Tools and info to help you make the most of your credit
1. Spending Alerts
Your debt is one of the biggest factors impacting your credit. By setting up spending alerts on your credit cards, you can make sure you don’t let your balances wreck your credit. Spending more than 30% of your credit limits on revolving accounts, like credit cards, will negatively impact your credit score. Some of the people with the best scores are the ones with less than 10% utilization. A lot of credit card companies let you set spending alerts for when you’ve charged more than a certain dollar amount or a certain percentage of your credit line. These alerts will help assure that you keep your utilization in check. Always remember, your debt accounts for 30% of your score.
2. A Credit Card Payoff Calculator
One of the easiest way to hurt that 30% “amount of debt” portion of credit score is by carrying a balance on your credit cards. When interest charges pile on, they can quickly add to an already high balance, thereby doing extra damage. When you are in credit card debt, your credit score is takes a hit. You can use a credit card payoff calculator to get a handle on your debt and make a plan for paying it down.
3. Free Annual Credit Reports
If you don’t know what issues you have in your credit report, then how can you fix it? That’s why your free, federally-mandated annual credit reports are important. Your free credit reports have the raw data your credit scores are based on. You can get a free annual credit report from each of the three major credit reporting agencies, at AnnualCreditReport.com.
4. Free Credit Scores
There are a lot of places on the internet where you can get your credit scores for free these days. You can check two of your credit scores for free every month at CreditKarma.com, and there are a lot of credit card issuers and banks that offer a monthly credit score for customers as well. Checking your credit scores regularly will help you keep track of your scores and the factors affecting them.
By Federal law, every major credit reporting agency must have a dispute process in place for correcting errors on consumers’ reports. Just one erroneously reported late payment can drop your credit score substantially, so a dispute can be a powerful weapon. Go to our free info page, where you can download the tools you need to dispute items yourself, or buy our Self-Credit Repair Dispute Software to get fully automated Step-By-Step help with credit issues, or you can just contact us at (646) 396-0448, and let the professionals handle any errors on your report.
6. Credit Repair
For those of you with many errors on your credit reports, the dispute process may not be sufficient to get everything fixed with all the credit bureaus. Some people prefer to hit the easy button and not have to file all those disputes and keep track of whether the errors were removed, or have the knowledge of what to do next if the disputes are ignored. You may want to consider a credit repair company with over 10 years of credit repair experience and a 100% Money Back Guarantee. You may want to pick up the phone and call us at (646) 396-0448 or go to our Contact page and drop us a line.
7. Credit Freezes & Fraud Alerts
If you become a victim of identity theft, then undoing the damage a criminal may inflict on your credit will be very difficult. If Someone takes your personal information, like your Social Security number, old addresses, maiden name, etc, then they can wreak some serious havoc. It’s one thing to dispute incorrectly reported information on your credit report when you hold all the information, but it’s another thing entirely once those details are out of your hands. In fact, you run the risk of being victimized over and over and over again, because your Social Security number doesn’t expire. This is where filing for a credit freeze or fraud alert can be a handy tool. These are tools provided by the major credit reporting agencies to help fraud victims, and potential fraud victims protect their credit.
Fraud alert messages notify potential credit grantors to verify your identification before extending credit in your name in case someone is using your information without your consent. This helps ensure it is actually you who is applying for credit and not an identity thief. A freeze also essentially shuts down access to your credit file until you unfreeze it.
If you're having credit problems, then it stands to reason that you might be having a cash problem as well. Now, sometimes that isn’t the case. For example, You may be recovering from bankruptcy, short sale or other credit disaster, and it can be hard to get new credit because your credit score is so low. The solution is to get a secured credit card and start rebuilding your credit if you have some cash you can use to “secure” the card. Secured credit cards require a cash deposit that generally serves as your credit limit. Treating that account right, paying your bill on time and managing your credit usage, will help you build credit and allow you to eventually access an unsecured credit card.
Credit Repair Myths
When I pay off a past-due account, such as a charge off or a collection account,it will show “paid” and no longer be negative.
It is nearly impossible to completely fix your credit unless you settle your unpaid debts. However, as strange as it may sound, paying off a debt can have a negative impact on your credit rating. Aside from bankruptcy, which can appear on your credit report for up to ten years, negative items may be kept on your report for up to seven years. The date of last activity starts the 7 or 10-year time period. Making a payment “resets” the clock because it is considered new activity. So if this item was two years old, when you make a payment on the collection, the two years are wiped away and you start at day one again. It appears to the credit scoring computer as an item that happened yesterday.
Anything that happened yesterday affects your credit score more than something from two years ago does. This will damage your report, as it looks like the credit bureau forced you to pay up. Since you can do more harm than good, even though your intentions are right, it is always best to work with a professional when trying to restore your credit.
If a negative item is successfully deleted from my credit report, it will just come right back on my report.
This myth spread through the news media and various government agencies, probably by the Credit Bureaus themselves. The truth is, the credit bureaus will often temporarily delete a negative listing if they have not heard from the credit grantor for 30 days since an item has been disputed. Should the credit grantor submit verification a week or two after the 30 days, it will be re-inserted. (This is called a soft delete.) If this happens, the item can be disputed again. However, most of the time, once an item is deleted, it is gone for good. By using our preferred methods, you can be sure your item will be disputed over and over again until it is removed. We have experienced a 96% success rate with this.
There are items such as bankruptcies, foreclosures, and tax liens that areimpossible to remove from the credit report.
Every negative listing that can appear on a credit report has been removed from a credit report thousands of times over. In fact, the IRS currently has a program to remove paid federal tax liens or removing tax liens if a payment arrangement has been made and a certain number of payments have been received. Approached correctly, any negative listing can be removed. That is why it is best to work with a professional. They have the experience and know how to remove these items.
Disputing a credit report is easy --- any consumer can do it themselves.
To be honest, it is simple to challenge a credit report. However, as an everyday person, it can be amazingly difficult and frustrating to get results from the credit bureaus. Here’s why.
This is a little-known fact. More complaints to the Federal Trade Commission involve credit bureaus than any other type of company. The major credit bureaus have paid fines of $2.5 million over the years due to failure to respond properly to charges.
The main objective of credit bureaus is to protect their profits. They are NOT government agencies. They are for profit organizations. Anytime they have to investigate a consumer disputes it eats into those profits. Investigations take up time and energy too. The credit bureaus do everything in their power to make restoring your credit exceedingly difficult, short of sparking more massive lawsuits.
Attempting to restore your own credit means you must be willing to spend time learning about the process. This is why it is so difficult when you are inexperienced. It most cases you may be less effective than if you hired a professional. Realize that credit restoration will most likely take longer than you expected.
The credit bureau allows me to submit my 100-word explanation. Creditors willread my statement and take it into consideration.
No, creditors could not care less about the information submitted in your statement. This may seem reasonable, but it’s not correct. When we talk about creditors, we’re talking about people who are loaning money – for credit cards, mortgages, cars, department store credit cards. Very few of these people will consider any information you submit in a paragraph explanation. The only items verified on the statement are the negative items on your report.
The first thing we want to delete from your credit file would be the 100-word explanation. In essence, the explanation is seen as an admission of guilt. It’s actually the last thing you want to do. It verifies that something happened. You don’t want to do that.
The credit bureaus are a branch of the government, infallible, and above reproach.
This myth is ludicrous on so many levels. First off, as Americans we know fully well that the government is a breeding ground of mistakes, second, there isn’t one branch of the government at any level, municipal, local, or federal, that is above reproach. Lastly, The credit bureaus are publicly & privately traded companies in business to impress stockholders. They are not government agencies. They are one of the most heavily regulated industries. The strict regulations stem from a public outcry of abuses and mistakes. A recent survey by an independent research group revealed more than 70% of credit reports contained mistakes or errors. The prevalence of errors has led to consumer protection legislation that allows consumers to challenge the bureaus and force the removal of inaccurate, outdated or unverifiable information.
I can create a brand new credit file by getting a federal tax ID number orchanging a few numbers on my social security number.
You can end up in jail with that way of thinking. This fraudulent scheme has proven to be complex, difficult and illegal. Lying on a credit application is a criminal offense and with the linking of computer systems, it is virtually impossible to get away with. A lot of people do it, but a lot of people also get into big trouble for doing it. This is not something that you want to do. A lot of people do it, but a lot of people also get into big trouble for doing it. This is not something that you want to do. It’s in your best interest to hire professionals and face the music by confronting the credit bureaus armed with the rights congress has granted you through the consumer protection laws.
If I build enough good credit, it will offset my bad credit and make me credit worthy.
Even one negative item on your credit report can have serious negative consequences. Any amount of bad credit is devastating to your chances of getting approval from a creditor. The approval is almost never in the hands of a human sitting across a desk from you. It is a computer achieving a point total. The slightest amount of negative credit can cause an auto loans and credit card interest rates to skyrocket. Generally, even a little bad credit (regardless of the amount of good credit) will cause you to either get declined, or pay higher rates.
Nonprofit organizations like Consumer Credit Counseling Service (CCCS) canhelp me restore my credit.
Credit counseling services are agencies that are set up to help you renegotiate your credit cards and other debt. They put you on a budget and you make one payment to them. They in turn pay all the bills for you. People who are in debt or who are trying to avoid going bankrupt can seek help from these nonprofit consumer credit counseling services. (CCCS’s) However, these companies are controlled and funded by the credit bureaus and the credit grantors, like the big credit card companies. They actually fund these agencies.
Your creditors will usually make a note on your credit report if you’re working with one of these consumer credit counseling services. Potential credit grantors are scared off by this almost as much as a Chapter 13 bankruptcy. Some of the very worst credit reports that we come across are participants in the CCCS or similar programs.
It is illegal for creditors to take a negative, accurate listing off my credit report.
The law requires that these items remain on the credit report for at least seven (7) years. When you speak to collection agencies or credit bureaus, their typically under-educated staff may tell you all manner of nonsense. The law limits negative information from appearing longer than the legal (7) year maximum. The credit grantor or credit bureau may choose to delete the item whenever they see fit. Now, that being said, we want you to keep in mind that any error, be it a wrong number on an account, the wrong date of birth, a misspelling, is indeed an error, and can be challenged and removed.
Credit Repair Facts
A poor credit score will not haunt you forever.
Your score is a “snapshot” of your risk at a particular point in time. It changes as new information is added and old information is deleted in your credit bureau files. Scores change gradually as you change the way you handle credit. Past credit problems impact your score less as time passes, new credit problems impact your score more.
Approximately 15% of a credit score may be based on the length of your credit history.
Your credit score can be positively impacted the longer your accounts have been opened, especially if they are with one financial institution.
Recent studies have shown 96.1% of all credit reports contain inaccurate credit info.
That is 420 million credit files reporting wrong. How good are the chances that you have inaccurate info too?
46% of credit reports contain errors serious enough to cause a borrower to receive a higher interest rate and fees when borrowing.
It’s one thing to get bogged down with higher interest payment when you’ve made the mistakes that led to bad your credit score, it’s entirely unacceptable when it’s the Credit Bureaus.
Creditors are making billions of dollars collectively on bad credit.
Creditors are making a fortune over the course of your loans by charging interest rates as much as 5x higher than what they charge people with prime credit.
29% of credit reports contain errors serious enough to cause credit denial.
Errors such as false delinquencies or accounts that did not belong to the consumer in question.
The fair credit reporting act amendments of 2006 were put in place to protect you the consumer.
It’s your right to dispute erroneous credit information reporting on your credit report. Act now!
Credit scoring is restricted to only credit-related information.
Factors like gender, race, nationality and marital status are not included. In fact, the Equal Credit opportunity Act (ECOA) prohibits lenders from considering this type of information when issuing credit.
Approximately 35% of a credit score may be based upon payment history.
A credit score is negatively impacted if bills are paid late or if there is a history of delinquent payments listed on the credit report, including matters of public record such as bankruptcy, collection accounts, etc.
Approximately 30% of a credit score may be based upon amounts owed or other outstanding debt.
A credit score can be negatively impacted if the amount owed is close to the credit limit. A low balance on two credit cards may be better than a high balance on one credit card.
Call us for a FREE credit consultation (646) 396-0448
Take control of your credit now! While you continue to wait; the great deal on that car you wanted will be over; the house you dreamed of will be sold; the job you had your heart set on, will be given to someone with a better credit score. Nothing is ever gained by procrastination. Start Your Journey on the Road to Good Credit Today!