Credit Repair Expert https://www.creditrepairexpert.org My WordPress Blog Sun, 26 Feb 2017 03:44:13 +0000 en-US hourly 1 https://wordpress.org/?v=4.6.3 Effective Steps To Speedily Recover From Debt https://www.creditrepairexpert.org/effective-steps-speedily-recover-debt/ https://www.creditrepairexpert.org/effective-steps-speedily-recover-debt/#respond Wed, 15 Feb 2017 22:48:33 +0000 http://www.creditrepairexpert.org/?p=1386 Being in debt is certainly not a pleasant experience regardless of the nature of the debt. Additionally, the task of recovering from debt is unarguably daunting and nearly insurmountable for many people who endlessly struggle moving from one debt to the other. While it is convenient to incur debts, recovery from debts is usually exhausting for […]

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Being in debt is certainly not a pleasant experience regardless of the nature of the debt. Additionally, the task of recovering from debt is unarguably daunting and nearly insurmountable for many people who endlessly struggle moving from one debt to the other. While it is convenient to incur debts, recovery from debts is usually exhausting for many as debts typically have the potential to increase progressively thereby making it challenging to pay your way out. While paying your debts in installments offers a remarkable opportunity to meet to with basic payments, it still takes a very long period to balance up. It gets worse when your debts increases as you could be restricted form getting more credit. Recovering from debt and moving steadily towards financial stability and buoyancy is practical and attainable if the right steps are embraced and followed doggedly. The preceding steps would effectively empower you to overcome debts while re positioning you for steady growth towards financial surplus.

  • Cut back on spending: this is one of the most important considerations to recovering from debt and this step must be implemented by anyone who wants to experience a transition to a buoyant financial life. Cutting back on spending requires that you make a conscious decision to stop every form of unnecessary and wasteful spending. People often get accustomed to a lifestyle which makes it difficult to identify various aspects where there is unnecessary spending. Therefore the task of cutting back on spending would require that you make a mindful effort to scrutinize various aspects of your daily living and look for ways to lower spending considerably. An instance would be opting for home cooking instead of eating out. When you look closely, you would find that there are many avoidable expenses in your daily living that can be channeled towards payment of debt. Cutting back on spending is undoubtedly an effective step towards debt recovery and would also help improve savings and financial stability.
  • Avoid incurring more debt: it is very counterproductive when you are in debt and keep getting into additional debt. If you suffer from an irresistible temptation to spend, you would have to manage this weakness by taking preventive measures such as keeping your credit cards far away from your reach, avoid the temptation of online shopping by removing credit card detail, and Recover from Debtso on. This is a very important step to recovering from debt and must be strictly adhered to particularly if you spend compulsively. It is important however that you make provisions for backup money which should be used only in emergency situations and expenses. It is important that you avoid incurring more debt so that you do not remain entangled in debt.
  • Reduce your budget: this step is a straightforward approach to getting out of debt. You would have to reduce your budget significantly by removing extraneous expenses and by finding cheaper alternatives to compulsory spending. After you have been able to remove all of your compulsory payments and bills, you should now turn your attention to the various areas in your budget that are superfluous as well as areas where you can make adjustments for cheaper alternatives. Reducing your budget would require that you make significant lifestyle changes by spending on things that are only essential.
  • Pay of cards one at a time: recovering from debt requires that you adopt a systematic approach. What this means is that you pay off your debt sequentially by concentrating on one debt at a time. There are many considerations to selecting a card so it is best that you choose a card to payoff based on your own preference. Paying off cards with little balance can be a good way to boost your morale while making you feel optimistic about covering all your debt. Another approach may involve tackling the debt with the most interest rate as this could help you avoid paying much more over time. While there are many other considerations to choosing a card, it is best that you adopt which ever approach that encourages you to pay off all your debts.
  • Always fulfill minimum payments on other debts: this is an effective strategy to recover from debt. When you have selected just one debt to focus on, you must always remember to make sure that you make minimum payments on all other debts. The idea behind this is to avoid extra cost that is attracted by delayed payments. Maintaining minimum payment on all of your debts would help prevent additional cost while helping you maintain your credit card score.
  • Keep interest on payments down: this is an important step to debt recovery as you do not want to pay too much on a debt. You can always bargain lesser rates with your company when using credit cards. Having a reputation for apt payments would also make it easier to bargain lower rates on debt payment.
  • Fund transfer and loan procurement: transferring funds to a credit card with much lesser interest rate is highly recommended. Also, if you meet up with the requirements, you can get a loan as the interest rates are usually lesser than the rates on credit cards.
  • Refinancing debt: refinancing debt is a supplanting a debt obligation with a new one. Refinancing debt is a good way to renegotiate significantly lower monthly interest rates that would help you get out of debt. refinancing makes it easier to consolidate debts and is also useful when it comes to creating extra cash from reductions in monthly interest which could be channeled towards paying off debts with considerably more balances.
  • Discover more ways to cut back on spending and increase saving: there are many services and basic utilities that we pay for like phone service, the internet, insurance and much more that can be lowered significantly in order to create more savings and free up more money. Achieving this is quite easy as all that is required is for you to compare rates and services offered by various companies in order to identify which is more affordable. Also you can scrutinize the services that are offered by the company and opt for a lower service package instead of paying for premium services. Whichever approach you choose to implement, the bottom line remains that cutting back on your budget would boost savings while increasing your chances of getting out of debt.
  • Sell properties that you do not need:  while most people do not remember to explore this very exciting opportunity, selling properties you don’t need or properties that are superfluous is a good way to generate a lot of cash to pay up debt. Most time people acquire an assortment of material goods that are not very necessary.  These belongings could be very pricey offering a fantastic avenue to get out of debt. You can take advantage of the various online sales platforms available to market valuable belongings that you no longer need. This is a good way to generate substantial amount of funds that can be used to offset debts
  • Step up your income: there are situations where you would need to augment your income by getting a side job. There are many per-time jobs that you can engage in to increase your income and offset debt. While stepping up your income is a good idea, it is important that you undertake a side job that is not too demanding as this could culminate into high levels of stress thus putting your health at risk. Writing, running errands, babysitting, personal fitness instructor and many more are easy and effective ways to make extra stress free money. Increasing your income would make it very convenient for you to offset debts and could set you up for financial buoyance.
  • Utilize additional cash to recover from debt: people get additional money from different sources. Surplus money could come from a tax refund, a gift from a friend or relative, and so on. While there are numerous unforeseen sources of surplus cash which is a favorable occurrence, it is important that you do not squander the money or use it frivolously because it is free. It is totally advisable that surplus cash should be utilized to offset debts and improve your financial situation.
  • Cultivate a simplistic lifestyle: extravagance is a major reason why people get into debts. Many people conform to standards that are constantly being fuelled by big corporations who are entirely concerned with expanding their market share and increasing profitability. This has forced individuals into being heavily materialistic with a compulsive dependence on owing things to be happy. It is important that you do not get caught up in this vicious practice by cultivating a simplistic lifestyle. Deriving a great deal of satisfaction and contentment form simple life activities is a good way to avoid debts. You do not have to go to the mall to be happy or to a jewelry shop. Activities like going fishing, conversation with friends, cooking and many more offers an exciting way to avoid profligate spending and recover from debt.

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Busting 5 Popular Myths About Credit Repair https://www.creditrepairexpert.org/busting-credit-repair-myths/ https://www.creditrepairexpert.org/busting-credit-repair-myths/#respond Fri, 03 Feb 2017 03:19:54 +0000 http://www.creditrepairexpert.org/?p=1366 Worse Than Banks? It’s no secret that the days of trusting banks, churches and judges implicitly are forever gone. With banks having had to pay huge fines for blatant misconduct including fraud, it’s pretty clear that you can no longer afford to turn your back on a financial service provider. So when other financial companies […]

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Worse Than Banks?Credit Repair Myths

It’s no secret that the days of trusting banks, churches and judges implicitly are forever gone. With banks having had to pay huge fines for blatant misconduct including fraud, it’s pretty clear that you can no longer afford to turn your back on a financial service provider.

So when other financial companies start expressing concern about how one related industry is behaving, it’s really time to worry. That industry is called “credit repair”. While a large part of it is legitimate, a few truly shady operators have managed to put the whole category in a bad light.

Few people can afford to live on a cash-only basis (ironically, these presumably rich individuals might have very bad credit, having no history).

 

Myth 1: Bad Credit is a Result of Irresponsibility

Of course it frequently is, but, as often as not, other factors play a bigger role. Deceptive financial marketing, such as describing a mortgaged house as an “asset”, or implying that debt repayments will be much lower than actually turn out to be the case, has put many well-meaning people on the blacklist. Banks and their agents will tend to defend themselves by saying “it was in the contract”, but given the page count and complexity of these contracts, this is disingenuous. Most non-bankers tend not to be financial specialists, trust(ed) their bank’s honesty or could not afford a lawyer, and were later punished for these attributes.

Unexpected financial setbacks can also ruin a decent taxpayer’s financial reputation. Medical bills come to mind, or being caught out under-insured when a minor disaster strikes. A debt or tort disputed in court might affect your credit rating, whether you are in the wrong or not.

The way banks handle identity theft has caused lifelong problems for many people. When your credit is suddenly ruined by an unpaid $50,000 loan in your name, which you never saw a penny of, the bank will typically declare that it had to be all your fault, and that they expect payment promptly. This is despite their own systems being demonstrably vulnerable to fraud.

Finally, the algorithm for calculating a credit score is poorly understood by most people. For instance, when you apply for a credit card, the issuing company will look at your rating in order to decide. But when you are approved or declined, this influences that same credit rating! Many otherwise responsible practices can actually hurt your rating, just because of the way it is calculated.

 

Myth 2: The guy who Promises the Most, Knows the Most

Lies, damned lies and advertising: if you see a phrase like “100% guaranteed!” take a moment to ask why the tautology and exclamation mark is necessary. If the company has a television advert featuring girls in bikinis and actors dressed like animals, alarm bells should be ringing.

If, on the other hand, you find an adviser working out of a small storefront office with a few framed diplomas on the wall, who starts out by talking about your problems instead of how great he is and how much he can do for you, you are very likely dealing with a professional who’s more interested in doing his work than attracting new customers.

 

Myth 3: Credit Ratings are Inflexible and Infallible

Actually, no. Mistakes do happen, and you can contest them; the same thing is true of credit card statements. Everybody should check their credit reports once a year. If you notice an item from some company you’ve never heard of in your life, you can and should query it. To err is human: I know one guy (not in the US) who was threatened with bankruptcy and possible jail time by the tax collector, which bewildered him completely. It was only on his first court appearance that the mistake became clear: same name, different social security number than the person they were after.

 

Myth 4: There’s a Secret Shortcut

If you’ve defaulted on a debt, only time (7 – 10 years) will remove that information from your record. Any legitimate credit repair company will be upfront about this fact, but that doesn’t mean there aren’t many other things they can assist you with. Helping you to restructure debt, advising you on which creditors to pay first for best results and so forth, will improve your credit score substantially if not immediately.

 

Myth 5: They all Fly by Night

Fueled by the bubble, the effects of which are still being felt, credit repair agencies sprang up like toadstools in the night. Some will just take your money, after which they’ll send you a weekly packet of generic excuses about why nothing is being done. However, there are also many respectable operators who will be clear about what is and is not possible (legally), how long you can expect it to take, and what will be required of you.

The Credit Repair Organizations Act (“CROA”) regulates this industry, and although many operators don’t pay much attention to it, many others are completely scrupulous in following the rules. Remember that, however bad your credit may be, you still have rights, and should insist on them.

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Guide to Selecting a Credit Repair Service https://www.creditrepairexpert.org/guide-to-selecting-a-credit-repair-service/ https://www.creditrepairexpert.org/guide-to-selecting-a-credit-repair-service/#respond Wed, 18 Jan 2017 03:35:54 +0000 http://www.creditrepairexpert.org/?p=1350 If you believe a credit score that isn’t good won’t cause long term damages, then you may have to rethink. A bad credit score could make you lose thousands and sometimes hundreds of thousands of dollars for a variety of reasons but mostly due to an elevated rate of interest. Having a credit score that […]

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If you believe a credit score that isn’t good won’t cause long term damages, then you may have to rethink. A bad credit score could make you lose thousands and sometimes hundreds of thousands of dollars for a variety of reasons but mostly due to an elevated rate of interest. Having a credit score that is bad might even stop you from ever being a home owner, retiring when you plan, going on a vacation to a destination of your dreams and it can also hinder you from getting the career you have always desired.

What can make you have a bad credit score? Late payment of bills, divorce and bankruptcy, could negatively affect your credit score. However, what if you have a low credit score due to obvious errors on your credit report? Maybe there is just an item for reasons not known appears more than once and is leading to continuous damage in your score. It is not fair when you have to pay interest rates and insurance premiums that are higher than usual because the wrong information about your financial history was entered by the credit bureaus. Various people have little or bad credit scores due to simple errors stated on their credit reports. This is why credit repair companies are in existence, to ensure these mistakes are corrected. 

What is Credit Repair?

Credit repair has to do with the simple placement of your legal rights against inaccurate information on your credit report. For your report to consist of negative entries, these benchmarks must be attained;

  • Reports must have 100 percent accuracy
  • Entries have to be thoroughly validated
  • Credit reports must be entirely fair

The companies and credit bureaus listed on your entries will be contacted on your behalf by credit repair companies to challenge the errors in a bid to remove them.

Can credit be fixed by Credit Repair Companies?

Your credit can be fixed by Credit Repair Companies as long as there is something that requires setting. In essence, if there are outdated information and errors on your credit reports as well as entries that have surpassed their time limits then yes, you can get assistance in fixing your credit from a credit repair company.

Nonetheless, if all the information on your credit is up to date and accurate, and there are no errors, then your credit cannot be fixed by them. Your credit can only be repaired in this situation if you come up with a firm plan to offset your debts.

Are Credit Repair Companies Legit?

The majority of the credit repair companies are reputable and take pride in ensuring they provide you with the most available service possible and do all they can to fix your credit. Nonetheless, there are some warning signs to look out for.

They make offers such as; instant 100-point increase in credit score. It isn’t legal for a credit repair company to make promises on the effects you will experience in utilising their services.

They ask for an advance in payment. It was made illegal by the Fair Trade Commission for any credit repair company to request payment before they do any work to elevate your credit score.

They have minimal understanding and knowledge for your rights as customers.

They make claims that they can eradicate all negative entries even if the entries are correct. While credit repair companies can eliminate incorrect entries from your credit report, they do not have the capacity to take out current and accurate entries.

The Credit Repair Organizations Act was designed to shield you from scams that have to do with credit repair. If the company you are trying to use does any of the statements above, stay away from them. You can also check out a company on the website for Better Business Bureau website to view reports on the performance of the enterprise using the experience of previous customers. 

Are Credit Repair Companies Worth It?

You need to ask yourself a few questions to answer this question. Firstly, do you have errors on your credit report? Are there entries on your report that took place more than seven years ago? Are there negative entries on your report that were posted more than once? Are these errors stopping your credit score from rising or worse, making them reduce? If yes was the answer to any one of these question, then a credit repair company is worth it. 

How do Credit Repair Companies Fix Your Credit?

A credit repair company that is experienced will aid in the improvement of your credit score by;

Having knowledge of the rules and regulations created to protect consumers

Having knowledge on how to deal with individual credit problems

Knowing the legal loopholes in existence to deal with credit problems

A credit repair company will help in reviewing your all three of your credit reports because every reporting agency utilises various sources for the information placed on your credit report. By examining these three credit reports, your unique case can be handled more thoroughly by the credit repair company.

Immediately they are done reviewing your reports, entries which are believed to be incorrect will be identified. However, fixing your credit goes further than the simple filling of disputes with credit bureaus. The process may seem simple, but it is a tedious task in reality. Most times, credit repair companies will have to bargain with creditors themselves to aid in correcting your credit issues.

Should I Use A Credit Repair Company?

Except you have sufficient time and organisational skills to write numerous emails, spend hours on the phone with creditors and credit bureaus and keep track of all written documents that have to do with the repair of your credit report, then it’s appropriate you utilise a credit repair company.

Nonetheless. If the report you wish to dispute is little, you can do it yourself. Credit fixing is made easier by credit repair companies by dealing with all the issues and problems that come with this type of situation. If you want to deal with this yourself, it is not stated that you must utilise any company. For additional information on ways to clear up errors on your credit report, click here. 

Cost of Credit Repair Services   

The amount charged for credit repairs varies among companies. However, this type of service costs and average of $50-$100

Credit Repair Fees

As well as the monthly service fee charged by the credit repair company, additional fees may be included. Most companies have a onetime fee which they charge. It is around #15 to pull your credit reports. The company you desire to use should be asked for additional charges you might incur.

 Non-Profit Credit Repair Companies

Credit repair companies that are Non-profits are not in existence. A fee is charged by credit repair companies to carry out all the needed legal work required to repair your score and credit history. However, there are various non-profit credit counselling companies that will willingly aid you in getting your finances on track. Check out their background to ensure they have a good reputation before you request their services, so you don’t get scammed.

Can You Pay to Clear Your Credit History?

You may have come across companies that promise that they can eradicate your bad accounts for a fee which is very high from your credit reports. Before making the decision to utilise one of these pay-for-delete-services, do so with caution because firstly, they are quite expensive. Secondly, there is no certainty that your score will be better or that they will remove the negative accounts from your credit reports.

Instant Credit Repair

When it comes to the elevation of your credit score and fixing your credit. There is nothing like immediate.  It takes months and sometimes years to correct credits and see the required results. However, there are services known as rapid rescoring services that are made available by independent credit reporting agencies and are utilized by lenders and mortgage brokers who are making efforts to get loans with better rates for their customers. If these services are being offered to you directly instead of through a credit agency or your broker, it’s probably a scam.

Fixing Credit Scores Illegally

“Jamming” is recognized as a fraud that is utilized by a majority of the pay-to-delete agencies. Everything negative is repeatedly disputed on your credit report hoping that at least one dispute will get stuck when validation of the negative entry in the 30-day window is not carried out by the lender. This method of fixing your credit has two main pitfalls. First, once the lender reports to the credit bureau, the negative entry will resurface. Second, it is a scam that costs you more money alongside being illegal only to end up having the same poor credit score after 30 days.

Should I Use A Loan To Fix My Credit?

Some lenders deal in lending to customers that have poor credit. They usually call them “credit repair loans”. Getting a loan and making payment at the appropriate time till the debt is paid off may aid in improving your credit score. Nonetheless, it is only efficient if all three main credit bureaus are reported to by the lender, all inaccurate information from your credit reports have been eradicated and you have already begun making your unpaid debt current. Also, these kinds of loans come with the cost of rates which are very high

Credit Repairing Credit Cards

Just as listed above with utilizing loan to enhance your credit score, utilizing a credit card can also bounce back if you are not committed to making timely payments, keeping your balances minimal and resisting the temptation to use the card. If you can do this, utilizing a credit card for the improvement of your credit score is possible. If you have plans to obtain a credit card, for this reason, you may want to begin by sending an application for a basic credit card at the bank where you have a savings or checking account. This will ensure payments are as easy as transferring the cash from your account to carry out payments for your credit cards.

Credit Repair for a Mortgage

If your dream is to own a home of yours someday, you will need to ensure your credit score is as high as possible. The lower your score, the more tedious it will be to get a mortgage alongside good interest rate of you are able to get one at all. This will also mean a larger down payment will have to be paid by you if you gain approval.

Guaranteed Credit Repair Service

Unlike many organisations where a guarantee is seen as a good thing, in the industry of credit repair, it should be as a caution. Any credit services company that promises certain results should be evaded. In fact, if a credit company offers any form of guarantee it is in violation of the Credit Repair Organizations Act. So if the company you are looking to aid in repairing your credit provides a guarantee of improvement then look for alternatives.

Lawyers That Help With Credit Repair

Various services that are directed at rebuilding your credit can be carried out by a credit repair attorney. Some of these services involve negotiation with credit reporting bureaus, evaluation of possible errors on your credit reports and bargaining with your creditors for agreements.

Affordable Credit Repair

A monthly fee is charged by credit repair companies for their services. Searching online can aid you in locating a repair company that is budget friendly. Just ensure they are reputable before making payment. Check out reviews from prior customers and how they are rated on the Better Business Bureau website.

The Top 10 Credit Repair Companies/Agencies

You may be taken aback to know that if you carry out a Google search for credit repair companies, it will come up with about 13 million results. That is a lot to go through to locate the appropriate credit repair company for you.

Although each case is unique, the quality of the service they give should constantly be at 100 percent. To help ease your search here is a list of credit repair companies that aid people in fixing their credit issues.

 

Lexington Law

  • Cost/Fees: $79.95 – $119.95 Monthly / $19.95 For Credit Reports
  • Telephone: 888-614-8516
  • Website: lexingtonlaw.com
  • Address: 360 N. Cutler Drive, North Salt Lake, Utah 84054

 

The Credit People

  • Cost/Fees: $59 Monthly / $19 Setup Fee
  • Telephone: 866-382-3410
  • Website: thecreditpeople.com
  • Address: 6975 S Union Park Ave,Suite 600, Cottonwood Heights, UT 84047

 

Sky Blue Credit Repair

  • Cost/Fees: $59.95 Monthly / $59.95 Setup Fee
  • Telephone: 888-906-1351
  • Website: skybluecredit.com
  • Address: 6001 Broken Sound Parkway,Ste 300, Boca Raton, FL 33487

 

MSI Credit Solutions

  • Cost/Fees: $98 Monthly
  • Telephone: 866-217-9841
  • Website: msicredit.com
  • Address: 12790 Merit Dr., Ste 614, Dallas, TX 75251

CreditRepair.com

  • Cost/Fees: $99.95 Monthly / $14.99 For Credit Reports
  • Telephone: 855-382-1978
  • Website: creditrepair.com
  • Address: P.O. Box 3928, Salt Lake City, UT 84110

 

MyCreditGroup

  • Cost/Fees: $69 Monthly / $79 Setup Fee
  • Telephone: 855-598-0446
  • Website: mycreditgroup.com
  • Address: 431 N. Graham St. #838, Stephenville, TX 76401

 

Veracity Credit Consultants

  • Cost/Fees: $49 to $79 Monthly, Depending on Plan / $69 to $99, Depending on Plan
  • Telephone: 866-518-2194
  • Website: veracitycredit.com
  • Address: P.O. Box 1140, Denver, CO 80201

 

Ovation

  • Cost/Fees: $59 Monthly / $89 First Work Fee
  • Telephone: 866-639-3426
  • Website: ovationcredit.com
  • Address: 9310 Old Kings Road South Suite 404, Jacksonville, FL 32257

 

180 Credit Solutions

  • Cost/Fees: Monthly Fee Varies Per Customer / Setup Fee Varies per Customer
  • Telephone: 866-454-6252
  • Website: 180creditsolutions.com
  • Address: 7214 Hwy 78, Sachse, TX 75048

 

Park View Credit

  • Cost/Fees: Monthly Fee Varies Per Customer / Setup Fee Varies per Customer
  • Telephone: 888-991-6412
  • Website: parkviewcredit.com
  • Address: 17216 Saticoy St. #421, Van Nuys, CA 91406

 

The Number One Credit Repair Company

You will realize that Lexington Law Firm is situated on top of the list, they are there for some reasons. While there are various credit repair companies with good reputation. Lexington Law has vast experience and knowledge to aid people to get their credit back to the right direction.

Credit Repair Do It Yourself

If you have made the decision that you wish to fix the credit on your own, there are a few things to do before you begin.

Before you start preparation of your credit, you will need to have knowledge on precisely what is on your credit reports that you have fixed. You are going to require a copy of your credit reports from the three main credit bureaus Transunion, Ecperian, and Equifax. You can head to annualcreditreport.com and get a free copy of all the once in twelve months.

Once the errors on your reports have been located, start disputing them. Unfortunately, errors are frequent on credit reports. Check to ensure your address and name are correctly spelt and accurate.  Check to make sure they have the appropriate Social Security number alongside.

Check if there are any errors in the credit history. If you locate the same error on multiple credit reports, disputation of the errors will be carried out with all bureau involved. Click here for dispute letter samples you will require sending across to the credit bureaus.

Once you have made repairs of your credit reports, the remainder of the repair process it left to you.

  • Ensure your debts are paid down, especially credit card debt
  • Ensure all bills are paid promptly
  • -Avoid application for extra debt

Having a credit score which is low is not the solution. Because it is one of the most crucial three digit numbers you will have in life, it is critical that it is kept as high as possible and keeping your credit in excellent health. Having a credit repair company with experience can aid you in attaining this goal.

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Selecting a Respectable Credit Counseling Organization https://www.creditrepairexpert.org/selecting-a-respectable-credit-counseling-organization/ https://www.creditrepairexpert.org/selecting-a-respectable-credit-counseling-organization/#respond Fri, 13 Jan 2017 02:33:09 +0000 http://www.creditrepairexpert.org/?p=1344 While the pervasiveness of devious and dishonest debt assistance programs continue to increase at an alarmingly high rate, the availability of genuine credit counseling organization offers an incredible opportunity to get ahead of the clutter and make informed financial decisions. Credit counseling organizations offer an extensive assortment of specialized services which includes financial planning, effective budgeting, […]

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While the pervasiveness of devious and dishonest debt assistance programs continue to increase at an alarmingly high rate, the availability of genuine credit counseling organization offers an incredible opportunity to get ahead of the clutter and make informed financial decisions. Credit counseling organizations offer an extensive assortment of specialized services which includes financial planning, effective budgeting, credit training and a variety of instructional resources for practice. The various services offered are very inclusive with special counseling in monetary matters that concerns real estate, particularly for new home buyers with sensitization on the intricacies of mortgage and on how to prevent foreclosure. The financial counseling service provides tremendous assistance in developing a practical debt management plan that systematically gets you out of debt.

In most cases, charitable debt counseling organizations utilize churches and united way as an avenue to reach target prospects. Debt counseling organizations inspire the trust of creditors and can harness resources to facilitate repayment of debt for debtors.Credit Counseling Organization

Identifying a credible charity credit counseling organization can be a daunting task as there are countless organizations with an irrevocably commitment to fostering organizational marketing objectives instead of providing relevant assistance to clients. These organizations are often charge outrageous acceptance fee which is followed up by exorbitant periodic contributions without providing beneficial credit instructions, and effective debt management packages. These devious organizations are mostly centered on unsecured debts which do not really impact on debts and could in most cases instigate the mismanagement of inadequate resources while misleading funds away from the most vital debts.

Unarguably, the most important consideration when it comes to debt management and building credit scores remains identifying a credible charitable organization. Sadly, this is often the most challenging task.

Consumer Credit Counseling Service and Agencies Approved by the U.S. Trustee

There are two practical options when it comes to identifying a debt management or credit counseling service that is credible and they usually involves the use of an affiliated company with the Consumer Credit Counseling Service (CCCS) or one of the agencies approved by the U.S. Trustee.

Consumer Credit Counseling Service (CCCS)

Consumer Credit Counseling Service (CCCS) is a credit and debit counseling company. CCCS is not a singular company as CCCS is just the fundamental operating name of numerous credit and debt counseling agencies that are connected with the National Foundation for Credit Counseling (NFCC)

CCCS’s service fee begins with nearly $25 which is followed by a monthly payment of about $50 while accepting fee of $20 when the creating a repayment plan. In addition to these, the CCCS also provides assistance with monthly budget for an insignificant payment or would do it for free in other cases. CCCS accommodates customers that cannot make payments as they could decide to assist for free. Also, a couple of the various CCCS offices provide specialized assistance in the areas of saving funds for the procurement of a house and can assist with analyzing your credit report.

In most cases, the various companies would prevent you from using credit cards when repayment plan is ongoing.

CCCS is quite extensive with offices strategically located in all of the states. If you require CCCS services you can contact the CCCS through the website www.nfcc.org. preferably, you could reach the CCCS at the head office via 800-388-2227 with phone, internet and face-to-face counseling available.

Credit Counseling Agencies Approved by the U.S. Trustee

Credit counseling is compulsory for virtually all bankruptcy case with a few exemptions. Counseling has become mandatory for a nonprofit organization for a specified number of times which is authorized by the Office of the U.S. Trustee. Unarguably, the U.S Trustee organization provides a list of credible organizations that can assist with a repayment plan while eliminating the hassle of falling prey to duplicitous organizations.

There is a detailed list of authorized organizations that you can find on the Trustee’s website, at www.usdoj.gov/ust.

 

Is there a possibility of credible credit counseling organizations being partial to creditors?

Are Even Legitimate Credit Counseling Agencies Biased Towards Creditors?

There are arguments opposing the use of credible nonprofit credit and debit counseling organizations. The proposition is based on the fact that most organizations are supported by creditors thus engendering the seemingly logical conclusion that these organizations are in no position to objectively counsel debtors file for bankruptcy particularly when the organization would not get financing from various financiers such a s United Way and other federal agencies.

In the bid to clarify the aforementioned allegation that stirred up customer fears, the credit and debt counseling agencies endorsed by the National Foundation for Credit Counseling came to a unanimous decision with the Federal Trade Commission to reveal all of these facts to customers:

  • That creditors money propels most of the company’s processes
  • That there has to be an equilibrium between debtors readiness and capacity to pay with the conditions of creditors that support the office,
  • An unequivocal and factual estimation of the period it would take to pay back debts using the debt management program.

Important inquiries that must be verified before selecting an agency… 

Investigate before opting for debt relief service

While the CCCS enhances your chances of getting a credible organization, the following factors should be carefully considered before opting for any debt relief agency

  • Ascertain if the agency is actually nonprofit: while this is largely deceptive, several organizations present themselves to be nonprofits while the reverse is the case in actuality. Fortunately, a good number of these companies have had their nonprofit status withdrawn by the IRS. Verifying this fact is imperative and could be ascertained by IRS website at w,vw.irs.gov/ charities, and click “Search for Charities.” Following this procedure would help you determine if the organization is a nonprofit or a deception.
  • Verify financial commitment: it is important that you make a conscious effort to verify the payment plan of these professed nonprofit organizations as there is always a hidden financial obligation to these organizations. Most times it could be in the form of donations or fees. The verification process has to be comprehensive and special attention has to be focused on the admittance fee and monthly payments that covers all monetary considerations for your account to be created with the agency. Getting a written record of the financial requirements for your account could be very useful. While the verification process is ongoing, it is also necessary to ensure that you do not make any major payment until you have sufficient information about the agreement plan that the company has brokered with the creditors. Additionally, you must create plenty of time to evaluate and determine how convenient and feasible the payment arrangement is.

In cases where the agency is a profit oriented agency, the FTC makes it mandatory for the company to reveal relevant information.

Be skeptic when the company does not carefully examine your debts, earnings and financial detail:  when you encounter a situation in which you are being persuaded with the specific purpose of making you agree to a debt management plan, then it is advisable that you refrain from taking it. Contrastingly, a credible debt management service company often takes plenty of time to scrutinize the various options available that best meets your need. In cases where you feel hurried into selecting a program, there is a high chance that they are not concerned with your welfare and are just out to get commissions from your payments. One of the best ways to get the identify a credible organization that is concerned about your interest is that they offer a comprehensive list of programs and are often enthusiastic about helping you understand the various arrangement.

The nature of accounting: it is imperative to understand that you would be remitting payments to the organization over a long period of time, therefore it is necessary to ensure that you have an explicit and detailed breakdown on how the amount of payment that would be made to each creditor as well as the number and sum of payment that would be needed to complete the plan. Getting regular statements and financial reports from the company would help you keep track of payment and monitor progress.

Evaluate customers’ feedback: customers’ feedback is one of the most important factors when assessing the credibility and efficacy of an organization’s service. Customers’ feedback gives a definite insight that helps estimate a company’s performance and to decide whether or not the organization is suitable for you. Find out the number of debts that are contained in the various plans and the rate of success in the debt management by measuring the duration of payment periods, ascertain if the customers had difficulties that constituted interruptions or if there were complications that culminated into litigation. Also, verify if the customers were buoyant to tackle various debt situations asides the debt contained in the plan. After you have carried out necessary inquiries, you should also corroborate findings with information from the local Better Business Bureau and the office of the state attorney general to determine if there are recorded cases of objections and criticisms against company. When there is an objection against a company, you can think of it as a red flag which should make you cautious of the company. While this is an axiomatic fact, be careful to investigate companies that do not have objections and criticisms as the absence of complaints does not exonerate the company from duplicitous practices. They may still in the process of earning criticisms and litigations.

Ensure confidentiality of details: Your financial details have to be kept secret as failure to do so could have dire ramifications.

Find out how workers are rewarded:  this information has to be in print form as there are countless cases of duplicitous companies that pay commission to workers. The logic to this is quite simple. If a company pays workers for getting potential customers to take available plan, then there is a high chance that the company is self-seeking and as such you must refrain from doing business with such a company.

Discover how they intend to use counseling to improve your credit report and score: this requires that you ascertain the impact of your involvement with debt management plan and counseling on both your credit score and report. In most cases, it is important to have answers in print.

Take measures to guide against bank bankruptcy and misappropriations:  ensure that you monitor the security of your funds and verify the integrity of the person that disburses the fund to you. Typically, there should be two distinct accounts that would articulate money disbursed to creditors and payment for company service. The most preferred approach is to use a trust account. In doing this, the company is restricted from misappropriating funds as money is largely used for paying of creditors.

In situations where the payments are made to a bank account, you must request for a written proof that individual customer’s funds are independently insured by FDIC. Ascertain which bank is used by the bank and if you have an option to select a different bank.

Additionally, there has to be a written document that provides insurance against employee misappropriation.

Ascertain whether refund is available if you decide to abandon program:  this should be the one of your topmost concerns and should be ascertained before you join a program. The arrangement of the program should be such that makes provision for you to get a refund at such pointy when you decide to abandon the program. Usually, money that is yet to be disbursed to creditors and left over money from services that has not been rendered should be made available to customers. The guarantee the smooth flow of this process, you must be able to verify for fact that the program does not disburse funds up front to creditor. Once the agreement is satisfactory, make sure that it is in print.

Inquire to know the number of collaborating companies and their specific duty:  most times companies operate collaboratively to eliminate laws that protect customers. In most cases, non-profits partner with profit organization which is an arrangement that can be very deceiving to unsuspecting customers while avoiding obligations through the nonprofit standing. It is wise to not be involved with these kinds of companies.

Compare expenses against savings: compare the expenses against savings before you agree to the program.  This would mean that you allow the company to present a comprehensive list that clearly shows payment for service as well as the disbursement structure to creditors. When the statement is given, it is imperative that you scrutinize repeatedly before agreeing to the program.  With all of the information you have gathered you have sufficient idea on how to bargain for a suitable arrangement for debt collection. Also you must find out if the counseling program is offers an economic advantage over the charge for service.

In addition to this, you would have to calculate the periodic payment plan against your budget for an extended period with the view of ensuring that you can balance debt payment, cost of living and other miscellaneous debts not contained in the program plan.

If you still need clarification, FTC offer guidelines that can help you make informed decisions. The FTC’s tips and warning signals when using Debt service companies in its publication, “Fiscal Fitness: Choosing a Credit Counselor.” You can get it online at www.ftc.gov/bcp.edu/pubs/consumer/credit/cre26.shtm.  

Monitor your plan

 Now that you have been able to make an informed selection of the debt management plan that is most suitable for you, the next phase involves monitoring the plan regularly to make sure that it functions according to predetermined objectives. Here are some of the considerations to effectively monitor your plan:

Examine the fee: evaluate the fee to make sure that it is in accordance to what is contained in the statement. More importantly, make certain that the fee stays the same with the initial agreement.

Supervise disbursement to creditors: you have to be very attentive and hands on with the supervision of your plan. This often includes verifying if and when disbursements have been made by the agency to your creditors. This would also require that you call your creditors regularly to ascertain this information from them directly. Delayed payment can be disadvantageous to you and supervision can help prevent it.

Follow up on discounts: this is necessary to keeping track on the reductions and to ensure that you benefit from these discounts. The most effective way to achieve this is to verify from creditors or by inspecting the statement.

 

 

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10 Questions To Ask Credit Repair Companies https://www.creditrepairexpert.org/10-questions-ask-credit-repair-companies/ https://www.creditrepairexpert.org/10-questions-ask-credit-repair-companies/#respond Sun, 18 Dec 2016 23:39:54 +0000 http://www.creditrepairexpert.org/?p=1329 Fixing your damaged credit is no easy task, but it can be done with the help of the right credit repair company.  Since so many people deal with credit issues daily, numerous providers exist and they all claim to be the best. Discovering which credit repair company is right for you requires some knowledge about […]

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Fixing your damaged credit is no easy task, but it can be done with the help of the right credit repair company.  Since so many people deal with credit issues daily, numerous providers exist and they all claim to be the best. Discovering which credit repair company is right for you requires some knowledge about the field of finances, using the top 10 most frequent asked questions that follow.Credit Repair Companies

  1. What Services Are Included in Your Basic Credit Repair Package?

Many credit repair companies are similar, but none of them are the exact same. Each broker will have a different set of rules, regulations, and business practices. On top of that, each service package is likely to vary in cost. In general, credit repair services provide things like credit counseling and help with budgeting, but more personalized service packages are available almost everywhere.

  1. How Long Does the Process Take on Average?

Since each individual case is different, credit repair services typically have no fixed timeline to start. After the initial plan is laid out, however, a more detailed outline can and usually will begin to emerge. There are some credit repair companies that make deadlines and promises, but consumers should tread lightly there. Always expect delays and disappointments along the way. After all, adequate credit repair is a process reserved for the diligent.

  1. What Information Will I Need?

Although each credit repair company is bound to be unique, FICO works the same no matter where you go. However, some companies are privy to special advantages which make it easy for consumers to improve their credit without having to submit mountains of paperwork. To be safe, gather as much personal or business-related information as possible before contacting any credit repair company. Documents you might need include:

  • Identification (such as government-issued photo ID or passport)
  • Current address
  • Employment Information
  • Bank Account Numbers
  • Bank and Credit Card Balances
  • List of Debts
  • List of Assets
  • Contact Information
  • Social Security Number
  • EIN (especially if you own a business)
  • Bankruptcy Paperwork
  • Divorce Decrees

NOTE: The documentation you are asked to render will vary widely based on the credit repair company you choose as well as the services you need.

  1. What Factors Contribute to My Credit Score?

It is hard to tell whether you’ve discovered the right credit repair company if you don’t know enough about credit to tell if the job is being done right. In other words, ask about the contributing factors to a modern-day credit rating, inquiring about things such as debt-to-income ratio, inquiries, and the age of your accounts. A good credit repair company will not only be well-versed in those matters, but they will also know how to fix them.

  1. What Is the Difference Between a Hard and Soft Inquiry?

The effects of hard inquiries on credit reports often go unnoticed until it’s too late. Did you know: having just 6 hard inquiries on your account over the course of only 6 months can drastically reduce your credit score, even if you pay your bills on time and maintain low balances on your credit cards? Ask each credit repair company what they know about this, and be sure to find out what their service packages offer in terms of deleting hard inquiries.

  1. How Can I Delete Hard Inquiries?

The best way to delete a hard inquiry from your credit report is to get involved with a good credit repair company that can send disputes to creditors and FICO on your behalf. If done correctly and aggressively, the process can take as little as 6 to 8 weeks. If the credit repair company you’re considering doesn’t offer this service, it may be best to keep searching.

  1. What Credit Score Should I Expect After the Repair Is Complete?

Ask your credit counselor about the realistic expectations you should have after the services are complete. This should give you some idea as to whether you’re spending your money wisely. Do not fall for false claims and lofty promises, though. Repairing credit by yourself takes months – even years – to complete, but a well-equipped credit repair company can accomplish the same thing in months. This doesn’t mean you have the right to be impatient, however. Take whatever you’re told and add about three months to it (just to save yourself a little disappointment).

  1. Where Can I Find Objective Reviews from Your Former Customers?

A credit repair company can tell you about their amazing services and competitive deals all day, but you would be best served to find out for yourself. Regardless of all the questions you’ve asked, the only way to truly tell if a company is worthy of your money is to check annuls of the Better Business Bureau. It wouldn’t hurt to peruse through other reliable websites to find unbiased points-of-view on the company and their employees. Everyone is nice when they’re trying to get your money, but how does t
he company treat those who have already paid?

  1. Are You Bonded and Insured?

It’s important to get in touch with a credit repair company that is fully bonded, licensed, and insured. Otherwise, you could be in for a whole heap of trouble should you run into problems. Legitimate credit repair companies will be more than happy to show you their credentials.

  1. How Can I Contact You If I Have Questions, Comments, or Concerns?

The quality of customer service speaks volumes about a company. Ask the company the following questions to determine how they measure up to the competition:

  • Does the business give me the ability to maintain an open line of communication with my appointed counselor?
  • Are there hours of operation or will I be able to call in with questions as they arise?
  • What are my rights and responsibilities throughout the credit repair process?
  • Are there any penalties for changing my mind?
  • What happens if I end up not being pleased with the outcome of my credit repair service package?

Be sure to make your own list of questions or concerns you have, and do it prior to signing up for any services.

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Credit Utilization Ratio https://www.creditrepairexpert.org/credit-utilization-ratio/ https://www.creditrepairexpert.org/credit-utilization-ratio/#respond Sat, 10 Dec 2016 00:54:43 +0000 http://www.creditrepairexpert.org/?p=1322 A credit utilization ratio is a calculation of how much debt you have versus your credit limit.  The credit utilization ratio is calculated by looking at your credit limits and determining how much of the limit you have used. If you have $500 on a credit card and you used $400, then your usage of […]

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A credit utilization ratio is a calculation of how much debt you have versus your credit limit. 

The credit utilization ratio is calculated by looking at your credit limits and determining how much of the limit you have used. If you have $500 on a credit card and you used $400, then your usage of the card is high. This negatively impacts your credit score because of the high amount of debt. If you have three credit cards, and the other two are below the 50% usage mark, it looks more favorable, than if you have all three cards maxed out.

In the first decade of the millennium, it was highly publicized by bankruptcy experts and financial gurus like Stephen Snyder, The Motley Fool writers, and others that you need to have your debt below 30% of your credit limit. In other words all revolving credit accounts should be at 29% maximum of the credit limit in order to increase your credit score.

In this strategy, it is about the amount you owe versus the payment history. Yes, payment history matters, but the idea behind this strategy is to focus on the amount debt owed, while maintaining correct monthly payments.

How it Works

  • Maintain a balance that is at least 71% below your credit limit.
  • Record how much you are charging to each revolving credit account.
  • Have balance alerts set up.
  • Obtain a credit limit increase.
  • Determine when our creditor reports to the bureaus.
  • Pay mid-cycle to your card to show an extra payment for the 30-day cycle.

The quicker you can pay down debts the better for this strategy to work on your credit score.

Summary

  • The amount of credit you have and the amount you utilize can determine your credit score.
  • If you use more of your credit, meaning your are above the 30% mark, your credit score will decrease.
  • A lower credit utilization ensures your credit score will increase or at least stay the same.
  • By using this strategy, you know when to make payments to reflect well on your credit report.
  • You are also lowering your credit utilization ratio with additional payments.

Yes, the consistent and increased payments help in this strategy, but remember the focus is to get your revolving debts below the 30% mark to help increase your scores.

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Pay Debt As You Go https://www.creditrepairexpert.org/pay-debt-go/ https://www.creditrepairexpert.org/pay-debt-go/#respond Sat, 10 Dec 2016 00:27:00 +0000 http://www.creditrepairexpert.org/?p=1319 Pay off accounts in full each month to increase your scores.  When you only spend what you can afford, then your credit usage is low, you can make on time payments, and you increase your credit scores. Financial health and great credit work on the ability to actually afford things. People who have plenty of […]

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Pay off accounts in full each month to increase your scores. 

When you only spend what you can afford, then your credit usage is low, you can make on time payments, and you increase your credit scores. Financial health and great credit work on the ability to actually afford things. People who have plenty of savings can still have poor scores because they have a high usage ratio.

People with plenty of money and the ability to pay off their debts in full, who pay off credit cards each month, will have better scores. If you want to be this latter type of person, then you need to live within your means and pay your debts as you go.

It is not a new strategy at all. People used to pay off their debts each month, avoid most credit cards, and live within their means. In the 80’s and 90’s credit card usage started to increase, where it became acceptable to have credit card debt. There was still the general thought that the debt would not max out the cards and it would be paid off slowly or in a large chunk at the end of the year.

Somehow between the old and new millennium, credit card debt became the norm, where you didn’t have to pay it off right away. But, this belief did not help your credit. Great credit comes from a low debt ratio, where you make on time monthly payments, have old accounts, a few new accounts, and various types of credit. If you can establish a good looking credit report, then your scores will naturally be in the higher ranges.

How it Works

  • Pay off your credit card balance each month.
  • Pay your utilities and other open accounts in full each month.
  • Make more than the monthly payment for installment agreements.

You don’t have to pay off installment agreements as quickly as revolving credit. The fact is they are often too large to do so, but you can make more of a monthly payment as a way to be consistent, reliable, and lower the debt owed for a more favorable outlook.

Key Points

  • Paying off the debt as you go lowers your debt ratio compared to your income.
  • You want a favorable debt to income ratio to gain new lines of credit.
  • You have more financial stability because you are only spending what you can afford
  • Paying more to your installment agreements also means less interest paid out.
  • Your scores go up with “paid in full” accounts versus high debt, open accounts.

Utilizing the system by paying as you go and affording the debts you have, ensures you can get better loans, credit cards, and interest rates. These better products ensure great credit, with high credit scores.

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Why You Should Have Multiple Credit Types https://www.creditrepairexpert.org/multiple-credit-types/ https://www.creditrepairexpert.org/multiple-credit-types/#respond Sat, 03 Dec 2016 02:49:25 +0000 http://www.creditrepairexpert.org/?p=1306 Multiple types of credit help you show a well rounded credit portfolio The types of credit you have will weigh less in your credit score calculation since it is only 10% of the score. However, that 10% still matters. If you have only credit cards, then you show a financial institution that you know how […]

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Multiple types of credit help you show a well rounded credit portfolio

The types of credit you have will weigh less in your credit score calculation since it is only 10% of the score. However, that 10% still matters. If you have only credit cards, then you show a financial institution that you know how to use revolving debt. But, it does nothing to show your consistency with a long-term loan that is “paid in full.”

Installment agreements, when paid in hill, are highly favorable because they show that for a certain period, you stuck with the monthly payment, and then paid it off on time or early. Financial companies look at this history in a favorable light.

Open credit accounts are used in the calculation to show that you can make a monthly payment for services rendered and that you have consistently been at the same address or utilizing the same account for years. It is the length of time and payment history that matter with open accounts.

Revolving credit does help, but you have to use it correctly. If you carry a balance, that will be shown. If you have a high balance, consistently, on the card, then it can look less favorable than a low balance with on time payments. Better yet, if you use the card each month and pay it off before the next cycle, you look even better.

Open accounts and revolving credit show a length of credit. They also show consistent payments over the decades you may have the accounts. This also weighs into your score and whether you have “great credit.”

When credit became more desirable, and the credit bureaus began figuring out score calculations, and as FICO became known, this strategy of having more than one type of credit was established in the 1970s.

How it Works

  • Have at least one revolving credit account.
  • Have at least one installment account.
  • Have at least one open credit account. loans.
  • Make monthly payments to each account, if possible pay off the balance.
  • Only leave a balance on the installment and score. account, such as a car loan or mortgage, as these are usually larger credit accounts that you need several years to pay off.

The payment history, amount owed, and length of the account being open weigh higher, but types of credit can also increase or decrease your score. Too many credit cards work against you as opposed to installment accounts when paid on time will benefit you.

Key Points

  • You want multiple credit types to show a well rounded credit history.
  • The credit type does factor into your credit score.
  • Installment agreements such as student loans are weighted differently than car loans.
  • The more installments you pay off, the better it is for your credit history and score.
  • You want consistency in open accounts to show a longer history, i.e. moving less, more stability in your life, and reliability.

 

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Keep Old Credit Accounts Open https://www.creditrepairexpert.org/keep-old-credit-accounts-open/ https://www.creditrepairexpert.org/keep-old-credit-accounts-open/#respond Sat, 03 Dec 2016 01:49:30 +0000 http://www.creditrepairexpert.org/?p=1302 Utilize the length of credit in the calculation Remember that after seven years you can remove delinquent or negative credit information. So, why would you want to keep old credit accounts open, if you don’t see a use for them anymore? As we have been going through actionable strategies to build great credit and increase your […]

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Utilize the length of credit in the calculation

Remember that after seven years you can remove delinquent or negative credit information. So, why would you want to keep old credit accounts open, if you don’t see a use for them anymore? As we have been going through actionable strategies to build great credit and increase your credit scores, the FICO calculation has been consistently mentioned.

You know that payment history is weighted the most, with the amount owed weighted at 30% of the overall calculation. The length of time you have had a credit account may only impact your score between 10 and 15 percent, but that is still a factor in the overall calculation.

New accounts are also part of the overall calculation. When they happen frequently, they can hinder your credit as opposed to helping it. For instance, if you needed a new utility account three times in the same year that is going to hurt your credit versus having the same utility company for 30 years. The person switching utility companies three times in the same year is seen as unstable. There must be a reason for them to be moving around. There may be a legitimate reason, but typically moving around a lot is a sign of not being able to afford where you currently live in as opposed to something like finding a new job, buying a new house, etc.

Even if you are not going to use certain accounts with a high frequency, you still want to keep them open. Installment agreements will end, and open accounts like utilities will be closed when you move. So, this strategy is best for checking, savings, retirement accounts, and credit cards.

Although opening and closing a savings or checking account does not have a significant effect on your credit score, any violations of the bank’s account agreement could show up on a consumer report known as the ChexSystems report. The ChexSystems report records any violations from bank accounts, not credit accounts.

Repeated opening and closing of accounts to take advantage of sign-up offers may be recorded on your ChexSystems report. Excessive withdrawals from savings and money market accounts, unpaid overdraft fees and negative account balances are other examples of other violations that can be recorded. The bank can reject your checking or saving account application if you have many violations.

How it Works

  • Do not close old credit card accounts.
  • Use the card one a month.
  • Pay off the amount you have put on the card.
  • By paying off the card each month, you are not going to pay interest.

This strategy is fairly simple. You do not want to close old credit card accounts. From time to time, such as one time each month, you need to use the card, and then pay it off.

Summary

  • You are not going to pay interest as long as he balance is paid in full.
  • Make sure to use the card for at least one transaction in the month, but a transaction you know you can pay off.

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Make Multiple Monthly Payments https://www.creditrepairexpert.org/make-multiple-monthly-payments/ https://www.creditrepairexpert.org/make-multiple-monthly-payments/#respond Sat, 03 Dec 2016 01:32:03 +0000 http://www.creditrepairexpert.org/?p=1300 Payment consistency and debt reduction, increase your scores. There has never been a time when multiple monthly payments were bad for your credit score and credit “appearance.” However, financial experts started pushing the multiple payment strategy in the last 8 years when several people started suffering from financial setbacks. It was determined that people had […]

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Payment consistency and debt reduction, increase your scores.

There has never been a time when multiple monthly payments were bad for your credit score and credit “appearance.” However, financial experts started pushing the multiple payment strategy in the last 8 years when several people started suffering from financial setbacks. It was determined that people had to learn that their high debt was killing their scores. For those with the means to correct their situation quickly, making multiple monthly payments started to seem like one of the best strategies available for credit repair.

It is not the multiple payment that makes a big deal. You are only reported as having made the payment on time or “missed/late” with payments. So the frequency, in this respect doesn’t matter.

In fact, you could make a huge payment once a month to your credit accounts and still increase your credit score, just as making two payments will increase your score. It is about reducing the amount you owe that helps increase your overall credit score.

There is another factor to consider in making more payments. You may not be able to learn when your creditor reports your payment history. Some companies report your credit history once a month, but that may be mid—cycle. If you make a payment mid-cycle, then you are reported in good standing. If you accidentally fall between the reporting cycle for the month with your last month’s payment and the new month’s payment, you could be miss-reported to the bureaus. You want to look favorable, always.

How it Works

  • Set up an automatic payment to come out on or around the due date.
  • In the middle of the month or a few weeks after your typical payment, set up a second payment.
  • If you can, make a payment each week to the credit account.

Keeping on top of payments is not only helpful for building your credit score back up, but it helps you keep to a routine to ensure that you are never going to miss or make a late payment again.

Summary

  • This works for revolving accounts.
  • It can also work on installment agreements.
  • By making more payments you are reducing the “amount owed.”

This strategy is particularly helpful for individuals who tend to miss payments or make late payments each month. When you get into a routine to pay more after your typical payment, set up a second .frequently, the debt is always on your mind. You will stop missing those payment dates because you are striving towards a goal of making the debt smaller, more quickly.

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