Posts

Credit Cards For College Age Students│5 Back To School Basics

Back To School For College Students

Do you remember what you did with the last credit card you closed out or cancelled?

  • Be aware of your surroundings at all times
  • Don’t skip class
  • Get involved/meet new people
  • Have fun, but not too much fun

College orientation can be a whirlwind and there are so many things that happen very quickly prior to the first day of classes. It is no longer as easy as grabbing the list at Walmart for school supplies and heading off for your first day.

I can recall my mother and I signing up for a checking account at a bank that was local in the town my University was at. I was extremely excited to start school and was ready for all these new responsibilities.

With that being said, there were also some things I didn’t know about as an 18 year old out on their on my own. I was not aware of what all went into good credit scores.

Here are five tips to educate your college age student when it comes to credit:

1. The Reality

As a student you may not know what shows on your credit reports.  Student loans are just one of the items that may end up on your credit report.

Other things that may show up on your report in a negative way can be

  • late payments on utilities
  • a landlord that you or a roommate doesn’t pay with the lease and fines
  • retail credit cards
  • late payments on a student loan

If your student is making payments on their loan themselves, stress to them that late payments are very serious when it comes to their credit. The same goes for any kind of credit card or bill.

A late payment on a credit report can drop a score up to 100 points. Rebuilding credit can take a while and although it may not seem to be a big deal to a student currently, good credit is important and should be emphasized to your student.

 

2. Find The Right Fit For You

If there is an absolute need for a credit card as a student, you want to be sure to do all research before taking the next step and signing up.

When you are looking into applying for a credit card remember these few rules

  1. Shop for low rates
  2. Try a credit union
  3. If you apply for a checking or savings account with a bank, look into credit card options with them as well

 

free credit repair consultation

3. How To Use The Cards You Get

A credit card should only be for emergency use or to build credit. Students should keep credit card balances as low as possible. If they are using the credit card, try to keep the balance below 30% of the limit.

Credit card balances are reported to the credit bureaus each month. Your credit score will reflect lower scores, if your balances are very high or are reaching maxed out or close to the limit.

 

4. Building Credit

If your student is using credit cards, encourage them to monitor their credit.

The myth out there about having to keep a balance on your credit cards is not accurate. Remind your student as well, that most of the credit cards will be acquiring interest.

There are many companies out there that will offer credit reports for free or you can enroll in credit monitoring.

When pulling a credit report, take note that any consumer score that you can view online is a vantage score not an actual FICO score. Vantage scores tend to be higher than what an actual FICO is. FICO scores can only be given to  you by a bank or lender. However, monitoring your credit at this time is more about what is showing on the report and the timely payments, etc on the report rather than the bureau scores.

5. Put A Lid On It

In an era where it seems there are so many awesome things going on whether you are on Facebook or Instagram, it can be hard to miss out on fun opportunities that maybe you just cannot afford.

Although your student may want to take that awesome Spring Break trip with friends or they have a hard time without the newest clothes, continue to help guide them and help them understand the importance of making good financial decisions.

How Can My Student Start Building Credit?
  • Become an authorized user on family member card
  • Look into a credit builder loan
  • Apply for a secured credit card

There will be many important life lessons that happen through this next time period in their lives. As parents it is important we both teach and model good decisions and long lasting lessons. We hope this sparks a conversation in your household about good financial choices for your high school graduate or soon to be graduate.

 

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

 

Protecting Your Credit When Natural Disasters Hits

In recent weeks the United States has been hit with several natural disasters, leaving Americans uprooted from their homes and their employment. Texas and Florida are dealing with the aftermath of flood and rain waters from Hurricane Harvey and Hurricane Irma, while the Western United States is dealing with the complete opposite dry and extreme conditions causing widespread forest fires.

In the wake of a natural disaster such as the recent hurricanes and wildfires, you may be wondering:

    • What if I use my credit cards or max them out?
    • What If I miss a payment?

What if I use my credit or max out my credit cards?

Rebuilding your home or life after a natural disaster can be overwhelming mentally and financially. Natural disasters like the recent events in the United States will require many Americans to start over completely, even with insurance money, government grants and any nest egg you have built you may still need to use your credit cards. We do know that the area we reside is not part of what makes up your FICO credit score, but using your cards and or maxing them out may affect your FICO Score. One of the first things you should do is pull your credit report, pulling your credit report will give you a complete picture of your credit profile at the time the natural disaster hit.

What If I Miss A Payment?

Missing just one payment could damage your credit significantly and could lead to not being about to obtain credit when it is most needed. If your house has was destroyed, make sure you cut off costly services, such as Wi-Fi and cable or electricity. This would be a perfect time to look at your budget and create a post-disaster budget; this budget should be a bare-bones budget. Once you created your budget and determined the amount, you can pay each creditor, call each creditor and discuss your options.  Depending on the credit card company and their situation they may offer you long-term or short-term options, may waive late fees or offer assistance programs.

A Few Companies That Are Helping

If you are your family or friends have been affected by a natural disaster here are a few companies that have resources for you. The information below is directly from the companies listed web pages, please visit the links to see more information.

Wells Fargo 1-800-869-3557

We know this can be a stressful time financially, so we are committed to giving affected customers additional support. Here are the ways we’re proactively helping customers in FEMA-declared areas (customers impacted by the hurricanes outside these areas are also encouraged to contact us):

  • Reversing certain fees — such as late fees — for our lending products, including credit cards, auto loans, personal loans, and lines of credit.
  • Waiving Wells Fargo fees for customers using non-Wells Fargo ATMs.
  • For Credit Card customers, providing payment relief and suppressing any negative credit bureau reporting for 90 days.

Citi Cards 1-800-950-5114

Customers in FEMA-designated disaster areas may be eligible for assistance such as:

  • Automatic waiver or refund of late fees on credit cards;
  • Automatic waiver of monthly service fees on Citibank deposit accounts;
  • Automatic waiver or refund of late fees on personal loans and lines of credit;
  • Deferred minimum payments on credit cards;
  • Emergency credit line increases;
  • Waived early withdrawal penalties on CDs and wire transfer fees;
  • Waived late fees for September mortgage payments; and
  • Mortgage payment forbearance programs.

Chase Home Lending 1-888-356-0023

First, for all customers who live in a FEMA-designated individual assistance disaster area, we’ll pause the obligation to make mortgage and home equity payments for 90 days from when the hurricane first hit (a 90-day grace period).

Low Fico Scores│Too Many Inquiries On My Report

How Do Inquiries Impact My Score?

One of the common misconceptions about a credit score is that inquiries have a major role in the score. If you have looked at your credit score recently and feel that there are not many dings to the report that would cause your score to be low, take a few things into consideration first:

  1. Do you have two or more revolving lines of credit? If so, are these accounts at or below 30% of the limit?
  2. Now, are there any collections, charge-offs or other accounts that are in a negative standing? You’ll want to have these removed from the report.
  3. Lastly, do you have incorrect or inaccurate contact information on your credit report i.e addresses, names, etc?

All of the above scenarios should be looked at before jumping to what your inquiries look like.

One Too Many Inquiries

If you have been credit card or car shopping lately, you may notice a multitude of inquiries on your credit report. It is very common for a dealership to throw your information into their system to see if they can find you a low interest rate at a great loan term so they can sell you the car on their lot.

Understanding how this impacts your score allows you to walk into each situation prepared and knowledgeable. Whether you are applying for a new credit card or a car note a few things.

  • When shopping for a car, research a Credit Union you could get a loan through, rather than the dealership financing option
  • Know your credit score
  • Don’t apply for credit when you don’t need it

Each time you apply or allow someone to check your credit score, you are allowing them to apply another hit to your credit profile.

The best rule of thumb for inquiries is no more than 10 “pulls” on your credit over a 12 month period.

Once you start running into more inquiries than this, your credit score will start to be impacted by them. Again, applying for unnecessary credit lines will start to impact you in a negative way.

I Have Been Denied Credit

If you have run into issues of hoping to start building credit, but have been denied credit cards over and over, there are a few options you have. Applying or inquiring for more and more credit is not helping your scores. You can try a few other options such as:

  • Applying for a  Secured Credit Card
  • CD Builder Loans
  • Second Chance Checking

You can look for other options for credit cards here

free credit repair consultation

What My Credit Score Says

Your credit score tells a lender the likelihood of you to default on a loan in the next 12 months. Credit demonstrates your trustworthiness to pay your bills and loans on time. Keeping this in mind, it is easier to understand what your credit report says about you as a borrower.

If you have late payments, this impacts your score significantly.

Facts on Fico

If you look at the chart above, you notice that your payment history makes up 35% of the FICO score. Therefore a late payment will tank your score! Another large portion of the FICO score rating, is the amount you owe. If your credit card balances are high, the easiest and quickest way to start improving your score is to pay your cards down as low as you can, rather than making the minimum payments.

In order to have a healthy credit profile, it is recommended to have two lines of revolving credit, and two personal (like home and auto) loans. If you have questions about other reasons your scores may be low or would like to speak with an attorney today, please call 1-800-994-3070. We would be happy to assist you further or answering any questions you have concerning your score.

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

law firm vs credit repair

Quick, Affordable, Credit Repair │Reviews and Recommendations

Quick and Affordable Credit Repair That Works

When you are interested in a product where do you normally go for feedback? If you immediately go to the review section of a product or turn to friends for their recommendations you are like most consumers out there!

With the device in your hand that you are probably reading this article on, you can easily search the internet for the “best of the best” of almost anything you may want to purchase.

Over the years, many consumers have tried to go to various companies for credit repair services and advice but have been disappointed by services that over promise and under deliver. Credit Law Center is an attorney based credit repair company built on a solid foundation of trust and commitment to their clients. The reviews from both clients and real estate agents and loan officer’s speak volumes. Not to mention, the company has been open since 2009 repairing credit as opposed to some companies that last in the industry for a few years or less.

Trusted Partners

At Credit Law Center, on average there are 600-700 new clients a month. Over half of these clients are referred over by loan officer’s and real estate agents from 46 different states.  If you were wondering what these referral partners and businesses receive from Credit Law Center in return, the answer is simple. Theses agents, after just a few months in credit repair, receive a client that is ready to purchase a new home or was able to close on a house. Both companies are in constant contact to ensure that the goal of closing on a home is met.

A client in credit repair with Credit Law Center can expect that they will be educated throughout the process on how to continue to raise their scores and learn more on the way credit works, so they can continue to build their scores long after they have left credit repair.

One loan officer, Drexel Swanson with USA Mortgage has been using Credit Law Center to refer his clients for several years. “I have closed 8-10 deals this year that would not have happened if Credit Law Center didn’t get involved, just three this October.” Drexel feels that Credit Law Center works at a reasonable price and goes above and beyond to educate his clients as well.

“One client signed up (less than 30 days before closing) and improved his score and saved $5,000 in closing cost because his scores increased by 55 points. He spent less than $1,000 with Credit Law Center,” Swanson says.

law firm vs credit repair

Credit Law Center’s Promise to Clients

There are many companies that will lock a consumer into a monthly program which means they are already collecting the clients money and have no real reason to improve the credit scores because they are being paid. At Credit Law Center, their promise to their clients is they will not pay unless items are removed. While there is a credit monitoring fee, this is strictly to show and monitor what items are actually falling off the credit report. Clients with Credit Law Center can go in and look at their accounts and see what is being removed. They also receive letters from the creditors and collectors with statements showing if their debts and items on their report are removed, updated or verified.

There are several complaints out there with various credit repair companies that the consumers were unsure of what really was improved on or where their money was actually going. Credit Law Center clients receive their updates and a list of the items that were gone after, and what was removed or not. Communication and expectation is set at the beginning of the consultation so the client is aware of the possibility of items to come off or not and realistic expectations are discussed, Deborah felt she receive great service from start to finish.

“My husband and I are extremely satisfied with both the customer service we have received and the results provided by the Credit Law Center! When we first contacted CLC we were in the process of trying to buy a house and we thought that this would be impossible due to my husbands horrible credit scores. My husband had been making strides on his own to improve his credit, but the process was extremely difficult because of all of his past debts and collections. After the first 45 days we were shocked! A lot of the items that were dragging his score were removed and his credit had improved dramatically! We are so grateful to have found a company that is so dedicated to what they do. They have such a great reputation because of their high success rate and also will not charge you unless they actually get items removed! Sincerely, thank you so much!”

 

free credit repair consultation

What do the scores mean?

If you are interested in what scores you are seeing when you pull your own credit report, you are looking at consumer or vantage scores. This is the score you have access to online that may show higher than what a lender or bank would pull for you. These are not true FICO score. These scores show higher so that you will start shopping around for products, or continue to spend. Your score may be significantly lower when you apply for a home loan with an actual bank or lending institution. Once you understand this, the frustration or mind game you feel that happens when your scores are so different won’t be so frustrating. So, what do your scores mean for you?

  • Very Good : 740-799
  • Good : 670-739
  • Fair : 580-669
  • Poor : 300-579
What are the fees associated with credit repair?
  •  $65 for collections, charge-offs, and repossessions.
  • Bankruptcies, foreclosures and short sales are $120.
  • Credit Law Center is able to also help in debt negotiation
  • Credit Monitoring

 

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

Ease and E-Commerce│The Pros & Cons of Online Spending

How Would You Like To Communicate?

We took a recent survey on our Facebook page asking how users would like to be contacted; via phone call or text/email conversation. The results were not surprising! More than 90% of users voted text and emails. There seems to be a wave of change happening in the way our every day consumer takes in information.

Are you watching the news or your news feed for most recent events? Are your daily interactions on a device or a face to face debate?

If you are with the 90% of consumers that would rather communicate with no real human interaction, does this also apply to the way you purchase goods and services now too?

E-Commerce and E-Tail (Not Retail)

Apparently, it does!

The trend continues when you look at companies that are now converting their grocery shopping to an online platform. Their consumers are taking a side that “we are too busy” to go in the store anymore or that they no longer want to deal with lines, people and the inconvenience it adds to their day.
So what did these companies do? They gave consumers what they wanted; convenience.
As a whole, business owners are recognizing they need to shift their focus (and their marketing) to the digital platforms.

The Pros Of The “New Consumer”

Are there some products you are okay with buying online as opposed to others? Science says that for some people, purchasing an unfamiliar product they feel is more comfortable to buy in person. Have you gone to the store to try a new product, only to return it again a few days later? This proves the point that we will continue to buy familiar products over and over again. For those that do quite a bit of shopping online, they most likely stick to the same brands and services they have come to know and trust because they know the likelihood of having to return it is slim. That among the convenience of buying online makes the e-commerce option seem more appealing.

For Businesses, the pros are as follows:

  • Customer Loyalty
  • Brand Recognition
  • Repeat Customers
  • Customer Reviews/Satisfaction

Many of these pros play a very important role in the customer experience! For an online consumer, there is no long lines, and annoying check out attendant, just a basket of items to add and one click to check out. If the user experience is quick, easy and a great product, you better believe they will share it with all their friends (Facebook “friends” too).

The Cons on “Over Consuming”

While there are many reasons why the customer experience and the instant gratification with online shopping seems great, there are a few cons to the way we are making these transactions. While shopping in a store, there are several emotions that play into the purchase or “put back” of an item. Does this seem practical? Do I need it? What is my budget like?

You may feel you are getting great deals or that “time is money” but you may be overspending when it comes down to it. The same way that these businesses have marketed to you to show you that their way is better, are the same tactics they use to market more products and a need for more “stuff” that they have.

 

free credit repair consultation

You may find that you are spending more money due to:

  • High credit card balances (trying to make more payments to pay them off)
  • Cost of shipping products
  • New Products daily in your email/phone that you buy because you “want” them

There is an overwhelming amount of consumers in debt. The fact is, we sometimes we consume to many products and services without even recognizing it. Have you been there before?

Your Finances

If you are finding that you are falling behind on payments, have credit cards climbing in debt and have collection companies calling you daily, you may be in need of help. Credit Law Center is a law firm that specializes in credit repair. There are credit advisors ready to help you cut back and buckle down on your finances again. Whether you are thinking about filing for bankruptcy or are struggling to figure out the best option to pay a creditor back, they want speak with you so you can get back on track. Whether you want to talk via text, email or by phone, they can tailor to your needs.

The first step towards getting somewhere is to decide you’re not going to stay where you are. Take the next step to better credit and a better life.

 

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

law firm vs credit repair

 

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

 

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

 

Good, Better, Best │Understanding My Credit Ratings

Good, Better, Best and Bad

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

A Numbers Game

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

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

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

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

Increasing Credit Scores

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

Facts on Fico

Positive Payment History

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

One late payment can potentially drop your score 100 points.

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

 

free credit repair consultation

Credit Scores and Savings

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

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

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

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

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

 

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

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

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

Article by Breana Washington

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

credit collection myths infographic