How Healthy Is Your Credit ?

Written by James Dimmitt

There’s only one way to discoverrepparttar “health”of your credit. You need to examine your credit report. Your credit report is your “consumer identity” that potential lenders will use to judge your credit worthiness.

Use these tips to give your credit profilerepparttar 139923 “tune-up” it needs:

Tip #1- Check for Errors

Your credit report or profile is more than just a collection of who your creditors are and how much you owe them or have paid them.

The first thing you need to do is carefully check that your credit report is accurate. Nearly 70% of credit reports contain errors.

These errors may be as simple as an incorrect middle initial or address. Or it could be as serious as a creditor reporting that you were late with a payment when in fact you were not late at all.

This error might not seem like a big deal to you. However,to a future lender like a mortgage company it makes a big difference!

Carefully examine your credit report and if you find an error contact your creditor andrepparttar 139924 credit bureaus. Catch and correct these errors now before it hurts your chances of securing credit inrepparttar 139925 future.

Tip #2 - Correcting Errors

The two most common errors contained in credit reports are: 1) wrong account information 2) incorrect recording of late payments.

If you find an account reported that does not belong you, you need to contactrepparttar 139926 credit grantor or issuer immediately. Remember, finding accounts that you have not personally opened is a sign of possible identity theft.

Hopefully you’ll discover that this error is nothing more than an oversight and not an identity theft problem. Most often this occurs when they report an account belonging to a family member or someone with a similar name on your credit report.

If your problem is an error in reporting a late payment you will need proof to back up your case before this error can be corrected or removed. The most common error occurs when a payment is reported as “late” when it was actually a current or “on time” payment.

In either case,repparttar 139927 problem can and should be corrected. You will need to correctrepparttar 139928 error in writing. Keep a journal or log of all calls and correspondence.

The Fair Credit Reporting Act (FCRA) requiresrepparttar 139929 credit bureaus andrepparttar 139930 agency reportingrepparttar 139931 information torepparttar 139932 credit bureau to correct inaccurate information in your credit report. Therefore, it is important that you contact bothrepparttar 139933 credit bureau andrepparttar 139934 creditor whose information is in dispute.

Be Cautious When Using Your Nest Egg As An ATM

Written by James Dimmitt

About five years ago I moved fromrepparttar ranks of being a renter to that of being a homeowner. Now, not a week goes by that I don’t receive some type of offer throughrepparttar 139775 mail encouraging me to refinance my mortgage, open a home equity line of credit (HELOC), or apply for a home equity loan.

Payoff High Interest Credit Card Debt! Lower Your Monthly Payments! Buy A New Car! Refinance And Get Money Now! screamrepparttar 139776 slogans splashed acrossrepparttar 139777 envelopes.

The promotional letters inside point out how easy it will be for me to “getrepparttar 139778 extra cash you need NOW!” They promise “no out of pocket costs” with a newly refinanced 30-year loan.

Could I use some extra cash NOW? You bet I could! Who needs high interest credit card debt? Not me, no way, no how! Buy a new car? Hmmm, I like that new Pontiac G6 I’ve seen on tv, maybe in a sleek titanium color with black trim?

For thousands of U.S. households “Home Sweet Home” is rapidly being replaced with a new sentiment - “Home Sweet ATM.” According torepparttar 139779 latest Federal Reserve study, 45% of homeowners who have refinanced their mortgages pulled cash out and 74% wound up lengthening their mortgage by about six years. Only 17% shortened their loan term opting to downsize to a 15-year mortgage.

In a period of six years, Americans have more than doubledrepparttar 139780 amount owed on home equity loans and lines of credit, nearing $766.2 billion, according torepparttar 139781 Federal Reserve.

If you’re in your 40’s and you refinance on a new 30-yr. loan, you’ll be in your 70’s byrepparttar 139782 time your loan ends. Even if you shave off a few years by paying down your principle, you’re still risking not owning your home “free and clear” as you approach retirement age.

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