| VantageScore (credit counseling)
|
| ACS provides free articles on credit counseling, debt consolidation loans and refinance mortgage. |
VantageScore
[ Bookmark this page! ] [ get HTML Version ]
Bad Credit Home Loan To Get You Out Of Debt
A "bad credit home loan" can help you climb your way out of debt and get you started back on the road to upstanding, good credit. There are many lenders who are willing to make bad credit home loans to you - a loan based on your equity in your home even if your credit has slipped or isn't as perfect as it could be. By taking out a bad credit home mortgage or home equity loan, you can consolidate a... Read article
Bad Credit Home Loan To Get You Out Of Debt
A "bad credit home loan" can help you climb your way out of debt and get you started back on the road to upstanding, good credit. There are many lenders who are willing to make bad credit home loans to you - a loan based on your equity in your home even if your credit has slipped or isn't as perfect as it could be. By taking out a bad credit home mortgage or home equity loan, you can consolidate a... Read article
VantageScore
I recently saw on CNBC that a new credit bureau called VantageScore is trying to update and levelize the way that credit scores are tabulated for creditors. Their "leveled credit characteristics" across the three credit agencies, Equifax, Experian and TransUnion will try to ensure that any credit score differences for the same consumer are attributable to what is in each agency's database, not the scoring algorithm itself.
It is a little known fact that credit scores from the different credit bureaus can differ markedly in the score they give the consumer. Each may have different credit card and mortgage loan histories, and one or all of them could have erroneous or incomplete data that can affect the credit score. Most lenders will report to one or two, but not every one of the lenders report to them all. FairIssac, the developer of the original credit scoring system, has always been the "gold standard" of credit score numbers. VantageScore may change that.
VantageScore is unique as the first credit scoring model to be developed jointly by the national credit reporting agencies. That way, VantageScore can enjoy the expertise of industry specialists to lessen score variability and increase consistency in the consumer's credit score. This can eliminate confusion for you and your lender.
To start with, VantageScore uses a different score range than the FICO Score model. The VantageScore range is 501-990. Using multiple scorecard technology, VantageScore seeks to give the lenders superior risk prediction. This results in a stronger separation of good and bad performing accounts. The new scoring system returns more predictable scores on "thin-file" consumers, which are those with little credit history to score. So, even if you have limited credit history, lenders can use VantageScore to best assist you under varied circumstances.
The criteria that VantageScore uses and the weights attributed to each are:
Payment History 32%
Have you consistently paid your accounts in a timely manner?
Utilization 23%
How much of the total credit available to you are you currently using?
Balances 16%
What is the total of your current and delinquent account balances?
Depth of Credit 13%
How long is your credit history and do you have a healthy mix of credit types?
Recent Credit 10%
How many recently opened credit accounts and credit inquiries do you have?
Available Credit 7%
What is the total amount of credit you have access to?
So in conclusion, VantageScore will have significant benefits to the credit consumer because it is consistent, using identical scoring algorithms and leveled credit characteristics across all three national credit reporting companies. It is accurate, because knowledge of the data ensures the most accurate scoring algorithm. And, it is easy to understand and apply, having a score range of 501-990 with higher scores representing a lower likelihood of risk.
My hope is that if you are in the market for a credit card or mortgage loan, VantageScore can help you get a lower interest rate, or get you a loan when using the old scoring techniques would have denied you that loan.
To learn more about VantageScore go to http://www.vantagescore.com
Michael Ziegler is a sales person and website owner. He operates a website, http://www.usa-credit-card-guide.com where you can Apply for a Credit Card, and is interested in credit and using credit wisely. He lives in Texas with his wife and family.
Bookmark this page | Search this site | E-mail to a Friend
Getting Credit If You Have Bad Debt
No one wants to give you a credit card anymore. You are maxed out, what can you do? Here are a couple of options and we are going to have a look at them. One is a debit card, the other is a secured credit card.
Most people have heard of debit cards, they work like a mobile bank teller. You go to the store and it is time to pay so you pull out a card similar to a credit card and swipe it threw the machine. Enter your security code and the bank mystically transfers money from your account to the stores'. The key words are transfers money, if there is no money in your account nothing happens. It is similar to using cash, you have to have it to spend it.
The benefits of debit cards are you cannot spend more than you have in the account. There is some security to the debit card, if it is stolen you can cancel the card and get a new one. There have been numerous reports of "fake" debit machines at all kinds of stores. This is where a person working at the company brings in their own machine, when you swipe the machine it records your account info on the card and your security code. This gives them access to your account and normally they will empty it as soon as possible. The only defense against this is look at the machine, is there anything strange about it. If you are unsure ask to speak to a manager or use cash. Also check your monthly bank statements for any transactions you did not do and report that right away.
Some other downsides are you can spend all the money you have in your account. Debit cards only stop you when the money is all gone. For some of us that can be too soon in the month. For those of us with a flair for spending I still recommend using cash or the next type of card, a secured credit card.
A secured credit card is like a pre-paid phone card, except you can use it anywhere a credit card is accepted. It looks like a normal credit card but there is a value either recorded onto the card or the account the card is associated with. These are great for people who overspend because when the money is spent the card no longer works until you "recharge" the account.
One of the common downsides to these cards is there can be service fees galore to them. A small fee to set it up, re-charge it, statements and on and on. For some people who cannot use cash for everything I think they are the way to go. Shop around for the best deal and only put small amounts of money in this account to force you to watch your spending.
Take charge of your spending by using these methods to get spending under control. Be smart to be wealthy.
Did you find those tips on debt management useful? You can learn a lot more about how debt management can help you reduce debt here.
Top rated articles for credit counseling
1. It Pays to Know Thy Credit
Credit is a complicated matter. Many people don't understand it and don't want to. They know all they need to know. Until they find that they are unable to get any more credit due to their ignorance o... Read credit counseling article
2. Bad Credit Home Loan To Get You Out Of Debt
A "bad credit home loan" can help you climb your way out of debt and get you started back on the road to upstanding, good credit. There are many lenders who are willing to make bad credit home loans t... Read article
3. Need for Credit Counseling Services
Do you feel the need for credit counseling services? Are you finding it hard to figure out how to manage your money so your debts are repaid? Are you having trouble making even the minimum payments on... Read credit counseling article
4. Fix and Repair Bad Credit
Don't you ever feel that's the only thing you can think of? While driving, at work, talking to people, anywhere you go your mind just fixates into "fix bad credit repair bad credit bankruptcy do it". ... Read credit counseling article
5. Bad Credit And How You Can Repair Credit
Most people do not understand the effects of bad credit on our lives. When we have bad credit it actually costs more to live.
Bad credit makes it difficult for us to purchase a new car, hou... Read credit counseling article
6. Improve Your Credit Score Now
If you are interested in learning a few simple tips on maintaining (and increasing) your credit score, then this article will show you how.
Let's get started:
1. Pay payments on ... Read credit counseling article
7. Home Mortgage: Bad Credit Won't Rule Out a New Home
When you're looking for a way to afford your dream home, home mortgage bad credit options can offer a way to get you into the home that you want to buy. Not long ago, people with less than perfect cre... Read article
8. Erase Bad Credit With A Little Help
Everyone has a little trouble now and then. If your little trouble ended up recorded in your credit history, it may take a little effort to erase bad credit and get a clean start, but it's an effort w... Read article
9. Credit counseling and its effects
All to often credit is fun, easy to get and even easier to use. Many people find that even though they have an excellent income, that they can not keep up with their current debt load and even if they... Read credit counseling article
10. Mortgage Consultant Can Boost Your Credit Score
Consumers interested in purchasing or refinancing a home will pay an interest rate based on current market conditions and their ability to pay back the loan. The borrower's income and debt ratios are ... Read credit counseling article
Credit Counseling and Debt consolidation services in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,
VantageScore
Debt consolidation services in Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,
Debt consolidation services in Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and Wyoming.
Add website or submit URL link of your site to 1000 free directory