5 Easy Ways To Improve Your Credit Score

5 Easy Ways To Improve Your Credit Score

A Proactive Approach Never Hurt Anyone: Improving Your Credit Score One Step At A Time A damaged credit score can affect a number of things in your everyday life. Aside from the emotional strain and stress that damaged credit provides, a poor credit score can affect anything from applying for loans, to potential job opportunities. Credit restoration takes more than just time; it requires effort on your part as well. It’s easy, we’ll show you how.   1. Order Your Credit Reports You can’t begin the process of credit restoration without having a good grasp on your own credit situation. This is an extremely important step. You must find out what the 3 main credit bureaus, Equifax, TransUnion and Experian, have on file about you and what is being reported.  Chances are all 3 are going to vary, this is completely normal as creditors aren’t required to report to all 3 bureaus.   2. Carefully Examine Your Credit Reports We can’t stress this enough! Be extremely thorough in your examination. The majority of Americans have incorrect information reported on their credit reports. The credit bureaus are not required to verify the information the creditors send over to them. They generate your credit score/reports based solely on what they receive, regardless of the accuracy of the information. This leads us straight into our next step.   3. Credit Disputes and Resolution Credit errors hurt your credit score more than you may think. This is why creating a dispute is vital. You can do this all online as you’re investigating your credit report. If you prefer to have hard copies of your documents, mailing these disputes in is an option as well. It is important to clearly identify and document all the disputes being submitted. Make sure to print out and keep extensive records of EVERYTHING. Once submitted, a resolution may take up to 45 days to be completed. If you need assistance with this step, please call 888-586-7099   4. Get Caught up on All Open Accounts Devise a structured plan to bring all your open accounts current. Do this as fast as you can. If you’re struggling to make your monthly payments, call your creditors and let them know your situation. Communication is key during this time. The easy way is to just ignore it and hide under a rock, but if you show the creditors you’re actively trying...

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Top 10 Reasons People Utilize Debt Relief

Top 10 Reasons People Utilize Debt Relief

According to Fitch Ratings, although the 60-day delinquency rate on credit cards is flat from 2009 to 2010 at about 4.5%, the number of default cards hit a peak of 11.37% in March 2020 the second highest level ever. Even though Bankruptcy filings continue to rise to over 1.5 million, many Americans are still turning to alternative debt relief options in order to regain a financial foothold. Listed below are the top 10 reasons why many people choose Debt Settlement and/or Debt Elimination.   10.) Professional Representation Options 9. ) Stop Collection Calls and Letters 8. ) Interest Stops Compounding 7. ) Lower Stress by Taking Action 6. ) Avoid Bankruptcy Proceedings 5. ) Less Money is Paid Than What is Owed 4. ) FTC Regulations Have Made it Safer 3. ) Debts are Paid Off Faster 2. ) Clients Regain Control of Their Money 1. ) Immediately Lowers Monthly Bills...

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How Do Events Impact Your Credit Score?

How Do Events Impact Your Credit Score?

So how does foreclosure impact your credit score?  What about other damaging item like Bankruptcy? Until recently the credit agencies have been very secretive about what will happen to your FICO score after you start to fall behind on your payments. Just recently Fair Isaac, which is the company that developed FICO scores, has come out with some estimates (averages) on how your credit score will be impacted based upon mortgage delinquency. Here are their numbers… 30 days late: 40 – 110 points 90 days late: 70 – 135 points Foreclosure, Short sale, or Deed-in-Lieu: 85 – 160 points Bankruptcy: 130 – 240 points   Fair Isaac came up with these numbers based upon averages of different types of people, some of which had multiple (7-10) creditors and some with much less (1-4). They also factored in length of credit history, number of past missed payments and previous damaged accounts. As you can see the credit penalty to your FICO score becomes much more dramatic once you get 90 days or more behind on payments. This is due to the likelihood of full payment decreasing after this time. Also these point losses affect someone with a higher score much more dramatically than someone with a sub-par score to start with. So how do these FICO scores affect your personal finances? Well the average savings for someone with a good vs. mediocre credit score for auto insurance is about $115 a year. I’m not sure what type of car you drive but I’m sure that is at least a couple extra tanks of gas per year or a nice dinner on a birthday or anniversary. Point being everyone could use an extra $115 dollars. Now if auto insurance was the only thing affected by FICO scores… How about home owners insurance, car loans, home loans, renting an apartment, or getting a new job. Credit scores affect your personal life in so many different ways. When you apply for a loan or job, remember that every point counts!...

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