Monthly Archives: September 2015

Good Advice To Avoid Purchasing Credit Reports That Dont Include A FICO

As you are likely well aware, your credit score is very important when it comes to your finances. It is like your financial finger print if you will. Specifically it is your FICO score that is the most important, as this is what most lenders use. While it is true that some lenders use different scoring systems such as the Vantage credit score, you will find the majority of lenders use the FICO9 scoring system.

I always tell people to check their credit score before they take out any loan or apply for any type of credit. You need to know where you stand credit wise in order to fill out an application for any type of credit, else you could be applying for something you have no hope of getting, or you could be getting a bad interest rate and would never know it. Yet did you you that the credit score you are checking may not be your actual credit score?

For one each of the 3 major credit bureaus calculates its own credit score, so if you are using their services, this will not be your FICO score. Each credit bureau uses its own unique algorithm to determine what it thinks your credit score should be. You can use these scores as a rough guideline, but it will not be your exact score. You score can vary by as much as 25 points between all of these models and your actual FICO score, which is a huge difference, and could be the difference between being stuck in “fair credit” or “good credit”, so you will want to pull your actual FICO score.

Now is where it can get even trickier. Some lenders take the FICO model, but run their own unique algorithm on that data, coming up with a variant of your FICO score. These in house scoring models put more weight into various factors that appear on your credit report. They can even factor in questions from your credit application, such as how some personal loan lenders today ask if you have a college degree or not. They can even hone in on certain financial behaviors of yours.

If you do check your credit score, do not be fooled. Some pay sites even do not use your actual FICO score. Most of the free credit score websites also do not offer your real FICO score. If you do want to make use of a pay site, I would suggest using http://www.myfico.com, as this is the most accurate one out there, but it does cost $29.95 per month. This will auto renew unless you cancel, which could catch you by surprise the next month, if you only meant to subscribe for 1 month, like most people. Includes is a variety of other services such as 3-bureau credit monitoring, additional FICO score versions and identity monitoring, which can make it well worth keeping a subscription for. Just remember with the free sites you get what you pay for, which is basically a near useless score, other than simply giving you a general idea of where you might stand.

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Specialty Loans Vary From Appliances To Emergency Cash But All Carry Risks

Are you having trouble furnishing your home or apartment? Do not feel like buying used? Your not alone, thousands, in fact millions of Americans have less than stellar credit and cannot provide the up front purchase cost for new furniture and appliances. That does not mean all is hopeless. You may be eligible for a Closed-end credit loan. These loans provide a fixed amount of money to finance a specific purchase over a set period of time. The good news is that many of these loans are appliance loans for people with bad or poor credit. These are sometimes also called lease-to-own programs.

Under a lease to own option, you are in effect renting the furniture or appliance, with the option to buy it out right at a later date in time. Sears has a lease to own program for example, where appliances, electronics, furniture, mattresses are available to consumers provided that the item costs a minimum of $280 in order to qualify for the program. The sears program has no credit check, offering customers with poor credit an option when it comes to decking out their home or apartment. There are however qualifications that must be met which include making at least $1000 per month, being at least 18 years of age, and having a valid social security number or taxpayer ID number. The sears program is via a partnership with WhyNotLeaseIt, a lease to own company based out of New Hampshire. You do not need to live in New Hampshire however to qualify for this sears program.

There are many companies that offer this service. Luther Sales, an online retailer offers this service as well and it applies to more than just appliances and furniture. You can obtain a variety of goods on credit directly from http://luthersales.com. Many people have made use of this for Christmas shopping for example, one family I know personally used Luther Sales to purchase an X-box for their son for Christmas. They specialize in bad credit appliances financing, with flexible repayment plans to suit a wide variety of budgets. Their hassle free payroll deduction makes it easy to make timely payments, so you never have to worry about missing a payment.

You can find these types of loans by searching for “appliance loans” or “lease to own furniture” in Google. There are a few tips I would advise you on following. First of all make sure that you can afford the payments, as the merchant does have the right to repossess anything that you skip payments on, and you could be subjected to a return fee as well as a repossession fee. You want to take expert care of your furniture and appliances, at least until they are fully paid off, you do not want to be on the hook for additional funds if the furniture does get repossessed and does not get returned in the condition the retailer expects. You will also want to find out about any end of lease balances, service plans, and the total number and amount of payments. Fine print is often boring but the fine print often discloses any potential nasty surprises that could be in store for you should anything go awry.

If your credit is poor but not terrible you might qualify for a store credit card. Store credit cards usually have better interest rates and terms, unless you qualify for a store lease to own option that offers same as cash if you purchase the item within 12 months, like Conn’s offers. You should avoid rent to own stores such as Aarons, as these places charge a very high interest rate. If you are trying to rebuild your credit in the process of obtaining your furniture, then by all means make more than the minimum payment, but do not pay the loan off to quickly, as creditors want to see payment histories over time, and reliable monthly payments.