Prospective borrowers can learn about the tools needed to improve credit scores and the type of mortgages that hurt credit scores in a new e-book written by a seasoned credit executive.
Nancy Compton shares the secrets to maintaining a good credit score in her new release, Give Yourself Credit, a compilation of the history behind the FICO score, how credit scores determine interest rates available to potential loan customers, the problems bad credit and identity theft can cause and how to rebuild credit once it is damaged.
Compton said her background in law and credit collections led to a management position with Equifax and then an executive position with a credit restoration company -- ultimately enticing her to go out on her own and better the credit management process for consumers.
The book, available at www.CreditAvengers.com, gives prospective borrowers a behind-the-scenes look at how collection agencies and credit bureaus work, from the rules and regulations the agencies must abide by to how to handle the legalities of identity theft as well as how to obtain a copy of one's own report.
"Only 31 percent of those surveyed had obtained their credit score in the last year," Compton wrote -- referring to a survey released in 2005 by Providian Financial Corp. and the Consumer Federation of America. "Only 27 percent understood that credit scored measure credit risk, not knowledge. Nearly half of the respondents were unaware that a maxed-out credit card would lower a credit score even when the monthly payment was made on time."
The book explains how credit could be destroyed through the wake of divorce, illness or a failed business venture and what to do to avoid such disasters, along with tips on how to negotiate through credit disputes that lead to a favorable resolution.
Resources and the contact information for the leading collection agencies, corporate executives of the leading creditors, attorneys general and politicians are also provided for consumer use in resolving of disputes.
Regarding real estate financing, Compton warned prospective borrowers to avoid home equity lines-of-credit at all cost because it is reported as a revolving credit debt. "And even though you are making those payments on time, that $250,000 HELOC loan makes you appear to be maxed out on your revolving credit."
As for mortgage loans, Compton tells readers that a higher credit score would also "yield fewer or no points and a smaller down payment and in some instances your lender may pay all closing costs which can translate into another $3500.00-$4,000."