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9/13/2020


Everyone wants to have at least good or great credit to lock in lower interest rates or to obtain higher credit limits for large purchases. In some cases a great credit score is needed to get mortgage approval from a lender. Credit scores affect everyone in our society who need to borrow money to make a purchase.


A credit repair company knows that you will need their services if you mismanage your money, lapse on monthly payments, and even outright fail to pay any debts on your credit report. Credit repair agencies use many different strategies to help their clients remove items off their credit reports. It is important to take note some of the mistakes they make that can hurt your score rather than help your score. Some companies unfortunately, even knowingly, make these mistakes that can not only hurt your score but also cause the legal system to become involved.


List of mistakes credit repair agencies make:


  1. Guarantee: The first mistake most companies make on their website or whole they speak to you over the phone , is the guarantee that they can remove all negative items off your credit report. It is against the Credit Repair Organizations Act (C.R.O.A) to make statements that are misleading and untrue. Beware of any organization that makes these outright guarantees to remove items off your credit report.

  2. Removal Methods: There are many great strategies to remove negative items off your credit report. However, there is bad and even illegal methods to attempt to remove items off your credit report. If your credit repair agency is falsely claiming FRAUD on every item on your credit report when it isn't, then you need to quickly stop doing business with them. The major credit reporting agencies usually require a police report be provided when disputing fraud. If they persist to falsely seek removal using a fraud/identity theft claim, then you may be held liable for fraudulent charges and even face fines, and charges from local authorities.

  3. Pricing: Some credit repair agencies offer their services for extremely low prices. If you see an agency offering credit repair services for almost next to nothing, you should be cautious of who is actually working on your credit profile. Some credit repair agencies use overseas, low pay workers, to work on your credit and there is no oversight on methods or strategies used. We have heard many horror stories from clients who move from a competitor to our agency because of this very problem. They were not getting the results or customer service they were expecting and in some cases promised. Remember you get what you pay for!

  4. Security: In many cases there are medium-sized credit repair agencies outsourcing their disputing process completely to cheap labor workers overseas. However, the owner or management have never been to the offices or know exactly their hiring methods or practices. This is the hidden danger with some agencies always looking to cut costs at the expense of security over your personal information.

  5. Communication: In many cases credit repair companies keep you up to date with portal access and great phone support. However, you then have the problem where you can't speak to anyone who is familiar with your personal situation. You shouldn't have to wonder what is happening with your dispute process. Communication between the agency and the client is key to achieving the results you want and need.

Beware of any company offering you flat out removal guarantees especially within a specific time frame. After signing up, ask how will they go about removing items off your credit report. While the company works on removing items from your report, you should be keeping track of any updates or changes to your credit file. If you don't have identity theft or fraud, they should not use those methods to remove items off your report for any reason. If they do, then they are violating federal laws, and by doing so you risk being held liable as well. Remember, it is your name on the line!


We are always looking for low deals and for ways to save some money. Remember though that you get what you pay for when dealing with companies charging really low rates. You must ask yourself are if they are really working on your report or if they are outsourcing the labor to overseas workers. The less people who have access to your credit file, including your personal information, the more protected you are against new fraud appearing on your credit report. If you find yourself calling your credit repair agency and are not getting any real answers about your results, or new problems have been created by your credit repair agency, then you might need to move on and find a new agency to help you.


If you need any help or guidance to repair your credit report and are looking to change around your credit score within a reasonable time, then give us a call at 1-855-495-9212 or sign up online for a FREE CREDIT CONSULTATION. We are here to provide professional help so you can obtain credit freedom!

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  • Credit Freedom Experts

9/10/2020


The most commonly asked question most credit repair professionals answer is "Is it possible to boost my credit score in 60 days?" The answer is quite complex to say the least. Why? Well that's because raising your credit is based on multiple factors and the biggest factor is usually you. Yes! Your habits, good or bad play the largest factor to whether or not you can raise your credit score substantially in a very short period of time.


Monitor spending habits:

Credit Utilization- How much credit you're currently using compared to your available credit is your credit utilization.. Keep your accounts under the 30% threshold at the maximum and under 10% to show responsible credit use. Remember, "Amounts owed" make up 30% of your entire credit score, so if your over the threshold then start paying down your credit cards immediately.


Figure out which type of credit you currently have:

Credit Mix- How many credit cards do you have? Do you have a mortgage or car loan on your credit report? Keep in mind the credit bureaus are looking for at least 2 credit cards (revolving credit) and a loan account, like a home mortgage or car loan. If you have neither one, you might want to think about a secured bank loan like Self, They offer secured loans that may help you with your credit mix. Keep in mind that having more credit cards doesn't equal a higher credit score necessarily. How you manage your credit matters more than whether or not you have 10 different credit cards. When you looking at your credit mix it is important to note that credit mix is only 10% of your total credit score.


New Credit- Be careful when applying for new credit. Running your credit will affect your credit score by at-least 10 points or more on average and stay on your credit report for 2 years. Only apply for credit when you're looking to make a large purchase like a car or home, and a credit card that has overall value to be added to your credit report.


Some people overlook how important it is to make monthly payments on time every time:

Payment History- The biggest factor for every credit score is payment history which makes up for 35% of your entire credit score. This means even 1 late payment can be detrimental to your credit score.


We all have rough times in life, but you must be in charge of your spending habits and only charge what you can afford to payback quickly. If you find yourself with 1 late payment with a creditor you may be able to have it removed by contacting them and plead with them to remove the late payment from your credit report.


If you have too many credit cards that you're not using, it might be best to downsize your wallet. Remember having a multiple credit cards doesn't make your credit go up any faster-- only great debt management can do that.

Credit history: If you have many cards and you're thinking of closing accounts then you must start with the newest accounts added. The credit bureaus look at your overall credit history to make up your score. Positive old accounts that have many years on your credit report will help raise your score faster than new positive accounts. Keep that in mind closing accounts may lower your credit score depending on the age of the account.


When looking at the overall picture of credit, you must control your spending habits while keeping your account balances below 30%. If not, your credit score will take a major hit over credit over utilization. Next, one must pay credit card balances on time and if possible completely pay off their balances to get a fast credit score boost. While attempting to raise your score don't close accounts or apply for new credit accounts unless you need new credit to help your credit mix. These are some tips to help and the faster you implement them in your daily habits you will see a significant credit score boost within 60 days.



If you have fraud, collection accounts, college debts, and other derogatory items on your credit report, we will be happy to help you. Please call 1-855-495-9212 or sign up online for a Free credit consultation.




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  • Credit Freedom Experts

Updated: Sep 30, 2020

9/3/2020

 


When you are preparing to purchase a home, you should put together a checklist of items involving your total financial picture. This should include the current state of the economy. As everyone is coming to understand, the current situation in the United States regarding the pandemic, can have a significant effect over your financial future that you must adapt to in order to meet your future goals.


The following are items that can help you prepare your finances for buying a home:


  1. Stability: You must have a stable job or business that has adjusted to the current COVID-19 economy. This is crucial in order to move forward to any other steps on this list.

  2. Savings: In order to make a serious judgement about buying a home, you must have money saved. One should estimate 10% for down payment and closing costs. Also, an emergency fund for at-least 3 months would benefit you greatly.

  3. Credit Report: Make sure you obtain a free copy of your credit report at annualcreditreport.com . You will have to keep track of your credit score from month to month in order to recognize any positive or negative changes to your credit score. A small change in your report or score can have a significant impact when closing comes around. You may check out IdentityIQ, as they offer a free trial for $1 for 7 days using our link , and they provide up to date credit reports and scores from all three credit bureaus on a monthly basis. A higher score can save you points on your mortgage which will save you a lot of money over the long term on your mortgage.

  4. Budget: Many people do not take into account how much house they can afford or need when looking to buy a home. You must look into your monthly bills as well as your finances to see if buying a home right now is affordable and in your best financial interests. Usually a good rule of thumb is to keep your mortgage below 40% of your total income. The lower you go, the less financial strain on your life. Some loans require 29% and below for loan approval, while others allow over 40% debt-to-income ratio.

  5. New or Used home: Usually new homes are more expensive in comparison to used homes. However, many builders offer price breaks and may even cover your closing costs if you use their mortgage lenders for approval. Used homes may be a better fit sometimes because of location or the current owner is willing to negotiate the price in a down market.

  6. Timing: In the current time of uncertainty, waiting may be the best option depending on the housing market in your area. This means more time to put yourself in a better financial position to take advantage of the best deals out there in case a buying opportunity presents itself in the near future.

Make sure you go over your financial big picture and credit to take advantage of the best buying opportunities during this pandemic. The Federal Reserve has lowered interest rates, but many banks are not to eager to quickly lend money either. Making sure your financials are in order will help you quickly obtain lender approval when the time comes.


If you would like help with your credit report and/or score, you can give us a call or sign up here for your FREE credit report consultation.

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