by Adam | Apr 20, 2015 | Credit Repair
If you’ve talked with a representative at a credit repair company, then they probably told you how long it can take to repair your credit on your own. And they’re not wrong. It takes time and perseverance to get errors removed from your credit report. You have to send letters of dispute, sometimes multiple letters to each credit reporting bureau. You have to follow up on those letters. Often you will need to hunt down your creditors, which can be easier said than done. But here’s what you probably weren’t told: it will be worth it. With some planning, organizing, perseverance and above all, patience, you will see results. Improving your credit score can save you thousands of dollars in lower interest rates. A higher score can help you get a mortgage. It can help you get a car loan. You should also keep in mind that while DIY credit repair can take a long time, almost all of that time is eaten up in waiting. The actual work of gathering your credit reports and writing dispute letters will only take a few hours each month. You’ll have to be organized so you don’t miss any crucial steps, but your actual time investment isn’t out of this world. What you will have to do is wait and have patience. Where to start: the first month Your credit repair journey begins with your credit reports. Thankfully, by law you’re entitled to one free credit report per year. You can get your free credit report at annualcreditreport.com. If you’ve already requested a free credit report, and it hasn’t been a year yet, then go ahead...
by Adam | Apr 13, 2015 | Credit Repair
It’s a little-known reality that more than 40 million Americans have errors in their credit reports. All those errors are dragging down the credit scores of millions of people. When it comes to repairing your credit, you can attempt to remove errors in your report yourself, or you can hire a credit repair company to do it for you. But before you go out and hire the first credit repair firm you can find, ask yourself these 4 question: 1. Have you tried DIY credit repair? In all actuality, there isn’t anything a credit repair company can do for you that you can’t do for yourself. You have the right to dispute any errors or erroneous items on your credit report with the credit reporting bureaus; and they are required to investigate all disputes. Actions you can take to repair your credit on your own include: Write a credit dispute letter Get a free copy of your credit report and analyze it for errors Make a plan to get out of debt, and stay out Educate yourself on the things that can hurt your credit score 2. How much time are you willing to spend on credit repair? Keep in mind that DIY credit repair takes a lot of time and perseverance. The credit reporting bureaus are large bureaucracies; it takes time for them to respond to your correspondence, and you will have to follow through and document every single interaction (if you want to see results). If you have the time and energy to repair your own credit, then you can’t beat the price of DIY credit repair. 3. Do you know the differences between...
by Adam | Apr 6, 2015 | Credit Repair
We all know that having a good credit score can help you secure a loan, get approved for a credit card, and even rent an apartment. But who can access your credit report, and who can’t? Not everyone can access your credit report, and for good reason. There is a ton of identifying information in there. In the wrong hands, someone could use your credit report to steal your identity. Thankfully, the Fair Credit Reporting Act outlines who can and cannot view your credit report. Here are the basics. Usually, You Must Give Permission for Someone to Access Your Credit Report Most of the time, you need to give your permission for someone to access your credit report. In the case of credit cards, for example, you give the credit card company permission to pull your credit report when you apply for a card. However, in the case of court orders, collection agencies and government agencies, your permission may not be required. Lenders In addition to credit card companies, banks and mortgage lenders can also access your credit score when you apply for a mortgage. The primary purpose of your credit report, after all, is so lenders can determine whether you are more or less likely to default on a loan. Potential landlords Credit checks are standard when you apply for a rental property. Similarly to lenders, a landlord wants to be reassured that you’ll pay rent on time every month, and your credit report can be a fairly accurate indicator of that. Your prospective landlord will also be looking to see if you have had any past evictions, which...
by Adam | Mar 27, 2015 | Credit Repair
If someone walked up to you right now and asked you about your credit score, would you have an answer? Considering around 60 percent of Americans don’t know their credit score, it’s likely that you wouldn’t be able to answer this question. However, considering your credit score can cost or save you thousands of dollars, learning more about this magic number is important. Below you’ll find broken-down basics– the what, why and how – of credit scores so you can know you number and how to make it benefit you. What is a Credit Score? Your credit score is essentially a number that represents your worthiness of credit. Do you pay bills on time? Are you in debt? Are you a spender? The FICO scale (or Fair Isaac Corporation scale) ranges your credit score from a low 300 to a high 850. After pulling credit information from different lending networks, FICO compiles a report on you that reflects your creditworthiness, or credit score. Why Does My Credit Score Vary? Because FICO uses three different credit bureaus to calculate your score – Equifax, Experian, and TransUnion – you actually have three different FICO scores that can vary by as many as 50 points. Your score can also vary depending on your spending habits, monthly income, debt management and many more factors. FICO has developed credit score ranges to gauge your creditworthiness: 300-579: You have bad credit. It will be difficult to obtain a credit card, be approved for loans and more. 580-629: Your have poor credit. Though you might qualify for a credit card, its limits will and its rewards...
by Adam | Mar 20, 2015 | Credit Repair
When a friend or relative approaches you with the opportunity to cosign on a loan, you may feel a variety of emotions. Whether you feel concerned, or excited to help a friend, there are many things you should know before you make this decision. The truth of the matter is, although cosigning on a loan may seem like a good idea, it almost never is. For a cosigner, a loan is a risky choice with very little reward involved. The main reason a person requires a cosigner is because the lending institute deems them a high risk consumer and views them as unlikely to pay, which can potentially leave a cosigner in the position of being primarily responsible for repayment. Here are a few things you should know before you even consider cosigning a loan to help out a friend or family member. It’s a Risky Proposition The first, and perhaps most important element of cosigning a loan is that it is extremely risky. When you get a loan for yourself the rewards often outweigh the risk, but when you cosign, the rewards are small, if there are any rewards at all. Cosigning can have a positive effect on your credit if payments are made regularly, but the effect is minimal. If payments are not made, on the other hand, the hit on your credit will be much larger. You are Responsible in the Eyes of the Lending Institute Because the loan recipient could not have qualified for the loan without your signature, the lending institute will hold you primarily responsible for loan repayment. This means that if payments...
by Adam | Mar 13, 2015 | Credit Repair
On Monday March 9, 2015 the three main credit reporting agencies announced major changes to the way they will handle disputes and report medical bills. Equifax, Experian, and TransUnion announced the agreement after months of negotiations with New York state Attorney General Eric Schneiderman. The goal of these new rules is to reduce reporting errors and make them easier to correct. These credit reports are used to determine your credit score, which affects your ability to get a loan and is used to determine the amount of interest you’ll pay. How will these new reporting rules affect you and your score? Increased Quality And Accuracy The reporting agencies are focusing on increasing the accuracy of reports and handling disputes. Changes include: Eliminating reports on debts that didn’t originate from a contract or agreement—for example, this would stop reporting on tickets and fines Working to help victims of fraud and identity theft Helping consumers navigate the credit bureaus by providing instructions when there is a dispute Increasing transparency by giving customers more information when they contest a claim These changes are intended to make it easier for consumers to contest claims and correct errors. Medical Bills The reporting agencies are overhauling the way they handle medical bills in an effort to improve the accuracy and quality of reports. There will now be a 180-day waiting period before medical bills are reported. This change is designed to allow insurance payments to go through and to give consumers a chance to handle any discrepancies. The reporting agencies will also remove previously reported medical debt that has been paid by insurance. This is...
by Adam | Mar 5, 2015 | Credit Repair
Are you struggling with bad credit and can’t figure out why? You’re not alone. There are several sneaky factors that lower your credit; simple things like applying for new credit or closing a credit card account can cause serious damage your credit score. Read the following 12 things that can also hurt your credit while appearing seemingly harmless. 1. Late Payments Because your payment history equates to 35% of your credit score, frequent late payments on credit card bills can greatly damage your credit score. 2. Avoiding Payments on Parking Tickets Many places in the U.S. send all unpaid parking tickets to collection agencies. The larger your account grows with collection agencies, the more damage is done to your credit. 3. Requesting an Increase on Your Credit Limit Though requesting an increase may help your credit in the long run, it can cause serious damage to your short-term credit if it initiates a serious inquiry into your credit. 4. Renting a Car with a Debit Card If you choose to pay for a rental car deposit with a debit card, the rental company had the right to pull your credit report. This causes a hard inquiry of your credit and can ultimately lower your score a few points. 5. Defaulting on a Loan Loan defaults, which are similar to credit card charge-offs, prove that you have not upheld your end of the loan contract and will likely hurt your credit. 6. Maxed Out Credit Cards Over-the-limit or maxed out credit card balances equate to 100% of your credit utilization and can be, perhaps, the most damaging thing you can do to your credit. 7. Financing a...
by Adam | Feb 27, 2015 | Credit Repair
A credit card can be a powerful tool if you use it correctly. One of the biggest advantages of using a credit card is getting the rewards that accumulate every time you make a purchase. Use the following tips to make sure you are getting the most out of your credit card. 1. Choose Something You Will Use There are many different rewards cards to choose from. Some cards offer cash back, some offer gift cards, some offer discounted merchandise and some offer travel discounts. The best rewards for you are the ones you will use. Cash Back This is the simplest and most practical option. With cash back, you are free to use your rewards for whatever you choose—there are no restrictions. If you aren’t sure which rewards you’d use most often, go with cash back and keep your options open. Gift Cards Gift cards are a great option if you’ll actually use them. Don’t settle for a rewards card that gives you gift cards to an obscure restaurant 3 cities away—choose one that will give you gift cards for stores you already shop at regularly. Merchandise Merchandise rewards can be fun, but make sure the products available are things you’d normally want. If you’d already planned on purchasing a new camera or blender, this could be a great option. If you would never buy those speakers on your own, merchandise rewards might not be the best fit for you. Travel Mileage And Points Travel discounts are very valuable rewards—as long as you can use them. Remember that many rewards programs come with restrictions about how you can use...
by Adam | Feb 20, 2015 | Uncategorized
Worried about how bankruptcy will affect your credit score? Maybe you have already filed for bankruptcy and are working on rebuilding your credit? Whatever your situation may be, rebuilding a credit score, especially after bankruptcy, can be difficult but not impossible. The following are some facts regarding how bankruptcy affects your credit score, how you can rebuild your credit after bankruptcy, and a few myths about bankruptcy that you should be aware of: Filing for Bankruptcy Here are simple steps to filing for bankruptcy: First, you should be aware that filing for bankruptcy is not actually SIMPLE, and sometimes, depending on your situation, there are other options worth considering. Make sure you sit down with an attorney to discuss your options and to talk about filing for bankruptcy before you go about refinancing your house, filing for bankruptcy, etc. Determine whether or not you qualify for chapter 7 bankruptcy; this is based on your income compared to other similarly sized families. If not, you can try chapter 13 “debt consolidation.” Decide if you are going to file for bankruptcy on your own or if you are going to discuss your situation with a lawyer. You will have to pay somewhere between $30-$50 dollars for mandatory credit counseling. Complete all the necessary paperwork; this is where help usually comes in handy. Next, in order to file a petition with the court you will need to submit all your paperwork along with your credit counseling certificate. Attend the meeting of creditors. Within 45 days of the creditor’s meeting you will need to complete a post-filing personal financial management course. This usually...
by Adam | Feb 13, 2015 | Credit Repair
For many people, credit card use becomes a cycle of debt that can be difficult to get out of. It may seem like all your efforts to chip away at your debt are fruitless, and that adding more to your credit card balances is the only way to stay afloat. People in a cycle of credit card debt often live paycheck to paycheck, with nothing left over to add to savings. Fortunately, you can break the cycle. With dedication and some advanced planning, you can pay down your credit cards and keep yourself from slipping back into debt. But how? Here are the steps you can take to gain control of your finances and remain free from the crippling cycle of credit card debt. 1. Combat feelings of hopelessness First, remind yourself that getting out of debt is achievable. If you foster feelings of hopelessness, with thoughts such as “I can never pay off my high credit card balances, so why bother,” then you’ll never find the motivation necessary for success. Instead, tell yourself that getting out of debt is not only possible, but easier than you think. It’s going to take some time, and you may feel like you’re not making much progress, but little by little you’ll be closer to your goals of financial stability. 2. Force yourself to stop using your credit cards To get out of debt, you can’t continue to add to your already-bulging credit cards. Months of payments can be eliminated by a few purchases, so eliminate the option entirely. The simplest way to reduce credit card debt is to stop using them altogether while you’re paying them...
by Adam | Feb 6, 2015 | Uncategorized
There are many places where you can get your credit score and credit report for free. Here’s a breakdown of the best. The first step to improving your credit score is to know what your credit score is in the first place. Each of the three credit bureaus is required by law to give you one free credit report per year, but they don’t have to give you your actual score for free. Often you will be charged $15 or more for access to your score, but there are many websites and companies out there who will promise to give you your credit score for free (usually as part of a free trial). To help you decide the best way to access your credit score and credit reports, here are 4 of the top companies offering free scores and reports: Annual Credit Report .com AnnualCreditReport.com is the official website authorized by the federal government where you can get your free annual credit reports. However, you can only get one free credit report per credit bureau, per year, and it doesn’t include your actual credit score. Thankfully, there are other ways to access your credit score for free. Credit.com If all you are looking for is your credit score, then you’ll get it and a little more for free at Credit.com. You’ll get your Experian score along with some free score analysis. Additionally, you won’t have to provide any credit card information and you won’t be signing up for a free trial period (so you don’t have to worry about getting automatically charged). Credit.com offers several paid products and services, including pre-paid credit cards and credit monitoring....
by Adam | Jan 30, 2015 | Credit Repair
You’ve probably heard of credit repair scams: companies who promise dramatic results but want you to pay all the money up front, or who say they can remove legitimate items from your credit report. But what is it like to hire a credit repair company that actually has your best interests at heart? Not all credit repair companies are scams, and there are situations when hiring a credit repair firm can yield great results well worth the cost. Here’s what you can expect from a legitimate credit repair company. They Will Go Over Your Credit Report With You in Detail A trustworthy credit repair company wants to help you improve your credit situation, but they won’t sugar coat anything. The first order of business is pulling all of your credit reports and going over them with a fine-toothed comb. Your credit repair company should be upfront about items they can potentially fix in the short term, and which items they won’t have any control over. In addition to this, your credit repair company should give you the tools and advice you need to raise your credit score in the long term. They Identify and Dispute Errors on Your Credit Report An experienced credit repair company will have been helping people improve their credit for a long time. They know the ins-and-outs of credit laws and regulations, using their expertise to identify and dispute legitimate errors on your credit report. Over 40 million Americans have errors on their credit reports, and so there is a good chance that your report isn’t squeaky clean. However, a legitimate credit repair company will...
by Adam | Jan 23, 2015 | Credit Repair
Your credit report provides a detailed history of your credit usage. It’s unfortunate, but even one missed payment can bring your score down significantly. However, the negative items on your score don’t hang around forever. Let’s break down exactly how long you can expect to wait before your credit report is washed of those negatives. How Long Do Negatives Stay on Your Credit Report? 7 Is the Magic Number Most negative items will be reported on your credit report for 7 years. This includes: Missed Payments Foreclosures Collections Public records Bankruptcies for Chapter 10 If seven years sounds like a long time, you’ll probably be relieved to learn that the effect of these negative items decrease with time. This means that the older a negative item is, the less impact it will have on your credit score. Negative Items that Hang Around Longer Than 7 Years The main exception to the 7-year rule is Chapter 7 Bankruptcy. In this case, the bankruptcy will remain on your credit report for 10 years. An unpaid tax lien is considered the most serious, and may remain on your credit report indefinitely. Once it’s paid off, then it remains on your report for another 7 years. The Good News While negatives can seriously hurt your credit score, you may be pleased to learn that positive information (like an account paid off as agreed) will remain on your credit for up to 10 years, according to Equifax. Inquiries, which have a relatively small impact on your credit score (and some types of inquiries have no impact on your score), will stick around for 1 to 2 years. To learn...
by Adam | Jan 16, 2015 | Credit Repair
Sometimes we simply forget about a payment, or get behind on a loan. Other times a credit report error (or worse, a case of identity theft) can lead you on a wild goose chase just looking for a simple address or phone number. Life can get messy, and creditors aren’t always the easiest to contact when you need to. When it comes to tracking down your creditors, it’s often easier said than done. It’s not uncommon to not know the exact company name of a creditor, let alone their address or phone number. Things can get even more complicated when a creditor decides to hire a collection agency, which may be harder to identify and contact. If you need to write a credit dispute letter, or if you simply need to contact a creditor to verify the amount of money you owe, then you’re going to need a phone number or address. Here are the best places to look for this information: Check Your Credit Report The first place you should look to find creditors is your credit report. By law you are allowed one free credit report per year, which you can access at AnnualCreditReport.com. To find contact info for your creditors, look in the account history portion of your credit report. Here you will find info (address, phone number, and abbreviated account number) of all your accounts from the last 10 years, whether they’re open or closed. If an account has gone to collections, it will show the contact info for the collections company. Other Places to Look If the contact info you find on the credit report proves unreliable, there...
by Adam | Jan 9, 2015 | Credit Repair
Unless you’re brand new to credit, you probably know the basic things that can negatively affect your credit score: missed payments, credit report errors, maxed-out credit cards, bankruptcy, etc. All these factors are pretty serious, and may require some outside help in the case of credit repair errors. However, there are a few lesser-known factors you should know about that can also lower your score. Missed Rent Payments If you thought your rent payments were free from the credit bureaus, think again. Missed rent payments are routinely reported to the credit bureaus, resulting in a lower credit score. Thankfully, with the help of companies like RentBureau, ClearNow, and RentTrack, positive rent histories can actually help raise your credit score. So if you’re looking to improve your score, maintaining a good rental history can give you a good boost. Missing Accounts If you have positive accounts that are missing from your credit report, then you’re missing out on their potential to improve your score. Fixing this problem is fairly simple, just follow these steps: Get a copy of your credit report Make a list of any accounts that you make monthly payments on (including things like cable, internet, utilities, etc.) See if any are missing from your credit report (which is likely) Contact the companies where you keep the missing accounts and ask them if they will report your positive history to the credit bureaus You may be surprised that many of these companies will be more than willing to help you out. The extra positive credit history these accounts provide are sure to be a boon to your credit score. Paying on...
by Adam | Jan 2, 2015 | Credit Repair
A vacation has many benefits besides just downtime. According to WebMD, people who take vacations lower their risk of heart disease and reduce their stress levels. But taking a vacation can be risky for your credit. The extra costs of travel, lodging, and dining can strain your finances, and using credit cards abroad often comes with added fees and hassles. It can also be easy to forget to make monthly payments while you’re on vacation, and even one missed payment can potentially lower your credit score. Here are a few ways you can protect your credit score while on your next vacation: Start Saving For Your Vacation Several Months In Advance Being financially responsible is at the heart of keeping a good credit score. To ensure you don’t have to go into debt to finance your vacation, start saving several months in advance. Giving yourself plenty of time to save makes it easier to get the money you need to truly enjoy your vacation. Make a Vacation Budget, and Stick to It Vacations have a way of draining bank accounts if you’re not careful. While you might think that having a vacation budget only adds stress when you’re supposed to be relaxing, the opposite is true. Without a budget, you’re only going to be more stressed when you come home and discover that you spent twice as much as you planned on spending. Your vacation budget should include all your planned expenses, but it should also include enough wiggle room for spontaneous activities. Plan How You’ll Pay Your Bills While You’re Away One of the tricks to maintaining a good credit...
by Adam | Dec 26, 2014 | Credit Repair
It’s that time of year again. The time of year when 38% of Americans resolve to lose weight, and 34% make money-related resolutions. Despite these lofty goals, only 8% of Americans will actually achieve their New Year’s resolution. The old standard resolution to “spend less, save more” is a wise choice, but perhaps a bit too vague. The best resolutions are specific and actionable. Rather than spend less, you could resolve to cut out your daily trip to Starbucks and brew coffee yourself instead. That in and of itself will result in spending less and saving more. In the spirit of helping you come up with specific, actionable new years resolutions, here are a few ideas that will help you raise your credit score in 2015. I Resolve to Protect Myself Against Identity Thieves The majority of identity theft is preventable. That’s because would-be thieves prefer to go after the low-hanging fruit: consumers who are careless with their personal information. To avoid having your credit wrecked by identity theft this year, resolve to secure your personal information at home and online. Here are a few ideas: Create strong, unique passwords for all online accounts Organize and find a safe, secure place to store documents like tax records Resolve to never share financial or identifying info on social media Educate your children on appropriate and safe online behavior I Resolve to Create a Budget A budget is your ticket to savings. Rather than make a goal to save money, resolve to put a budget in place that will actually achieve that goal. Everyone’s situation is different, and so you’ll have to come up with a...
by Adam | Dec 19, 2014 | Credit Repair
If you think credit report errors are few and far between, consider this statistic: an FTC study recently concluded that as many as 40 million Americans have credit reports containing errors. Half of those reports contained errors that could negatively impact their credit score. Released in 2013, the study spanned 8 years of research. In the study, participants were encouraged to dispute errors found in their credit report. Of those who disputed errors: 20% had an error corrected once it was disputed 10% noticed a change in their credit score after disputing a credit error 5% experienced a score change of more than 25 points Only one in 250 consumers’ score was changed by more than 100 points Clearly, credit report errors are widespread, with mistakes hurting the scores of millions of Americans. Worst-Case Scenario for one Ohio Nurse In an interview with the CBS News show 60 Minutes, Judy Thomas, a trauma nurse from Cleveland, Ohio, detailed a series of events that might just describe the kind of worst-case scenario that happens all too often when it comes to credit report errors. Thomas, who spent years working hard to build good credit, was denied out of the blue for a credit card. An initial look at her credit reports showed no errors, but the denials for credit kept coming in. Finally, Thomas discovered the credit report that the 3 credit bureaus show to creditors (which is different from the one they give to consumers) contained debt and collections from a completely different person in Utah. What should have been an easy fix turned into a years-long ordeal that finally culminated...
