The New Word Is Yes│A Credit Card Company Ready To Work For You

The New Word Is Yes

Little to no credit history can make it hard or near impossible for students that are applying for student loans or other lines of credit to start progressing. Many institutions turn students away because they don’t already have credit established. But how can you establish credit, when you continue to be denied credit cards in the first place?  Deserve is bridging the gap for students to be able to start building credit, without turning them away due to a lack of credit history.

If you are a soon to be college student, currently enrolled, or soon to be graduate, there are more incentives with this credit card like referral bonuses and Amazon Prime Student perks to start looking into. You’re going to want to keep reading, because it gets even better!

Establishing Credit

This new card helps not only domestic students but international students as well. This credit card will will start reporting to 2 of the 3 major credit bureaus (Transunion and Experian) so making payments on time to your credit card will be very important. To start the process and apply with no credit history, they will be looking at several factors:

  • The financial documents you provide and your credit potential
  • Bank account balances and your ability to pay
  • Your contact information and how frequently it changes in the likelihood that they need to get in touch with you
  • Your major and the likelihood to graduate and get a job

 

The Benefits to the Card

If you are approved for the credit card, you will notice there are several factors that make the Deserve card stand out:

  1. No annual fee and no foreign transaction fees
  2. Your first late fee is waived (do not let this be a trend, lates on a report can harm you scores greatly)
  3. Unlimited 1% cash back on all purchases-rewards will not expire as long as your account is active
  4. 12 months with Amazon Prime Student-a six month free trial and a 12 month statement credit of $49.99 when you use the card for the subscription
  5. Referral credit money to account-$30 of credit every time you refer someone and the friend also gets $30 for joining. You can refer an unlimited number of friends but if you refer 10, you’ll get a $200 bonus to the accoun

In order to start building credit here is what you need to apply:

For domestic students

  • Your Social Security Number

or

  • ID

For International Students

  • Student Via, passport ID or school documents (I-20 form or DS 2019)

Applicants must be 18 years of age for this offer. There is no deposit needed and no cosigner for the credit cards Deserve offers.

 

 

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Key Factors to Remember

Often times college age students get out into the world and are ready for independence. Before you start applying for credit cards on your own please consider three very important variables.

1. Debt-Credit cards are not to be taken lightly and should be used knowing exactly the goal in mind-to build credit. Racking up credit card debt will follow you around for years. Buying a tank of gas or a textbook and then paying it off is good practice with your money. Try not to overspend or live outside of your means.

2. Utilization-High balances on a credit card mean low credit scores. If you have a credit card you are using, the balance should be as low as possible. If you are having to use it for something significant and the balance is pretty high, try to cut that down to below 30% of the utilization. This will help you keep your credit scores up.

3. Budget-Keep in mind your why for the credit card you have. If you are hoping to build your credit scores up, remember the other debts after school that will follow you i.e student loans, etc. The last thing you need is a credit card looming over you for years because of a spring break trip you took in college. Know your limits and understand your budgets!

 

While there are many credit card companies out there to help build your credit scores as a young adult, this is just one option out there to explore. Finding the right credit card for you and your needs will take research and patience. Consult a trusted guardian or advice from a relative about the options out there and establish boundaries for yourself. For families, this is a great way to start the conversation on finances and understanding a budget while away from home. Additional resources on student loans and credit building cards, you can follow the link.

 

A Note From The Author: The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.

Article by Breana Washington

Do you have questions about your credit report? If you would like to speak with one of our attorneys or credit advisors  and go through a free consultation please give us a call at 1-800-994-3070 we would be happy to help.

 

3 Ways You Could Be Hurting Your Credit│Changing Your Mindset

How You Might Be Hurting Your Scores

There are so many things that come into play to obtain a healthy credit profile. The hardest part of navigating the credit world however, is knowing what advice is accurate and possibly stumbling a few times in an effort to get back on track. Many times consumers think they have a good grasp on it all and then over night something changes. Have you been in this situation? Does it seem almost impossible to impact your credit scores in a positive way? Here are 3 ways you may not have known you were actually damaging your credit score, rather than helping it.

In order to keep your credit scores at the best they can be, there are a few things you can do on your own. While it may seem that the score is out of your control, you can manipulate it more than you thought!

  • Paying bills on time
  • Keeping balances below 30%
  • Only use credit cards for emergency or items you know you can immediately pay off
  • If you have a high balance, request your credit card increase your credit limits to get back down to the 30% utilization limits

Make Payments Too Late or Too Early

Late payments can damage your credit scores significantly.  Do you have your credit card payments set up on auto draft? For many people, the easiest thing to do is set everything up automatically after a pay period or a time when all other bills come out of their bank accounts. This is not a negative way to go about paying bills, but you can continue to work smarter and not harder in an effort to see an increase.

The credit card company that you are most likely using does not always report to the bureaus after you have made a payment. Knowing the cycle period on your accounts is vital. The credit card companies typically update a report once a month. If you want your credit card to look the best it can when you are applying for a loan and need your scores to look the best, pay the statement in full before the statement closing date. This will report to the bureaus as a zero balance which in turn, makes your scores look great because your utilization is down.

Please note: You can ask that your credit card company let you know when they report to the bureaus so you can be informed and make your payments accordingly.

Closing Cards Too Soon

Closing unused credit cards out seems to be a trend that many consumers follow. When you do this to a credit card with great payment history and low balances and several years on the length of history, you actually damage your scores.

 

free credit repair consultation

Do you know why that is?

When you close out a credit card with a low to no balance on it with a very high utilization ratio, you are telling FICO that your utilization amounts just went up significantly. Once the card is closed, it is not considered by FICO any longer. The longer the life on the credit card the better. If you have no use for the credit card, try to use it for a small purchase every 60-90 days.

Large Credit Card Balances

Your debts are heavily weighed by FICO and are a very large portion of the scoring model. If you have credit cards with large balances that you make payments on, on time that is great. However, the best way to really increase your credit scores is begin to pay down the balances on the cards as much and as soon as possible rather than the minimum payment.

If you have $20,000 in available credit and you have a $10,000 balance, your sitting at 50% of the utilization ratio which is not doing well for your credit scores. Just because you have a credit limit of $20,000, does not mean you want to push the balances out as far as you can to that limit. If you can, pay down the card as much as possible, rather than minimum payments on it. Once interest starts to kick in, you will want to start working that payment down quickly.

In Conclusion

If you start to make a change in these three areas of practice, you will start to notice a shift in your scores. Being smarter about your debt and understanding how FICO is working for, or against you will help you as you combat the credit world. Do you have questions about your credit report? If you would like to speak with one of our attorneys or credit advisors  and complete a free consultation please give us a call at 1-800-994-3070 we would be happy to help.

A Note From The Author: The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.

Article by Breana Washington

 

Check out Credit Law Center’s info-graphic on 4 myths of collections reporting on credit reports.
credit collection myths infographic

credit collection myths infographic

 

Student Loans And Credit Scores│Available Resources For Consumers

Student Loans and Credit Scores

Student loans seem to be on almost everyone’s credit reports. They can positively impact your credit scores if you are consistent with your payments and aware of what is happening with your loan. As with any bill or loan you take out, it is extremely important to your credit score as well because it can also have a negative impact too. We will discuss some of the positive ways that your loan can impact your credit, as well as a few ways it can do severe damage if you are not careful.

The Positives

1. Payment History

A student loan, when paid correctly, can be a great trade-line for your credit report. If you make the minimum payments, this shows great repayment on your part that you can reliable and make on time payments. This part of the credit report makes 35% of the FICO grading scale. The difference with a student loan as opposed to your other monthly bills such as your car insurance is that they do not report monthly (only when you miss the payment or fall into collection) whereas your loan will report positively when you have positive payments. This is great for your credit!

For some consumers, building credit is hard to do if you do not have an auto loan or any credit cards, but your student loan can help start to establish that payment history.

2. Building A Credit Mix

For a while, there was a myth out that having “diverse” accounts helped your scores and provided for a healthy mix of credit. Only about 20% of your FICO score is made up of new credit and types of credit used. Typically, having two revolving accounts and two loans (home, auto,or personal) are sufficient enough in trying to build on your scores. Your student loan will also help you start to fill out a portion of that percentage of your credit mix while you continue to make positive payments.

 

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The Negatives

 

1. Late Payments on Loans

A good way to completely tank your credit scores quick, fast and in a hurry is to get a late payment. As much as on time payments can help your credit score, they can also harm them, sometimes up to 100 points.

These bad or derogatory remarks can stay on your credit report for up to seven years. If continue to miss your payments and they continue to roll over, your scores will just keep dropping and dropping. The other piece to this puzzle that is not good, is how long it can take for you to rebuild once you have fallen behind. Be aware of what is happening with your bills and other finances and communicate with your institution if you start to fall behind.

2. Defaulting 

If your accounts are sent to collections, this can also really impact your credit scores. Often times, creditors will not lend you any money unless you “correct” it and make it right with the lender of the money. If you go and apply for a home loan and they see collection status, it can be extremely hard for them to justify lending to you with a lot of derogatory marks on the report.

You may hope to open credit cards and start to establish credit but the creditor denies you due to the defaults on your credit report. All in all, if you are seeing collections/charge offs or have been denied financing, you may want to reach out to a credit repair company today.

What Resources Are There?

Having student loans and pursuing a degree is important in this day and age. We see so many student loans every day on credit reports that are doing great things for people and their credit report. Make sure you stay up to date on the payments and work as well on establishing credit.

For more information on student loans and second chance checking, please visit this site. You will find a lot of programs to help you out in regards to student loans if you have not been able to find any resources yet that work.

 

A Note From The Author: The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.

Article by Breana Washington

Do you have questions about your credit report? If you would like to speak with one of our attorneys or credit advisors  and complete a free consultation please give us a call at 1-800-994-3070 we would be happy to help.

If you are hoping to dispute and work on your credit report on your own, here is a link that provides you with a few ideas on how to go about DIY Credit Repair.

 

Check out Credit Law Center’s info-graphic on 4 myths of collections reporting on credit reports.
credit collection myths infographic

credit collection myths infographic

 

The Cost Of Low Credit Scores│How Your Score Is Costing Thousands

How Your Score Is Costing You Thousands

If you walked into a room full of people and asked them “Who would like to save more money this year?” I think each person would raise their hand extremely high. Whether you make great money, were born into money, or have little money to your name, credit still has a large role in your purchasing power.

Low FICO Scores

Your credit scores play a major role in the financial freedoms you have. There seemed to have been a misconception that if someone made great money, the credit scores didn’t really have too much pull. Credit impacts us all, from the moment we start to take on paying bills, buying cars, cell phones etc.

Your employer might even take a look at your credit report and deny you for a job if they are low.

Contrary to popular belief, FICO impacts us all, across all demographics.

So, how does a low credit score cost you more money?

 Higher Interest Rates

If you were to apply for a 60 month car loan with a credit score between 500-589, one could expect to be quoted around 15.2% interest rate. That means that your poor credit is costing you and holding you back from lower interest rates (home and auto) and you are actually seeing your money be used in a way that is not benefiting you or your credit score.

Denied Financing

If you have low credit scores, you may have been denied a bank account, credit cards, a home loan or worse. While you may feel defeated right now, there are several ways to start improving your score. If you are in a tight spot financially and are thinking of completing credit repair on your own, please visit our DIY blog to learn more. If you would like to speak with a credit advisor about how to improve your credit score quickly, please contact Credit Law Center today.

How Do I Make A Change?

It is a good idea to monitor your credit scores. If you have noticed that you have any the below items on your credit report, you might be in need of credit repair.

  • Collections
  • Charge Offs
  • Repos
  • Bankruptcies
  • Foreclosures
  • Tax Liens

If you are thinking about going and paying these items off in hopes that they will increase your credit scores, rethink that option. Your credit report will change, but not in the way you want. If you have a 10 year old medical collection reporting and you decide to pay that collection off, the last date of activity on your report changes to the day you pay it. FICO is looking at your activity and weighing it heavily. Your score may decrease significantly due to the last date of activity being updated. There is less than a 2% difference whether a collection is paid or unpaid, most weight is given to how recent the activity. This does not mean we are advising you to not pay your bills or let things fall into derogatory status.

 

free credit repair consultation

The easiest and quickest way to start seeing a change in your credit scores is to start paying down balances you may have on current credit cards in your possession. This will have a direct/immediate impact on the score. If you are planning to start paying down your cards, try to keep the utilization down below 30%. This will help you start to see a swing in a positive direction.

The largest factor on your credit report is your payment history. Late payments are huge when it comes to dropping the credit scores. At any given time, always try to make at least the minimum payment on your loans.

 

Facts on Fico

 

Saving Money Starts Here

Whether you are looking to get into a new home or buy a new car, your credit scores are vital. If you are hoping to make changes for your financial future, you can start taking small steps now to get back on the right path. If you are in need of assistance today, our credit advisors can help educate you on what you can be doing on your end while we work on derogatory items on the credit report that are hindering you from higher scores.

 

 

 

A Note From The Author: The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.

Article by Breana Washington

Do you have questions about your credit report? If you would like to speak with one of our attorneys or credit advisors  and complete a free consultation please give us a call at 1-800-994-3070 we would be happy to help.

 

Check out Credit Law Center’s info-graphic on 4 myths of collections reporting on credit reports.
credit collection myths infographic

credit collection myths infographic

 

Good, Better, Best │Understanding My Credit Ratings

Good, Better, Best and Bad

The internet and cell phones have now made it easier than ever to check your credit score as often as you’d like. Millennials are starting to check their credit scores more frequently than any other generation. This could be due to the fact that credit has become vital in many aspects of life. Whether you want to buy a house, car, or take out a loan, you can expect that your credit report will be scrutinized. Do you know what you are looking at when it comes to those numbers?

A Numbers Game

Your credit score is ever changing. While you may not suspect that things are moving and shifting, they are. Often times people think of their scores as either really bad or good enough. When you are browsing the internet and you start to check your credit scores, please take note that you are looking at a consumer score.

What is a consumer score? This is the scores you have access to online that may show higher than what a lender or bank would pull for you. These are called vantage scores and are not your true FICO score. These scores show higher so that you will start shopping around for products, or continue to spend. Your score may be significantly lower when you apply for a home loan. Once you understand this, the frustration or mind game you feel that happens when your scores are so different won’t be so frustrating. You should pay closest attention to what a bank or lender tells you your score is. So, what are all these numbers really saying?

  • Very Good : 740-799
  • Good : 670-739
  • Fair : 580-669
  • Poor : 300-579

Having scores higher than 799 is possible to obtain but can be hard. A 670 and up is considered exceptional. The better the score, the better the interest rates, among other things. If you are below a 700, there is definitely some room for improvement!

Increasing Credit Scores

If you have a low FICO score, you can bet that is due to a combination of factors rather than just one culprit. A credit score is made up of many different factors. If you are thinking your credit is low due to just inquiries, you are probably incorrect. The chart below demonstrates the factors that come into play with your FICO.

Facts on Fico

Positive Payment History

The largest section of the pie chart is your payment history. If you have been behind on bills, have late payments or cannot keep up current credit cards, your score will be dramatically impacted.

One late payment can potentially drop your score 100 points.

If the creditor sends your card into collection or charge off, we can take a look at your report and discuss what the next options are for your credit report or how you can try to make up for those late pays in other ways  to increase the scores. There is a method to the madness when it comes to your credit scores, you just have to know how to play the game.

 

free credit repair consultation

Credit Scores and Savings

If you take a look at the numbers above and fall into the category of poor or fair credit, you may notice how much you are having to pay on your auto or home loan. When your credit score is low, you’ll notice how much higher your interest is on your payments. While it is great that you may be able to get approved for a car loan or auto loan with a lower score, you would be better off waiting until you can improve your credit scores. We want to help you save!

Financially speaking, if you can wait and try to get your scores back up  you can be saving yourself a significant amount of money each month for your family.

Quick Ways To Improve
  • Become an authorized user on family member or spouse’s card
  • Look into a credit builder loan
  • Apply for a secured credit card
  • Invest in credit repair to get derogatory items removed

Your credit will be around for the rest of your days. While you may have made financial mistakes in the past, you can improve and learn from them. If you have found yourself in a huge hole, and have debt collectors and collection companies calling you daily, please get in touch with a company that can help you. At Credit Law Center we educate our clients on everything they may need to know, to continue to better their credit scores as well as represent them so that the calls can stop. We know the importance of great credit and what doors it can open when you reach that “very good” zone.

Open new doors today for your family, and invest in your financial future.

 

Do you have questions about your credit report? If you would like to speak with one of our attorneys or credit advisors  and complete a free consultation please give us a call at 1-800-994-3070 we would be happy to help.

If you are hoping to dispute and work on your credit report on your own, here is a link that provides you with a few ideas on how to go about DIY Credit Repair.

A Note From The Author: The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.

Article by Breana Washington

Check out Credit Law Center’s info-graphic on 4 myths of collections reporting on credit reports.
credit collection myths infographic

credit collection myths infographic