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Impact of home foreclosure at FICO Ratings

Home foreclosure notice makes a great impact upon owners’ mental, financial and physical health.  Apart from this foreclosure acts as a negative booster that spoils the Fico ratings completely. FICO ratings determines the credit worthiness and it depicts how likely you are to pay back a loan on time. Once the stamp of foreclosure is posted to the credit report, person is left with nothing. It pulls down the credit score badly and its effect lasts for at least 7-8 years to the credit report. Presence of foreclosure in credit report is often reviewed as negative by the lenders and other financial institutions.

  • Home foreclosures make a long-term effect on your credit worthiness and make it difficult to obtain new credits at competitive rates.
  • Lenders are always in hunt of such individuals whose fico rating is poor. They take advantage of the situation and charge them with high interest rates on the loan they have applied for as they know person is needy and it would be difficult for them to arrange loan.
  • You might face difficulty in approving a loan or a credit card from the lender.
  • Your credit report may drop down by 200-300 points that mean if before foreclosure you score is 700 then it will be ranging between 400-500 post foreclosure. This drop reduces the chances of getting automobile loans, property loans, insurance and other loans.

This is untrue that once foreclosure reflected to your credit report can never let you stand financially for life time. It might be difficult to improve but it isn’t impossible. You can improve your Fico Ratings and rebuild your credit worthiness by taking control on your debts and clearing the payment history. The effect of foreclosure can diminish early if you take specific initiatives to improve the credit score. Try to take benefits of secured credit cards, stay active on all other monthly installments and debts, check the credit unions, take some time to apply for new debt and pay your previous as well as current bills on time.

Get in touch with 700 Fico club if you want to improve your Fico ratings.  Our professional financial advisors follow the ethical procedures and help you in uplifting your credit score. If you incur any of the credit related issues, feel free to speak to our experts. We pride to maintain the privacy of our clients. Call us or fill our form online and discuss your queries. Our proficient experts with guide you about what do’s and don’ts you should perform to maintain healthy a credit score.

Credit inquiries- how they influence your credit score

Whenever you apply for any credit, your lender or credit institute investigates your credit file or report. Whatever you have requested for either it is a credit card, auto loan, home loan or for any other purpose, your credit score is checked thoroughly. They have right to ask you list of questions as they have to clear their doubts regarding if there are pending, late payments or any bad records. Well, this can easily be analyzed by having a look at your credit file. Credit inquires are basically divided into two types, one is soft inquiry and other is hard inquiry. There is a big difference among both of these inquiries and this greatly affects your FICO credit score.

  • Soft inquiries:

This kind of inquiry just involves your background check process. Soft inquiries are never included in your credit score. So you don’t have to stress upon about these soft pull inquiries causing any negative impact to your Fico credit rating. Soft inquires can occur without your permission and these lenders can per-approve your loan or give instant loan for your purpose.

  • Hard inquiries:

Hard inquiries greatly count towards your credit score. This should be minimal if you want your credit rating does not go down. If you are applying for loans like car loans, student loans, mortgages, then lenders or financial institutions might make multiple hard inquiries. However if your hard inquires are more then it may lower your credit score for couple of years.

To score good credit ratings you must pay off your left balances, avoid making late installments; don’t collect too many credit cards and many more. If you are able to maintain your credit score and reports in a desired way then you may not receive any surprises especially when you are planning for large purchases or loans. Still if you unable to maintain your credit ratings and have higher credit inquiries, you don’t have to panic. Get in touch with 700 Fico Club; we specialize in providing credit inquiry removal services. Our financial advisers will not only help you remove bad inquiries but they also boost your credit score. Call us and make an appointment with our experts or email us in case of any queries. We at 700 Fico Club assures you to provide right solutions for your needs.

Buy your dream car with auto financing solutions

Today a car is not only considered as a status symbol but it has become a necessity too. However buying a car is not always economically possible for many individuals. This kind of transport demands a huge investment that most of the times do not fit one’s pocket. Some people buy first hand cars and some used one as per their budget. There are many options that can be opted when buying a car like acquiring it on lease, taking help from auto finance companies or taking loan from banks and car loan companies. These financial institutions provide you quick loans in a cost-effective manner. Apart from all, auto financing a car is one of the best solutions.

This service is mostly used by those who have stable income or are not willing to pay such a huge amount at once. All just you need is valid proofs of your regular income and you can easily finance your dream car without any hassle. There are many companies those provide auto finance services with commending repayment terms and excellent interest rates. Before choosing one of the auto finance company, it is suggested to compare car loans, interest rates, period of loan, down payments, norms and offers delivered by other companies. You must possess basic knowledge and terms to make yourself alert if being cheated. Once selecting the appropriate organization, ask them to make calculations about how much you have to pay? What will be the best suitable mode for quick and easy payment- monthly, quarterly or yearly?  If you have bad credit score already then ask do they provide solution to this problem. However, to get your loan approved though you have bad credit score, the company will ask you for all the necessary documents. Then they cross check the valid proofs, income slips, runs the entire process of qualification check, processes it and aim for disbursement within shorter time frames. They suggest you to make your repayment installments regularly which in turn can lead to positive change in credit score.

If you do not hold relevant financial situation, you still can purchase your own car with right auto financing scheme. Make the process of car buying easy with 700 Fico Club. We are expert in providing auto financing solutions to our clients. Stress-off your shoulders and let our professionals work to fulfill your dreams. Call or email us if you have any queries. Our experts will provide right solution for your needs.

All You Need to Know Commercial Property Financing

Being a business owner, you may need commercial properties for expanding your business. Having limited funds, there arises need to acquire commercial property loans. With number of providers available to offer commercial property financing option, it’s not difficult to obtain loans. However, you need to be well aware of some of the important considerations while making a decision.

Submission of business plan

During commercial financing, you had to submit your business plan. There is no problem in providing an overall view of your business to the lenders. However, there are some lenders who demand for minuscule business details. It’s not safe to offer such exhaustive information about your business. Always choose a lender who is satisfied with the information you give. It’s not desirable to work with the lender who monitors your tax returns.

Financing for special purpose property

Sometimes, there is difficulty in finding financing for special purpose properties. Obtaining loans for office building is quite easy, but it’s really difficult to get it for restaurants. You need to thoroughly search the internet for finding the lenders who offer lower interest rates for certain type of business properties.

Long term loans

While buying loans for commercial properties make sure to buy the one for longer period of time. A short term loan is avoided when you intend to buy commercial properties. You can manage a loan term loan with the lower monthly payments. If you still wish to buy short term loans, you must have high cash flow.

Avoid your personal property as collateral  

Always keep in mind that you should never use your personal property as collateral for commercial property financing. Lenders take the help of DCR i.e. debt coverage ratio which acts a deciding factor while offering you loan. This ratio also reflects upon your ability to pay the loan. DCR varying from 1 to 1.2 is preferred by the lenders.

Are you looking to buy a new commercial property? If yes, then we at 700 Fico Club are here assist to you with your Commercial Property Financing. Our team are also seasoned Real Estate Brokers and can help you to locate a property of your dreams. For more information you can call us or email us your queries.

How can you improve your Credit Score

The calculation based upon the analysis of one’s credit files to rectify the credit worthiness symbolizes Credit Score. If you are dreaming of having your own home or car which is the basic essential elements that you can’t think to live without then your credit score needs to be high. Your credit score determines the amount of interest you will pay for your car or home loan. Maintaining a good Credit Score needs a lots of time and efforts.

Some of the ways to improve Credit Score are:

Pay your Bill on time:

Paying your bills late will result in poor credit score. If you are bad about paying your bills, definitely it is going to hit your credit score. So getting all your past due bills clear will make a way to improve your credit score.

Don’t apply for any more Credit Cards:

Own that number of credit cards that are sufficient for your needs. If you apply for numerous credit cards, then you are giving an indication to credit agencies that you are encountered in some financial difficulty. This makes your overall score negative.

Update your records:

It is essential to check through your Credit reports. Make sure your payments are reflected in your reports timely. Carrying a payment that you have paid but still not updated can make a negative impact on your credit score.

Minimize your credit balance:

You won’t really improve your credit score until you pay off your debts. Try to minimize your credit balance by clearing your all pending payments. One missed payment can contribute a lot to lower your score.

Examine your reports:

One of the obvious and frequent blunders that you perform is not managing your Credit reports. Double check the errors in your documents. If any sort of inaccurate or false information is observed, you should correct them immediately and must add the relevant up-to-date information to records of credit agencies.

These are just few tips that can help you in maintaining and improving your credit score for long term. Once you maintain your habit of paying the bills timely, keeping your minimum balance, you will see a great change in your credit score. Keep up discipline in handling your credit. With higher credit score you will be able to gain access to credit more easily.

Although it takes a lot of time and efforts but it is possible to improve your credit score in relatively short interval of time. If you have had credit problems in past, you can fix those issues by consulting 700 Fico Club financial experts. Our credit experts tell you the best ways to improve your credit score and finds which area you need to focus. 700 Fico Club specializes in providing financial services, cuts-off Bad Credit and ensures to boost your credit score within 30-45 days time interval. Call us and make an appointment or leave a message if you have any queries. Our credit support team aims to enhance your credit score with honest and legal procedures.

How a bad credit can affect you?

Credit bureau keeps a record of your credit relating behaviors. It is like a historical snapshot of your commitment to repay your debt in a timely manner. There is a complete history of your loan amount, credit cards and repayment. However, banks and lenders access this information to assess the degree of risk associated with offering you a loan.

Therefore, any past late payments and defaults negatively impact your chances to obtain finance in the near future. Bad credit history signifies your inability to handle your finances.

So, therefore, it is important to pay your bills on time and ensure your spending is under control.

How did you get a default on your credit file?

Overdue account is reported as a payment default in your report. It arises as soon as you have an outstanding account of least $100 overdue for more than 60 days. Late payments of credit card debts, mobile phone or delay in loan repayment are common examples of it. The payment default is recorded on your file after 60 days.

However, if you fail to respond to the request of the lender for settling the outstanding amount, you will be considered as an unaccountable debtor, where in your payment default is classified as a clear out.

You will be listed default on your file even if 60 days duration has not been elapsed. In some of the cases, the lender may start a legal proceeding against you. Such events also get recorded on the file.

However, if you pay your overdue account, the bank will update the file as soon as the payment is made. But the payment default remains on the report for a specific time. The rules are strict and there is no way the default can be removed from the report before the particular time has elapsed.

How long does the default will stay on your report?

The length of time depends on the default. However, a payment default remains for 5 years, even the overdue amount is paid in full.

If you fail to respond to the creditor and gets clear out, the information will remain for 7 years on the file.  The court judgment remains on it for 5years while a bankruptcy list for 7 years, even after it has been discharged.

700 FICO Club offer credit restoration services. Seek our help to manage your finances well. We can also help you enhance your credit score. Call us for additional details or email us your queries.

The reasons your credit score fluctuates

Applying for a new credit

All credit cards have limits depending on how you use it. A new card may have a lower score. However, when you cancel all the past cards, it affects your score negatively. So, therefore, when applying for a new card, keep the limits in mind.

Payment history

You must repay your loans on time. Missed payments are recorded on your file for around seven years. So, therefore, make sure you never miss the date of repayment of your debt. Set monthly reminders for them so that you do not forget to pay the installment.

Bankruptcy

It can cause a detrimental impact on your file. So, therefore, it is advisable to seek help of an experienced attorney to make an informed decision as the bankruptcy can range from 7 to 10 years.

Credit card balances

Your credit card balance also influences your score. However, the balances on your card vary on a monthly basis depending on your utility. The less variable available balance is on the card, the greater is the credit utilization.

However, many individuals have several cards. Closing them without balances decreases your utilization. So, therefore, it is recommended to close down even if it holds zero balance.

Theft

Certain times despite of making payments on time, your score remains low. If such is the case, analyze the report. It may help you spot something unusual that may be causing a drastic change in your score. This can also be a simple mistake that can be corrected easily.

Length of credit history

The length of time a specific account is opened; including the time frame between the oldest to the newest account also affects it. If you are not using an account for a long time, it can drive your score low.

Time

If you are not using a credit card, get it closed as the companies might change some policies and cause a slight fluctuation in the score.

These are the reasons that may cause fluctuation in your credit score. For more information on credit score and ways to improve it, get in touch with 700FICO Score. Call us for details or email us your queries.

The ways to remove credit inquiries

A credit card inquiry is a record of any inquest made on your credit report by any entity. However, as per to the rules and regulations, a credit reporting agency has to maintain a record of these investigations for at least for 24 months.

The inquiries are of two types:

Soft inquiries do not hurt your credit score. It includes:

  • Investigations made through a court order or a personal level request for a copy of your report.
  • It also includes investigations made when applying for a job, home loan and auto insurance
  • Inquest with the purpose of account management

Hard inquiries

These are made by someone with permissible purpose to review your credit such as a prospective lender because you might have applied for a loan or any kind of financial assistance.

However, there will be lenders who will seek to view your credit report without any such purpose and your permission. These unauthorized investigations affect your score considerably. So, therefore, it is must to get them removed.

You can take certain measures like:

  • Send a letter to the lender requesting them to present a proof of your permission to review your credit report.
  • If they do not have a proof of it, send them a letter stating that the inquest was made erroneously.
  • If they do not take any action despite all this, explain them that they will be sued for violating the FCRA.
  • If the lender does not respond within 30 days, seek a counsel help immediately. Your lawyer will send them a forceful letter stating that if they fail to response, a strict action will be taken against them in the court.

However, if you get a positive response, make three copies of it and send them to each credit reporting agency. These agencies will verify the letter first and then remove the inquiry, and send you a copy of it.

If at any moment, you think you need professional assistance, you can resort to Credit restoration companies. You can look for them online or get their contact details from local directories. Choose the one that is experienced, reputable and reliable. Make sure you do not fall prey to fraud firms that use illicit methods to remove the inquiry.

For credit card inquiry removal services, get in touch with 700FICO Club. Get in touch with us for more details or email us your queries. We will be happy to help you.

5 strategies to improve your credit score

Your credit score is determinant of your overall financial stature. Therefore, you should repair it appropriately. The article guides you to correct your credit history in the right manner.

Check your credit history

Begin the process by checking your credit report. Ask for its copy and check it for any errors that are affecting your score. Make sure there are no incorrectly listed late payments. If you find any error, immediately raise a dispute with the credit bureau.

Do not delay your payments

Timely pay your debts and installments. It contributes significantly in improving the score. Some financing institutes send email or text to the borrowers to ensure the payments are made on time. Consider setting reminders for installments on your phone. It will make sure you do not miss a deadline.

 Limit the use of credit cards

Limit the use of credit cards. Check all your accounts to consider how much you owe and interest rates each account charges you. Allocate your funds accordingly. Do not spend more than what you can pay for.

Some more tips

  • Make sure your delinquent payments are made on time. If you had late payments once, ensure it does not happen again; otherwise it will impact the FICO score negatively. Also, remember that even if you pay off a collection account, it remains on the report for around seven years. If you are in financial crisis, ask your creditors to restructure your installments to suit your lower income comfortably.
  • Debts contribute to 30% of your score calculation. For a clean history, you have to make sure that your credit cards and revolving debt balances are low.
  • You should not open new accounts too rapidly. Opening a new account lowers your average account age that significantly lowers the score.

Take professional help

If none of your effort showing results, find a professional to offer you credit repair services. On the internet, you will find many companies that offer these services. They work towards increasing your FICO score in a month’s time.

Start your search online or in local directories. Make sure the agency you choose is licensed, reputable and experienced. Ensure you do not fall prey to dubious firms. So therefore, check their credentials and read their reviews on third party sites to avoid this.

For credit repair services, get in touch with 700 FICO Club. Call us for more details or email us your queries. We will be happy to help you.

Ways to improve your credit score- Tradelines and other relevant information

Ways to improve your credit score- Tradelines and other relevant information

The credit score is a written record of your financial transactions, including the details of your current debt and how well you are repaying it. It also includes the record of past debts and their repayment. It also holds information regarding foreclosures, judgments and bankruptcies.

Based on this report, you are given a numerical score that reflects your potential to repay. The score is based on:

  • The number and types of accounts you have open
  • How long you have held the accounts?
  • List of late payments you have made
  • Current debt
  • Any attempts made to open a new account.
  • Number of inquiries made by the lenders.

When you apply for a loan, the lender or financial company examines this score, to determine your potential to repay the money

How to improve your credit score?

Your report reflects every entry made. However, if your score is bad, you can improve it by following these steps:

Examine the report thoroughly

If your report still shows an outstanding debt after you have paid it, you can challenge that item in it. The company you challenge has up to 90 days to respond to the complaint.

Close old credit card accounts

Old accounts that remain open add up to your total amount of credit available.

Tradelines

Tradelines can help boost your credit score. You can improve the score by making sure the debts you are paying now or in the past are listed in the report.

Car Loans

Consider adding present and past car loans in your report. Add a former that the debt from the vehicle was repaid. It will add to your overall score.

If you have bought household things like refrigerator, washer and jewelry on installments, include all these in the report as well.

Mortgage

However, the current mortgage would be listed already. If it is not your first mortgage, make sure you list the previous one if it is paid on time.

Utility bills

Make sure you pay off your monthly bills on time. This also reflects on your score.

However, there is no better way to improve your credit score than paying off your debts on time.

For credit restoration, credit repair and tradeline services, trust on 700 FICO Club.  For more details on our services, call us. You can also send us your queries online. We will be happy to help you.