Netcredit

Are your Credit Card Rates Rocketing? I got one of those letters you tend to ignore the other day...a boring all legalese style thing from my credit card company. Two of them in fact. I was busy so it wound up in the inbox among the bills. A little voice told me that might be important so I finally opened one in a dull moment and read these words: "Thank you for your business"....with some more stuff about informing you of your consumer rights and protecting your credit.... and hidden halfway down in small type this letter informed me of my new interest rate just jumped over 10% higher. What gives? Congress recently passed a bill to curb consumer debt. That bill required Banks and Credit Card Companies to give 30 days notice in writing before they could raise our interest rates and they must have a 'reason'. The Credit Card companies told their friends in the House Financial Services Committee they could not possibly effect such a huge change and inform all their

Order your FREE credit report once a year: Online: http://www.annualcreditreport.com/ (or download a mail-in form) By phone: 877-322-8228 By mail: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348 NEVER order a credit report from a site that asks you for a credit card number before giving you a 'free report'. Several firms have been convicted of secretly charging credit monitoring fees.  The best known consumer site is http://www.myfico.com/ which is the Fair Isaac Company site (they invented credit scoring). This site has some useful credit comparison tools showing how credit scores affect interest rates which in turn affects your payments. A Tri-Merge (3 bureau) report costs about $50.00 on these sites. If you check your own credit, it does not affect your FICO score. Be aware, you do not need to sign up for regular credit check services unless you are concerned that someone has been abusing your identitiy. If you have experienced identity t

Facts: Interest rates on home mortgages have remained very low - the lowest in 40 years. Home values have continued to drop or are stabilizing in some markets. These are crucial timing factors for anyone considering getting into or out of real estate right now. Who can (or should) get a mortgage in these turbulent times? While many many potential home buyers are competing for lower priced homes, we are seeing many loan applicants in angst due to longer time frames . New laws are affecting how banks and brokers operate. As a result, many loans that would previously be sent to Fannie Mae or Freddie Mac (investors who hold the lion's share of loans) are now being funded under FHA, USDA or VA to take advantage of easier government loan terms. Folks with decent credit and stable income are buying or refinancing in droves. The lines at our government underwriters became very very long due to this overwhelming demand. Is this perfect timing to buy a home? Our sources on several sides

How does market confidence affect availability of credit? Wall Street created the financial vehicles we all use to buy everything from groceries to cars, student loans and homes. Unfortunately, the current financial chaos around 'fractonal lending' and how they resell 'risk' is causing Congress to step in and impose tighter guidelines. Better late than never? For starters, a new FICO -08 Credit Scoring model is in the works at Fair Issac. This model, due for release in a few months, is designed to 'drill down' and more effectively split borrowers into more accurate risk categories. While we are hearing different reports about this model, the overall effect on lending could mean banks will feel 'more informed' and confident about to whom they are lending. New tighter rules for appraisals, national licensing of loan originators, and higher lending guidelines are helping validate higher standards all around. All good. Of course, nothing beats good old

Creditors have been calling all their cardholders to inform them that their credit cards are either being closed or their credit limits are being lowered. This has broad reaching implications on your 'available credit' and thus your FICO score. Why Worry? The fact is, your almighty FICO credit score is comprised of many factors, not the least of which is how 'fat' your balance is against your available credit limit. So in the case of having your limit lowered, usually to your existing balance (i.e., what is owed now) means the system sees that card as maxed out. If you previously had 50% or more available and unused, the system saw you as managing your credit within reason. 30% or less is the ideal limit for optimal credit scoring. 100% of your balance being used indicates higher risk therefore your FICO Score will be lowered. Since the system analyzes your behavior every month for such things as late payments or limits being reached, the effect of losing your a