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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. Closing a credit card will stop any subsequent reporting of positive credit and payment history and positive credit utilization. Keeping a card open, even if you rarely use it, can be beneficial. Be sure to use your card every once in a while, be it for a cup of coffee or a drive through sandwich. This will keep activity on the account and keep the card holder from deactivating the account.

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.
free credit repair consultation

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.

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.

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.  
free credit repair consultation

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.

4 Ways to Build Credit Without Credit Cards

Building Up Your FICO

Understanding and building credit in a positive way takes discipline and some education. Do you recall being taught in school, how to build your credit scores? Did your teachers let you know how big of a role credit would play in your life as you got older? Honestly, it is probably likely that even while going through the process of applying for a credit card or car loan, you were still unsure of what your credit scores really meant.

So what is a credit score made of?  Your FICO is determined by the categories below on the pie chart. Payment history and amounts owed on your credit make up the two largest portions of your scores. What if you do not have credit cards? There are a few other options for you, so that you can still fulfill parts of the FICO scoring model.

Facts on Fico

The Importance Of Credit

Can you imagine not having access to a bank that could lend you money for your home or car? Credit is so important for everyone, whether they have a credit card or not.  A lender or banking institution pulls your credit in order to see how reliable and likely you are to default on your loan. If your payment history is bad or you are lacking credit history, it is hard for them to lend to someone that they cannot be sure of. If you are someone that has no credit score, that is almost as bad as having bad scores. It is hard to justify lending to you when they are not sure how you use your money or pay your bills.

The Typical Way To Build Credit-Credit Cards

If you are opening your first credit card, your bank is usually open to issuing you a credit card with them. This credit card is not to take on your next shopping spree, but small purchases like filling up your vehicle. Many people open up credit card for “emergencies” only, while some use them and live outside of their means. Credit can end up getting you into large amounts of debt if you are not careful and capable of setting limits for yourself. So what are a few other ways to start getting a score, without the card in hand?

Other Options Besides Credit Cards

Become an authorized user

Parents trying to help their children build and establish credit usually allow for them to become an authorized user on a credit card. Prior to adding your kid on the credit card of your choosing, take a look at the length of history and the payments on all of the credit cards you have. If you have an old card, with no late payments and great credit history this is the best one to add your child to.

Young adults trying to establish credit should talk to parents or family members that will allow them to be added to a card as an authorized user. Understand that at no point do they give you access to the credit card but rather, you are just now benefiting from their positive history while having to make no effort or open up new credit lines.

free credit repair consultation

 

Report Monthly Bills

Are you currently renting and paying your bills on time? There are now many companies that will allow for you to have your rent reported. It can be very frustrating to constantly pay bills that are not showing up to show your credit worthiness, so many companies have listened to consumers and now are helping them out in an effort to eventually get a loan.

Join A Credit Union

A starter loan at the credit union works about the same as a secured credit card does. In order to build, the consumer deposits their own money to get started. The funds are not immediate but secured in a savings account until the term is complete. Making payments on this credit building loan are most important as again, positive payment history makes up 35% of the FICO pie chart. These are usually shorter terms (12-36 months) just to begin building credit. Often times, proof of income is required as well.

While it may seem a credit card is the only way to build credit quickly, that is not always the case. There are other avenues to take rather than signing up for the first credit card that is dropped in your mailbox. If you don’t trust yourself to avoid those credit card solicitations visit this site to keep from receiving junk mail and credit cards filling up your mailbox.

 

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

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.

Big Changes From Fannie Mae

A Change to Credit Score Eligibility in DU

Each and every point making up a credit score just got even more crucial! Fannie Mae’s new release (B3-.1-02) changes the way you calculate the qualifying credit score. For purchase apps with multiple borrowers, the qualifying score will be an average of the applicants’ middle score; see their example below.

To better provide opportunities for new homeowners, Fannie Mae is updating the credit score that is viewed by DU when assessing eligibility. Instead of using the representative credit score to make sure mortgage loans apply for the minimum requirement, it will instead follow the average median credit score! When determining an average median credit score for multiple buyers, the DU will be calculated between the each buyer. This is HUGE and should open many previously closed doors for people in your pipeline, so we wanted to get the word out! If you have anyone close to qualifying or that could use our help, please send them our way! Everyone gets a free consultation where we go over both what we can do to improve their scores and what they can do themselves.

Example;

image

*View Fannie Mae’s Full Release
image
Watch Now Button Png, Transparent Png - kindpngCheck out our video showing you 3 things people can do in 24 hours to improve a credit score that don’t cost a thing! But shhhhhh, we talk about these in our free consultations too… 🙂

Call us now at!    1-800-994-3070

Facts on FicoWhether 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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free credit repair consultation

 

 

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.

student loan resources

Student Loans and Credit Scores

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 Repair Law Firm

Starting Credit Repair│5 Questions You Should Ask

So You’re Saying There’s A Chance?

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

What is credit repair and how does it work?

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

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

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

1. What Will I Need To Get Started?

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

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

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

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

We will work inside anyone’s budget!

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

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

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

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

 

free credit repair consultation

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

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

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

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

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

4. Who Will Be Monitoring My Credit?

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

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

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

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

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

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

Article By Breana Washington

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

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

credit collection myths infographic

credit collection myths infographic

 

Credit Repair Law Firm

Starting Credit Repair│5 Questions You Should Ask

So You’re Saying There’s A Chance?

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

What is credit repair and how does it work?

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

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

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

1. What Will I Need To Get Started?

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

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

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

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

We will work inside anyone’s budget!

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

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

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

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

 

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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.

Article By Breana Washington

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

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

credit collection myths infographic

credit collection myths infographic

 

Rent to own risk or reward

Reconsidering Rent-To-Own│More Risk or More Reward?

Is Rent-To-Own A Sure Thing?

The here and now seems to take the front seat as opposed to decisions that are best for the budget for a lot of families.

“We need more space.”

“Our credit isn’t where it needs to be.”

“What is the quickest way to start building for our future and not funding my landlords retirement?”

Rent-to-own is here. But should it be the move you make?

What Am I Agreeing To?

Rent-to-own contracts can be a little misleading. As with any contract you sign, double check that everything makes sense and is conducive for you and your family in the long run.

Remember when you said you were not wanting to fund your landlords retirement? The typical lease a family signs is a 12 month lease. Anything after that is usually month to month or on extended terms.  With rent-to-own you are saying that you will lease possibly 2-3 years. At the end of those terms, then you have the option to buy it.

Most rent-to-own tenants have decided this option is best for them because they do not have a lump sum for a down payment or cash on hand.

Read further about a few things you may have not been aware of in the rent-to-own agreements.

What They Don’t Tell You

Although you are leasing the home this does not mean that by the end of the lease agreement you will still be approved. Although you did have the first pick on the home, they cannot guarantee that you are getting approved for the loan. This is no fault to the landlord.

If you were having a hard time getting approved for a loan before due to poor credit prior to the lease agreement and didn’t make any effort to work toward better credit, or something happened to your credit in the few years you were in the home, it won’t matter. Unfortunately, you will still be denied.

You will lose the money you put into the home as well.

Prior to signing your rent-to-own lease, you should still meet with a mortgage banker to know what you will need as far as payment, scores, etc. go to close when it comes time for the lease to end and the loan to kick in.

 

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The Fine Print

There are many things you need to go into detail with the seller on prior to agreeing to a rent-to-own home. As with a lease, there should be other factors taken into consideration prior to signing on the dotted line.

  1. Are there any liens on the current home?
  2. What will you do if you don’t decide to buy it?
  3. How does the home inspection work?
  4. How much will I buy it for?

Liens On The Home

This is vital! There should be no reason to argue over who owns the title to the home. Speak with someone about all the details, complete research and make sure you have a party involved that knows what they are doing. There are way too many scammers and companies out there that can lie and pull the wool over your eyes and you’re stuck with no where to turn when you thought everything was going to work out just fine.

Taking A Pass

Let’s say you lived in the home for a few years and decide you don’t want to buy it. What then? Double check that the contract has a clear and defined understanding of what will happen if you should choose to not purchase at the end of the lease. The unfortunate part is that the money you did spend is nonrefundable.

Inspection Time

As with any normal inspection, the condition of the home should be documented and photos should be taken off interior and exterior and any major concerns.

Purchase Time

You and the seller will decide on a price up front. With the purchase price being locked in, this does not protect you from the possibility of the home’s value dropping. If that is the case, it will not save you from the price dropping. You will still be held at the price that was decided on at the time of the contract unfortunately.

Not to mention, if the current landlord is not financially sound and possibly loses the home while you are the current tenant you most likely lose the option to purchase and again, the money is gone with the wind.

In Closing

There may be some benefits to your family signing a rent-to-own option but this is one to be weary of when walking through the process. There are home loans out there you can apply for that will work for you, especially if you are a first time home buyer. There are also options out there to not only help you improve your credit scores, but also work with you on smaller down payments and lower scores (although your interest rates will be higher).  If low credit scores are keeping you from improving your living situation, please contact us today for a free credit consultation. We have helped over 30,000 clients improve their scores. Let us get you back on the path toward financial freedom.

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

credit collection myths infographic

credit collection myths infographic