Understanding Your FICO Score Can Save You Money

Improving your credit scores can save you money and open new financial doors. Higher scores can increase your chances of being approved for credit cards and personal loans. In addition to getting lower interest rates on those credit lines. Your credit can also affect other areas of your life. Such as your ability to rent an apartment or get a job. Before diving into different ways to raise your credit scores, it can be helpful to understand what factors go into determining your credit scores. What Is A FICO Score? A FICO score is a type of credit score created by the Fair Isaac Corporation. Lenders use borrowers’ FICO scores along with other details on borrowers’ credit reports to assess credit risk and determine whether to extend credit. The standard FICO Score ranges from 300 to 850.

How to Find a Credit Repair Expert You Can Trust

Bad credit can quickly make life an uphill battle. It can prevent you from getting a loan approved or access to credit when you need it most. When bad credit weighs you down, who can you turn to for help? How do you know which credit repair companies can be trusted? Where can you find the best deal? We’ve answered your questions with expert tips on finding quality credit repair.   Go Local Local consultants are more likely to stay up-to-date and on top of your state regulations. Keeping up with best practices makes local credit repair experts more effective and efficient. They generally give you the most bang for your buck and can also recommend local resources. Credit consultants often work closely with bankers and lenders within the community. They’re well-versed in local policies, loans, and rates to assist you in finding the best arrangement to fit your financial…

Five Ways Your Credit Score Affects Your Life

If you’re under the impression your credit score isn’t influencing your life right now, think again. Your credit can affect so much more than just your wallet. Whether it’s good or bad, credit history can creep its way into your day-to-day life in surprising ways as well as impact the lives of your children. A heavy burden to carry, particularly for single parents. Consider this: it can take years to build credit history but only a few small, careless mistakes to ruin it. Neglecting your credit score isn’t the type of thing you want to do, since it impacts both you and your family. Why? Here are five ways your credit score affects your daily life and those of your family.   . Your Score Determines Where You Live   Imagine finding the perfect house in the ideal school district for your children. In order to purchase it, you’ll need…

5 Common Mistakes that Lower Your Credit Score

You may know of some common mistakes that can lower any credit score: paying bills late, forgetting to pay bills, home foreclosure, bankruptcy, and repossession. Did you know there are actions that many believe to be good for their credit, but they actually have a negative effect? Let’s take a closer look at some of the less familiar risks:   Closing old credit cards. When we’re shoring up our finances, we often think cutting up old credit cards and closing our accounts is good for our credit. If cutting up cards will curb spending, then by all means, grab the scissors…but don’t close your accounts. The average age of credit lines is a factor in determining your credit score. The further back your history goes, the more likely lenders are to view your records favorably. Lenders like to see reliable payments over a long period of time. If you close…

Credit Repair Tip 1

Your Credit Consumers move through life without understanding what type of impact their credit report can have on their financial well-being. The information in your credit report can allow you to enjoy some of the finest things in life, or it can make your life a struggle. For example, if you decide to give up on paying your bills, you could have difficulty getting a loan or an apartment, your insurance rates could go up, your personal relationships could suffer, and you could be denied employment.​   It’s important to take responsibility, pay your bills on time, and understand the importance of your credit report. Take time to become familiar with the credit reporting agencies that keep tabs on your payment history. These actions could produce great financial success. With good credit, banks and credit card companies will knock down your door trying to get your business. You will be…

Credit Repair Tip 2

The Dispute Process Using the dispute process to remove negative inaccurate items from your credit report can be time-consuming and frustrating.  (Credit files must be 100% accurate, 100% verifiable and 100% timely–according to the Fair Credit Reporting Act.)  Nevertheless, disputing is one of the best ways to have inaccurate negative information deleted from your credit report.  When you are scrutinizing your credit report, make sure to check the personal information section and check that all entries are correct.  Check your name, date of birth, present and past addresses, current and past employers, and Social Security number.  After you have verified your basic information, you should scan all three credit bureaus and circle or highlight any errors you find.  Here are some important red flags to look for: Discrepancies regarding accounts and inquiries: Unauthorized user accounts Accounts that have the wrong name Negative accounts reporting past the mandatory FCRA time limits…

Credit Repair Tip 3

My Credit Score Not understanding the five elements that make up your FICO® score could have a tremendous negative impact on getting approved for credit. For example, if you are 30 days late within the first two years of having an account, this could bring your credit score down by 30 points. In return, you could get denied for a home loan based on that single 30-days-late indication. In today’s society, your credit score is used whenever you apply for credit, so it’s important that you understand how to raise it and maintain it. Monitoring the five areas of your credit score will let you know which areas need improvement. Once you achieve the score you are aiming for,  you must maintain it through education and discipline.   What is a FICO® score? A FICO® score is a three-digit number that is built from the information contained in your credit…

Credit Repair Tip 4

How is my credit score calculated? ​​​​​It’s calculated by your payment history, the amount you owe, the length of your credit, what new credit you have applied for, and the type of trade lines you have. Payment history: Your paying habits are 35 % of your credit score.  If your late payments are recent, it will lower your score more than if you were behind in the past. In addition, a 90-day-late indication will severely damage your score over a 30-day mark. In addition, public records like tax liens, judgments, and bankruptcies fall into the same category and could take your score down even further, so make sure you are current with your creditors and always pay your bills on time. Amount you owe: The balance on your accounts is 30% of your available credit score. So, using all of your credit will worry lenders and hurt your score. The…

Credit Repair Tip 5

The Impact of Credit on Your Mortgage Connecticut Home/ $550,000 Mortgage/ 30-Year Fixed Payment Plan   Person B spent $515 more per month than Person A for the same house with the same mortgage.  In total, Person B will spend $185,212 more than Person A!  

Credit Repair Tip 6

How do I raise my credit score?   Know who is looking at your credit report When you give your Social Security number out on applications, you are giving creditors permission to look at your credit report.  However, you have to watch to see if unauthorized users are pulling your credit. If a creditor pulls your report without your authorization, it can lower your credit score. If this happens, you want to immediately dispute the unauthorized inquiry with the particular credit bureau.   Keep your address updated with your creditorsIf you physically move or change your email address, make sure you notify all your creditors. If you don’t and you miss your statement, late fees will be added, which could cause you to go over your limit. If you fail to make the payment within 30 days, the creditor may report you to the credit bureaus and your score will…

Credit Repair Tip 7

I hate collection agencies Collection agencies are at the bottom of the barrel when it comes down to business.  The only thing they care about is cold, hard cash.  They don’t care if you’ve just lost your job, your spouse, or your health.  Their job is to bleed you of money any way they can.  However, you can stop them in their tracks by applying your newfound knowledge and the law.  There are several tactics you can use in standing up to a collection agency, including saying the right words, sending a detailed letter, or quoting the law. What is a collection agency? Collection agencies are third-party companies that use aggressive tactics to collect outstanding debts from consumers.  Old debts are either assigned or sold to the collector by a creditor.  If the debt is assigned to a collection agency and the collector obtains the money, a percentage of it…

Credit Repair Tip 8

What Law Regulates Collection Agencies? The Fair Debt Collection Practices Act (FDCPA) regulates collection agencies and prohibits them from doing the following: They can only contact a third party to secure your location when they are trying to locate you, but they cannot disclose the matter of the call. After the collection agency knows that you have legal representation, they must communicate only with your attorney, unless the attorney fails to respond within a reasonable time frame. They cannot call you before 8 a.m. or after 9 p.m. They cannot call your job if your employment prohibits personal phone calls. The collector cannot discuss your debt with any third party unless it’s your attorney, a credit bureau, the creditor, or the creditor’s attorney. If you notify the collector in writing that you want them to stop calling and sending you letters, they must stop. They can still send you one…

Credit Repair Tip 9

I received a call and a letter from a collection agency It is imperative that you “force” the collection agency to prove that it’s your debt.  This requires a debt validation letter.  Don’t wait because if you may miss the 30-day deadline, this gives the collector the right to report the alleged debt to the credit bureaus if you do not dispute it. ​​​​​Validation letter In your validation letter, let the collector know not to send you a computer printout itemizing your outstanding debt, as this is not sufficient proof according to the Federal Trade Commission opinion letters. These letters are interpretation of the law written by FTC staff attorneys. Instead, ask the collector to provide you with a copy of the following: Their bond and license to collect in your state. A copy of the agreement authorizing them to collect debt on behalf of the creditor. An accounting statement…

Credit Repair Tip 10

It’s time to rebuild your credit Applying for multiple credit cards at one time is not the way to build credit. In doing this, you rack up multiple hard inquiries on your credit report, which sends red flags to all potential lenders. As a result, you are denied and those inquires stay on your credit report for two years. Whether you are trying to build or rebuild credit, you must employ a strong credit building strategy and ALWAYS pay your bills on time. This will show lenders that you are credit worthy. How long does it take to rebuild credit? You can be on your way to building positive credit as soon as possible if you have a sound strategy in place.  Below are strategies and credit products to establish positive credit and remove negative credit: Dispute and have the credit bureaus remove inaccurate negative credit files. Secured credit cards,…

Credit Repair Tip 11

What Is a Poor Credit Score? With the reporting of credit scores by banks and credit monitoring sites, many consumers now know their score.  Unfortunately,  it’s no secret that plenty of people have come to the realization that their credit score is holding them back in many ways. A poor credit score can prevent you from renting an apartment, owning a home, buying or leasing a car, going to college, landing a job or securing a cell phone. Here are 5 things you should know about credit scores and how to determine what is a poor credit score versus a good score. A poor score is somewhat subjective depending on the type of credit a consumer is applying for. Home loans have some of the strictest credit standards while department store credit cards have fairly lax standards. Home loans will typically consider anything under 620 as a poor score, but that doesn’t necessarily mean it…

National Association of Credit Services Organizations

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