How your FICO score is calculated.

10% is determined by number of open credit accounts that you have and mix of types (revolving, installment, and mortgage).

35% is derived by measuring your repayment history and looking at adverse credit items such as foreclosures, judgments, bankruptcies and negative public records including tax liens and wage garnishments.

30% is based upon a formula that includes your balance due across all open loans, types of loans and number of loan or credit card accounts that have an open balance.

15% is based upon length of you credit history or how long you have had a credit history on file.

10% is based upon amount of new credit in your account including how long it has been since you opened a new account, how long since your last new credit inquiry and how good your most recent credit history is.

Here’s how to improve your score:

1. Get a copy of your credit report and review it for errors. Use credit bureaus error reporting and correction system to address any serious errors.

2. Pay all of your bills according to payment schedule that you agreed to.

3. Avoid opening a lot of new accounts in a short period of time and especially avoid opening any new accounts before applying for a mortgage.

4. Don't apply for credit cards that you have no intention of using, and close any accounts that have zero balances and that you do not intent to use again.

5. Keep your credit balance low in ratio to your overall available credit.

6. Pay off credit card bills instead of transferring them to lower interest cards and closing previous account. It could actually hurt your score by disturbing ratio of open debt to number of cards.

7. Monitor your FICO score by getting a new copy of your report every six months. Once your score moves into an acceptable range then either refinance your existing mortgage, if interest rates warrant, or apply for a mortgage if you have been turned down in past.

Additional ways to improve your chances of getting approved.

While your FICO score is key determining factor in getting approved for a home mortgage, there are some other factors which affect approval process.

Show good prospects for continued employment

If your job prospects are a bit hazy then a lender may choose not to fund your mortgage even though you have high scores. Try not to change jobs within 6 months of applying for a mortgage if you can possibly help it.

Have a large down payment

Although some mortgage lenders advertise low or no down payment programs, they are exception to rule. Most lenders want to see 20% down. If you have less, then you may get passed over or, at very least, be required to pay expensive PMI (Personal Mortgage Insurance) each month until you do have 20% equity in your home.

Stay in a realistic price range

Don’t try to buy more house than you can comfortably afford. A lender is inclined to say “no” if he sees that too much of your income is going to be taken up by your mortgage payment.

Be Honest

Don’t try to hide any “bad news” including a pending job layoff, strike, etc. If you lie to your lender you probably will get caught.

Now that you know all about mortgage approval process, are you ready to buy a new home? It can look like a complicated process, but you can do it if you have your financial affairs in order.

If you want to get an offshore bank account, *consider visiting bank in person*. If you can, travel to country in question, and open a bank account there. You probably live near one tax haven at least. This especially applies if you are planning to deposit large sums; find out who you're dealing with!

NOTES:

1. Don't pay a middleman to open a bank account for you. See above.

2. Do not use services which offer bank accounts in Eastern European countries.

You are likely to be cheated, possibly by bank itself. Avoid Latvia!

3. Do not give anyone Power Of Attorney.

You can kiss your money goodbye. You may have legitimate reasons for not wishing to broadcast what you're doing. The problem is: *How can you obscure that you are owner of company, or bank account, without losing control of it?*

Don't get too clever, or too greedy.

4. Avoid web sites where:

The business address is a P.O. Box, or a 'Suite';

The site is on a free web host;

The site is badly translated into English;

You have sense you are dealing with Africans or Eastern Europeans;

The site has not been updated recently e.g. Copyright reads 2001;

They've only been running for a few years;

They offer a range of dubious products - second passports, citizenships, anonymous debit cards;

You cannot pay via credit card - it's much harder to get refunds on banker's drafts, Western Union and e-Gold etc;

They require you sign a confidentiality agreement, or you have sense you are entering quasi-legal or illegal territory.

Bogus offshore banking sites can threaten to report you to your tax authority if you question their methods. It's an old con trick; get mark involved in something illegal, then he can't go to authorities.

Offshore bank accounts and company formations are just like their onshore equivalents; there's no big mystery about them. If you want a company formation, contact a local registration agent, who speaks English, in country of registration. Then use another local agent to check what first one's done.

Open your bank account yourself.

One last thing: *don't think that because your bank account and company are offshore you can do business in your home country, and/or with fellow residents, and avoid taxes there*.

You'll find plenty of websites that'll purport to help you, right up until time you get a small brown envelope from your country's tax inspectors, inviting you in for a little chat.

About the author: T. O' Donnell (http://www.tigertom.net) is an ecommerce consultant and offshore banking adviser in London, UK.