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Too Many Inquiries

Getting Ready For A New Car!

Time For A New Car?

Several years ago when I was broken down on the side of the interstate in my 92 Jeep Cherokee I thought to myself “My next car is going to be brand new so I don’t have to deal with this gain!”  I knew that I would need to finance as I was just a twenty something with a low end painting job, but I was hopeful that I would be approved. I was quite ambitious for a boy with little to no credit reported or open trade lines.

Fast forward to later that evening; I sat in the Nissan dealership for hours, hoping one lender would overlook my credit score and provide me with anything! Spoiler: No lender would even consider me and my abysmal credit score. At that moment I knew that I would have to go about this a different way if I ever wanted to even be considered for financing and began my research over how exactly credit worked.

 

Understanding Your Credit

First off, I had to get a hold of my credit report and see just exactly what was going on. My credit adviser directed me to Free Credit Hub where I was able to sign up for credit monitoring and finally see what was dragging my credit! I was greeted with a cacophony of different numbers, phrases and names that filled the pages and made my stomach drop. My adviser walked me through each  line on the report and explained that there were multiple categories that made up the report. Those categories were:

1. Payment History-  35% of your credit score is based on your past bills and how they were paid.

2. Amounts Owed- 30% of your credit score is based on the available credit card limit you’re using and the amount you owe across your accounts.

3. Length of credit history – 15% of your credit score is determined by the credit history you have built. This is based on the average age of your accounts  along with a few other factors. The longer the history, the better the results!

4. Credit mix – 10% of your score is from the mix of revolving credit (credit cards) and installment credit (car loans, mortgages, etc.) you have.

5. New credit – 10% of your credit score comes from new credit accounts that you have established.

 

Time To Build!

Alright, now that I know what exactly makes up my credit, it is time to start building it up! I took 3 easy steps to start building positive credit and the foundation for a strong credit score.

  1. Lowering My Card Utilization– When I got my first credit card I was told to never use more than 50% of the allowed credit and I would be fine. If we look at our credit utilization like a grade card, a 50% utilization rate is a solid F. 30% is about a C rating and the lower you go the better your rating. Keeping your utilization under 10% is an A rating and is sure to build your credit the fastest.
  2. Becoming An Authorized User– Becoming an authorized user is by far one of the easiest ways to build credit and is kind of like passive income. If you are listed as an authorized user on a trusted family members card, their history is listed on your report as well and you don’t even have to use the card! Be sure you work with someone you trust because the negative history will be placed on your report as well.
  3. Pay Your Bills On Time-  Paying off those balances on time is extremely important when building credit as it provides positive credit history and establishes a exceptional trade line. Late payments are one of the largest discrepancies on most Americans credit report!

 

Your Car Loan Will Help Build Credit.

After about 6 months of building up my credit, I was able to acquire financing toward a new vehicle. You don’t need to have perfect credit to acquire a car loan, but it will affect your financing options and future payments. The wonderful thing about this loan is that it establishes another line of installment credit to your account. As long as you are making your payments on time, this installment credit will soon become a wonderful trade line that builds a long credit history. In the end it is all bout finding the right lender for you and managing a positive ascending credit score. If done correctly, you will be on the road that that fabled 800 credit score!

 

 

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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Protect Yourself Against Identity Theft

The Federal Trade Commission has stated that reports of identity theft had skyrocketed to record highs in 2020 and continue to to rise in 2021! In 2019 the total amount of reported cases was around 650,00o while cases in 2020 had  breached 1 million!  2021 is shaping up to have similar results and it is grossly apparent that consumers need to bolster themselves against the onslaught of thieves looking to take advantage of there information. In this blog, we will go over how to protect yourself when it comes to identity theft, what to look out for and what you can do if someone has stolen your identity!

Ways Thieves obtain your Identity:

  • Stolen Credit Cards
  • Documents or receipts from the trash
  • Phone or email scams
  • Hacking unsecured and wireless networks

Types of Identity Theft?

Once a thief has gained access to your personal information they can obtain access to your existing credit cards, open new accounts, file fraudulent tax returns and more. Below we have named a few:

  1. Financial Theft
  2. Medical Theft
  3. Insurance Theft
  4. Criminal Theft
  5. Driver’s License Fraud
  6. Social Security
  7. Phishing Scams

Have you been a victim of identity theft? 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 Credit Law Center a call at 1-800-994-3070 we would be happy to help.

free credit repair consultation

Ways to Protect Yourself

1.Be Careful of What You Share. With social media and technology on the rise, these pesky crooks can find out a lot of personal information about just by doing a simple search. The information you share on Facebook, Linkedin and all the other media sites these criminals may be able to use the information you have shared to validate your identity. When you are sharing be careful of the information you share.

2.Keep Financial and Personal Information Secure. Here is another example of where technology can come back to bite us if we are not careful. Many Americans use their computers to pay bills, keep bank statements, financial planning and much more. If you do this the important thing to remember is to make sure your computer has a firewall installed; you should use anti-virus and anti-spyware software and secure your wireless network. Another important reminder is when you do have the actual hard copy of any financial or personal information dispose of it properly, and always keep them in a safe place.

3. Keep Your Cellphone Protected. Cell phones apps allow us to track our bank accounts, track your budget and finances, store credit card information, and just about anything else your heart desires. When downloading these apps make sure you are using a trusted and reputable company. Always check the ratings and reviews of any app you are downloading. Make sure you secure your device with a strong password, in case you lose it.

4. Make Sure Your Passwords Are Strong and Secure.  Create strong passwords, not easy to guess. Using passwords that contain, kids names, birth dates, maiden names or anything that may be guessed.

5. Monitor Your Credit. You’re entitled to one free copy of your credit report every 12 months from each of the three nationwide credit reporting companies but monitoring your credit on a regular basis is the best way to help protect your score! Sites like Credit Armor allow consumers to monitor all three bureau reports with monthly pulls, track how your credit score changes over each month, and provides helpful identity theft protection tools like fraud insurance!

Are You a Victim?

If you believe your identity has been stolen, it is necessary to immediately contact any financial institutions we have accounts with and place a hold on them. You will also want to contact the FTC to file a formal complaint. Make sure to provide them with any and all questionable activity so they can thoroughly build a case.

Too Many Inquiries

Getting Ready For A New Car!

Time For A New Car?

Several years ago when I was broken down on the side of the interstate in my 92 Jeep Cherokee I thought to myself “My next car is going to be brand new so I don’t have to deal with this gain!”  I knew that I would need to finance as I was just a twenty something with a low end painting job, but I was hopeful that I would be approved. I was quite ambitious for a boy with little to no credit reported or open trade lines.

Fast forward to later that evening; I sat in the Nissan dealership for hours, hoping one lender would overlook my credit score and provide me with anything! Spoiler: No lender would even consider me and my abysmal credit score. At that moment I knew that I would have to go about this a different way if I ever wanted to even be considered for financing and began my research over how exactly credit worked.

 

Understanding Your Credit

First off, I had to get a hold of my credit report and see just exactly what was going on. My credit adviser directed me to Free Credit Hub where I was able to sign up for credit monitoring and finally see what was dragging my credit! I was greeted with a cacophony of different numbers, phrases and names that filled the pages and made my stomach drop. My adviser walked me through each  line on the report and explained that there were multiple categories that made up the report. Those categories were:

1. Payment History-  35% of your credit score is based on your past bills and how they were paid.

2. Amounts Owed- 30% of your credit score is based on the available credit card limit you’re using and the amount you owe across your accounts.

3. Length of credit history – 15% of your credit score is determined by the credit history you have built. This is based on the average age of your accounts  along with a few other factors. The longer the history, the better the results!

4. Credit mix – 10% of your score is from the mix of revolving credit (credit cards) and installment credit (car loans, mortgages, etc.) you have.

5. New credit – 10% of your credit score comes from new credit accounts that you have established.

 

Time To Build!

Alright, now that I know what exactly makes up my credit, it is time to start building it up! I took 3 easy steps to start building positive credit and the foundation for a strong credit score.

  1. Lowering My Card Utilization– When I got my first credit card I was told to never use more than 50% of the allowed credit and I would be fine. If we look at our credit utilization like a grade card, a 50% utilization rate is a solid F. 30% is about a C rating and the lower you go the better your rating. Keeping your utilization under 10% is an A rating and is sure to build your credit the fastest.
  2. Becoming An Authorized User– Becoming an authorized user is by far one of the easiest ways to build credit and is kind of like passive income. If you are listed as an authorized user on a trusted family members card, their history is listed on your report as well and you don’t even have to use the card! Be sure you work with someone you trust because the negative history will be placed on your report as well.
  3. Pay Your Bills On Time-  Paying off those balances on time is extremely important when building credit as it provides positive credit history and establishes a exceptional trade line. Late payments are one of the largest discrepancies on most Americans credit report!

 

Your Car Loan Will Help Build Credit.

After about 6 months of building up my credit, I was able to acquire financing toward a new vehicle. You don’t need to have perfect credit to acquire a car loan, but it will affect your financing options and future payments. The wonderful thing about this loan is that it establishes another line of installment credit to your account. As long as you are making your payments on time, this installment credit will soon become a wonderful trade line that builds a long credit history. In the end it is all bout finding the right lender for you and managing a positive ascending credit score. If done correctly, you will be on the road that that fabled 800 credit score!

 

 

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.

Recent Updates to VA Loans Everyone Should Know About

Acclimating to New Changes

Last year was an interesting year; with the COVID-19 pandemic and the presidential election, everything seemed slightly different. However, not everything that happened last year was negative, with the previous year bringing some significant updates to VA home loans, which have since significantly increased their usage. According to recent data, the use of VA loans increased by 11.4% from 2019 to 2020, bringing a total of more than 1.2 million loans guaranteed in one year due to these changes.

Signed into law on June 25, 2019, by the U.S. President, the Bluewater Navy Act has brought some significant changes to the VA loan program. The White House passed the act intending to compensate Vietnam War Veterans who got exposed to harmful chemicals during their deployment. The law also changed two significant parts of the VA loan program by changing the VA loan funding fee and the VA’s loan limits.

Changes to the Funding Fee

VA Funding Fee Changes for 2020 | HOUSE Team

The VA funding fee, a one-time payment that VA loan applicants have to pay on their loan, was temporarily changed. The change made it so that Active Duty Service Members pay an increased funding fee of 0.30%, which previously was at 0.15%. Members of the National Guard and members of the reserves, on the other hand, are now paying a lower amount on their funding fees. However, these changes are temporary and are said to last for at least the next two years.

Active Duty Service Members who have a purple heart can have their funding fee removed as long as they close their home while in an active-duty status. Also, veterans with disabilities who were already exempt from paying the funding fee did not see any changes to their funding fee payment requirements.

Removal of the VA Home Loan Limit Previously, borrowers who applied for a VA loan had to deal with VA county loan limits, which varied per county. That is no longer the case as the VA completely removed these loan limit requirements for first-time VA home loan borrowers. Therefore, VA home loan recipients now have the opportunity to live in more affluent communities, previously unaffordable due to the VA loan limits.

Applicants who already have a VA loan and want to take out a second one are still subject to their county VA loan limit, which on average, as of 2021, has a limit of $548,250, which can vary per county.

It is important to note that although the loan limit removal allows lenders to lend out more, it does not mean that lenders won’t limit how much you can borrow. Since loans are given out by lenders and not the VA, there can still be limits set for how much you can borrow. Currently, VA Home Loan Centers has a loan limit of $5,000,000 for first-time VA loan borrowers.

Native American Veterans who apply for a VA home loan and plan to purchase a home on Federal Trust Land no longer have to deal with loan limit requirements.

What is a VA Home Loan?

MOAA - Inspector General Finds VA Overcharged Disabled Vets on Home Loans

Often touted as one of the best government-guaranteed home loans available, VA home loans offer several significant benefits. These include no down payment requirements, no mortgage premiums, low-interest rates, low monthly payments, and fixed mortgages, which last anywhere between 15 to 30 years.

Also, the U.S. Government guarantees these loans, giving lenders protection if borrowers cannot afford to make their monthly mortgage payments and end up defaulting. Hence, lenders are more lenient with their application requirements and are willing to work with applicants with a low credit score.

Conclusion

The signing of the Bluewater Navy Act has brought changes to the VA home loan program. These changes increased the amount of housing opportunities for our brave men and women in uniform. The law improves an already excellent government loan program by empowering borrowers with the removal of VA loan limits.

Phil Georgiades is the Certified Leasing Specialist for VA Home Loan Centers, a government-sponsored brokerage specializing in VA Home Loans. He has also been a real estate professional for 22 years. To apply for a VA loan, call us at (877) 432-5626.

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 Credit Law Center 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.

5 Tips to stop Living Paycheck to Paycheck

5 Tips to Stop Living Paycheck to Paycheck- Credit Law Center

Many Americans are ending up broke month after month, even when their income is well above the poverty line. A recent survey by Suntrust Banks found that a third of higher-income households, (those that bring more than $75,000 or more a year) are living paycheck to paycheck.

It’s easy to get caught up in debt, once you are living paycheck to paycheck. You are more likely to use credit cards to pay for monthly expenses, therefore racking up more debt. Each month you will pay just the minimum amount owed, and continuing to rack up more and more interest.

If your income is steady, but your financial habits are what is causing you to live paycheck to paycheck, here are some helpful tips to overcome the paycheck to paycheck struggle.

1. Create a Monthly Budget

Many of us are poor at money management because we haven’t been taught the proper ways to manage money. Creating a monthly budget and sticking to it is much as possible. Budgets are a great way to get you back on track. Some budgets can be as simple as keeping track of your paydays and the due dates of all your monthly expenses, then determine items you might be able to cut back on to start saving money.

2. Stop Spending Impulsively

How many times have you grabbed something that has been placed at the end of an aisle at the grocery store, or Target? At some point or another, I am sure we are all guilty of this. Often we don’t ever use the product, or we may get home and instantly regret purchasing it.

3. Stop letting your feelings sway your shopping

Instant gratification can be a huge culprit in buying items we do not need. Emotions play a significant role in buying unnecessary items, your child may be upset about something, and you go and buy him/her a new toy, or maybe you just rearranged your living room, and you decided that to make it complete you need a new chair. You go and buy, and regret spending the money later. When you are feeling this way, maybe writing it down on a wish list will help curb the impulsive spending.

4. You’re Still Paying for Unused Memberships

With debit cards and credit cards being readily assessable to pay for things in this day and age, it allows for us to sign-up for gym memberships, video programs, and more. I know I have a gym membership that I have paid for the last 12 months and never used it.

5. Pay Attention to Your Bank Statement and Credit Card Statements

If you find yourself broke month after month, it may be a little easier to stomach if you avoid looking at your bank statements and credit card statements. Avoiding these important financial documents could be detrimental to your financial health. How can you possibly create a budget or tackle your financial situation if you are avoiding the key to your situation? You can’t! It is also important to review your statements to make sure all information reporting is correct, in this day and age there is a significant amount of fraud going on.

After you find ways to cut unnecessary spending and begin saving it will be important to start paying more than the minimum on your current credit card obligations. This will significantly help pay down the amounts owed and the interest you pay.