markgalloway.com

I’m going to start a new feature today called “Wednesday Ad Post“. Simply put, there are quality products and services out there that are best accessed through the ad. After my last post, I wasn’t sure that readers would think I was just trying to blindly advertise products. So, starting today, I’ll plan on one new ad a week promoting one worthwhile service or product that may appeal to readers.

As the foreclosure crisis continues to linger, some knowledgeable former mortgage industry experts have created a service to help homeowners who are on the precipice of foreclosure.

A three field form is all that’s required from anyone who is seeking options for helping them keep their home out of foreclosure. If you’re behind in payments, or foresee that you will be, go to the HomeForeclosureFighter site, fill out the simple form and someone will email or call you to discuss your options.

Just in case you haven’t seen the commercials, here they are:

These commercials are funny, but they make a good point. So what’s the big deal about getting your credit report?

Here are 10 reasons you need to get a copy of your credit report NOW…..

1. You’re planning on making a major purchase soon. Why? So you can shop for the lowest rate possible. (See below.)
2. You’re planning on starting a business. Why? So you can determine what your options are in using your personal credit to establish business credit for your enterprise.
3. You know you have missed payments, made late payments or have other blemishes. Why? So you can see if the creditors have accurately reported those. If they have exaggerated your mistake, or misreported it, you can often have those things corrected. (See below.)
4. You believe someone may have tried to steal your identity or fraudulently secure credit in your name. Everyone knows identity theft is a major problem. The only way to catch it and correct it quickly is to see your report, and/or use a service like a free credit monitoring service.
5. You don’t shred your junk mail. Why? Because many identity thieves love to dig through other peoples trash.
6. You are planning on changing employment Why? Because many employees run credit reports as part of the hiring process. You need to know what they’re are going to see so that you can address it.
7. You are planning on getting married. Why? So you know where you’re starting out individually before you say, “I do”. Marriage can have both a positive and a negative effect on your credit score, so it’s wise, if not just plain interesting, to know what things looked like on Day 1.
8. You don’t know your FICO score. Why? So you do know your FICO score…duh! And so you can intelligently shop for credit to get the best rates and terms. (See below.)
9. You use credit cards. (If you use credit cards, and few of us don’t, you need to check your report to make sure everything is accurate. Not only to verify that some scumbag hasn’t taken out a loan in your name, but to make sure that the banks are reporting your information accurately.
10. You’ve misplaced your wallet or purse since the last time you checked your credit report. Why? Because it only takes a second to photograph the front and back of your credit cards with a camera-enabled cell phone and once a perpetrator has you CC#, Expiration date and the 3-digit security code after your CC# on the back of your card, they can spend away. That is, until your card is maxed out, the credit card company notices suspicious activity, or you happen to check on your balance.
11. You use your credit card when making telephone purchases. Like #10, you don’t know who you’re really talking to on the other end, so it’s best to keep tabs on your credit.

Free Credit Reports

What about those free credit reports? Through a program administered by the FTC, you can get one free credit report a year from the three major credit reporting agencies: Equifax, Transunion, and Experian.

Additionally, under the Fair Credit Reporting Act you may be entitled to a free credit report, but only if you meet the following criteria:

• You’ve been denied credit, insurance or a job in the last 60 days
• You are unemployed

How to Get Your Credit Score

After you get your report there are a couple things you’ll probably immediately do - check for errors, and look for your “credit score”. The first one is easy to do, and very important. If you see any errors they can be fixed or changed by contacting the credit bureaus directly. Unfortunately, your score is not going to be visible on a free credit report.

If you want to know your FICO score, and you do, you’re going to have to pay for it. My suggestion is to go ahead and go to FreeCreditReport.com, which is owned by the credit reporting agency Experian, and take advantage of their 3 Credit Reports and 3 Credit Scores for $39.95 package. (You’ll see it featured on the bottom of their home page.)

Once you know your credit score, you have some leveraging power when you shop for a loan. For the most part, vehicle loans, mortgages and revolving credit are based on these scores along with your income, past credit problems (Ie:bankruptcy, foreclosure or repossession), time on your present job and debt to income ratio. If you know this information you have all you need to find the best loan available.

It’s simply a matter of calling mortgage brokers and framing your offer like this:

“My credit score is 720, I make $2800 a month, have a debt-to-income ratio of 25% and have worked at my present job for 10 years. What is the best 30 year fixed mortgage you have available?”

Now, they will always want to pull your credit report. But, you’ve already done that and you’ve provided the information they need to get you a loan. If you’re comfortable with the lender - don’t work with one you’re not comfortable…..but, if you’re comfortable with the lender, offer to give them a copy of the one you already have. That’s all they need to get a preapproval.

Now, formality dictates that anyone who will be extending credit to you will pull their own credit report. That’s fine, as long as they don’t require that in order to qualify you for a loan.

Now lets say you have bad credit and knowing your credit score is revealing to you why you can’t seem to get a loan. You have a couple options. First of all, your best option is to get out of debt. Yes, that takes time, but in the long run you’ll not only be more credit worthy, you’ll be happier. Along that note, if you are having a hard time paying your monthly obligations, call your lenders and creditors and ask for your account to be reorganized to allow you to pay it off. They would rather have you pay something than to have you file bankruptcy. There are debt relief consultants out there who can help you reorganize your unsecured debt so it’s more manageable. That could be a debt consolidation but it might be just restructuring what you currently pay into smaller amounts.

Clean Your Credit Report

Even if you have legitimate problems reflected on your credit report it may be possible to have them removed. Without going into great detail here, you may want to check out Lexington Law which is arguably the premier credit repair agency in the country. By credit repair I mean that they genuinely help people legally remove negative credit from their credit reports. Even serious problems like bankruptcy and foreclosure can be removed. Otherwise, you can do it the good old-fashioned way an pay your bills on time and get out of debt. Closing any unused credit accounts to minimize the total potential amount of indebtedness is another effective way to raise your score.

Come to Terms With Your Credit

Many people live in a sort of delusion that they can afford to support a lifestyle that is only possible through revolving credit. As the foreclosure crisis impacts more people folks are realizing that having good credit is imperative to sustain a comfortable lifestyle. Not because of the stuff you can buy, the home you can afford, or the materialistic aspect it offers. But, because good credit gives a person some freedom to make good decisions, and the power to secure financing for things that matter, like an investment property or a business loan.

If you haven’t done it already, get your credit report and, if necessary, take steps today to clean it up. You’ll be glad you did!