by Adam | Aug 18, 2015 | Credit Repair
You may have heard that too many “credit inquiries” can lower your score. This is both true and false – only some kinds of inquiries can lower your score, while others are harmless. Whether you’re applying for a loan or checking up on your own credit score, it’s important to know which kind of inquiry you’re initiating so you can avoid the more damaging ones unless absolutely necessary. What is a “credit inquiry”? Anytime someone requests your credit report or score, that is called a “credit inquiry.” Examples of common credit inquiries include: When you apply for a credit card When you apply for a mortgage When an employer conducts a background check When you apply to rent an apartment When a credit card company determines if you qualify for a card or special offer When you check your credit score or request your credit report The purpose of a credit score – and a credit report, for that matter – is to determine your credit worthiness. A higher score indicates that you have a good history of paying off loans on time without missing payments, and a lower score indicates that you’re more at-risk for defaulting on a loan. This information is useful for all kinds of people, organizations, and corporations. For example, a landlord may want to know if a potential renter has a good history of making monthly payments. Checking your credit is a fairly good indicator of this. There are two kinds of inquiries: hard and soft. “Hard” inquiries can lower your score A hard inquiry may actually knock your credit score down a few points, so they should only...
by Adam | Aug 5, 2015 | Uncategorized
Having poor credit can be financially paralyzing. But constantly checking your credit score or frequently pulling your credit report won’t necessarily fix your binding situation. To fully understand how often you should be checking your credit report, you should explore the answers to these commonly asked questions. What is a credit report? A credit report is a detailed report of your credit history. This document is prepared by a credit bureau and is used by lenders to determine your creditworthiness. Your creditworthiness is based on several factors including: Personal information Employment history Summary of credit history Account information Inquiries of your credit history Any accounts turned to a credit agency Why should you be aware of your credit report? Being aware of your credit report is necessary for several reasons, the most important being: Identity theft: With identity theft on the rise, you’ll be able to note any identity errors or reports of fraud on your report. Financial standing: If you aren’t aware you have poor credit, you’ll never begin to repair it. Errors: It’s not uncommon for reports to have errors that can damage your financial standing and credit worthiness. What is a credit score? When using credit, you are essentially borrowing money that you don’t have and promising to pay back the borrowed amount within a specific time period. Your credit score is a three-digit number that determines the likelihood of you actually paying back the money you owe. Your credit score is a number determined by the information provided in your credit report. Though credit bureaus have different evaluation methods, the most important factors a credit...
by Adam | Jul 27, 2015 | Credit Repair
Having poor credit is an unfortunate situation to be in, especially when there are discrepancies or disputed information on your report. While it is possible to try and resolve this issue and repair your credit alone, the process can be grueling and complicated. Thankfully, dependable and trustworthy companies are available to help. The top-three reputable credit repair agencies are compared side-by-side here, including a review of each company’s price, features and services. This allows us to bring you the most reliable information possible so you can choose the right company for you. #3 – MyCreditGroup Pros: With a score difference of just .05 from the leading company, Lexington Law, MyCreditGroup offers several similar factors, including: Month-to-month contract Identity theft protection Licensed Bonded Registered with the Attorney General They also provide users with all services including credit score analysis, couple’s discount, dedicated account manager, privacy protection, and payoff resolution – or help negotiating and paying off your debt – a service that neither of the top two companies offer. Cons: Unlike the two leading companies, MyCreditGroup doesn’t offer a refund policy, educational materials or online chat capabilities. MyCreditGroup is the most expensive group in the top three, charging $99 for First-Work Fee and $69 for Monthy-Fees. #2 – Sky Blue Credit Repair Pros: As the runner-up Credit Score Company, Sky Blue Credit Repair offers the same functional features as Lexington Law, including month-to-month contracts, identity theft protection, licenses, insurance, registry with the attorney general and they offer a refund policy. They also provide users with the same services as Lexington Law like: Email and phone support FAQs Online and Phone Registration...
by Adam | Jul 20, 2015 | Credit Repair
Having poor credit can put you in a paralyzing financial state. There is, however, a solution that many individuals don’t know about: do-it-yourself credit repair. Consider the following four steps to take in the first month of your credit repair efforts. 1. Make your point clear After obtaining a credit report from all three credit agencies, the first thing you need to do is write a letter to the credit reporting company. This letter should include all the information you think is inaccurate on your credit score. Your letter should include the following: Complete name Current address Each disputed item The facts and reasons behind your dispute A request for the information to be removed or corrected Your letter should also include a statement requesting a returned receipt for documentation. 2. Be patient Repairing poor credit is not a quick process. It takes considerable time and effort, but can be done. After submitting your letter to the credit reporting companies, they have 30 days to investigate and process the items you questioned. The credit reporting company must then forward all of the relevant data you provide to the original organization. After the original provider conducts their own investigation on the allegations, they send the results back to the credit reporting company. If, indeed, the disputed information is found inaccurate, the original organization must notify nationwide credit companies. 3. Ask for action After all investigations are complete and results have been decided, the credit reporting company will send you a copy of the results in writing as well as a copy of the report if anything was...
by Adam | Jul 13, 2015 | Uncategorized
Negative items on your credit report can result in a lower credit score, higher interest rates, loan denials, and more. In some cases a bad credit report can even influence your ability to get housing or a job. If there is something on your credit report that isn’t correct, it is important to correct this as quickly as possible. Writing formal letters can be intimidating and confusion, but knowing how to correctly communicate with credit reporting agencies can be crucial to correcting your credit and improving your scores. Use the following sample letter as a guide when creating your own credit dispute letter. You may need to send a letter to each credit reporting agency. In this case, be sure to alter the information where appropriate. For more instructions, see our post: How to Write a Credit Dispute Letter to Repair Your Credit. Sample Letter [First Name, Last Name] [Street Address] [City, State, Zip Code] [Date] Complaint Department [Name of Credit Reporting Agency] [Company Address] To Whom It May Concern: I am writing to inform you that the following information in my credit report is incorrect: [Name of account], [account number] [Item description (e.g.: judgment, credit account, etc)] This information is inaccurate because [Give a detailed explanation of why the information is incorrect: (E.g.: I never opened this account/I made the payment on time/the information is incomplete/ etc.)]. This incorrect information has negatively impacted my ability to [acquire a loan/ get a fair interest rate/ find rental housing/ etc.]. As a credit reporting agency, you are legally required to report accurate information. Please immediately [remove this...
Recent Comments