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You can visit www.myfico.com to obtain your report. It also has an analysis tool, but the good one is the Suze Orman one that cost $50 (but you do get all three reports & and a true FICO score). For about $2 less you will get a very similar report (all three reports and scores), but it won't be "Suze's" and you will have to search for it. Scores are available straight from www.equifax.com, www.experian.com, or www.transunion.com. You are entitled to one free report each year visit www.annualcreditreport.com. Free reports may not include your FICO score (you will generally have an option to purchase a score when you pull your free report for approximately $8). You can get an idea of your debt problem with this evaluation. Single agency credit reports range from $10 to $20 and the three agency reports range from $30 to $50 with your scores. Check all the sites for the best deal of the day as the deals change often. Remember, get your FREE report first and you can pull one score just to get an idea of where you stand. When you get your FREE credit report they generally charge $7-10 for your score. ING Direct usually has a good deal if you need to pay for your report.
Obtaining your own credit report and/or score does NOT affect your score. You can check it as often as you like and it will NOT affect your score. Generally you should get help (including self-help) if your score is under 700. If you want the best rates and least documentation for home and auto loans you should be at 725+/-. ((Credit Scores ranges vary based on the credit reporting agency but they range from about 350 to 850. A FICO score from all three agencies is between 350 and 850)) HOW CAN MY SCORE BE SO LOW? What is a good score? What is low? What is high? Read This I have have a good job making decent money, I have money in savings, I pay cash for everything, and I don't owe anyone anything. So how can my score be so low? Your credit rating is based largely on how well you manage credit. Creditors want to know if you can make monthly payments over a long period of time. They want to know if you're strapped for cash which they may determine by your maxed out line of credit. They also consider the types of credit you have (mortgage, auto, revolving, installment, etc.) and how you pursue new credit. Here is an approximate breakdown of how your score is determined. Click for more information about this chart.
Check out 15 Things That Will Hurt Your Score and the 6 Worst Things For Your Credit Report. Ad: Credit problems? Talk to a credit score expert (MyCMAC) Why is there so much difference between credit reporting agencies? Each of the three major reporting agencies formulate their credit scores differently. They also collect different data. If you have an account with ABC Company they may only report to one or two of the agencies. Every company is different. Timing is also another factor. If you check your report today and then in two weeks, you may have a different score. Did you charge anything on your card in the last two weeks? Have you made any payments? This will also depend on the timing of the reports being received. There may also be a difference based on which company you pull your report from - even if it is the same agency you pull from - again mainly due to timing. In these economic times many creditors are lowering the available credit on your account, if you have a balance on your account this could have a significant impact on your credit for some time. Even slight reductions in your available credit can affect your score. ESTABLISH CREDIT Read more about the art of establishing credit. Depending on your score you can actually increase your score by obtaining credit cards and using them wisely. On average a person should have 3-4 credit cards with balances under 25% of the available credit line. To improve your score even more one should have different types of credit (auto, credit card, mortgage, etc.) over your credit history. Make sure you make at least the minimum payment on time every month and don't get in over your head. EVEN WHEN DAVE RAMSEY SAYS YOU DON'T NEED CREDIT - YOU DO! Consider you need to buy something, but on credit. Because you've been listening to Dave Ramsey - or because you choose not to let big bad banks take advantage of you with their credit card offers - or what ever reason you have yet to utilize credit, consider this Well-Off Couple. There are a lot of well off people that run across credit issues - not because they don't have enough money, but because they haven't shown that they can be responsible with credit. Yes, they are millionaires, but can they manage credit? This is rather stupid if you ask me, but we really live in a world run by the three digit number. This three digit number doesn't care that you have $250,000 in savings $300,000 equity in your home, or that you make over $200,000 a year. It cares how much credit you have, what kinds of credit, how much you are using that credit, how long you've had that credit, and how well you've been paying on that credit. It's actually too bad that you don't have a car loan, a mortgage, and credit card debt. Dave Ramsey is correct in that it can be a financial trap to care about this three digit number. You must have credit to get credit. You really shouldn't have to put things on credit to get them, or to have good insurance rates, or to get a good job, or to buy a house. But if you live in the world of cash - and you don't use credit - you're in their little trap. The key is to have credit and use it wisely. When you have the cash to buy something, put the purchase on your credit card and then pay it off when the bill comes in. You will normally avoid any interest payments, you will "use" your credit, and have a good score. Have cash to buy a house? That's great. Put some on a mortgage that you pay off in one year. Have cash to buy a car? Great. Get a loan and pay it off in twelve months from your high-yield online savings account. FIX PAST PROBLEMS/INACCURACIES NOW Once you have your report you may find some issues. Sometimes there are items that are truly not yours or are completely inaccurate. Review it and fix the things that are wrong/incorrect. The site linked provides sample letters to dispute credit items and more links for help. This link has another sample letter and information. Dispute everything on one letter. It's better if you hand write it or type up something basic. DO NOT GIVE THEM MORE INFORMATION THAN THEY NEED. If you have some seriously PAST DUE or collection accounts, call the creditor and see if you can either work out a payment plan or obtain a reduction as a full-payment (make sure you have the money to do this first and it will in many cases still show as a negative for several years). With a payment plan some creditors will agree to change the status after 6 months of on time payments. If you had something come up in your life like expensive medical bills, loss of a job, divorce, death of a family member, etc. and it has caused you to be late and/or go into collections you can add a note to your file that indicated this one time issue. Some creditors will consider this information when they're reviewing your account. If they see that you have reestablished yourself after recovering from your tragedy they may weigh the newer items more. Sorry, there are no quick fixes. I can only imagine it didn't take you a day or a week to get you where you are today. The good news is that many issues can be resolved under six (6) months, but some things may take longer. For one, it generally takes a full cycle (maybe a month or two) just for things to hit the system and then to generate through the three or more reporting agencies. You've probably been suffering with this issue more than six months, so be patient, it will get better from here. Get professional help: Credit repair can damage your scores! Click for the leading alternative (ad) CAN'T MAKE PAYMENTS ON TIME? (35% Of Your FICO Score) Create a plan based on how you got here. Are you just forgetful? Did some event happen and you didn't have an emergency fund to take care of things, and now it's out of control? Are you over spending? Is your income not keeping up with your expenses? If you're forgetful set up automated bill pay. If you don't already have it get automatic payroll deposits into your checking and savings accounts. Keep an eye on automatic payments - don't over draw your account. Or pick 2 days out of the month when you pay the bills. Most bills you have at least two weeks to make a payment, but keep an eye on it. When you get started write down the payments that are due, how much they are, and when they are due. Pick a date that works for your bills. If you have too many bills? What can you consolidate? Do a balance transfer to one card. Use another card to charge your current items because the interest rate on the transfer is usually much less on another card than on the card you did the transfer. When you make payments on a card with multiple interest rates they apply the payment to the lowest interest rates first. Stop making excuses of why your payments are late. Adjust your priorities so that you can pay your bills on time. If something happened (like a job loss, medical condition, etc.) and you have now recovered from that event (working again, healthy, etc.) then take a look at all of your options. Call creditors. Are they willing to work with you while you get back on your feet? Will they take a lower payment or lower your interest rate or remove some fees? Will they consolidate your accounts? Considering where you are right now, do you have a plan on how long it will take to pay things off? If you're headed to more than 4 years (not including car and/or house) you may need professional help (see below). If it is less than four years and your plan allows for making your payments on-time, be sure you do. In a 6 months to one year your credit should improve and you should be eligible for balance transfer accounts that will really help your interest rate. When you lower the interest rate you can pay things off faster. If you're out of control with your spending, you will need to make a decision for yourself that you want to stop overspending. This is carried out in many ways, but the first thing to do is look at why you keep spending. Sometimes it's an escape like smoking, drinking, doing drugs, over eating. You need to make a decision that you are capable of controlling your spending. You are stronger than your habit. Watch Larry Winget Big Spender A&E. Watch Suze Orman. If you're not making enough to cover your expenses you either need to make more money or spend less. Review Spending Plans and find out where you can make changes. Some may hurt, but you've got to figure it out. If you're making so little there may be social programs available to help you. You might be able to get housing at a rate more suited to your income. Food stamps are available. You might need a second job. If you're making above poverty level you have choices. You need to consider them. Take a look at what you're spending and make adjustments. Look at Spending Plans and adjust your choices. GET HELP WHEN NEEDED For General Financial Advocacy and Tax Preparation assistance you can try CASH Oregon, a non-profit organization assisting lower income individuals and families. They are located in the Lloyd Center mall. Volunteers work with clients to develop financial solutions and/or complete tax returns. You may need professional advice. Two reputable non-profit CREDIT ADVISORS can be found at www.cccssf.org or www.myvesta.org. For a local non-profit try Solutions. They are part of ClearPoint. If you have really serious issues and you have no idea how to get out of this mess, contact them. They will establish a plan and help you make arrangements with creditors. Be wary of quick fixes and big promises of other agencies, including some not-for-profit establishments. You'd be amazed at the number of people that want to take advantage of you when you need help the most. ClearPoint Financial Solutions, Inc. Usually the only thing that non-profits will charge you for is their debt management plan where you make one payment to them and they pay your creditors. Some only provide assistance if your debts are credit cards, other will include medical and other bills so be sure you ask. They generally charge 15% of your monthly payment and have limits (like a minimum of $25 and a maximum of $75). Some charge a set-up fee also. It is really important for you to figure out if you can do this on your own first. If you can't then be sure to check the rates and services of the agencies you're working with. Make sure they are members of NFCC or AICCCA. One thing you should be aware of is that many of these agencies are funded by the creditors and if you make payments through an agency the creditors generally have to pay the agency a fee. You may get a little black mark on your credit (See MNS Money). Often if you can make the payments, you are better off making them yourself. (ad) Low credit scores? We have answers! RESOURCES
BANKRUPTCY CHANGES One of the most significant changes made to the October 17, 2005 bankruptcy law is that financial counseling is required. You can get this counseling from may places including the non-profits. The maximum fee for the first meeting is $50 and they cannot keep you from having the first meeting if you don't have the ability to pay for it. Before you can complete bankruptcy there is a 2 hour financial education class you must complete. The maximum fee was not determined at this writing, but again, if you can't pay it can't keep you from attending the class. Dave Ramsey on Bankruptcy. Bankruptcy Law Changes § Change Summary § Required Counseling § Recovery After Bankruptcy TIPS One of the single best moves you can make to improve your credit score is to pay at least the minimum payment ON TIME every month. Up to thirty-five percent (yes 35%) of your score is based on paying all your bills... on time. Don't max out your credit cards... except if you can combine all of your credit cards on to one LOW RATE card and cut up the rest. ((Keep the accounts open, but don't use the cards)). The closer you are to maxing out your card the more it can hurt your score. If tragedy hits and it prevents you from making payments on your obligations call your creditors immediately and let them know when and how much you can pay. Sometimes creditors will keep the delinquency off of your credit record if they know what is going on. Even small payments will show you're trying to make good on your obligation despite the unexpected event. Stop buying things. Stop spending money and find ways to save. FIND OUT MORE Learn about credit reports at WWW.ALLABOUTCREDITREPORTS.COM Clark Howard has great general consumer advise on his radio program and on his web site at www.clarkhoward.com. Suze Orman has good financial advice and with a religious twist so does Dave Ramsey. See more informative links below. MAKE THEM STOP! TIP: Stop the offers from coming to your home... Call Opt Out at (888) 567-8688 and get off the mailing lists. Stop the phone calls... click here. More help to make them STOP! click here REMEMBER: YOU CAN FIX YOUR FINANCIAL SITUATION ON YOUR OWN. THE TOOLS ARE ALL HERE TO HELP YOU ALONG. IF YOU ARE FEELING OVERWHELMED IT'S OKAY TO ASK FOR HELP. YOU CAN GET FREE HELP FROM MANY PLACES AND MANY PEOPLE. YOU CAN START HERE at a local non-profit but don't stop there. The resources are at your fingertips. FINANCIAL FITNESS FOR LIFE
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[Fix Credit] [Stop Living Check to Check] [Spending Plans] [Build Wealth] [Foreclosure] PORTLAND MONEY TRAINER... BUILDING WEALTH ONE CHANGE AT A TIME
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