Spring Clean Your Credit

1)Check your Credit Report. Make sure there are no errors. 2)Assess your credit card debt. Plan how to avoid further debt. 3)Improve your interest-rate. Try and negotiate a lower rate or waive annual fee. 4) Prioritize high-interest debt. Pay off highest interest cards first. 5)Pay your bills on time 6) start budgeting and hold yourself accountable for your spending.

Credit Scores

The exact formula varies, but credit scores are based on complex algorithms that include factors such as the length of your credit history, the amount of available credit, outstanding debt and negative marks such as bankruptcies, collections or late payments. Of all the different types of scores the FICO is the most widely used by lenders and range from 300 to 850.

Mortage Missteps Affects Your Credit Score

30 days late on mortgage payment could drop your score 60 to over 100 points. A short sale in lieu of foreclosure will probably cost you 70 to 125 points as well. A short sale or foreclosure with the amount of unpaid balance disclosed could cost you over 150 points. It could take between as long as 3 years to return to your original credit score after a late payment and up to 7 years from a foreclosure or short sale.

Credit Repair Hope

There is no history too ruined, or any negative object too harmless. There is hope for you to help restore command over your current financial circumstances, get back on target, feeling great and unembarrassed about your credit score. Credit repair is for any report from the seriously ruined, to the small mistake, however, you need a professional working for you. Call Banco Capital today at 1-800-442-1591

HR CAN SEE YOUR REPORT

Your credit report and your credit score are two completely different things and are not interchangeable. Employers in most states can look up your credit report as part of a pre-employment screening and even during the term of employment. However, they do not have access to your credit score. Credit restoration is removal of negative items from your credit report.

RESTORING YOUR CREDIT

Get a secured credit card by depositing $2 or $3 hundred in a bank or credit union and using the deposit to secure a credit card to make small purchases every month and paying them off at the end of the month. However, never use more than one-third of your available credit. Similarly, take out a small loan and making timely payments every month.

Being a Business Owner

Being a Business owner has a ton of rewards but it also comes with a ton of challenges. Always hold your head up and move forward regardless of any obstacles that you may face. Life isn't easy so why should being a business owner be any different. Hold on to life's challenges and changes. Today is a better day than yesterday because yesterday is gone...

BANCO Capital Corporation is removing negative items from credit Reports. Call one of our offices and get a FREE package emailed to you today!
DETROIT 1-800-442-1591
FLINT 1-810-787-8449
FERNDALE 1-248-414-5100
SOUTHFIELD 1-248-286-5100

OR check out our website; http://bancoservices.com

MORTGAGES

It is common after marriage to buy a home and this is when a spouse's credit score is most critical. If the mortgage is under both names the bank will check both credit scores. The lender may take an average of the two scores or use the lower score. If your score is 780 and your spouse is 580, it probably makes a difference.

USE CREDIT CARDS STRATEGICALLY

Credit mainteance is not crdit abstinence. Use your credt cards on small purchases because ativity is a factor in setting your FICO score. Use your credit card to pay at the restaurant, but pay the balance in full to keep your account active. Do not close old credit card accounts because it shartens your credit histor and lowers your score.

HIDDEN COSTS OF BAD CREDIT

There is no comparison of how much a mortgage interest would be for someone with a 550 credit score vs. a score of 750 higher. Why? With a score that low you are unlikely to get a mortgage. However the diffrence between a score of 620 and 750 is approximately 2% or 6% vs. 4%

BUILDING CREDIT

Keep your accounts in an active status and use the credit cart at least once a month. Most lenders want t see at least a year of activity before offering you services. Get a secured credit card and use it instead of cash. You apply your own cash to secure the card and your charge limit amounts to what you put on the card which is usually a minimum of $300.

YOUR CREDIT SCORE IS NOT

Your credit score ignores your age, salary, and occupation. It does not take into account financial gifts, support you receive or your financial assets. Credit scores are less important for borrowers who seek loans that take these factors into account.

CREDIT SCORE AND PAYMENT HISTORY

A long history of making payments on time is one of the most important items lenders consider before approving you for credit. Accounts opened for 10 years or more will help your score and improve the average age of all accounts.

HOW TO BUILD YOUR CREDIT

When realizing that it may be time to rebuild ones credit may seem impossible, it's NOT!!!

1. Start by getting a copy of your credit report.
2. Keep the accounts in active status. Use the Credit Card at least once a month. Make sure you pay the minimum payments on time each month.
3. Get a secured credit card and use it as much as possible instead of your cash. Most banks will allow consumers to get a secured credit card by applying their own cash to it.
4. Become authorized by a family member. If you can find a family member that will trust you and put you on their account as an authorized user it will show on your credit history.
5. Get a department store credit card. Store cards are easier to receive, but usually have interest rates. This is a good way to establish credit just be careful that it's usage does not get out of hand.

BUILDING CREDIT

Do not open a credit card at every department store that offers one for 25% off the purchase price. In fact adding a new card once a year and having it remain open at least 5 years is a good gauge. Late payments and excessive card debt affects beginners more than it does consumers with larger and older credit files.