Mother and four kids

A Credit Rating, Not A Character Rating

The People Behind The Credit Score

At Credit Law Center we fully believe in the people behind the credit scores. A company is only as good as its “Why” and what matters to us most, is our clients. We recognize that bad things happen to great people and wish to help improve individuals buying power, like the client testimony below.

 

A Credit Rating, Not a Character Rating

“After 15 years of marriage, I began an 18 month long divorce. In my marriage, my main job was to care for our 4 kids and maintain the home. We puchased 2 homes during our marriage, a few rental properties, and vehicles. I assumed I had credit, as anyone would but figured out quickly that wasn’t the case. Because I had been a stay home mother, and only working off and on during that time, I wasn’t on any of the loans, everything was in his name.

Hope (2)

I was unaware that he emptied the checking and savings accounts. So there I was, not a dime to my name, absolutely no credit to speak of, and four little mouths to feed. I started a new job quickly after the separation but that income wasn’t enough to pay for day care cost and all the other expenses that go along with life. Within 60 days I had 3 jobs while trying my best to be a great mom to my kids. I was exhausted. That Christmas I had $85.00 to spend for 4 of my kids!

Nine months into the divorce when I thought things were already bad enough, my car was repossessed. Months later I found out my ex-husband had not filed taxes in a long time, so I then had a huge tax lien on my credit. At this point, I had no where to turn. I couldn’t rely on my family financially, and began to fall deeper and deeper into an emotional and financial hole. Establishing credit was impossible. I had a huge tax lien, and didn’t have any extra money to do anything about it.

Your Guide

Luckily, I met a credit advisor from Credit Law Center and he thought he may be able to help me. I felt like it was a huge waste of his time, there was NO way he could do anything for me. We devised a game plan within 30 minutes and he took the time to give me info for a CPA that would help me with the IRS on my tax lien. The cost for credit repair was not as expensive as I had thought and he offered to work out payment arrangements with me! I appreciated being treated like a person and it was clear that my advisor was taking my situation seriously and that he truly did want to help. That was the first time in over a year I had any kind of hope. I began to establish credit in my name, Credit Law Center successfully removed all my medical collections with in 6 weeks and the CPA he referred me to came up with a compromise with the IRS. Before I met them, I had no idea of where to start or how I was going to do it on my own. I am so grateful now to have good credit, financial freedom, and my life back.”

Are you unsure what the next step is for you? Let one of our Credit Advisors guide you back to financial freedom today! 816-994-4600

Article by Breana Washington

Mother and four kids

A Credit Rating, Not A Character Rating

The People Behind The Credit Score

At Credit Law Center we fully believe in the people behind the credit scores. A company is only as good as its “Why” and what matters to us most, is our clients. We recognize that bad things happen to great people and wish to help improve individuals buying power, like the client testimony below.

 

A Credit Rating, Not a Character Rating

“After 15 years of marriage, I began an 18 month long divorce. In my marriage, my main job was to care for our 4 kids and maintain the home. We puchased 2 homes during our marriage, a few rental properties, and vehicles. I assumed I had credit, as anyone would but figured out quickly that wasn’t the case. Because I had been a stay home mother, and only working off and on during that time, I wasn’t on any of the loans, everything was in his name.

Hope (2)

I was unaware that he emptied the checking and savings accounts. So there I was, not a dime to my name, absolutely no credit to speak of, and four little mouths to feed. I started a new job quickly after the separation but that income wasn’t enough to pay for day care cost and all the other expenses that go along with life. Within 60 days I had 3 jobs while trying my best to be a great mom to my kids. I was exhausted. That Christmas I had $85.00 to spend for 4 of my kids!

Nine months into the divorce when I thought things were already bad enough, my car was repossessed. Months later I found out my ex-husband had not filed taxes in a long time, so I then had a huge tax lien on my credit. At this point, I had no where to turn. I couldn’t rely on my family financially, and began to fall deeper and deeper into an emotional and financial hole. Establishing credit was impossible. I had a huge tax lien, and didn’t have any extra money to do anything about it.

Your Guide

Luckily, I met a credit advisor from Credit Law Center and he thought he may be able to help me. I felt like it was a huge waste of his time, there was NO way he could do anything for me. We devised a game plan within 30 minutes and he took the time to give me info for a CPA that would help me with the IRS on my tax lien. The cost for credit repair was not as expensive as I had thought and he offered to work out payment arrangements with me! I appreciated being treated like a person and it was clear that my advisor was taking my situation seriously and that he truly did want to help. That was the first time in over a year I had any kind of hope. I began to establish credit in my name, Credit Law Center successfully removed all my medical collections with in 6 weeks and the CPA he referred me to came up with a compromise with the IRS. Before I met them, I had no idea of where to start or how I was going to do it on my own. I am so grateful now to have good credit, financial freedom, and my life back.”

Are you unsure what the next step is for you? Let one of our Credit Advisors guide you back to financial freedom today! 816-994-4600

Article by Breana Washington

Credit Repair- Credit Builder

A Credit Builder Loan Can Help You Create, or Restore Credit – Credit Law Center

If you have never established credit before, or you are recovering from bad credit, there are ways to help build or rebuild your credit. If you are unable to get approved for a personal installment loan, one great option is a credit builder loan. Consumers seeking a credit building loan to rebuild or build a stronger credit profile, usually have a larger goal in mind. Whether your goal is getting an unsecured credit card, buy a new car or even purchase a home a credit builder loan is a great place to start.

Credit Builder Loans

A Credit builder loan is particularly offered by credit unions and a few banks, they are typically offered in modest amounts, ranging from $500 to $1500. Many credit unions and banks certain requirements you must meet before they approve the loan. For example, they may require you to be a member for X amount of years, have been employed at the same job for six months, and reside at the same location for six months to a year.

Each Credit Union or Bank offer different Structures

Credit Unions or banks may offer a different type of credit building loans and can vary in interest rates. Here are a few examples of the different types:

  • A loan secured by loan funds: This type of loan is when the lender puts the loan amount in a locked savings account and gives it to the borrower after the final payment has been received. This type of credit building loan is safe and secure for both the lender and the borrower, and the major advantage is the borrower doesn’t need to come up with a lump sum payment to start building credit.
  • Secured Loan: This is when a consumer gives a lump sum amount of money to the lender using it as collateral for a loan. The lender typically puts the lump sum in a secured savings account or a certificate of deposit. The collateral is frozen and the funds are released incrementally as the loan is paid down. The interest rates are typically lower on a secured loan, but the major disadvantage is coming up with a large amount to use as collateral.

 

How A Credit Builder Loan Can Help

If you are starting fresh and do not have credit a crediting building loan will take time to build on your credit profile. Once the loan starts reporting on with the credit bureaus it may take up to six months before you start seeing an increase in your FICO Score. FICO needs enough information on your credit file to determine your creditworthiness. Making your payments on time and in full will help build a strong credit profile. Depending on your history you may see your score go from zero to 600’s and in some cases 700’s.

If you had bad credit and are trying to reestablish your credit, it will be important that you remain current and on time on any previous obligations, you may have had. You will also want to make sure everything on your report is reporting accurate and is verifiable. A Credit building loan can help you increase your score by 20 to 25 points over the life of the loan.

A small increase in points can help you go from poor to fair, or fair to good. Credit Builder Loans can help move from a risky borrower to a less risky tier.