What You Don’t Know About Your Credit

Would you like to pay off your mortgage in half (or more) of the time, without having to make more money than you do currently? If you have a mortgage, I think your answer to this question is a resounding “YES”. There is a new, guaranteed, do-it-yourself accelerated mortgage payment system that will allow you to do just this. With this new do -it-yourself accelerated mortgage payoff system, you implement it yourself, you regulate it yourself and there are no huge upfront fees that you must pay to implement this system.

A 30-year, 15-year or any other kind of mortgage can be accelerated and paid off quickly with this system. The mortgage can even be interest only. The beauty of this system is that it does not affect your existing cash at hand. You do however, need to obtain a Home Equity Line of Credit (HELOC) to implement the AMP.

Once you obtain, a HELOC you will use it just like you would a checking account. Instead of having your income sitting in a bank you will be using it to cancel out incredible amounts of interest on your mortgage. As a bonus, this system can also be used to eliminate all your debt such as credit cards, cars, medical bills, student loans, vacations, time shares etc. Simplified, there are 7 basic steps to implementing this do-it-yourself accelerated mortgage payoff system:

1) Obtain a HELOC (Home Equity Line of Credit) from a financial institution;

2) Treat your Home Equity Line Of Credit as you would a checking account. Deposit your monthly checks into it;

3) Take your entire income amount from your HELOC to pay down your mortgage and other bills for the month;

4) Borrow from your HELOC to pay your bills for the month;

5) The next month take your entire income to pay down the HELOC to $1 then borrow the same amount and pay down your mortgage again;

6) Pay all your bills from your Home Equity Line Of Credit the following month;

7) Repeat until all your bills, including your mortgage, are paid off completely.

In short, the borrowed outstanding HELOC amount will equal $1 once it is paid down at the beginning of every month. Paying it almost off (you should leave at least $1 in your HELOC account to keep it open), every month will minimize the interest charged on the HELOC over the course of paying off your mortgage and other bills, and shorten you mortgage payment years considerably.

The HELOC interest amount charged over time is much less that what is paid on a traditional mortgage. This is why AMP works.

Secured loans can run for several years, so plenty of time should be given over to the planning phase of applying for the loan. Basically there are three main things to think about when sizing up the competition: term, rate, and fees. Borrowers should bare each point in mind to obtain the best results in secured loan rates.

By term, we mean the length of time that is going to be observed in repaying the loan. It was common for the secured loan to can run for 10 years on typical, but recent years have shown that a 5 year term is more common. This is due to the fact that consumers like the idea of being in debt for the least amount of time as possible, not to mention that longer term secured loans can be quite costly.

The interest rate is often referred to as an APR - or annual percentage rate. The APR is comprised of a lot of different charges and discounts, and it applies to the amount owed that attracts interest. The APR can be variable or fixed, depending on what the lender is leaning towards or what the borrower needs. Variable APR will change with economic conditions, whilst a fixed rate will remain the same. They each have their own benefits.

Lastly, we have fees. All kinds of transaction fees, payback fees, underwriting fees, and even closing costs will give the borrower a hard time closing the deal completely. Fees will vary widely from one lender to another, so it’s a good idea to get as much detail as possible before signing the credit agreement. In addition, most reputed lenders will show all fees upfront - so a borrower trawl through the fine print to uncover any fees that weren’t disclosed. In fact, the APR now has to be calculated and disclosed after including all fees that are added to the loan.

Secured loans take much planning to successfully take advantage of them. Likewise, it is generally a good idea to consult a financial consultant to get the best advice for your circumstances. It might also be worthwile to surfing the internet for more information, tips and tricks, and guides in getting the best rate on a secured loan.

Closing Comments

Secured loans don’t have to be such a tough topic to address. As seen above, they can be classified based on three important points. But in reality, there is much to think about regarding secured loans and getting them is no easy feat. Before anything is conducted, make sure that one’s credit history is obtained and any anomolies are ironed out that could have a detrimental effect.

We live in a credit nation. The mistakes in handling credit are well documented but even so no one would dispute the importance of having good credit. Your credit score, when handled properly, can give you many advantages to creating wealth through leverage. Here are some credit basics to improving your scores.

Step 1: Determine what you have that needs to be fixed. You will want to go directly to the sources of your credit and get your reports from www.equifax.com, www.transunion.com, and www.experian.com. These are the bureaus that your creditors report to and it is important to see exactly what items are either incorrect or derogatory.

Order your reports AND scores directly from the bureaus. Don?t waste your time dealing with one of those companies offering you a free report. What you will find is that the reports are NOT free and what they are after is setting you up on a monthly pay plan to monitor your credit.

Upon receiving your three reports go through each one painstakingly. Though much of the information is redundant you will find that each one is reflecting a different score for you. Each bureau reports based on a different matrix and many creditors do not report to all three bureaus. Take note of every late or public record on each report.

Step 2: Dispute. When you begin the dispute process always write your dispute letters in your own words. Do not use the forms provided by the bureaus. Disputes are handled by real people and should be treated as such. Employees at credit bureaus are trained to sniff out credit repair companies and false disputes so you are always better off putting the dispute into your own letter in your own words.

Do this with all inaccurate information on your report. It is not very hard to do and can raise your score very quickly. If the credit account in dispute is yours, and it is currently an open account, then you should contact that creditor directly. Many times a creditor will remove derogatory items at the request of a current client. In some cases putting pressure on the creditor by threatening to close your account will get them act quickly on your behalf.

Step 3: Wait or Pay. Many people are aware that after 7 years most derogatory credit comes off. What many people do not know is that investigating an old item can reactivate the derogatory and cause an immediate drop in credit score. In some cases, the closck may even be “reset” for another 7 years. Be cautious in investigating old items. Make sure that you have proof that the items are either paid or incorrect.

One trick, so to speak, is to be sure to keep your available balances at no more that 50% and better yet 30%. You can see a quick improvement of your score if you are able to transfer a balance onto a card that is at zero and have two cards at 30% of available rather than one at zero and another maxed out.

Step 4: Be cautious in establishing new credit and especially don’t close old accounts. It’s important to know that one of the major contributing factors in your credit score is the length of time that credit has been established. Older accounts, even ones you’ve not used, will positively effect your score. Newer accounts will skew the average and lower your score.

By applying the strategies I’ve outlined here you can fix or maintain your credit. In some cases, working with a credit repair agency is worthwhile but before you do these simple steps can put you well on your way to excellent credit.