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  • Credit Freedom Experts

Updated: Feb 7, 2020


 


















 

You pulled your credit report because you are curious to see how the score you are currently at came about. There are many things that can cause you to have a low score. The most common term used to describe your negative items is derogatory remarks and they typically affect your score heavily.


Payment History

Creditors usually first take a look at your payment history. When you have a lot of late payments they reflect poorly on your report. If you have a few late payments you can negotiate to have them removed. Additionally, making no payments for 30 + days can affect your score even more than a late payment can. Keep in mind you can quickly turn a positive account into a negative account by simply not making payments on time.


Collections and Charge-off accounts

Collections and charge-off accounts will affect your credit score even more than a late payment. By having these on your report, you are telling potential lenders that you are not currently reliable to pay your debts and are in a financial hardship. However, not all collections and charge accounts are accurate, and thus you may be able to make a case for removal if the information on your report is inaccurate and unverifiable.


Identity Theft

Another scenario that can affect your score is identity theft. If you are a victim, you can file a police report and send documentation to your creditors and the 3 major credit bureaus as well. There are some other measures you can take if the situation is a serious one, such as locking your credit report through just one credit bureau.


Having negative items on your credit report is not the end of the world as one may think. By law, you can dispute inaccuracies or identity theft, you may also negotiate with creditors. As time passes and you maintain your report in positive standing, your credit score will rise slowly and old items on your report will not affect your credit score as much. Most negative items will be removed from your credit score after a 7 year period - unless it's a bankruptcy.


A negative remark on your credit report can potentially lower your credit score up to 110 points. If you are having issues with your credit report and need help fixing it, please contact us today. Our experts can help you resolve many issues and answer questions on how to rebuild your credit and be on your way to a higher credit score.


Call us today at 321-400-5260 or sign up online for a Free Consultation.

  • Credit Freedom Experts

Updated: Feb 7, 2020


 
 

There are many things to take into consideration when building your credit score that many people either don't know or do incorrectly. Once you understand what a credit score is and how it works, you'll feel better reading this post before signing a new loan or opening up those new credit card offers in the mail.


According to the FICO Scoring model here is the 5 main elements that make up your score.


1. Past Payment History ( about 35% of your score)

It's best to have few late payments and even better to have NONE. However, if you have a few we can help you remove them and we can even work to have your late payments appear as current.


2. Credit Use (about 30% of your score)

We can't stress this enough! Your balances are what can fluctuate your score from month to month very easily. How? If you keep charging your cards to the maximum limit or keep charging over the 30% threshold the industry will set to look irresponsible. You'll see your credit score take a hit, and it may not rise much at all no matter how many on time payments are made until you reduce your overall balances. Instead of loading up on one card for all expenses, you should spread out your usage and stay below the 30% threshold. If possible, stay under 10% utilization.


3. Length of Credit History (15% of the score)

Many clients fantasize about an 850 credit score. This score takes years of positive credit history to reach. However, with good habits over time, you can see a positive impact. You should try to maintain open credit card accounts open as long as possible. The longer you keep your credit accounts open and in good standing, the better you look to credit lenders.


4. Types of Credit Used (10 % of your score)

The average credit card or line of credit from your local bank will always look better on your report than a finance company account from let's say Joe's Vacuum Cleaners. Why? Well Joe is not exactly the guy that wants to say no to any sale and therefore, he doesn't set his standards as high as your average loan or credit card account. Aim for having 2 credit cards and a loan account to start. Don't have a loan account? Take into consideration SELF today and you can have a line of credit account that will report to all 3 credit agencies.


5. Inquiries (10% of your score)

Sometimes people go on a rampage for credit card approvals. People at times become desperate for money because they have none and their cards are already maxed out. When you go in search of any type of credit, you will be more likely to see your credit score take a hit. However, if you are looking for a car loan or mortgage loan, the credit reporting agencies are supposed to count the inquiries during your buying period as one. Keep in mind that usually when one shops for an auto loan, one should be prepared for the wave of inquiries on your credit report.


Credit Freedom Experts can help you bring your credit scores up again if you feel like any of these categories are affecting your score. We offer the advice and tools to get you where you would like to be credit score wise. Having a low credit score can cost you thousands a year in higher interest rates, and a lot more over your lifetime. Save your money and call us today, or sign up online for a free credit consultation.

 

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  • Credit Freedom Experts

Updated: Feb 3, 2020


 
 

These are some signs to watch out for when it comes to identity theft:


1. Your bank statements are incorrect or you have bounced checks.

2. When scanning through your bank statements, you notice charges that you didn't make or authorize.

3. You check your credit report and notice new inquiries and accounts you never opened and are unauthorized.

4. You start to notice that your regular bills are not showing up on your credit reports anymore or you are receiving new bills that you are not familiar with.

5. You start to receive calls or notices from debt collectors about bills you never made.

6. When you try to file your end of year taxes with the government, you notice that your taxes have already been filed in your name.


These are just a few signs to look out for when it comes to identity theft. Make sure to watch out for possible warrants for your arrest, medical debts, and notices that your private information was part of a data breach. If you feel that you may be a victim of identity theft, contact Credit Freedom Experts today and we can help you remove and protect your personal information from more harm.

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