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Jennifer Henning's Blog

By Jennifer Blackwell | Agent in 74114
  • Is your Home Equity Line of Credit negativly impacting your Credit Score? What to DO!

    Posted Under: Financing, Foreclosure, Credit Score  |  March 22, 2011 9:25 PM  |  1,526 views  |  No comments

    Have a Home Equity Line of Credit?  Is it Impacting your Credit Score Unfairly?

    What You Should you Know and Do?

    Credit reports have always been important, but they’ve grown even more important in recent years. Now more than ever, you need to make sure you understand what’s on your credit report - and you need to know what steps you can take to improve your score.

    For example, did you know that a Home Equity Line of Credit (HELOC) can impact your credit score quite dramatically... and sometimes unfairly... depending on how it is reported?

    Here’s What You Need to Know... and Do!

    First, you need to know that HELOC’s are commonly reported by the three credit bureaus as revolving accounts. In reality however, they do not fall under the typical revolving terms, even though they are set up in the same way as a revolving account. That’s because HELOC’s are secured by an asset.

    Here’s the Good News...

    The Fair Credit Reporting act requires reporting agencies to report true and accurate information. So when a HELOC is reported as a revolving account, you can actually send a letter to the three credit bureaus asking them to change the type of account from "Revolving" to "Line of Credit" or "Other."

    This way, the account will not be rated by the scoring system using the "Balance to Limit" ratio scenario - which can drop a credit score by as much as 75 points if the HELOC is maxed out to the limit of the available credit line.

    A Final Word of Advice

    If you do decide to send a letter, you should send it as a Certified Letter, along with a copy of the HELOC agreement. You may have to send the letters more than once, but persistence is the key to accomplishing a positive result with the bureaus.

    If you need more information or help finding a lender or for any help with your Real Estate needs, you can reach me at Jenn@JenniferSellsOklahoma.com or (405) 625-1576.

  • Do You Understand Your Credit Report?

    Posted Under: Credit Score  |  May 28, 2010 5:31 PM  |  1,544 views  |  2 comments

    Over 70% of consumers identify errors on their credit report. Twenty-five percent of those are serious enough to deny consumers and business owners access to credit, preferred interest rates or even a job. With over 54 billion credit updates occurring each year, it’s very likely you may have errors that are negatively impacting the ability to get credit and/or causing you to pay unnecessary interest expenses.

    Identifying a credit report error is only the first step. Most consumers don’t know they have an error on their report because they rarely, if ever, review it until they need to get a loan. By the time this occurs, a consumer typically has less than 45 days before they need their loan funded, and their ability to get a single, valid error corrected within this timeframe is marginal at best.

    The need to proactively understand, evaluate and optimize your credit profile has never been greater. So what should a consumer do? Become educated and informed about how credit works. You should continually review and evaluate your credit profile. When a questionable activity is identified, you should make sure you understand it and correct any valid errors. In most cases, consumers begin by filing a dispute with the applicable credit agency who is reporting the information.

    Start now by reviewing your credit. You can click the link to receive your yearly free credit report:  http://tiny.cc/freeCR

    Jennifer Henning, Realtor
    405.625.1576
    Jenn@JenniferSellsOklahoma.com
 
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