What is a good credit score?

When lenders talk about "your score," they usually mean the FICO® Score developed by Fair Isaac Corporation. It is thoday's most commonly used socreing system. FICO scores range from 300-850, and most people score in the 600s and 700s (higher FICO scores are better). Lenders buy your FICO Score from three national credit reporting agencies (also called credit bureaus): Equifax, Experian and TransUnion.

In the eyes of most lenders, FICO credit scores above 700 are very good and a sign of good finacial health. FICO Scores below 600 indicate high risk to lenders and could lead lenders to charge you much higher rates or turn down your credit application.

Now, as you know this is all just general information on how the lending world works. As followers of Dave Ramsey thru Financial Peace University, we do not borrow money. Except for a mortgage and put 20% down and finance no more than 1/4th our monthly income in a payment on a 15 year fixed rate loan. And yes you can get a mortgage without a FICO score.

Dave Ramsey has enough money to write a check to purchase an entire apartment complex but based on most apartment complex rental rules he couldn't rent an apartment because his FICO score is ZERO. We will cover this in more detail in future posts.

What BabyStep are we on?

Okay, things are better then we deserve in my household. We are on Baby Step #2 and will be completely credit card DEBT FREE at the end of March 2007. We are taking our first family vacation for spring break since starting Financial Peace University on January 21st, 2006. And the best part is that we are paying CASH for the trip.

It seems that the action that really got our debt snowball rolling was the sale of my 2004 Volkswagen Jetta. I was fortunate enough to get exactly what I owed for it. This in turn eliminated $13,000 of debt and freed up $325 per month to apply to our Debt Snowball. Keep praying for us as we continue this life changing journey. We truly are Living Like No One Else, So Later We Can Live Like No One Else.

Stop Identity Theft. Guaranteed.

Identity theft is the "Achilles' heel" of the information age, says LifeLock founder Todd Davis, because we can't function in society without our personal information becoming public.

LifeLock arranges it so that you are notified for your approval if you or someone else is trying to open a new credit card, equity line, cell-phone contract, etc. It does this by putting "fraud alerts" on all your accounts, which have to be renewed every 90 days, and then monitoring them for any suspicious activity.

If you do become a victim of identity theft, prepare for a lot of work. A 2004 study by Foley's center found that, on average, it takes a person 330 hours to undo the damage. Look at how LifeLock can Stop Identity Theft Today!

We're Living the Debt-Free Life!

Are you spending more every month then you bring in? Are you spending an Arm and Leg on coffee everyday? Learn from a young couple who got serious about getting out of debt. We're Living the Debt-Free Life! by Michael in Oregon.

No More Credit Cards!

Well, the scheduled date to pay off my Citi Card is March 30th, 2007. This is our last credit card bill. I can't tell you how much stress has been released with paying these cards off. We are planning a spring break trip and we are paying cash for it. What an awesome feeling. If you haven't already done so, you need to go to www.DaveRamsey.com and find a Financial Peace University class and signup. It really is time for you to take back your life! It was the best thing I could have ever done for my family.