How to Improve Credit Scores
BETTER CREDIT MEANS A BETTER INTEREST RATE
Top Ten Tips on How to Improve Your Credit — Start Today!
-Pay your bills on time. It’s the best way to keep your rating high.
-Get up to date on missed payments.And once you’re current — stay that way.
-If you are having trouble, contact your creditors or see a credit counselor to improve credit.The sooner you get your credit under control, the sooner you will improve your credit score.
-Keep credit card balances low.Large balances will have a negative impact on your score.
-Eliminate debt, don’t rearrange it.Pay down revolving credit such as credit cards. Consolidating into fewer open accounts can help too.
-Don’t close unused credit cards to raise your score.Fewer accounts are better, but frequent closing and opening of accounts is often a sign of a problem.
-Don’t open more credit accounts than you need.You may think you’re making more credit available, but you could be hurting your score.
-Don’t open too many new accounts too quickly.Especially if you’re relatively new to credit. This will create too many inquiries which hurts your score.
-If you have had credit problems and need to improve credit, act quickly to reestablish good credit.The sooner you begin acting responsibly, the sooner your credit score will improve.
-It’s OK to check your own credit.Be sure to order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers.
วันเสาร์ที่ 28 กรกฎาคม พ.ศ. 2550
Your Credit Score and How It Works
Your Credit Score and How It Works
AT AMERIQUEST YOU ARE MORE THAN JUST A CREDIT SCORE®
Why do credit scores matter?
They have a direct impact on your chances of qualifying when you apply for a mortgage, car loan or credit cards.
What is a credit score?
Your credit score is a numerical representation of your credit history. The lower your score, the higher risk you are to lenders.
Who makes the scores?
A company called the Fair Isaac Corporation is responsible for these scores, also known as FICO scores.
Who keeps the scores?
Credit scores are derived from reports kept by major credit agencies, including Experian, Equifax and TransUnion. These agencies track the amount of debt consumers have taken on and whether they pay their bills on time.
What is the range of a credit score?
Credit scores range from 350-850. Where you fall within this range will determine what lenders can offer you.
Learn How You Can Improve Your Credit Score
AT AMERIQUEST YOU ARE MORE THAN JUST A CREDIT SCORE®
Why do credit scores matter?
They have a direct impact on your chances of qualifying when you apply for a mortgage, car loan or credit cards.
What is a credit score?
Your credit score is a numerical representation of your credit history. The lower your score, the higher risk you are to lenders.
Who makes the scores?
A company called the Fair Isaac Corporation is responsible for these scores, also known as FICO scores.
Who keeps the scores?
Credit scores are derived from reports kept by major credit agencies, including Experian, Equifax and TransUnion. These agencies track the amount of debt consumers have taken on and whether they pay their bills on time.
What is the range of a credit score?
Credit scores range from 350-850. Where you fall within this range will determine what lenders can offer you.
Learn How You Can Improve Your Credit Score
Less–Than–Perfect Credit
Less–Than–Perfect Credit
BAD CREDIT? WE SAY "YES" WHEN OTHERS SAY "NO"
Ameriquest's Flexible Approach to Loans for People with Bad Credit
We're the nation's top mortgage company for people with less-than-perfect credit. In the 28 years we've been in business, we've helped hundreds of thousands of people. With less-than-perfect credit you may have been turned down by other lenders, but we'll work hard to get you the money you need.
You are more than a credit score®. Ameriquest does not automatically rule out a loan application just because someone's credit history has a few blemishes on it. You are an individual, and we'll look for a way to offer you a loan with terms and rates that work for you.
Even if you've been in bankruptcy or had a foreclosure, we will try to find a way to help. Ameriquest offers programs for borrowers in bankruptcy and foreclosure, provided the activity is resolved prior to the signing of the loan documents.
We'll help you qualify even if other lenders have turned you down. To us, you're not just a number, an application, or a credit report — you're an individual. And you're a homeowner — you've already shown you have what it takes to succeed.
Our specialty is finding ways to approve you. We'll help you overcome common barriers to credit approval, such as:
- Hard-to-prove income: We have home loans that don't require traditional income documentation.
-Too much existing debt: Our flexible lending standards let us look at you as an individual, without the rigid formulas.
- Bad or less-than-perfect credit: Nobody's perfect. Ameriquest believes your credit score is just part of a bigger story.
- Bankruptcy or foreclosure: We have experience with loans for people with both good and bad credit. Even if you've been in bankruptcy or had a foreclosure, we will work hard to help you get the cash you need.
BAD CREDIT? WE SAY "YES" WHEN OTHERS SAY "NO"
Ameriquest's Flexible Approach to Loans for People with Bad Credit
We're the nation's top mortgage company for people with less-than-perfect credit. In the 28 years we've been in business, we've helped hundreds of thousands of people. With less-than-perfect credit you may have been turned down by other lenders, but we'll work hard to get you the money you need.
You are more than a credit score®. Ameriquest does not automatically rule out a loan application just because someone's credit history has a few blemishes on it. You are an individual, and we'll look for a way to offer you a loan with terms and rates that work for you.
Even if you've been in bankruptcy or had a foreclosure, we will try to find a way to help. Ameriquest offers programs for borrowers in bankruptcy and foreclosure, provided the activity is resolved prior to the signing of the loan documents.
We'll help you qualify even if other lenders have turned you down. To us, you're not just a number, an application, or a credit report — you're an individual. And you're a homeowner — you've already shown you have what it takes to succeed.
Our specialty is finding ways to approve you. We'll help you overcome common barriers to credit approval, such as:
- Hard-to-prove income: We have home loans that don't require traditional income documentation.
-Too much existing debt: Our flexible lending standards let us look at you as an individual, without the rigid formulas.
- Bad or less-than-perfect credit: Nobody's perfect. Ameriquest believes your credit score is just part of a bigger story.
- Bankruptcy or foreclosure: We have experience with loans for people with both good and bad credit. Even if you've been in bankruptcy or had a foreclosure, we will work hard to help you get the cash you need.
What Lenders Need to Know About You
What Lenders Need to Know About You
HOW THEY DECIDE YOU ARE A SAFE BET
Before lenders can approve you for a loan, they need to know information about your financial history to determine if you're an acceptable credit risk. Here's what they're looking for:
Your Personal InformationSimply put, lenders want to know you are a safe bet and that you'll pay their money back. Here's what they look at in order to make that decision:
Your past financial history
-Your credit report, credit score and employment history
-Your income
-Your monthly expenses on credit cards, auto payments, student loans and other debts
-Your savings
-Your estimated net worth
-Your Property InformationLenders will have questions regarding your property including the following:
Are all claims against the property known?(This is the reason for a title search.)
Are the public records complete and accurate?(This is the reason for title insurance.)
Does the property need a termite inspection or property survey?
What is the accurate value of the property?(This is the reason for an appraisal.)
HOW THEY DECIDE YOU ARE A SAFE BET
Before lenders can approve you for a loan, they need to know information about your financial history to determine if you're an acceptable credit risk. Here's what they're looking for:
Your Personal InformationSimply put, lenders want to know you are a safe bet and that you'll pay their money back. Here's what they look at in order to make that decision:
Your past financial history
-Your credit report, credit score and employment history
-Your income
-Your monthly expenses on credit cards, auto payments, student loans and other debts
-Your savings
-Your estimated net worth
-Your Property InformationLenders will have questions regarding your property including the following:
Are all claims against the property known?(This is the reason for a title search.)
Are the public records complete and accurate?(This is the reason for title insurance.)
Does the property need a termite inspection or property survey?
What is the accurate value of the property?(This is the reason for an appraisal.)
Mortgage Myths
Mortgage Myths
MORTGAGE REFINANCE MYTHS - SEPARATING FACT FROM FICTION
Ameriquest Facts on the Mortgage Refinance Process
If you’re considering refinancing, you’re probably getting a lot of well-intentioned advice. As an Ameriquest customer, a lot of what you’re are hearing will not apply. Here are the Ameriquest facts behind some of the most common mortgage refinance myths:
MORTGAGE MYTH #1 It will take at least three months to refinance.
AMERIQUEST FACT Ameriquest is one of the nation’s fastest lenders. Unlike other mortgage companies we can often fund your loan in as little as two to three weeks.
MORTGAGE MYTH #2 Refinancing requires me to completelots of paperwork.
AMERIQUEST FACT At Ameriquest A Personal Mortgage Specialist walks you through the entire process, explains what information you need to provide, and then fills out all of your paperwork.
MORTGAGE MYTH #3 You should only refinance when interestrates are at their lowest.
AMERIQUEST FACT Even when rates are not at record “lows” refinancing makes good financial sense if you can pay off high-interest credit card debts and lower monthly payments.
MORTGAGE MYTH #4 Refinancing always extends the term of the loan.
AMERIQUEST FACT Refinancing does not have to lengthen the term of the loan. Ameriquest offers many terms less than 30 years. Some are as few as 10 years.
MORTGAGE REFINANCE MYTHS - SEPARATING FACT FROM FICTION
Ameriquest Facts on the Mortgage Refinance Process
If you’re considering refinancing, you’re probably getting a lot of well-intentioned advice. As an Ameriquest customer, a lot of what you’re are hearing will not apply. Here are the Ameriquest facts behind some of the most common mortgage refinance myths:
MORTGAGE MYTH #1 It will take at least three months to refinance.
AMERIQUEST FACT Ameriquest is one of the nation’s fastest lenders. Unlike other mortgage companies we can often fund your loan in as little as two to three weeks.
MORTGAGE MYTH #2 Refinancing requires me to completelots of paperwork.
AMERIQUEST FACT At Ameriquest A Personal Mortgage Specialist walks you through the entire process, explains what information you need to provide, and then fills out all of your paperwork.
MORTGAGE MYTH #3 You should only refinance when interestrates are at their lowest.
AMERIQUEST FACT Even when rates are not at record “lows” refinancing makes good financial sense if you can pay off high-interest credit card debts and lower monthly payments.
MORTGAGE MYTH #4 Refinancing always extends the term of the loan.
AMERIQUEST FACT Refinancing does not have to lengthen the term of the loan. Ameriquest offers many terms less than 30 years. Some are as few as 10 years.
When is it Best to Refinance?
When is it Best to Refinance?
UNDERSTANDING POINTS AND INTEREST RATES
Points vs. Rates
Lenders cover their risk and make profit in two ways through the loan's interest rate and upfront fees called "points." When it comes to refinancing, the decision is based on how much money you will save by paying now or later. Typically, this has to do with how long you plan to have the loan.
Example Situation:
There is an existing loan balance of $300,000 at 6%. A Lender offers 5.5% with 2 points—or a 5.75% rate with no points. Which option is better? How do you evaluate both?
Evaluation
A point is equal to 1% of the loan amount. So the lower 5.5% rate will save you almost $1,150 per year, but cost you $6,000 in up front points.
Refinancing at 5.75% only saves $575 annually, but you are immediately ahead the $6,000 you didn't pay in points.
In this example, if you're planning on staying in the house for five or more years, the lower rate with points will put you ahead.
Note: If you replace a loan with 25 years remaining with a new 30-year mortgage, there will be an extra five years of payments. So you may want to ask your lender for a loan term that matches the remaining life of the original mortgage.
UNDERSTANDING POINTS AND INTEREST RATES
Points vs. Rates
Lenders cover their risk and make profit in two ways through the loan's interest rate and upfront fees called "points." When it comes to refinancing, the decision is based on how much money you will save by paying now or later. Typically, this has to do with how long you plan to have the loan.
Example Situation:
There is an existing loan balance of $300,000 at 6%. A Lender offers 5.5% with 2 points—or a 5.75% rate with no points. Which option is better? How do you evaluate both?
Evaluation
A point is equal to 1% of the loan amount. So the lower 5.5% rate will save you almost $1,150 per year, but cost you $6,000 in up front points.
Refinancing at 5.75% only saves $575 annually, but you are immediately ahead the $6,000 you didn't pay in points.
In this example, if you're planning on staying in the house for five or more years, the lower rate with points will put you ahead.
Note: If you replace a loan with 25 years remaining with a new 30-year mortgage, there will be an extra five years of payments. So you may want to ask your lender for a loan term that matches the remaining life of the original mortgage.
Fixed and Adjustable Rate Mortgages
Fixed and Adjustable Rate Mortgages
UNDERSTANDING THE MOST COMMON KINDS OF HOME MORTGAGES
The Basics About Fixed and Adjustable Rate Mortgages
When selecting a loan, there is no right or wrong answer with regard to fixed or adjustable rate mortgages. It is a personal choice based on your tolerance for risk and the rise and fall of interest rates.
Fixed Rate Mortgages
These types of loans have one, unchanging interest rate and a single monthly payment for principal and interest during the entire loan term.
Pros: Consistent monthly payments and interest rate over the lifetime of the loan.
Cons: Typically higher interest rates than starting interest rates on adjustable rate mortgages.
Is It Right For You? Fixed rate mortgages usually suit individuals with a lower tolerance for risk. Also, if you're planning to keep the loan long-term, a fixed rate may fit your needs better since it ensures that your interest rate will not increase and your monthly payment will remain constant.
Adjustable Rate Mortgages (ARMs)
These types of loans are tied to fluctuating indexes, such as the LIBOR index.
Pros: Usually result in lower initial payments due to lower interest rates. If you believe that interest rates over the long run will be largely steady or will actually decline, then consider an ARM.
Cons: Your payments and interest rate will fluctuate. If you think rates may rise, then ARMs should be avoided.
Is It Right For You? ARMs typically suit individuals with a higher tolerance for risk looking for lower initial monthly payments. Also, ARMs often have an initial fixed rate period for three or five years, for example. In this case, an ARM may fit your needs better if you do not expect to keep the loan past the initial fixed period.
UNDERSTANDING THE MOST COMMON KINDS OF HOME MORTGAGES
The Basics About Fixed and Adjustable Rate Mortgages
When selecting a loan, there is no right or wrong answer with regard to fixed or adjustable rate mortgages. It is a personal choice based on your tolerance for risk and the rise and fall of interest rates.
Fixed Rate Mortgages
These types of loans have one, unchanging interest rate and a single monthly payment for principal and interest during the entire loan term.
Pros: Consistent monthly payments and interest rate over the lifetime of the loan.
Cons: Typically higher interest rates than starting interest rates on adjustable rate mortgages.
Is It Right For You? Fixed rate mortgages usually suit individuals with a lower tolerance for risk. Also, if you're planning to keep the loan long-term, a fixed rate may fit your needs better since it ensures that your interest rate will not increase and your monthly payment will remain constant.
Adjustable Rate Mortgages (ARMs)
These types of loans are tied to fluctuating indexes, such as the LIBOR index.
Pros: Usually result in lower initial payments due to lower interest rates. If you believe that interest rates over the long run will be largely steady or will actually decline, then consider an ARM.
Cons: Your payments and interest rate will fluctuate. If you think rates may rise, then ARMs should be avoided.
Is It Right For You? ARMs typically suit individuals with a higher tolerance for risk looking for lower initial monthly payments. Also, ARMs often have an initial fixed rate period for three or five years, for example. In this case, an ARM may fit your needs better if you do not expect to keep the loan past the initial fixed period.
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