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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

How to Raise Your Credit Score Quickly – Credit Law Center

So you want to buy a house, but your credit score is 675 instead of 720 which will get you the best rate on a home loan. If you want to raise your credit score quickly, there are some steps you can take that can guarantee an exceptional home loan or any other credit line for that matter.

The Blueprint to a High Credit Score.

The blueprint for getting a great score is to pay your bills on time, keep account balances low, and take out new credit only when you need it. Those who follow this blueprint faithfully have very high credit scores. It usually means you are cautious and conservative about credit. Credit scores are not something you want to take lightly.

Sounds easy enough right? Great advice, but let’s face it following these basic principals takes time. What if you are house hunting and need a few extra points to bump you over the line to exceptional rates?

How to Raise Your Credit Score Quickly When You Need a Few Extra Points
The first place to start is with your credit report. Make sure to check it over and find out what your credit score is right now. Review your credit report to make sure all the information is reporting accurate. You will want to concentrate on correcting any errors by following the dispute process. Look for errors such as accounts that are not yours, late payments that you paid on time, debts you paid off that are showing as outstanding, or old debt that shouldn’t be reported any longer. Negative items are supposed to be deleted after seven years, except for bankruptcies, which can stay as long as ten years.

After repairing any errors, the quickest route to a better score is paying down balances on credit cards. There’s no silver bullet, but over a 60 day period, it is possible to raise increase your score by twenty points, by paying down your credit lines.

 

Things You Should Not Do To Raise Credit Score

One thing you should not do if you are just trying to boost your score is close unused accounts. If someone tells you to close unused accounts to raise your score quickly, he or she is pulling your leg. Actually, it harms your credit score.

Closing unused accounts without paying down your debt changes your utilization ratio, which is the amount of your total debt divided by your total available credit. You appear closer to maxing out your accounts. That is why your score can drop. It does not mean people should not close them, but don’t close them to improve your score.

 

The Average Credit Score for Each State In 2019

 

A Record-Breaking Year

 

We have seen the highest average credit score ever in 2019 and the numbers keep rising! The U.S. economy is truly booming: Record job growth caused unemployment rates to drop to a record low and the stock market flourished throughout the year. Consumers showed their confidence as they continued to borrow and spend energetically and responsibly! Below is a list of each state and their average credit scores throughout the year of 2019!

 

Alabama- 680

Alaska- 707

Arizona- 696

Arkansas- 683

California- 708

Colorado- 718

Connecticut – 717

Delaware-701

Florida- 694

Georgia- 682

Hawaii- 723

Idaho- 711

Illinois- 709

Indiana- 699

Iowa- 720

Kansas- 711

Kentucky- 692

Louisiana- 677

Maine- 715

Maryland-704

Massachusetts- 723

Michigan- 706

Minnesota- 733

Mississippi- 667

Missouri- 701

Montana- 720

Nebraska- 723

Nevada- 686

New Hampshire- 724

New Jersey- 714

New Mexico- 686

New York- 712

North Carolina- 694

North Dakota- 727

Ohio-705

Oklahoma- 682

Oregon- 718

Pennsylvania- 713

Rhode Island- 713

South Carolina- 681

South Dakota- 727

Tennessee- 690

Texas- 680

Utah- 716

Vermont- 726

Washington- 723

West Virginia- 687

Wisconsin- 725

Wyoming- 712

FICO Score Range

 

Very Poor: 300-579

Fair: 580-669

Good: 670- 739

Very Good: 740-799

Exceptional: 800-850

 

With FICO Scores seeing a 14-point increase and loan delinquencies significantly reduced since 2010, Americans seem to be maintaining healthier overall credit habits while also feeling bullish about growing balances across credit cards, retail cards, auto loans and even mortgages!

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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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).

Millions of people in America with mistakes on their credit report- Credit Law Center

 

 

Believe it or not we live in an age where much of what goes on in our daily lives is monitored, collected and sold to interested parties. Our driving records, our medical history, our internet traffic and most importantly our credit information. Which can make you vulnerable to identity theft or a mistake on your credit report, that could cost you money. These mistakes can increase the interest you pay on your loans, prevent you from getting a mortgage, buy a car, landing a job or getting a security clearance. A government study indicates as many as 40 million Americans have a mistake on their credit report. Twenty million Americans have significant mistakes and the credit reporting industry shows that those mistakes can be nearly impossible to get removed from your record.

Consumer Credit Reporting

Consumer credit reporting is a four billion dollar a year industry dominated by three large companies Experian, TransUnion, Equifax. They keep files on 200 million Americans in traffic and our financial reputations. They make their money gathering information from people we do business with and sells it to banks, merchants, insurance companies and employers. These businesses use it to make judgments about our credit worthiness and reliability.

But now the reliability of the industry is being questioned by the Federal Trade Commission. John Liebowitz served as FTC chairman says “One out of five Americans has an error on their credit report and one out of ten has an error on their credit report and because of these mistakes Americans credit scores might be lower as a result”.

Close your eyes for a minute and trying to think of another industry where a 20 percent error rate would be acceptable. Maybe weather men and woman are the only ones that you were more than likely able to come up with. Even then, you want to make sure you remind them that they were wrong because they ruined your plans.  The same applies to your credit report.

Errors On Your Credit Report

These errors are clear violations of the Fair Credit Reporting Act which performance based credit repair companies can take care of for you, that monthly credit repair companies just can’t. Performance based credit repair companies like Credit Law Center uses those mistakes as leverage to get their clients results faster, without dragging out the process to simply collect as much money as they can get.

These banks, merchants and debt collectors have a legal responsibility to make sure that the information is accurate. The federal law says that if you believe that there is a mistake you can go to them and they have an obligation to do a reasonable investigation. Let’s face it, they are not doing a reasonable investigation.

Disputing Your Credit Report

Eight million people a year file disputes about their credit report, which usually requires a visit to the Experian, TransUnion or Equifax websites. Those sites are primarily designed to sell you premium products, not resolve a dispute. There’s a toll free number you can call which is likely to connect you to someone on a faraway continent.

Besides the toll free number, they also give you a post office box address where you can send a letter and documents supporting your claim in each case. It’s extremely unlikely that anyone with the authority to resolve your dispute will ever actually see it. Usually if you challenge your credit report and mail your information to a post office box in the United States, the dispute will likely be investigated in India, Philippines or South America.

Then your dispute will be sent with a two or three line summary and no documentation back to the bank,merchant, or debt collector that furnished the original information. If there was a difference of opinion between the creditor and the person who was filing the complaint. The bureaus usually resolve it in favor of the creditor. You heard correctly, the creditor was always right.

The difference between monthly and performance based credit repair

Much of what’s known about the inner workings of the consumer credit agencies come out of lawsuits filed by performance based credit repair companies like Credit Law Center who have subpoenaed company records, deposed employees and executives and say under the current system there is no way for people to get these issues resolve.

Performance based companies like Credit Law Center can get a jury verdict for hundreds if not thousands of dollars for their clients.That’s chump change for these bureaus! They would rather pay a verdict in a hundreds to thousands of dollars, than to actually go in and change the policies and procedures that they have.

What most people don’t understand is that monthly credit repair companies are limited by what they can do. Basically you are paying $65 to $100 a month to send dispute letters that are going to India, Philippines, South America or filling out the dispute on the 3 big credit bureau sites on your behalf and keeping their fingers crossed. Very little if any fighting for consumers rights are going on.or people to get their problems solved. So clients who take the time to meticulously document their case that the bill isn’t theirs or the bill has been paid, have sometimes not only got the items deleted but also has received a check from the bank, merchant or collector for damages.