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Debt Collector or Scam Caller? How Can You Tell?

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How To Deal With Debt Collectors

I have recently been receiving strange calls from someone trying to collect money from me, what do I do? As a consumer, it is important to be educated about the process by which an actual collection agency attempts to collect debts as opposed to scam callers asking you to meet them at the nearest CVS with no real explanation and for a large sum of money. It is not uncommon that if you are receiving phone calls, it will continue to happen until you can do something to make them quit.

 

Your Rights Under the FDCPA

The FDCPA (Fair Debt Collection Practices Act) has been put into place for the consumers protection. Though they don’t always follow the rules, harassment is illegal and will not be tolerated. There are many avenues as far a legal actions you can engage in should a debt collector call and harass you. While it is legal for a debt collector to call you and attempt to collect a debt, it is not legal for them to harass or threaten a consumer such as many scam callers and a few debt collectors do. There is a major difference and it is hard to track scam calls down. Many legitimate debt collectors take correct steps when making their phones calls however, should you continue to receive calls this is what you should look for:

They must

  • Identify themselves in every form of communication
  • Address what the call is in regards to “This is an attempt to collect a debt”
  • Verify the name and address of the original collector
  • Advise that you have the right to dispute the debt

If you receive a phone call and the company calling you does not do provide the information above, do not pay them or agree to met them to provide any money. You will want to contact an attorney to see if there are any steps that can be taken.

Taking Legal Action

The FDCPA has set rules in place for the way communication is to be handled by the debt collectors. Should a debt collector or agency not abide by those regulations, you may be able to take legal action moving forward.

  • Collector cannot call outside of the hours of 8am and 9pm on your local timezone
  • Auto dialing or numerous calls in the effort to annoy, abuse or harass the consumer is not prohibited
  • Profane or abusive language is not allowed
  • Calls to family, friends, or place of employment is not allowed
  • A Collector cannot call and threaten to report falsely to credit reporting agencies
  • Once a consumer discloses they are working and represented by an attorney, communication must stop

A few examples of harassing phone calls are on our website, you can access them here.

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Suing the Debt Collector

If you feel you have been dealing with harassing collectors, please contact Credit Law Center so we can help you build your case. We have sued all three of the credit bureaus and are constantly helping consumers become more educated about their credit as well as their rights under the FCRA (Fair Credit Reporting Act). This can be a fairly lengthy process, but in the grand scheme of things, having those calls come to an end are worth moving forward and pursuing legal action.

Continued Harassment and Next Steps

The best thing you can do to help yourself in a scenario like this is document and never throw anything away that may help an attorney out. We advise our clients to document everything such as the time and date you spoke, who you spoke with and what company they work for and any of the phone call details that you may be able to remember. Some other things that will help in this process are:

  1. Collection Letters you received
  2. Any voicemails left, save them to a storage device
  3. Telephone Bills
  4. Notes and contact info taken during call
  5. Take screenshots of your caller ID info

 

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.

 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.

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Why Should You Hire A Law Firm For Credit Repair?

experian boost and ultra fico

Why Consumers Hire a Law Firm For Credit Repair

There is a major difference between what a credit repair company can do versus what a law firm specializing in credit repair can.  What you may find even more interesting is that a consumer can actually do more than what a credit repair company will. A Law Firm however, trumps all. We have been using the law since 2011 to help consumers every day and this is what makes us far superior to other “repair” companies.

Here is how we help our consumers and fight for their rights!

Harassing Phone Calls:

If you are constantly receiving phones calls and are tired of trying to dodge collectors, we can get these calls to stop. At Credit Law Center   we notify all your creditors that you are now a client of our law firm. We also send out correspondence to them indicating that all communication to you should go through us. They must comply with this request! If they do not, it is a violation of the Fair Debt Collection Practices Act and they are liable to you and to us. If they continue calling after you’ve informed them you are represented by Credit Law Center, this could mean money in your pocket!

Violations with FCRA
The Fair Credit Reporting Act    mandates that everything on a report must be verifiable, accurate and timely. A recent study indicated that 79% of credit reports contain errors! Many of these errors are easy for us to spot and we can give our consumers a great idea of what to expect on certain items that may in fact fall off due to a FCRA violation. At Credit Law Center we sue for those inaccuracies.
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Debt Negotiation:
As a law firm we have the ability and power to negotiate judgments, repossessions, charge off, or any sort of debt that is still reporting on a report.  We use the power of the law and our attorneys to negotiate these items in a way that’s favorable to you. While not Debt Consolidation or Bankruptcy, we do have significant tools available to us that help negotiate these debts and save you significant amounts of money! We have four attorneys in house that you can lean on for advice and guidance while working on negotiation. Their extensive negotiating experience with banks, collection companies, and collection attorneys has helped our clients save thousands.  Our goal is to negotiate the debt as low as possible out of court and get your case dismissed.

We Win!
At Credit Law Center we use federal statutes to assist our consumers. The first one is the FDCPA or the Fair Debt Collection Practices Act.  This  statute lays out a specific way in which debts can be collected both legal methods and illegal methods. The second is the FCRA or the Fair Credit Reporting Act.   Lastly is TCPA (Telephone Consumer Protection Act)  This act is specifically designed for text message, fax machine violations, pre recorded voicemails.  Three of these federal guidelines provide for attorney’s fees if we are successful. What that means is if we take your case and pursue it and are successful, the other side pays our fees and as our client you would owe us nothing! Please contact us today if you think you might have a case in any of these areas of the law, we would happy to speak with you further 1-800-994-3070!

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What Really Impacts Your Credit Score?

Credit Cards for College Students

I have clients from all over the country asking me how much particular items on their credit report are affecting their credit and if the item is removed, then will their credit score rise. It is difficult to provide a precise answer because there are many underlying factors that can make or break your credit! Follow Credit Law Center as we delve into the 5 major factors that impact your credit score!

 

#1 Payment History

 

Payment history holds the most weight over your credit score is calculated. Your payment history roughly translates to 35% of your FICO score and could be one of the reasons you aren’t seeing those numbers rise. It is extremely important to establish healthy and beneficial trade lines and to make sure that your debts are monitored and paid in a timely fashion.  Therefore, it is more difficult for beginners to start establishing healthy credit because they have not had the time to acquire a positive credit history.

It goes to show that if you have upheld your credit obligations in the past then you will reap the rewards in the future!

 

#2 Missed Payments

It happens to the best of us, something comes up and we miss a payment! Even a 30-day late payment can hurt your score and if you make frequent late payments then expect your score to start to drop.

Credit scoring models look at:

-Are there late payment appears on your credit report?

– How late are those payments?

-How recent were those late payments?

– How many late payments appear on the report?

 

Automated payments are one of the best ways to ensure that you don’t make a late payment. Most credit card issuers will offer scheduled payments and the option to either pay in full or pay the minimum payment and will allow you to choose whichever fits your financial needs.

 

I use automatic payments on my CareCredit account, and it lifts a lot of stress knowing that I don’t need to remember to log into my account every month to set up a withdrawal. It is smart to check your transaction history to make sure that the payment was made successfully!

#3 Credit Utilization

Credit utilization is almost as important as your payment history in terms of credit health and importance. Your credit utilization rate makes up roughly another 30% of your FICO score!

The lower your credit utilization rate, the lower risk you are to lenders. Say you have a $6000 limit on your credit card, and you are using $2000 worth of credit. You are using a little more than 30% of your credit cap and are seen as a lower risk borrower.

Paying off your statements in full is the best way to keep your credit utilization at a healthy percent and can really bump up your credit score!

 

#4 Length of Credit History

 

Length of credit history and payment history go hand in hand when it comes to establishing your credit score. Length of credit history only takes up about 15% of your credit score but can be a wonderful way to passively grow or stabilize your report!

Fico will consider:

  • Your oldest account held
  • Average account age
  • Usage of accounts

Becoming an authorizes user is a wonderful way to start building credit history if you are just beginning to start building credit. If you have established credit then keeping those older accounts open and in use will be beneficial if done responsibly.

 

# 5 New credit

Studies show that people who apply for a lot of credit in a short period of time are riskier borrowers. In other words, they’re more likely to pay a credit obligation 90 days late in the following 24 months.

Some people apply for many credit cards at once to boost their score quickly. This can have negative implications for your credit score as it makes you seem desperate for credit and you will be seen as a high-risk borrower.

When a financial institution pulls your credit score, a record known as an “inquiry” is added to your credit report. Most inquiries stay on your report for 24 months. Certain inquiries, known as “hard” inquiries, have the potential to damage your credit score for 12 months.

 

Your credit score determines many factors in your life and the more that you understand it, the more fruitful your endeavors will be!

Inquire for free credit review & consultation.

Contact:  1-800-994-3070

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A Guide To Your Credit Mix

Your Fix of the Mix

We all know the importance of having a good credit score.With a high credit score, you can open to door to better interest rates, loans, benefits and more! Good credit can be the deciding factor in whether or not you get approved to rent a home or get a particular  job. Therefore, it’s  is important to  fully understand the various factors that make up your credit, including the credit mix.

To clarify, credit mix is not the most important factor in determining your score. Your payment history carries the majority of the weight, followed by your credit utilization rate and then your credit history and longevity. The good news is, your credit mix comprises  only  10% of your credit score! In the end, your credit mix determines your credit health and can be a beneficial indicator of your credit prowess!

What are the two types of credit accounts?

What exactly is credit mix you might ask? Credit mix refers the different types of accounts associated with your credit report and usually fall into two categories:

  1. Installment loans, in which you borrow a specific amount and have payments due each month for a specific amount of time.
  2. Revolving credit, in which you borrow as much you need and pay it back in either a minimum or full payment until the amount owed is fully paid.

Examples of installment loans are home loans, auto loans, and personal loans. Revolving credit refers  to credit cards; although home equity lines of credit are another example.

 

Understanding Credit Mix - Dollars And Points

What is a healthy credit mix?

If you are looking for a healthy credit mix you will want an even mix of both installment loans and revolving credit .Having a mortgage or auto loan along with a couple of credit cards should set you up with an even credit mix and will reflect positively on your report. On the other hand, if you have only credit cards listed on your report, it can reflect poorly and harm your credit report in the long term.

Now, what happens if you have a few credit cards, but have your vehicle paid off and are all set on your home? Should you take out a personal loan so that you have an installment loan in the mix?

Not necessarily. It is not usually a good idea to borrow money when you don’t need to.Remember, your credit mix makes up only 10% of your credit score.If you are doing well in areas of your credit that hold more weight, such as  credit utilization and payment history then you are more likely to maintain good credit even if your credit mix isn’t as developed as you would like. There is not reason for additional expenses to try and diversify your credit mix!

 

Should I worry about my credit mix?

Every aspect of your credit is important, but don’t fret too much over your credit mix! Not everyone  has that classic mortgage-car loan-credit card mix of accounts. If your score is already high, your credit mix is one of the last things you should worry about! Instead you should focus on keeping your payment history in line and avoiding applying for too many new credit accounts at once.

Inquire for free credit review & consultation.

Contact:  1-800-994-3070

Check out Credit Law Center Reviews:

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This entry was posted in Credit Repair Blogs and tagged creditcredit law centercredit repairEquifaxkansas cityKansas City Credit RepairTransunion. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Both comments and trackbacks are currently closed. Edit

 

Author- Joe Peters

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What Is A Mortgage Score

Credit Terms

Buying your first home is a daunting milestone in everyones life and can bring both joy and anxiety when beginning the process. One large source of anxiety comes from the ever looming need of an acceptional credit score to aquire acceptable rates. For those that meet this criteria as displayed by your credit monitoring service; you may be surprised to know that everything may not be as it seems!

When Jennifer Bingham began house hunting back in 2019, she felt confident that her 740 credit score would secure her dream home when she came across it with an admirable interest rate. As jennifer began the preapprovla process, she was shaken when her bank disclosed that her mortgage credit score was only 700! This score still situated Jennifer in a good credit range, but was unable to get her the rates that she had origionally imagined.

This exact situation happens to many first time home buyers when they find out that they have a mortgage credit score -often showing to be much lower than their  primary score. Consumers have many different credit scores that they are unaware of with the mortgae credit score being only one of them! The difficulty lies with the the fact that it is difficult to view their mortgage credit score unlike their FICO 9 with help of credit information applications. It is not impossible however to track and build your mortgage credit score, but it is important to first understand why there is a gap between your regular credit score and your mortgage credit score.

 

Why is it Different?

A mortgage score, unlike most other credit scores, is based on a formula that hasn’t changed in over 20 years! This is because Fannie Mae and Freddie Mac state these loans must be underwritten to be underwritten based on the FICO formula. Though there have been efforts to make changes to the mortgae credit score, the process has yet to see reults.

The issue with the old formulacomes down the the way it reports. Unlike the more consumer friendly formulas of other credit scores, the old formula may report lower scores for its consumers. Medical debt is one example of an item that is no longer conted toward newer fico scores, but is still taken into account when it comes to the mortgage formula. The same goes for collection debts that have been paid. These paid debs are not counted in the newer formulas, but hold weight when it falls to the classic FICO formula.

Mortgage credit scores are also more difficult to improve than their FICO 9 counterpart. While other FICO formulas have tools like Experian Boost to help to being building credit or suppliment thin credit profiles, mortgage credit does not take these tools into concideration when reporting. With theses reporting diffences between reports, it is not unlikely that there will be a discrepancy of 20 or so points between the two scores.

Another major difference that can be found within your mortgage credit score is the “shoppinh period allowed. Newer formulas allow for a 45 day window where multiple credit requests made by lenders will only count as one inquiry.  With your mortgage socore, that window is only 14 days, meaning more inquiries that will impact your score.

Recently, the Federal Housing Finance Administration (FHFA) has announced that it would concider alternative credit score formulas when it came to mortgages. Sadly, until the concideration leads to action, the old formula will remain in use.

 

How To Improve Your Mortgage Score

The first step to improving your mortgage score is to know what is listed on it by getting a copy. Sites like myFICO.com, though you will have to pay a monthly fee of about $20, will give you access to up to 28 different FICO scores! Another way to find your mortgage score would be to go to a lender and have them pull an informational credit check for pre approval from one of the bureaus!

The second step is to reguarly review your credit report and identify errors when they arrise. More than 70% of Americans have wrongful information on their credit reports that can be challenged for removal! You are legally entitled to one free copy of your report each year, but due to the pandemic, you can request weekly reports from all three bureaus until April 20, 2022!

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.

 

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Fact or Fiction? A Look At Hard Inquiries

What's the Difference Between a “Hard” and a “Soft” Credit Inquiry?

Whether you are applying for a new credit card or a home loan, hard inquiries are constantly present when attempting to build credit. Although hard inquires are one of the most common items found on a credit report, there is still much mystery surrounding their effect on a credit score. In todays “Fact or Fiction” we will be taking a deep dive into hard inquiries to shed light on some of the most common misconceptions and answer some of your most asked questions!

 

What Is A Hard Inquiry?

It is a common misconception that in any instance that there is a request to pull your credit, a hard inquiry will be listed on your report. A hard inquiry will only occur when you inquire for financing with a lender directly. This does not apply when you are inquiring for pre approval or pulling your credit for informational purposes and is considered a soft inquiry. Unlike hard inquiries, a soft inquiry will not appear on your report and does not impact your credit score.

   -Soft Inquiries-

Soft inquiries are a little different from hard inquiries; while they do show up on your credit report, they are strictly for your personal reference and have no impact on your credit score. Soft inquiries are not visible to lenders as they are strictly made for informational and pre approval purposes and are only seen by the consumer. Soft inquiries will fall off of your report in anywhere from 12-24 months depending on their type!

How Long Do Hard Inquiries Stay On A Report?

Hard inquiries differ from other items on your report when it comes down to their expiration date. A hard inquiry will usually stay on your report for about 2 years but only affects your score for about 12 months! Hard inquiries are meant to serve as a timeline of when and how often you have applied for credit and can mean different things to different lenders. Multiple hard inquiries can portray a sense desperation to a lender as it shows that you have attempted to apply and were denied by multiple lenders. In some cases, like when inquiring for a home loan, there is a short window where multiple inquiries will count as a one!

 

How Much Do Hard Inquiries Hurt My Score?

There are many misconceptions about just how much a hard inquiry is “worth” when it comes down to affecting your score. It isn’t a case of “One hard inquiry amounts to 5 points and if I have 10 hard inquiries, that means I’ll drop 50 points”. Hard inquiries do not necessarily have a dedicated point value and their potency really falls to how healthy your credit score is prior. Someone with a long positive payment history and multiple open accounts with low credit utilization will not be as heavily affected by hard inquiries as someone who is new to building credit.

Can I Dispute Hard Inquiries?

Unlike other items on your report that can be disputed due to infractions in their listed information, legitimate hard inquiries are difficult to remove. If a hard inquiry  is pulled from your report without your knowledge, you do have the right to request its removal. This also applies in the instance of identity theft as the application is not legitimate to your inquiry.

Do you have hard inquiries on your report that were made without your knowledge? Do you have questions about your credit report or credit questions in general? f you would like to speak with one of our attorneys or credit advisors and complete a free consultation please give Credit Law Center a call at 1-800-994-3070 we would be happy to help.

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       -Disputing Inquiries Made By Car Dealerships-

How to Find the Best Car Dealerships in Los Angeles - Silverback Automotive

 

Disputing multiple inquiries made by an auto dealership is a rough area for many consumers. When submitting a loan application at a dealership, they will often inquire with multiple lenders to attempt to get the best financing opportunity for the consumer. This practice is referred to as shotgunning and is common in every auto dealership and when signing  a car loan application, is essentially giving the dealer permissible purpose to make multiple credit pulls. Depending on the FICO score used, similar to shopping for a home loan, there is often a window where the multiple inquiries will only count as a single inquiry on the report. The FICO score used will depend on which lender is being inquired with.

 

Article by Joe Peters

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What’s Stopping You From Borrowing?

Credit Law Center Credit Score

I Want To Buy, Now!

Are you preparing to purchase a home in the next few months? It seems that when we are not looking, a home just pops up and finds us, at a time when we were not even contemplating making a move. Then, boom!  The rush is on to beat the clock and make an offer before the next person does. With how quick homes are flying off the market, the best thing to do is be as prepared as possible right now, in the event you do find what you are looking for.

Many borrowers hoping to apply for a home loan are unsure of what a lender might need because it is either their first time, or the process was so long ago. Let’s go more in depth here, about what you will need to get to the point that you are ready to purchase!

Here are 4 things you’ll want to start thinking about before you meet with your lender:

  1. Locating your W2, pay stubs and documents to provide proof of income
  2. Decide if someone will be on the loan with you
  3. How much money you may have/can save for a down payment
  4. Your credit scores
This list will start to prepare you for what your lender will want to discuss with you. More often than not, what is going to keep you from moving through the process as quick as you’d like, is if your credit scores are not where they need to be.
Facts on Fico

FICO is grading you on a few key factors:

  • Payment history
  • New credit
  • Types of credit used
  • Length of credit history
  • Amounts owed

 

If you are looking at your credit report and seeing several derogatory accounts, late payments or other items you will want to look at cleaning up your credit before you go in to a lender. In an effort to lessen the pain of a solid “No” next time you meet a lender, and miss out on your dream home, please consider the following points. If you feel you are a high risk borrower, there are a few things you can you do to ensure that you can lower your risk to lenders. The more prepared you are and the more education you have, the more equipped you will be to get approved and improve your buying power!

4 Challenges of a High Risk Borrower

1. Do you have a low Fico?

You can be sure that your lender will be taking a look at your credit report when you are thinking about purchasing a home. This score is a large portion of what they are using to determine your trustworthiness and the likelihood of you defaulting on a loan, based off previous loans, bank accounts, credit card payments, etc. As important as the scores are in this process, do not let this keep you from going in to see a lender.

If your FICO scores are low there are several things you can do to increase your scores on your own. Read more here, or speak to a credit advisor at Credit Law Center so they can look through your report and ensure you are mortgage ready before you find the home of your dreams.

2. What does your employment status look like? 

Your employment status and employment change are two very different things. Should you be changing jobs often, this may be cause for concern. If you are working a full-time job with regular, consistent pay, creditors prefer this. If you do not work on a set schedule with set pay however, or maybe are self-employed (with less than 2 years of verifiable income), a lender may be very hesitant to lend you any money.

 

 

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3. Are you lacking excess funds?

Although there are several programs in place for borrowers with little to no money down, it is a good idea to save and have some skin in the game for a down payment. Many lenders would prefer to work with someone that has shown financial responsibility and saved and set aside money. A lender may be hesitant if you  do not, and potentially feel like you still may be a risk.

4. Are you avoiding other responsibilities you have?

Late payments impact your credit score the greatest. If a lender sees you have been falling behind on responsibilities you already have, this can be a large red flag during this process. Again, they are considering the likelihood of you to fall behind on the loan, and if you are late on several bills, why would they feel your mortgage would be any different?

If the above apply to you, and you are potentially a high risk borrower, do not let that stop you from pursing a home. As discouraging as things might seem, there is hope for you after some time of getting back on track.

If your credit is not where it should be and your lender has expressed concern, you may look into a few different options within credit repair. If you are in a rush and are pressed for time, Credit Law Center can help you through a quick and affordable process. Each round with Credit Law Center lasts 30-45 days. If you have items on the credit report that have to be removed (collections, tax liens, bankruptcy, etc) allow a credit advisor to walk you through a consultation.

The credit advisors at Credit Law Center will let you know what you can work on, on your end as well as what you may be doing that is keeping you from higher credit scores. With a little help and a guide to walk with you, that new home may be closer than you expected.fund

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5 Questions You Should Ask Before Starting Credit Repair

Credit Score

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!

 

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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.
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Is Your Credit Score Costing You Thousands?

Are You Wasting Money

How Your Score Is Costing You Thousands

Back when I graduated high school (a few years after dinosaurs walked the earth) I had absolutely no idea how detrimental my credit score would be to my  future purchases. My brother was sitting pretty with a 750 credit score and financed his new car at an extremely low interest rate!  On the other hand, I was sinking with a 580 credit score and financed an older Honda Civic for almost double the interest rate! No big deal, I saw this coming but what about insurance. My brother is only 3 years older than me, had 2 accidents on record and we had the exact same insurance agency providing our car insurance. Even with a good driver discount, an older vehicle, no accidents and basic liability coverage;  I was paying 40 dollars more a more a month than my brother for my insurance!  Why is it that I had to pay so much more than George and how can I get  the same payments as he does? The answer all comes down to our credit score difference!

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.

 

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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 Joe Peters

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.

 

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5 Common Mistakes Consumers Make With Their Credit

How Could You Be Hurting Your Credit?

The more you know about how credit works, the better your score will be. This is because, without a lot of background knowledge, your own logic and reasoning will oftentimes fail you. There are a lot of factors that go into creating your credit score, so trying to make decisions when it comes to your credit without studying up first can be tricky. There are five big mistakes a lot of consumers often make because, without any background knowledge, they all sound perfectly reasonable.

1. Close A Credit Card

Just because you don’t really use your card does not mean you should close it. A lot of the time consumers will close a credit card because it is not getting used, but that actually will raise your credit utilization ratio, and thus hurt your credit score. So, keeping the card open, even if you rarely use it, can be beneficial. Make sure you use it at least every once and a while though in order to protect yourself from the card issuer closing the account for you due to inactivity.

2.Believing that Paying on Time is All You Need for A Good Credit Score

Yes, paying off all your credit card debt on time is good for your credit score, but that is not all it takes to have what is considered a quality credit score. If you are using a huge portion of your credit limit every month, even paying it off completely and on time will not be as beneficial as lowering your credit utilization ratio would be. Your credit utilization ratio is one of the biggest factors that goes into creating your credit score, and the lower is it, the better your credit will be. So, keeping your utilization ratio under 30 percent per credit limit will benefit you even more when it comes to your credit.  

3. Pay Off A Loan Early

  It definitely can benefit your finances to pay a loan off early, especially if you are paying a very high interest rate on the loan, but this can also hurt your credit score. It would be very easy to think that paying a loan off early would help your credit, but in reality, it lowers your credit mix and therefore lowers your credit score. So, if the interest rate on your loan is not burdening you financially, then you will actually benefit from not paying a loan off early.

4. Reject Higher Credit Limits

The only reason you should reject a higher credit limit is if you know you will not be able to stop yourself from overspending because of it. Otherwise, keeping your spending at a consistent rate while also increasing your credit limit will raise your credit score because your credit utilization ratio would then be lower. So, accepting a higher credit limit will in most cases raise your credit score if you can keep yourself from overspending.  
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5. Send in Partial Payments

Paying off a debt partially does not put you in better standing with the debt collectors or the credit bureaus. You will still be reported as paying late and are at risk for a delinquency on your credit report. So, if you are struggling to pay your minimums every payment cycle, talk to a credit counselor before trying to appease the creditor by only paying partially.
Other 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)
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.
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