone – Cell phones service plans are expensive and require credit checks, so identity thieves will often use stolen data to obtain a cell phone.

Charge utilities in your name – Cable, internet, gas, phone, electricity and water utilities can all be charged by a thief using someone else’s identity. Because some utility companies may request a credit check, a thief may use a stolen Social Security number for their application.

Rent an apartment
– Landlords often review credit records before accepting applicants, identity thieves may use stolen data to cover up their own poor credit record or lack of credit history.

Buy a car or home – It’s easier for an identity thief to use stolen data to purchase and finance a car since it requires less paperwork and review than a home purchase.

Apply for a job – Identity thieves with poor credit, a criminal record or illegal resident status may use a stolen identity to apply for a job that they would not be able to obtain otherwise.

Obtain student financial aid – In this scam, thieves pose as college students to gather federal student aid funds and grants under false pretenses. One thief stole over $300,000 dollars in student aid using 43 different identities before he was arrested for the crime.

Refinance your home
– In extreme cases, thieves can cash out thousands of dollars from your home by refinancing with a home equity loan using your identity.

Obtain medical care – Medical bills can be extremely expensive, especially for people without health insurance. An identity thief may use a stolen credit card, Social Security number or identity to pay for medical treatments.

File fraudulent tax returns – If a thief used a stolen Social Security number to obtain a job, their wages are reported with a W-2 to the IRS. When the victim fails to include this fraudulent income on their taxes, they could be penalized by the IRS.

Join the military – Recently, a military recruiter was caught selling illegal immigrants fraudulent identity documents and stolen Social Security numbers so they could enlist in the U.S. Marines. Legal permanent residents with a green card can enlist in the military, but illegal immigrants cannot and may turn to stolen identities in order to join.

Commit a crime or get into legal trouble – When a thief is arrested using a stolen identity , fingerprints and criminal records are put on the victim’s file. The resulting criminal record can result in the victim being turned down for jobs or other matters requiring background checks. In extreme cases, outstanding warrants in the victim’s name can lead to mistaken arrest and jailing.