Helping Your Borrowers│A Referral Program For Clients That Don’t Qualify

A Referral Program That Works

As a real estate agent or loan officer, are you finding that many of your potential clients are being turned away due to low FICO scores? What are you doing to help them once they are denied? Credit scores are a vital part of the home buying process. So, what do you do when your client can’t get financed? If you do not have a trusted resource in your toolbox and a great referral program, you should continue reading.

The Referral Process

This is no fly-by-night credit repair program. We are a law firm specializing in credit repair and we only charge our clients for the successful removal of an item from the credit report. At Credit Law Center we onboard anywhere between 600-700 clients a month. We have worked diligently with lenders and real estate agents to ensure we are educating and informing each one about what their clients are going through with poor credit and what they may be able to help them (things like mistakes on the credit reports they see, or as real estate agents, clients that want to buy but cannot) and what the next steps are for their client, whether that be a little credit education or a complete overhaul of the credit report. We also educate their clients about ways they’re impacting their credit scores and what their rights are as a consumer under the FDCPA (Fair Debt Collection Practices Act) and the FCRA (Fair Credit Reporting Act).

Actually, 53% of our business comes from agents and brokers all over, as we currently work in 48 states (excluding Georgia and South Carolina). Our referral program is exceptional and we work very closely with each agent and lender.

Real estate agents and loan officers are missing out on business by turning away borrowers with less than perfect credit scores. While you cannot change the lending process, you can invest in the potential of clients and partner with a referral program that works!  Let Credit Law Center be part of the missing puzzle piece.

Your Piece of the Puzzle

Give your clients the gift of a second chance. Each interaction you have with a borrower that becomes deflated due to not qualifying, you should attempt to turn the conversation around with the hope of “it isn’t a no, it’s just not yet.”

If you are looking at credit scores with a client and you see someone that cannot get qualified due to medical collections, repossessions, bankruptcy, student loans that have fallen behind or are at a 600 and below, those should be clients you send directly over to speak with a credit advisor. Clients in the poor and fair range will appreciate your effort in trying to aid them to get a home loan rather than turning them away and shutting the door on a better future for themselves and possibly their families.

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

As an agent or lender, you may rely on previous client referrals. How much more business could you bring in when you spend a small window of time with someone and refer them to a program to help them? You will soon become a trusted partner to them and to anyone else they may know that has gone through something similar.

The Return on Investment

The benefit to sending a client to Credit Law Center is that it costs you, as a lender or agent, nothing! We understand that building your pipeline and building relationships comes down to the people you refer business and how quickly they get back to you. The referral partners we work with can feel secure in knowing that their clients will only be charged for actual work that is being completed rather than a month to month service fee.

law firm vs credit repair

 

 

free credit repair consultation

The Perks to the Program

As a referral partner with Credit Law Center, you will have a credit advisor appointed to you and your clients. This is your main point of contact and someone you can rely on to send you industry specific education, updates on clients improvements and credit specific questions. We conduct monthly webinars that you can tune into with credit education or industry changes. You can tune into these or receive a copy so you can continue to use it for your office or client education. We believe that credit repair as a whole, has a negative connotation surrounding it. We have over 30,000 satisfied customers whose lives have been changed because someone referred them and they started the program.

Remember:
  • We can work with collections, charge offs, tax liens, judgments, bankruptcies, foreclosures, late payments and issues with some student loans
  • We only charge the clients for the removal of the items we dispute
  • They will become educated in how to improve their credit scores and useful tips on usage and good decisions financially
  • You will be updated on a clients progress
  • Turn around time for clients is quick, as we do not get paid unless we are making progress
  • You can rely on our company and your credit advisor for any industry, credit specific questions

If you run into a client that you have to turn down, you do not have to take any extra time trying to go over their credit report and help them; leave it to us! We are a trusted part of your team and will work alongside you and your clients. We look forward to helping you grow your business and helping changes lives with you.

 

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

 

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.

 

 

free credit repair consultation

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.

 

free credit repair consultation

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

 

Starting Credit Repair│5 Questions You Should Ask

So You’re Saying There’s A Chance?

All jokes aside, credit repair is a very serious matter.  We have come into contact with many companies that over promise and under deliver when it comes to the services they offer. Have you been teetering back and forth between companies but have been unsure what to ask? Well here’s your guide for working through the sales pitch, and getting to the hard facts.

What is credit repair and how does it work?

When a consumer decides that they are going to attempt credit repair there is often a “pain point” involved that has led them to this decision. For many of our clients, they have visited a lending institution and have been denied financing. Being denied for a home loan or car loan can really get a person in gear and ready to go because credit is important when it comes to major financial purchases. Have you been denied financing recently and are trying to start making your way back toward better credit?

You may find yourself looking for ways to improve your credit score and running into a dead end with “repair” companies. Another thing you may have found is that you may have heard that you can work on your credit repair yourself.

A law firm, like Credit Law Center has the ability to do more than both a consumer and what a credit repair company can. The side by side shows just a few things that you may want to start quizzing your current or potential credit repair company you hire on and start to look for companies that can help you out in all aspects of credit repair.

1. What Will I Need To Get Started?

In order to enroll in credit repair with Credit Law Center you will want to speak with a credit advisor first. They will walk you through our process and what you can expect as far as cost and time frame goes. You will know after your consultation what the cost could be for credit repair if every item came off the report.

You will notice we said if everything comes off. Each item is priced per line item as we only want to charge a client for the successful removal of what we dispute. You would receive a contract ceiling price and be billed accordingly after each round is completed. We are a pay for performance company, which just means you will only pay us for results as opposed to a monthly repair company.

Next, you will need a copy of your credit report, which the credit advisor will pull with you. They will go through line by line with you and educate you on how you can improve scores while we work on any derogatory items on the report. You can expect to pay $1 at the consultation and then decide if you would like to work with our Law Firm. Again, you will be quoted all pricing before ever signing a contract.

Although the cost may sound cheaper per month for a monthly program, and manageable for your budget, it might hurt you more in the long run.  Too often we see consumers that agree to this and they end up signing up for something that takes years for them to improve their credit. Our typical time frame is 60-120 days depending on what other items are positively reporting on a report.

We will work inside anyone’s budget!

Finally, a contract will be emailed to you and after a few ID’s submitted to your credit advisor, you will be ready for credit repair! We are built for speed and this is why 53% of our business comes from referral partners like loan officers and real estate agents. They can expect that their clients will get results quickly, and be ready for financing.

2. Is There An Attorney Involved/Working For Me?

We currently have 3 attorneys in the office that our clients can speak with about their credit reports or any legalities they may come across during or after credit repair. These attorneys also have the ability to work on your behalf, to stop collection calls as well as work with you on what you can say now that you are a client. When a collection company calls you and you are represented by a law firm, you have the ability to request no further communication at that time. Should you continue to receive calls, you may be able to sue for continued harassment.

Does your current “law firm” have the ability to do this? Ask the hard questions!

 

free credit repair consultation

3. Do They Have The Ability To Negotiate And Sue?

Credit Law Center has sued all three major credit agencies: Experian, Transunion, and Equifax. Ask your current or potential company in questioning if they can do this!

Unfortunately for a consumer, there are many ways that these agencies and collection companies go in and break the law. The main reason for this is due to the lack of education out there about credit and what can or cannot be done. You want a legal team guiding you and informing you of your rights through this process.

Our legal team is versed in the FDCPA (Fair Debt Collection Practices Act) and  FCRA (Fair Credit Reporting Act).

Although your credit advisor will not give you legal advice, you can rest assured that as a client you have access to any of the attorneys on staff about matters such as harassing phone calls and items being misreported. They can also negotiate debts on your behalf or sue for damages if you have been impacted by misreporting on a credit report.

4. Who Will Be Monitoring My Credit?

There seems to be many companies out there right now that do not monitor the clients credit while in repair, or do not let them know if they have new activity or items reported. We will monitor your credit with our monitoring service and will update you every 45 days or so on your report. You have access to a copy of the report at all times.

Do you receive updated copies of your credit report with your current service?

This is vital for us, as it allows us to see what items are being removed when we dispute and allows us to also see if you are ready to go from a credit score standing on financing. We will never hold a client in repair any longer than need be. If they are at a point that a lender says they are ready to move forward, we will pull them out of repair and send them on their way!

5. Am I Being Billed Monthly Regardless of Items Being Removed or Not?

Lastly, and most importantly, ask what you are being billed for. If you are working with a credit repair company and spending money monthly with no activity as far as your score moving at all, it may be time to make a switch. We are saying there’s a chance! If you work with the right company that can provide you with great results and you listen to the education our credit advisors provide, you may be off to your dream home or dream car sooner than you thought!

If  you are currently working with a credit repair company and are not satisfied with your results, please let us know. We would be happy to help you get financially ready for whatever your next steps might be (house loan, car loan, etc.) Please  contact us today for your personal consultation with a Credit Advisor. We have helped over 30,000 clients improve their scores. Let us get you back on the path toward financial freedom.

Article By Breana Washington

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.

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

credit collection myths infographic

 

Credit Scores Dropping Quickly│How Can I Recover?

Credit Scores Dropping

Have you noticed a random decrease in your credit scores recently? There are many factors that can cause your credit scores to fluctuate. Many consumers do not understand that a credit score has no memory and can change immediately due to activity or changes that can happen as soon as you make a payment or use a credit card.

Can I recover from a drop?

Do not panic. Your scores really do change so much, so there is no reason to worry unless you have done some significant damage to a report like went late on a payment. A few things to know ahead of time, prior to calling your credit card companies or bank about your report-

  • If you are pulling credit scores on consumer sites like Identity IQ or Credit Karma, you are looking at consumer scores or vantage scores. These are not your FICO scores. These scores are more of a suggestion of what is going on but not always right or exact.
  • If you want to know your true FICO scores, the only place you can get the real FICO score is an actual lender or banking institution.
  • There are 56 different versions of FICO. Your home loan is going to be using a different version of FICO than the dealership that ran your credit. Don’t expect to see the same scores because they will be off.

 

What Do Inquiries Do To My Credit?

Your scores can be decreasing due to one too many inquiries on your credit report. A good rule of thumb is to only inquire about 10 times for every 12 month period.  Once you start shopping around for vehicles or homes and having your credit pulled more than the suggested number, you will start to notice your scores dropping.

 

How Does A Late Payment Hurt My Credit?

Unfortunately, late payments have a dramatic impact on your credit scores. This is the hardest thing to get removed from a credit report but we still try to go after late payments and try to get them removed.

These late pays 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.

 

free credit repair consultation

What If I Don’t Have Any Credit?

Not having any credit cards or installment loans will also keep you at low scores. In order to have good credit scores, FICO has to have something to grade you on. We advise 2 credit cards and 2 installment loans (auto, home or personal). There is a misconception that no credit keeps you from having bad credit. That is not true and in order to qualify for a car loan or auto loan, if you are not showing that you can make payments on time and be trusted with a loan, a lender doesn’t know how trustworthy you are to loan to. If you are hoping to get a loan, it is important to start establishing credit for at least 6 months to a year and build and show positive payment history. If you are in credit repair and have noticed that your scores are dropping but derogatory items are falling off, it may be due to the lack of credit you have established, or that the credit you do have is not being utilized the right way i.e. high card balances above 30% utilization or recent late payments which will keep your scores down.

 Factors Causing A Drop
  1. Late payments
  2. High Balances
  3. Too many Inquiries
  4. Late reporting (possibly your credit cards reporting at different times to the credit bureaus. An easy fix to this is call your credit card and ask them when they report to the bureaus so you know when to make payments so your score reflects better)
  5. Paying an old collection (there is less than a 2% difference whether a collection is paid or unpaid, most weight is given to how recent the activity)
How Can I Start Building Credit?
  • 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

Above all, be patient. Building and establishing credit takes time. If you are thinking about buying a home or vehicle, start planning ahead and looking at your credit now. Credit impacts many factors like interest rates, your insurance and many other things. Great scores mean more savings in your pocket!

 

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

 

Credit Scores Across States│Where Do You Rank?

Battle of the States

Have you ever wondered what part of the United States has the best/worst credit scores? It may come as a surprise to you but, the highest scoring state, Minnesota has an average credit score of 709. What may come as even more of a shock is that yes, they do have credit cards! On average, folks in Minnesota have 2.9 credit cards with an average balance of $5,911. You read that right! The take away from these numbers is that yes you can have great credit, while using and maximizing the credit cards you do have to obtain great credit scores.

Credit Scores across the states

We do not condone racking up credit cards by any means but there are several misconceptions out there about how one obtains good credit. Unfortunately, there is no snap of the fingers to make scores jump 100 points over night but we do know several tricks in an effort to get to the point that you may be trying to get to.

If you are looking for

  1. A home loan
  2. An auto loan

There are several factors that come into play with your credit. Many people do not even know or understand how a FICO score is made-

35% of your FICO is your payment history, 30% amount owed, 15% length of credit history, 10% new credit and the credit mix

So what is the trick?

Is there a trick to better credit scores?

Is there at trick to these high scores? One could argue that there are tricks to the trade.

Imperfect credit scores do not happen over night, the same goes for scores like people in Minnesota with 709. In order to obtain great credit scores you need to know what a good credit mix looks like. At Credit Law Center we advise that a consumer should have two great revolving credit cards and two installments. We also advise a few other steps in order to obtain great scores:

  • Authorized user- a spouse or family member with a credit card with a low balance and several  years of history is a great way to get a quick boost in scores
  • Pay for deletion-asking a creditor/collector to remove an item from the report if you pay a certain amount
  • Lower utilization-paying down a card more than the minimum payments will dramatically impact your credit
  • Inquiries on your credit report can bring the score down

Your Next Step

If you have completed the above steps and don’t see a change in scores, you may have negative items on your report that are weighing heavily like collections, too new of credit cards, or something as significant as a bankruptcy, tax lien, or judgment. Have you looked at a credit report lately? We can go through the credit report with you and discuss what steps you may need to take in an attempt to maximize your efforts.

free credit repair consultation

Did you know?

  • It is actually better for our economy for consumers to have lower FICO Scores. The higher the interest rates, the more money circulating through the economy as well as the increase in the value of currency.
  • There is a misconception that you will have better credit if you do not use credit cards. That is inaccurate, as FICO needs you to have/use credit to have the ability to grade you to come up with your FICO score.
  • Having only installment loans (auto, home, personal) and no credit cards, or only having credit cards, and no installment loans keeps your credit score down 10% then what it could be if you had a good credit mix.

Are you hoping to increase your credit scores and get on the track to better credit? Contact us today and one of our credit advisors  will complete a free consultation or 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

 

Lower Interest Rates & Better Credit Scores│Real Results With Credit Law Center

Increased Credit Scores by 100 Points

At Credit Law Center we love hearing success stories from past clients. One client shares how Credit Law Center helped her family save money and increase their scores.

What brought you to Credit Law Center?

I was online one day and was looking at homes. A lender reached out to me and we started talking about purchasing a home. She pulled my credit scores and we had some past debt that we needed taken care of. I know credit is important. Based off the information we gave the lender, she gave us some options to get where we needed to get approved. She referred us to one of her Credit Advisors at Credit Law Center and so we got in touch. They assured us that we would only pay for the items that actually got deleted and our advisor talked us through the process and the costs.

How did you feel about working with a Credit Repair Company?

I was a little skeptical at first, but I looked into it. I had a really good feeling about my lender referring me to Credit Law Center. My credit advisor, Kim was really good at getting in touch with me. She let me know if an item was not removed, you didn’t pay for it. I let her know I was going to be out of town on a trip and what I could afford. She made it very inexpensive and worked with me on my budget.  I signed all the paperwork and got my report pulled. She went over everything with me, past debts, and gave me advice on the credit I did have. I hadn’t made my first payment yet, and I saw my scores were already jumping and that was back in January. I was receiving updates every month and my scores just kept jumping. My score has improved 100 points since we started the process.

What has the change in credit scores done for you?

The good thing is, back in December I had just got a vehicle. Then in February my husband and I went to get a vehicle for him. My scores had increased so much, my interest dropped 10% from when I got my vehicle back in December. It has just been awesome!

free credit repair consultation

 

Are you purchasing a home now?

Yes, we qualified and based off the information and our credit jumping, we are able to move forward in the loan process.  I have told family about; it was definitely worth it! That’s the good thing with Credit Law Center, any time anything touched my credit they were monitoring it. I was always getting updated and any questions I had to ask, I was able to reach out to my advisor  and could count on her.

Credit Law Center has been awesome and I am happy my lender put me in touch with them. One thing I can say, my husband was very skeptical but after seeing me go through this process with Credit Law Center my husband now wants to go through the repair process and he doesn’t have a bad taste about credit repair anymore.

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.

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

 

Credit Scores Impacted By Timeshares│Buyer Beware

Impact of Timeshares on Credit Reports

A timeshare can be something that affects your credit scores. When thinking about purchasing a timeshare, consider it to be as vital and possibly as damaging as a mortgage to your credit report.

There are many variables that come into purchasing a timeshare. If your family is tossing around the idea, examine these factors prior to signing:

  • Know the Association Fees
  • What the payments look like
  • What happens if you need/want to sell
  • Review contracts and terms

Credit Scores Dropping

In the credit world, the collection companies and bureaus do not consider what has happened and why you cannot make a payment on a debt. Should something happen where you no longer wish to be connected to the timeshare, they still want to be able to collect your money. It is possible that when you attempt to sell a timeshare, your credit report will state “deed-in-lieu” which can have as negative an impact as a foreclosure on the report. I caution you to really consider the purchase you are making and consider what your other lines of credit look like and if a timeshare is in your best interest. Here are a few other ways the timeshare could potentially drop your credit scores:

 

free credit repair consultation

Timeshare Fees

As with any mortgage, your time share could have HOA fees, special assessments, utilities and taxes to be paid. If you can no longer afford to pay these obligations in the timeshare, a lien can be put on your portion of the home. Not only does this impact your credit, it can keep you from selling out of your portion of the timeshare or making future major purchases.

Payments

If your family decides to mortgage the timeshare, you will have to continue the payments until the entire debt is repaid. Falling behind on the payments? They can foreclose the timeshare as if you stopped paying on a normal mortgage payment for a home. This dramatically impacts your credit scores, and could stay on your credit report for seven years.

Selling

It can be extremely difficult to find someone to sell a timeshare to. Whether you decide to discount the cost to the potential buyer, you still have the potential to end up in a bad financial position. The “deed-in-lieu” can be put on your credit report, regardless if you sell the timeshare outright or not.

Potential for Cancellation

In most states, there is a rescission or “cooling off’ where the buyer has the opportunity to cancel a contract and be given the deposit back. When that time frame is over, most believe that they no longer have the ability to leave the contract.

The best way to legally end the timeshare contract is take it straight to the company you purchased it from. The company you signed the contract with will not be thrilled about taking the timeshare back, and may try to convince you otherwise however, if they feel that there is potential litigation, they will more than likely take back the agreement or release the owner from the contract.

It is not impossible to be relieved of the contract you have on a timeshare but it would be wise to look into other avenues other than this option.

The last thing you need when trying to enjoy a vacation spot, or a summer with your family is the stress of an unwanted timeshare with unrealistic fees and expectations. I urge you to think twice before you purchase a timeshare this summer.

Other fun and convenient ideas for a great vacation that allows for your family to come and go is purchase an Air BnB  while continuing to make money by renting it out when you are absent.

If you have a tax lien, foreclosure or are thinking about trying to get out of a bad financial situation due to a timeshare and would like one of our attorneys or credit advisors to take a look at your report, 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