Blogcritics Author: Mortgage Tips
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• Announcement: Short-content feeds
  Sunday, August 26, 2007, marks the switch of all Blogcritics.org article feeds from full-content to short-content. This is the result of several converging factors, and is unfortunately a permanent decision (as permanent as any decision can be on the web, that is). We are aware of all of the reasons that this is a Bad Idea, and we are aware that some of you will be quite upset about having to click on something to read the free content, and we're sorry. Unfortunately, despite great effort, full-content feeds are not currently economically viable. Two other factors are involved: full-content feeds have resulted in an unprecedented level of content theft, with BC content appearing on many websites, usually spam sites, without attribution or permission. This duplicate content causes a cascading set of problems, not the least of which is that search engines generally aren't favorable to duplicate content, and don't always guess correctly. Finally, our RSS advertising partner is strongly in favor of short-content feeds. We hope that you'll continue to subscribe to BC via RSS, and when an article grabs your eye, it's only a click away, still free on the BC website. Thank you for your understanding.
• Why You Should Keep Three Lines of Credit Open and Active
  You probably don't need another excuse to use your credit card, but keeping three lines of credit open and active is often a requirement by many mortgage lenders as a basic qualifying guideline. The requirement usually calls for a minimum 24-month history on three trade lines that are currently open.Many banks and lenders assess potential borrowers' credit profiles, focusing largely on credit score, but also on credit history. While a high great credit score is favorable, it's what's behind that credit score that's really important. A consumer may have credit scores in the 700s, but if they have limited credit history, a bank or lender may still deny financing if they feel the borrower hasn't shown a history of supporting large amounts of debt for a considerable amount of time. After all, a three-digit number doesn't always give you the complete picture. A borrower with one active credit card with a $1,500 limit that is paid on time each month for two years will likely have a reasonably high credit score, quite possibly in the 700s, but why would a bank or lender provide financing on a $500,000 mortgage to a consumer who has only used a $1,500 credit card to prove their debt worthiness? Even if the borrower has three credit cards with $5,000 balances, if all are recently opened, the bank or lender will have a tough time determining the dependability of the borrower over the long term - yet another reason why financing will often be denied. That's why it's important to open credit lines, and keep them open and active, while periodically raising credit limits to increase the total amount of debt you can support and simultaneously increasing your available credit percentage. Don't even think about closing credit card accounts or other lines of credit that you've had open for a number of years, as you'll simply throw away positive credit history and increase your chances of being denied when you finally find the home of your dreams.The author is an Account Executive with a wholesale mortgage lender, providing insight and clarity in an often confusing and turbulent industry. Educate yourself: Get Credit Cards Versus Debit Cards
  If you're thinking about buying that plasma screen, going on a shopping spree, or even buying a cup of coffee, think credit card - not debit card.These days most consumers are issued debit cards from their primary banking institutions, which usually carry a Visa or MasterCard logo. While these debit cards look, feel, and work like credit cards, they often don't carry the same protection or rewards of a traditional credit card. With credit card fraud on the rise, it's best to use a payment option that offers the maximum protection under federal law.Just last week TJX announced their customer data had been hacked into over the last six months, and that shoppers using credit or debit cards at their family of stores were at risk. The scary part is that those who used debit cards may not receive the same protection as those who used credit cards, such as the ability to dispute charges. On the same token, debit cards are also tied to consumer bank accounts, which put them at even greater risk of losing money and leaking sensitive information.Security aside, consumers miss out on cashback rewards or travel points if they opt to use their debit card for day-to-day purchases. A debit card provides convenience, but little else. Credit cards offer security and rewards. Always choose your credit card first, assuming you can pay it off each month to avoid finance charges. While a debit card has the advantage of allowing you to spend only what you have, it may not be the safest or most economical option in your wallet.The author is an Account Executive with a wholesale mortgage lender, providing insight and clarity in an often confusing and turbulent industry. Educate yourself: Get Building Good Credit by Raising Credit Card Limits
  If you currently use credit cards, you need to know how to get the most out of them. One important tip that many credit card holders aren't aware of is the ability to raise their credit limits.For every credit card you own, the issuing creditor or bank has set a certain limit based on your spending habits, credit history, and stated household income. While you likely know this, you may not know that you can raise these credit limits, usually after holding the credit card for just six months.If you log-on to any one of your given credit card account websites, you'll probably find an account services section which will offer certain credit management tools. In this section you should see a link that says something like "increase your line of credit." If you click on that link, you'll be able to request a larger line of credit for the specified credit card.Generally you can choose any credit limit you'd like, although requesting something outrageous will likely get rejected. Let's look at an example:Current credit line/limit: $5,000 New requested credit line/limit: $7,500You'd be asking for a $2,500 increase, which isn't unheard of, and should typically be approved. Even if it's not, your credit card company will usually counter that offer with something that will still boost your current credit limit. Once you fill in the required information you simply need to click submit and either wait 24-48 hours for an answer, or you may get lucky and get an approved credit line increase right on the spot.Why would you need a credit line increase, especially if you don't spend up to your current limit? It's all about increasing your available credit and showing creditors you can support a large amount of debt. A creditor would rather give a loan to a consumer with a $30,000 credit line with only $500 outstanding as opposed to a consumer with a credit line of $5,000 with $500 outstanding.Your credit score will also rise over time due to the higher percentage of available credit. Using the example above, the first borrower would have roughly 98.5% available credit, and the second borrower would have 90% available credit. Remember that total available credit is an important factor in determining your credit score. The higher that percentage is, the higher your credit score will be. Keep in mind that your credit score may fall in the short term as you make new inquiries for extended credit, but over time it will build a stronger credit profile.The author is an Account Executive with a wholesale mortgage lender, providing insight and clarity in an often confusing and turbulent industry. Educate yourself: Get How to Fix Bad Credit
  You don’t need to look for credit help. It’ll find you. Usually in your spam e-mail inbox or junk mail in your home mailbox. The problem is most of the so-called credit help will usually do your credit harm if you’re not careful. There are a number of credit services out there that offer credit rebuilding, rapid rescoring, improved Fico scores, and credit counseling.They all make big promises and seem like a great idea. Who wouldn’t want to boost their credit score 20 points in 48 hours? But most of the time credit scores are an accurate measure of your borrowing history, and little can be done to change them instantly.Sur