Credit Repair Services - Models Only Please

I thought this was amusing. Today, while doing research into the so-called credit repair services industry, I stumbled across a website called Doctor Credit. On their website, the company boasts a lot of credit repair case studies where they have helped regular folks like you and me.

As it turns out, however, their past clients are all models from stock photo websites ... or at least their pictures are. Is this deceitful behavior on the part of the credit repair company? You tell me. Look at the first photo below. Note how it is clearly labeled as being a picture of "Kevin R." It goes on to tell the credit repair story of Kevin R. (never a last name, of course), and how he got his life back thanks to this credit repair services provided by this company.



Now look at the second picture below. It turns out that Kevin R. is a stock photo model. In fact, all of the past clients of this credit repair service are models (at least, according to the client photos that go along with the stories).




Does this company only serve the modeling industry? Is it a case of "creative license" on the part of the webmaster? Or is it just plain deceitful? You be the judge.

Here's my take on this. Maybe it's an innocent case of using stock images and passing them off as real people -- even going so far as labeling them with client names. But I look and this and think, "How could I trust a company like this to help with my credit issues?"

Maybe it's just me.

In other credit repair services news:

• 5 Credit Fix Scams to Avoid
• Avoiding Credit Repair Scams

Buyers Need a Higher Credit Score for Home Buying

Hi folks. Captain Credit here, with another update in the ongoing saga about mortgages, credit scores, and home buying! This time we will talk about the increasing need for good credit during the home buying process.

A few days ago, I was watching Jean Chatzky on the Today Show. She is the financial editor for the show, and she confirmed something that I already knew:

Home buyers today need higher credit scores for home buying than they did a few years ago. And if you want to get the best interest rate on a loan, you will need a significantly higher score than only two years ago.

We will get into the specifics of how this happened soon enough. But first, let's look at the numbers presented in this recent report.

Specifically, Jean was explaining the credit score you need to qualify for the best mortgage rates when buying a home. Here is how she broke it down:

• May 2006 - Needed a credit score of 620 to get the best rates.
• May 2008 - Need a score of 760 to get the best mortgage rates.

That's an increase of 140 points, which is a significant difference when you consider that the credit score range only goes from 300 - 850. Why is the best-case scenario so hard to reach these days? Let's take a closer look...

Why Did This Happen?

Why do buyers need better credit for home buying today? What has changed? To answer these questions, we must understand the history of the subprime mortgage crisis that came to a head in late 2007 (and of which we are still feeling the effects today). Here is a "nutshell" version of what happened:

Through the 1990's, a lot of mortgage lenders were offering subprime mortgage loans to borrowers with bad credit scores -- the type of credit score that normally wouldn't suffice for home buying and mortgage approval. The lenders offered low initial rates on the loans, often referred to as "teaser" rates. Of course, most of these loans had adjustable rates as well, and those low introductory rates soon reset into much larger payments.

Long story short, many of those homeowners could not afford the steeper mortgage payments each month, and legions of them went into foreclosure. This is why we've had record numbers of home foreclosures over the last few years.

When all of this "easy lending" was taking place, the federal government mostly turned a blind eye and ignored the warnings of economists. After all, the mortgage companies are powerful lobbyists that contributed large sums of money to the campaigns of George W. Bush, Arnold Schwarzenegger, and other political decision makers.

But these days, in light of the mortgage meltdown (that was much predicted) and all of the economic havoc it has caused, the federal government has changed its "out of sight, out of mind" strategy. Now the government is tightening restrictions on mortgage lenders, particularly in the area of subprime loans. In fact, many of the subprime giants of the 90's have since gone out of business. Their business model is no longer viable!

How This Applies to Home Buying

If you are planning to buy a home in the near future, this has everything to do with you. Basically, it means that you will need a higher credit score for home buying today than in the past.

The exact score you need to quality for a loan will vary from one lender to the next, from one state to the next, etc. But it's important to realize that there's a big difference between qualifying for a mortgage loan and getting a good rate on the loan. For example, you might get approved for a mortgage with a credit score of 580. But you certainly won't get the best rate with that score. This means you will pay more each month as long as you keep the loan.

A couple of years ago in 2006 (according to the figures presented by Jean Chatzky), you could have elevated your score by just 40 points to qualify for the best interest rates -- i.e., you would boost your credit score from a 580 to a 620. Today, however, you would have to increase the score by 180 points (from 580 to 760) to qualify for the best rates. That's a huge difference!

Here's the gist of all this...

The home buyers of today need a higher credit score for home buying than the buyer's of, say, three or four years ago. The federal government is putting more pressure on lenders. The mortgage lenders are scrutinizing borrowers. And borrowers are under increased pressure to have good credit scores for home buying purposes.

It's not going to change anytime soon. So if you fall into the bad credit range, my advice to you is this: Do not buy a home until you get your financial "house" in order. Even if you do get qualified with a low credit score, you are going to pay a huge amount of interest on the loan (especially in light of recent events). So instead of rushing out to buy a home before you're financially ready, focus instead on improving your credit score.

How to Fix Your Credit Report

Article summary: This article explains the process of fixing credit report errors if you find that one or more of your reports has erroneous information on it.

This is a topic that every home buyer should understand, because it is closely related to the mortgage application and approval process. Thus, it's an important topic for home buying in general.

But before we talk about the basic process for fixing credit report errors, let's talk briefly about why these reports are important in the first place. Because once you realize the importance, you'll be more motivated to fix any credit report mistakes that you come across!

If you new to the world of credit (from a home buying perspective), you might want to start with this tutorial for a general overview of the subject.

Why Fix Your Reports Anyway?

When you apply for a mortgage loan, or any kind of loan for that matter, the lender will request copies of your credit reports from all three of the companies who compile that information -- Experian, TransUnion and Equifax. Your reports will also be converted into credit scores using the FICO scoring model. So the score is based on information found within the reports.

Now you are beginning to see the connection here. Errors in your credit reports can negatively affect your credit score, dragging it down lower than what it should really be. This will make it harder to qualify for a mortgage loan, and if you do qualify you'll probably end up paying a higher interest rate because of that score.

Now let's be frank here. Actually, you can be Frank and I'll be Sylvia. Ha! I love that bit. But seriously, let's be realistic. Your credit score might be low simply because you have some financial bad habits in your past. Maybe you've missed a bunch of bill payments, or maybe you have too much debt compared to income, or a combination of factors. In this case, you need to work on boosting your credit score ... as opposed to fixing errors on your credit report, which is the topic at hand.

The "How" of Fixing Credit Report Errors

Now you know why it's important to correct mistakes on your credit report, let's talk about how to go about doing it. The first thing you need to understand is that you have three different reports (as mentioned above), and they are not "shared" reports. This means that you could actually see different information on all three of them.

It also means that you could find an error on one report (e.g. from TransUnion), while the information provided by Experian and Equifax appears to be correct. So if you ever have to fix errors on your credit report you'll need to keep this fact in mind. You must contact the company that produced the erroneous report, as the information is specific to that company.

So that's your first step in fixing credit report mistakes ... you must contact the company and submit a dispute. This is a way of saying, "Hey, this information is not correct, and you need to fix it because it's affecting my financial status!"

Here are the dispute sections for all three companies:

Experian disputes | Equifax disputes | TransUnion disputes

So, you found an error on one or more of your credit reports and you've begun the process of fixing the error by submitting a dispute / correction form through the appropriate website above. That's all there is to it, right?

Unfortunately, no.

Here's another important lesson to take away from this article. When you begin contacting one of the credit-reporting companies about a mistake on your report, you will soon realize that you are not their customer. You will realize this because they will probably treat you in a fashion that suggests the same. The mortgage company who pays to obtain your credit report is their customer. The car dealer who pays to obtain your reports is their customer too.

But you are not their customer. You are a number ... a piece of data to them. And when you start demanding their investigation into a potential mistake on your report, you become a nuisance as well.

Is this right and fair? Of course not. I just want you to understand the reality of the situation before you attempt to fix errors on your credit report. When you go into the process understanding the dynamic, you'll be better prepared for what you must do next, which is to stay on top of them until things are sorted out!

As you would imagine, the credit-reporting agencies are somewhat regulated by Congress. Specifically, the Fair Credit Reporting Act dictates certain obligations these companies have, with regard to maintaining credit information on consumers (and correcting that information when it is clearly in error). The law was created back in 1970, and it has been more recently amended (2003) to try and force the credit-reporting companies to be more responsive.

With that being said, many consumer advocates argue that the act does not go far enough to protect consumers, that it is lazily enforced, and that the core problems that prompted the creation of the act are still very much around today.

When you begin the process of fixing errors on your credit report you should document everything. It's also a good idea to forward copies of your documentation to the mortgage lender, because it shows that you are contesting the erroneous information that is affecting your creditworthiness with the lender.

In the end, here's what you need to remember. The credit-reporting companies are not governmental organizations, as many consumers believe. They are companies driven by profit. In other words, it's in their interest to make as money as possible (like any other company), but it's not necessarily in their interest to look after consumers.

As a last resort -- if you're previous efforts to fix credit report errors have proven unsuccessful -- you can sue the company who has produced the erroneous information. If you can prove that certain information is false, and that the report has thus caused you financial harm, you could be entitled to damages (monies) paid by the company.

More information on how to sue a credit bureau over bad data:
http://www.bankrate.com/brm/news/special/19990820.asp


======================
Learn more about this subject:
The Home Buyer's Guide to Credit
======================

Credit Repair Scams - Tips for Home Buyers

Credit sure has been in the news a lot lately. These days, as a result of the mortgage meltdown fueled by the subprime lenders, home buyers need to have better credit in order to qualify for a mortgage loan (and get a good rate on the loan).

So everyone's talking about credit scores. You've probably heard a commercial on the radio recently, or seen one on TV, about these credit report websites.

But as with anything else in life, there are those would take advantage of this heightened concern at the expense of consumers.

The credit repair "industry" is a prime example of this. Many companies who refer to themselves as credit repair experts use deceptive marketing and hollow practices to make money from ill-informed consumers. So allow me to inform you with the following points:

• No company can improve your credit score for you. You have to do that by adopting better financial habits.
• When most companies refer to "credit repair" they are actually talking about correcting your credit report.
• You can correct your credit report yourself, without paying somebody thousands of dollars to do it for you.

Would you like to learn more about this subject? Check out our brand-new consumer guide: Credit Repair for Home Buyers

Credit Score for Home Buying - What Score Do I Need?

Article summary: An explanation of the connection between credit scores and home buying success. A must-read for any first-time home buyer.

Credit is a popular topic among home buyers these days. A person's credit score has always been important for home buying purposes, but today this is even more true.

After the mortgage crisis that began last year, federal regulators began to crank down on mortgage lenders. And as a result of this, the lenders pay closer attention to a borrower's credit score and financial history.

So what credit score is needed for home buying in today's economy? Well, this will still depend on the individual mortgage lender involved and their particular lending practices. But suffice to say that a better credit score will certainly make your home buying process a lot easier. Not only will you have an easier time qualifying for a mortgage loan, but you'll also qualify for a better interest rate if your score is high.

The average credit score in the United States falls between 650 and 700, depending on who you ask. Higher is better. The higher your score the easier time you'll have buying a home and getting a mortgage.

According to leading experts, a credit score of 720 or higher is ideal for home buying purposes. A score in this range will ensure that you get qualified for a mortgage loan and that you get a good interest rate on the loan (which translates into a lower mortgage payment each month).

Improving Your Credit Score for Buying a Home

So now you know what the average score is in this country, and what is considered to be a good credit score for home buying purposes. The next you want to do is request copies of your credit reports and scores so you'll know where you stand.

If you request your score and find that it's low, you will want to work on improving it before buying a home or applying for a mortgage loan. On this website, you'll find plenty of tips for improving your score.

So Let's Recap

What credit score is needed for home buying success? It depends on the lender. But most experts agree that a score of 720 or above is needed to get the best interest rate on your mortgage loan. You might get approved for a loan with a lower score than that, but you certainly won't get the best interest rate.

So the key is to (A) know what your score is in the first place, and (B) work hard to improve your credit score for home buying purposes if necessary. This has also been an important step for home buyers, but it's even more important today as a result of the mortgage crisis that began in 2007. Mortgage lenders will pay closer attention to your credit history and score, so you should do the same!

======================
Learn more about this subject:
The Home Buyer's Guide to Credit
======================

Bad Credit Report Repair

Summary: If you've recently obtained copies of your credit reports and feel you may be in need of bad credit report repair ... this informative article is for you!

Hi Folks. Captain Credit here. Today I'm going to talk to you about the concept of bad credit report repair and what it means to home buyers in particular.

Did you know that credit repair is one of the most popular topics within the realm of consumer finance? It's true. I frequently review Internet search data to see what topics people are researching online and the phrase bad credit report repair comes up a lot.

What does this mean? It means that a lot of Americans -- and I mean a lot -- feel that they have bad credit and are looking for ways to repair it.

In many cases, these people are about to enter the home buying process, which means they'll be applying for a mortgage loan as well. And this is the particular audience I'm speaking to ... people reviewing their credit reports in advance of buying a home.

Let's start with some clarification of the terminology being used here.

Credit Repair Versus Correction

The first thing I'd like to clarify is the difference between repairing a bad credit score and correcting an erroneous credit report. And in doing so, we will be clarifying something else as well -- your credit report and score are two different things. And in fact, you have three of each, because there are three credit-reporting companies (Equifax, Experian and TransUnion).

So the first thing to understand is that your credit reports are different from your credit score. It's important to understand this distinction because it has a lot to do with the difference between credit "repair" versus "correction."

I have given this article the title of "Bad Credit Report Repair" because that's an exact phrase I see people searching frequently online, through Google, Yahoo, etc. But in a certain sense, the phrase is misleading. Generally speaking, you would correct a credit report and repair a bad credit score. Let me clarify further:

• If you request copies of your free credit reports from all three reporting agencies, and you find an error on one of those reports, then you will need to "correct" the erroneous data.
• If you order your credit score through a website like MyFICO.com only to find out that your score is low, you will want to "repair" or improve your credit score.

I know these are nitpicky semantic details, but I feel it will eliminate a lot of confusion to keep these things straight.

So let's talk about each of these things in more detail:

Correcting a Credit Report

If you request copies of your reports from TransUnion, Experian and Equifax and find that one or more of the reports contains errors, you will need to correct those errors as soon as possible. To do this, you will want to submit a dispute with the company that produced the erroneous report. It's important to do this as soon as possible, because the process takes time. You can find some specific instructions on disputing credit report errors in our Home Buyer's Guide to Credit.

Improving a Credit Score

In this scenario, let's say that you request your credit score from a website like MyFICO.com, and you find that your score is pretty low (lower than the national average). You know that a good credit score will help you get a good interest rate on a mortgage, so you want to improve your bad credit. This is different from correcting an erroneous report. For instructions on improving your credit score, check out our Home Buyer's Guide to Credit.

I hope this article helps clear up some of the confusion about bad credit report repair and similar topics. Remember, your credit scores and reports are two different thing. You will want to correct any errors you find on your reports ... and you'll want to repair a bad credit score if you find out you have one. They are two different things, but both are important topics for home buyers.

======================
Learn more about this subject:
The Home Buyer's Guide to Credit
======================

Your Totally Free Credit Report Online

I've been seeing, hearing and reading a lot of advertisement for free credit report services lately. They all use the "free" word, but then some of them also offer paid services above and beyond the credit report request.

So what's the deal with totally free credit reports ... is there such a thing?

The answer is a resounding yes! There are actually several ways you can get your credit report online free of charge. To help you understand your options for obtaining your totally free report, we should take a quick look at where your credit reports come from in the first place.

You actually have three reports, though most people don't realize it. There are three companies that collect credit information about U.S. consumers. Those companies are TransUnion, Experian and Equifax, and each one compiles a credit report about you.

It's important to note that, currently, these are the only sources of credit reports in the United States. So when a mortgage lender (for example) pulls your credit, it's pulling information from these three companies.

So you might ask: "Well why are there so many websites offering totally free credit reports if there's only three companies that actually provide them."

Here's the main reason...

Some websites offer combined services that include your credit reports (among other things). For example, some services will help you gain access to all three of your reports and scores, while also providing some form of credit monitoring to help thwart credit fraud / identity theft. So while they partner with Experian, Equifax and TransUnion to provide your totally free credit report information, they also offer additional services on top of those reports.

By law, you are allowed to order your credit report for free once per year. You can do it by (A) visiting the websites of the reporting companies mentioned above, (B) by using the combined website at AnnualCreditReport.com, or (C) by using a combined service that also provides credit monitoring and other features.

I hope this helps you make sense of totally free credit reports online, and I wish you all the best in your financial and real estate endeavors.

=========================
Learn more about this subject:
The Home Buyer's Guide to Credit
=========================

What Is My Credit Score - By Captain Credit

What is my credit score and what do the numbers mean to me and to mortgage lenders?

This is a common question among consumers in general and home buyers in particular. In fact, anyone can benefit from asking the question what is my credit score -- whether or not a person is buying a home. It's just a good piece of information to know, so we are going to examine it in more detail here in this article.

Hi folks. I'm Captain Credit, the resident expert here at Home Buying Institute for all things related to credit scores and reports.

If you are planning to buy a home in the near future, and you have been asking the question "what is my credit score" ... then you've picked a good article to read.

Let's kick off our discussion by explaining why credit is important for home buyers. You see, when you go to apply for a mortgage loan in order to pay for that new home, mortgage lenders are going to examine several aspects of your financial background.

The lender will look at your debt-to-income ratio (a comparison between how much money you make and how much you owe) and, of course, they will look at your credit scores.

Perhaps you noticed that I said "scores" in the plural sense. That's because you actually have three credit scores -- one for each of the major credit-reporting companies (TransUnion, Equifax and Experian). So, the question of what is my credit score should really be what are my scores ... plural, for the three scores.

Here's the good news. There are several websites where you can obtain all of this information at once, which is definitely the super easy way to go. And as a superhero, I like super easy!

For example: Click here for your complete credit history

Components of a Credit Score

To continue answering the question "what is my credit score" we need to talk about the components that make up this score.

Your history of payments on things like credit cards and car loans is a major part of your credit score, accounting for somewhere around 35% of the total number. It only makes sense why this history would be important to mortgage lenders, but it shows how you've done over the years in terms of paying back loans.

Your total amount of debt is another big component of your credit score. For example, if you have a lot of debt (perhaps more than you can afford to pay off), then your credit score will reflect this. And it won't help your cause any when applying for a mortgage loan.

What is my credit score and how does it all add up? Well, we've tackled this question. Now you know that your score is reported by three organizations (not just one), and you know that your score is derived from your financial actions in the past. And on top of that, I've provided a link to a trustworthy website where you can answer the "what is my credit score question" once and for all.

Here it is again: Click here for your complete credit history

Now we must answer another important question for home buyers (or anyone seeking a loan, for that matter):

What is a Good Credit Score Anyway?

Once you've determined your own score, it doesn't tell you much until you learn what is considered to be a good score in the U.S. Once you have this final piece of the puzzle, you can not only answer the question what is my own credit score -- you can compare yourself to the national average as well. In this way, you'll know if you fall into the average, above-average or below-average category.

Here's an article to help you understand what constitutes a good credit score in the U.S.

That wraps up today's lesson. I hope this has helped you understand the world of home buying in general, and credit scores in particular. More importantly, I hope you are able to take this knowledge and not only use it for yourself, but share it with others as well. So that the next time you hear somebody ask: What is my credit score .... you'll be able to help them out.

A Better Credit Score in 2008

Article summary: Achieving a better credit score will serve you will in 2008. This article explains why by taking a look back over past years.

In 2007, the world of credit and lending was turned upside down. It was actually a long time coming, but the mortgage lending "meltdown" all came to a head in 2007. And now, in early 2008, we have yet to see the full effects of this.

But one thing is certain. This credit and lending crisis has made it even more important for consumers to have good credit. By this, I mean that you should thoroughly review your credit report for accuracy and find ways to boost your credit score if it is lower than the national average (or even if it's just plain average). Here are some tips for a better credit score through fiscal responsibility.

Editor's Choice - Get Your Credit Report

If you want a safe and secure way to request your credit report, check out the offer below from Credit.com (one of the most trusted names in credit reporting information).

In other words, as a modern consumer you must keep credit in mind when looking back as well as when looking forward.

Let's look at an example of why this is important. Let's jump into our time machine and go back to the mid 1990's:

Man, it sure is easy to get a home loan here in 1995. It seems like anyone can qualify for a mortgage, no matter how bad their credit is. They've got these things called subprime mortgages that make it really easy for people to get qualified and buy a home, and they have pretty good interest rates in the first years ... something about an adjustable rate mortgage.

Now let's travel back to the present:

Ouch. That subprime loan sure came back to bite me. As it turns out, that attractive interest rate didn't stay around for long. After three years, my mortgage reset to a higher rate -- a much higher rate -- and I just wasn't able to afford the payments anymore. The bank foreclosed on my home, and from watching CNN I gather that there are a lot of other folks in my situation.

Yes, there are a lot of folks in this situation right now. So many, in fact, that the federal government has increased its scrutiny of lending practices. Back in the 90's, many government officials were happy to ignore the economists who predicted future doom from "easy lending" practices. The money that mortgage industry lobbyists contributed to various campaigns made it easy for these government officials to turn a blind eye and ignore the prognostications.

And now what are we seeing? Now that the doom and gloom has become a reality, all of the politicians are getting on record as saying: "How did this happen? Ooh, those evil mortgage lenders just burn me up. They must be regulated!" But all you have to do is follow the money trail to see how many of these same politicians ignored the warnings of a mortgage crisis years ago.

Alas, I digress. Let's get back to consumer credit issues, why it's important for you to keep a better credit score in 2008 (among other worthy resolutions).

My point is this. As a consumer, it is more important than ever that you maintain good credit and be cautious about your spending. Lending institutions (those that are regulated anyway) have tightened their restrictions on lending. Thus, it's tougher to get a mortgage loans these days, or a line business credit, or any other form of financing for that matter.

So having a better credit score will open more doors for you.

Be cautious about your spending. Research all of your financial moves so that they are wise moves. Get a copy of your credit reports and scores to see where you stand. Work hard to strengthen achieve a better credit score this year. Make it a year of financial responsibility.

How Can I Improve My Credit Score - Starting Today?

FICO credit scores are important for a variety of reasons, but they are especially important for people who are planning to buy a home. So it's no surprise that one of the most common questions among home buyers is - How can I improve my credit score before buying a home?

We will answer this question in a moment. But first, let's address another important question on the subject:

What is a FICO Credit Score in the First Place?

FICO stands for Fair Isaac Corporation, and they are the folks who developed the credit scoring model that is in use today. The terms credit score and FICO score mean essentially the same thing. When you apply for a mortgage loan for a new home, the mortgage lender(s) will review your FICO score to determine how comfortable they are loaning you money.

Your credit history determines the FICO score you receive. How you have "behaved" in the past from a financial standpoint will be reflected in your credit score. You can learn more about the various factors that influence your FICO score by visiting www.myfico.com.

Many people don't realize it, but you actually have three FICO credit scores -- one for each of the three credit-reporting bureaus (Experian, TransUnion, and Equifax). Mortgage lenders will typically look at all three scores from all three bureaus to get a composite / overall score.

How Do I Obtain My FICO Score?

So now that you have a better understanding of what this score is, the next question is how you go about obtaining your credit score. As you may have surmised by surfing the web lately, there are a lot of websites with free credit report offers (with scores). But the Internet can be a scary place, as well as being helpful. Unfortunately, there are a lot of shady websites out there that harvest personal information for criminal purposes.

So the key is to get your FICO score from a trustworthy website. Here's one that we recommend:

Get your credit reports today!

Now let's move on to the next part of this discussion to answer that burning question you have -- How can I improve my FICO credit score before applying for a mortgage loan?

Tips for Improving Your Score

The key to improving your credit score is to correct whatever financial behavior led to the bad score in the first place.

For example, if your debt-to-income ratio is unfavorable, you should consider paying down some of the debt. If you can increase your income at the same time ... even better. But start by paying down some of your debt (such as credit card balances). This will give you a more favorable debt-to-income ratio, which is one of the factors lenders look at when approving people for loans.

You should also make it a point to pay all bills on time. The number of times you miss payments (such as car payments, credit card payments, etc.) will affect your FICO credit score -- as will the degree of delinquency, meaning the length of time the payments are past due.

For more tips on improving your credit score before buying a home, check out this helpful article.

======================================
Get more home buying advice at HomeBuyingInstitute.com
======================================

Free Copy of My Credit Report

I want a totally free copy of my credit report like I hear about all the time on TV and radio. Where do I go to get my free credit report and score?

This is a common question about home buyers. And it's an excellent question to ask when buying a home, because reviewing your credit report is an important first step to the home buying process.

These days, there are literally thousands of websites online that offer free credit reports to consumers. But many of them come with some sort of catch, like maybe you have to sign up for some kind of credit monitoring service in order to get your free report. So in reality, it's not a totally free credit report is it?

If you've been frustrated by similar scenarios, or if you're just starting the research process into the world of credit, the following information will help you out. On of the ways you can get your reports and scores for free is to sign up for a free trial through a service like Credit.com. In fact, we have made this even easier by working with Credit.com to bring you the following offer on such a trial:

Editor's Choice - Credit Report from Credit.com

Get your credit reports today!

My Free Credit Report - A Consumer Scenario

Let's imagine that I'm a first-time home buyer, and I'm conducting a financial self-assessment in preparation for buying a new home. I've read some of the helpful articles on the Home Buying Institute website, so I've learned the importance of obtaining a copy of my credit report and reviewing it closely for errors.

So where do I go to get the totally free copy of my credit report I've heard so much about? Am I really entitled to a free report since I've never requested one? The answer is yes, everyone tax-paying citizen in this country is entitled to one free credit report per year. So as a first-time home buyer who has never requested my report before, I am entitled to my one free one for the year.

Now the next question. Where do I go to get a free copy of my credit report so I can review it for accuracy? Well, there are many places I can go online. In fact, that's part of the problem! Which websites can I trust, which ones are bogus, and which ones offer free reports only with some kind of catch?

I'm confused and frustrated by the whole process, but I stick with it. In my research, I eventually stumble across a website called AnnualCreditReport.com. As it turns out, this website is operated jointly by the big three credit-reporting companies -- Equifax, Experian and TransUnion. That's comforting. At least I know it's a trusted source.

And according to the website's home page, I can request a free copy of my credit report (or as they call it, a "credit file disclosure") from all three reporting companies at once. Well that's certainly convenient.

So all I have left to do is select my state from the drop-down menu, click the "request report" button, and fill out some brief information such as name, SSN, DOB, etc. It's also comforting that AnnualCreditReport.com is a secure website, a fact that they stress right up at the top of the page.

I've solved the free credit report mystery!

Now I have it all figured out, and I'm a happy camper. No more frustration, no more sketchy websites I know nothing about ... I just go to the AnnualCreditReport.com website and order the free copy of my credit report from all three reporting companies at once. It's safe, it's easy, it's the real deal ... and of course, it's free.

Related articles:

• What is a Good Credit Score in the U.S.?
• Improving Your Credit Score
• Home Buying With Bad Credit
  

What is a Good Credit Score in the U.S.

Credit scores and home buying go together like carrots and peas. (Sorry, Mr. Gump)

When you apply for a mortgage loan, your credit score is one of the first things the lender will look at to help determine your qualifications for a loan. Credit scores range from 300 to 850, and higher is obviously better. The higher your credit score, the easier time you'll have qualifying for a home loan ... not to mention the benefit of paying a lower interest rate on the loan.

But what is a good credit score in the U.S.? What's average, below average, above average, etc.? Where do you fall on the scale and how will affect your chances of buying a home?

These are the questions we have answered in a new article in the credit section of the website.

Read the article here:
What is a Good Credit Score in the U.S.?

New Article About Credit Reports

This article announcement is significant for two reasons. For one thing, it marks the 400th home buying article posted to the main website (and that doesn't even count the blog)! It's also significant because it talks about a topic near and dear to the hearts of home buyers ... credit reports.

In this article, you'll learn about the various parts of a credit report, how it affects your chances of mortgage loan approval, and more. Remember, your credit score directly affects the type of mortgage loan you qualify for, and the interest rate you'll pay on that loan. So your credit score is a critical part of the home buying process.

Your credit score is derived from information contained in your credit report, and that's what this article covers:

The Truth About Credit Reports

Happy home buying!

~Brandon

Avoiding the Bad Credit Blues - New Article Posted

So you've decided to buy a home. You begin house hunting, you find a home that you like, and you apply for a mortgage loan. The mortgage lender checks your credit score and -- EEK -- you have a bad credit score!

These are the bad credit blues, and they affect a lot of home buyers in this country. But they don't have to affect you. The key to avoiding the bad credit blues is to (A) find out where you fall on the credit "scale" and (B) start improving your credit if it happens to be low.

Sure, that's the simplified version of the strategy. But we also have an expanded, step-by-step version to help you as well (see link below). The important thing is not to delay. Everything about the credit-improvement process takes time. So if you follow the steps in the article below and find out that your credit score is lower than average, get yourself on the path to better credit ... and do it immediately.

Here's your step-by-step guide:
Home Buying Wisdom: Avoiding the Bad Credit Blues

Happy home buying!

~Brandon

Credit Information for Home Buyers

Credit reports and credit scores are important topics for home buyers. After all, your credit score goes hand-in-hand with qualifying for a mortgage loan. And mortgage loans are usually an essential part of the home buying process. So, by extension, credit is critical to your home buying success.

Now we get to the pop quiz. Have you checked your credit report or credit score lately? Do you even know how to get a copy of your credit report? Did you know you actually have three credit reports?

If you didn't do well on this pop quiz, never fear. We have prepared some information that will help you answer questions like those listed above. More importantly, this credit score information will help you increase your awareness of your own financial situation, especially as it applies to buying a home.

Learn more in this new article:
How to Review Your Credit Report

Happy home buying!

~Brandon

Improving Your Credit Score - New Article

Credit scores are on the minds of a lot of people, but especially home buyers.

When buying a home, mortgage lenders will put your credit score under a microscope. And when you think about it, it makes perfect business sense. They don't want to loan money to somebody they don't think has the capability to repay it.

But what can you do if your credit score is already bad? How do you improve your credit score to the point you can qualify for a good mortgage loan? That's the subject of a new article published in the credit section of Home Buying Institue.

In this excellent article, Arizona Realtor Bonny Puckett offers a four-part strategy to improving your credit score prior to buying a home.

Read Bonny's Article
4 Easy Tips for Increasing Your Credit Score

Happy home buying!

~Brandon

Credit Score Tips - How to Increase Your Credit Score

Credit scores and mortgage loans go hand in hand. Or as Forest Gump would have put it, "Credit scores and and mortgage loans are like carrots and peas."

However you say it, one thing is for sure. Mortgage lenders will put your credit report / credit score under a microscope. Your credit score will also have a lot to do with whether or not you get approved for a mortgage loan, and to what amount you get approved.

With credit scores, and ounce of prevention is truly worth a pound of cure. It's much easier to maintain good credit than it is to repair bad credit. And when it comes to buying a home, good credit is your strongest ally!

Okay, so good credit is the goal. Pretty obvious, right? But less obvious is how you go about increasing your credit score. And that's just the kind of advice I have for you today:

• How to Increase Your Credit Score
• 5 Steps to a Higher Credit Score
• All About Your Credit Score
• Your Credit Report - Tips for Home Buyers

I hope you find this tutorial helpful toward increasing your credit score. And remember, an ounce of prevention is worth a pound of cure. So even if you think you're a few years away from buying a home, don't wait ... now is the time to start increasing your credit score!

Happy home buying,

~Brandon