Do you know how the credit scoring system works?

What's your credit score?

Lenders use an automated "credit scoring" system to assist them in make decisions on loan applications. If you have a high score (700 and above) you stand a good chance of being approved. If your score is lower, you might still have other factors that will lead to an approval. But if you score is low (620 and below) you’re in trouble.

If you fall into this last category there is still hope. Our book “The Insider’s Secrets” can help you improve your score and your chances of getting a good loan.

In recent years, creditors have developed a variety of methods for approving or denying loans. One way creditors can quickly review thousands of loan applications is by using automated "credit scoring." Even if you don’t have any plans to apply for a loan in the near future, you will someday and we think you should know about credit scoring.

Why?

Because the next time you do need a mortgage, car loan, credit card or any other type of loan, your score will have a significant effect on your chances of approval and the interest rate you are charged if you are approved. It will contribute to the repayment terms and other conditions of the loan. Your credit score alone could even play a role in whether you’re approved at all. To be on the winning side of this scoring system, it helps to know the basics.

What Is Credit Scoring?

Credit scoring is a system that's designed to improve a lender's ability to evaluate the likelihood that you will repay a loan. It's based in part on credit scoring "models," which are computerized systems that look at a variety of factors relating to many consumers personal information and credit histories, such as age, income and level of outstanding debt. These credit scoring models are used to determine the likelihood that a consumer will repay a debt. The first scoring models were developed by the Fair Isaac Corporation and have become known as FICO scores. While there are many scoring models in use today, the standard is still the FICO model. The 3 credit rating agencies each have their own models and many companies have developed models of their own. It’s a good idea to get credit reports from all three of the credit reporting agencies as they are likely to differ. We suggest checking your credit at least twice a year just to make sure that the information is accurate. You can find steps to correct errors and misinformation in The Insider’s Secrets and at our website, http://www.theinsiderssecrets.net/

Scoring systems collect this data to try to predict a consumer's ability and willingness to pay future debts. Scoring systems usually produce a numerical "credit rating score". Lenders use these tools to help decide if a loan should be made and to set repayment terms. This three digit number will play a big part in your ability to borrow money and, ultimately, the cost of repaying those loans.

If a Score Is Low

A score in the lower ranges will not automatically disqualify you from getting a loan. But it may prompt the creditor to review your history more carefully before making a decision whether to approve or deny your loan. A low credit score will likely result in a higher rate of interest or more strict repayment terms than those offered to others. If a lender's system is properly designed, tested and monitored, it should give a faster and more impartial evaluation of creditworthiness than a loan officer could have made on his or her own.

A credit score, however, may not be the best way to try to predict whether someone will repay a loan in a timely manner. Among the reasons: the information that was reported to the company that developed the model may be inaccurate or the statistical assumptions behind the program may not be sound.

Credit scores are usually not released to consumers, at least for free. But under the Fair Credit Reporting Act, if you are turned down for a loan because of information in your report, you have a right to get a free copy of that report and to have any mistakes corrected. Catching and correcting mistakes may have a positive effect on your rating and would likely improve the chances that your application will be approved. The Fair Credit reporting Act also grants consumers the right to a free copy of their credit report from each of the three credit reporting agencies. You’ll be able to take advantage of this law at www.annualcreditreport.com. These reports, however, will not contain a score, for that you’ll have to pay; on average about $16 per report.

Improving Your Score

Just like building your own history takes time, it also takes time to improve your score...and your chances of getting a loan at favorable terms. According to a consumer brochure published by the Federal Trade Commission, you can boost a low score by "paying down outstanding balances, concentrating on paying your bills on time, and not taking on new debt."

We also believe it's a good idea to review your file periodically, to make sure it accurately reflects your history. That way you can provide missing details or correct inaccurate information before it gets factored into your score. If you’re unsuccessful in getting erroneous information removed or would like to explain extenuating circumstances, the Fair Credit reporting Act allows every consumer to have an explanation of up to 100 words included in their credit reports.

Getting the right information and help

Besides giving you all the information, tools and techniques you will ever need to buy and/or finance an automobile, there are a number of chapters in “The Insider’s Secrets” that deal with credit scoring issues. We guarantee that you will be an expert on these issues and many more by reading, and taking advantage of, the information we provide. You can also find help at our website, http://www.theinsiderssecrets.net/

Payoff Your Debt Early, Increase Your Equity and Save on Interest Charges - An Easy to Follow Guide

This economy sucks and things are tough for almost everybody. We can sit around waiting for the government stimulus plan to bail us out individually or we can create a personal stimulus plan for ourselves. But how do we do that? Some people start buying more lottery tickets or try to start a home based business, while others turn to the Internet looking for the secret to quick and easy wealth.

The truth is that all of those options carry about the same odds, zero to none. And have you ever seen more scams, trying to take advantage of people trying to improve their situation? If you have an email account than you have no doubt been bombarded with every get rich quick scheme imaginable. Who do you trust? How do you filter all the junk that's out there today? You don't have to even try, there's a better way to create that personal stimulus plan and it's federally insured and flat out guaranteed to work. The only thing that can stop you is you!

We all wish we were out of debt and living the good life. I have a great life; wonderful children, beautiful grandchildren, a loving wife and soul mate, a beautiful home, a profitable and stable business, but life isn't all good, I still worry every day about the debt that I have and how to get rid of it. I've spent hundreds of hours on the Internet looking for a miracle solution, a quick fix. And I finally found one. And it's not a new concept at all but it is a greatly improved concept and has helped me ease the everyday stress and strife of debt.

I found a company that is helping me do something I could have done myself, but haven't. America is a nation of spenders, not savers and that's a big reason for the situation this country faces now, I'm no exception, I spent and borrowed to the limits of my income and credit and then the bottom fell out. I needed a forced savings plan and I found the best one ever.

This company has given me a proven, tried and true method to getting out of debt well in advance of the terms I signed up for, without me just throwing a bunch of extra money at this debt; a scary thing to do in this economy. With no out of pocket expense or upfront fees this method will pay off my mortgage nearly 8 years early, build my equity much faster and save me almost $129,000 in payments, $98,000 of which is pure interest.

And that's not all. I have 2 auto loans, one with a $28,000 balance and another with a $21,000 balance. The First one will be paid of 11 months early, save me $2975 in payments and a little over $1000 in interest. The second loan will pay off 8 months early, save me $2400 in payments and almost $1000 in interest. I'm also paying off my son's student loan 11 months early and saving nearly $3800 in payments and almost $600 in interest (the interest rate is very low or the interest savings would be even more).

If you've done the math you can see that this is a savings of nearly $136,000. That's huge in my life and probably would be in yours as well. I'm going to tell you how to do this for yourself and I hope you take advantage of the information. It will only be your loss if you don't. Contact me and I will direct you to the company's website; you'll see a list of features and benefits that should answer all your questions, you'll also see a couple of videos, one from the Oprah Winfrey Show where Oprah introduces a couple from the audience to a gentleman who shows them how the program works and explains the benefits and savings. Powerful stuff, as soon as my wife saw Oprah recommending the program she was all in. Most importantly, you'll see a calculator that will allow you to do side by side comparisons of any installment loan you might have. You will be able to see for yourself just how fantastic the savings are. And remember, there is no loan modification and your monthly payment obligations remain the same.

You will need a User ID and password to enroll however and I can provide you with those as well. There is no out of pocket or upfront fee to enroll, but nothing in life, nothing worthwhile anyway is truly free. This is the closest thing to free that you will ever find though. The company charges a deferred fee of $399. Here's the kicker though, they collect the fee over time, from the savings, you will never write them a check for the $399 and you will never be billed for it either. It's important to know that the $399 is money you're already committed to giving your lender, and see no benefits, or you can enroll in the program, let $399 of your savings go towards paying off your debt early, building your equity faster and reducing the amount of interest you pay on your loans. it was a no brainer for me and everybody I have shared it with so far.

In fact, you know what the biggest initial reaction I have gotten so far is? "I like to control my own finances". That's nuts, how are you in control of a loan where the lender has set the interest rate, the term, and the payment, you're not, the lender is in control. If you want to really control your own finances, pay the loan off early, build your equity faster and save on interest charges. By the way, everyone who has used that objection changed their tune when it was explained to them just how this method works.

I'm a recognized expert on personal finance, budgeting, credit, credit building and repair and I will tell you that this is the most dynamic and effective tool I have ever come across. Do yourself a great favor and contact me for details on how you can create this personal stimulus plan for yourself, you'll only be sorry if you don't.

My name is Gary and you can contact me through my website or at Gary@ theinsiderssecrets.net

I wish good luck to all of you regardless and hope we all get through these tough times as unscathed as possible. Hang in there!