What to know about your credit before you buy a house.

Credit Score Rating


 Excellent

 760-849

 Fair

 620-679

 Good

 680-759

 Poor

 500-619

Credit report vs. credit score
Your credit report and your credit score are two different things. Your credit report is a list of things like your credit card and bank accounts, outstanding loans, and your payment history. Your credit score is a rating of how good your credit is, based on your report.

The main things on your credit report that hurt your credit score are:

- Bankruptcy

- Outstanding (unpaid) debts

- Late payments

- Credit card balances near the credit limit

- Liens (both outstanding and paid)

You increase your credit score by fixing these issues.

Should you wait for an item to expire before you apply for a loan?
Late payments are removed from your credit report after seven years. Bankruptcies are removed after ten. If it's only going to take a few months for a negative item to expire off your report, wait for the bad item to expire before applying for a loan.

Do you need to find out your credit scores?
Unfortunately, you probably can't find out your credit score without paying for it ($16-$48).  
- You can try to get your FICO score based on your Equifax report or you can get all three FICO credit scores from MyFico.com for $48.

- You can also see if your credit card company can give you your score.
- By law, each CRA has to give you a free copy of your credit report once a year if you ask for it. If there are no items marked "Derogatory" or "Negative", then your score is probably pretty good and you can proceed to apply for a loan.

- If you have already applied for a loan and are curious to know your scores, your lender may tell you.
Equifax is the only CRA that will sell you your genuine FICO score based on their report (Around $16) TransUnion and Experian won't sell you a real FICO score. 

 

Here are some tips to better your credit score rating.
* Settle your invoices before the due date.

* Don`t go over the credit limit on your credit card. Make sure to retain your balance below the credit limit.
 

   

What you should do if your information was stolen.

1. Start a log. When you make telephone calls or send written messages, write comments about your calls and written communication with official authorities and financial institutions. Make sure you get their contact information, who you talked to and some details about your conversation.

2. Note how much time you spent dealing with this situation,  you can deduct expenses that are cause by the theft on your income tax return, if you had  to pay. (You might be able to ask for compensation in case you are one day in a position to take legal action against the thief).

3. Contact all 3 major credit bureaus and make a request that they issue an alert for frauds and attach a record to your credit rating.

 - You are able to ask for a primary warning in case you are a victim identity theft. This warning can be found in your record up to ninety days. The warning states that you do not approve a new credit card on an existing account, a raise of the credit maximum of an existing bank account, or additional credit.

-You can also ask for extent warning. A report for identity theft is an official report you have filed with a national, state, or otherwise local agency that is in charge of law enforcement. The extended warning is left standing in your credit history for the period of seven years. Every bureau is obligated to exclude you from alleged prescreened credit solicitations files.

4.File an official report of the crime to the nearest police. Request the police officer to write down every one of the fraudulently used financial records that you revealed in your credit reports on the police report. Make sure you get copies of the official police report.



Ron Werner ABR CRS e-PRO
Licensed Real Estate Broker-
Realtor
®
DRE Lic# 00822412 & 00705989
310.614.4027 direct
werner@gr8homes.com