Repairing Your Credit History
Making the Right Agency Choice for Your Credit Repair
Debt Relief
How to Improve Your Credit
Boost Your Credit Score
Establish a Credit History
Repairing Your Credit History
No matter the circumstances that led to your bad credit history, it can be improved through diligent credit history repair. You can escape the trappings of bad credit. As the consumer, you can dispute on your own provided you know the credit history repair protocol.
If you don't have time, or don't know where to start, contact Innovative Credit Consultants for assistance. We know the laws inside-and-out and can get your inaccuracies, as well as certain other items, removed. By law, the credit bureaus must provide adequate proof of their records or remove disputed items. We hold the credit bureaus legally responsible for what they list on your credit report, thereby improving your credit score and letting you repair credit.
Over time, with responsible money management, you can further improve your credit score. It is important to analyze if any accounts should be paid and/or closed, which accounts should show some activity, if you would benefit from increased credit limits, etc.
A Bit of Credit Repair Advice
There is no shortage of credit repair advice available over the Internet or through reading books. The credit bureaus would have you believe that credit repair is a futile effort, that anyone telling you they can improve your credit is a liar. They'll argue it is illegal and unethical, all the while selling your personal information without your expressed consent.
It is legal and ethical, even responsible, to remove unfairly reported listings from your credit report. The Fair Credit Reporting Act (FCRA), Fair Debt Collection Practices Act (FDCPA) and Fair and Accurate Credit Transactions Act (FACTA) allow you to investigate and challenge questionable items on your credit report.
You, the consumer, can dispute on your own provided you know the credit repair protocol. But, unless you have plenty of time and patience, and nerves of steel, you'll certainly find credit repair to be very confusing and frustrating.
If you don't have time or don't know where to start, contact us for assistance. We know the laws inside-and-out and can get your inaccuracies, as well as certain other items, removed. By law, the credit bureaus must provide adequate proof of their records or remove disputed items. We hold the credit bureaus legally responsible for what they list on your credit report, thereby improving your credit score. And we know how to help people achieve clean credit repair as quickly as possible.
Over time, with responsible money management, you can further improve your credit score. It is important to analyze if any accounts should be paid and/or closed, which accounts should show some activity, if you would benefit from increased credit limits, etc.
If you need credit repair advice, please contact the professionals at Innovative Credit Consultants today so you can determine your best course of action.
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Making the Right Agency Choice for Your Credit Repair
If you have less than perfect credit, the most responsible thing you can do is start to improve your scores. Ultimately you will want to achieve a clean credit status. It may simply involve money management actions, or require credit repair. You may be able to handle these tasks on your own, or require the professional help of a credit repair business.
U.S. District Court Judge J. Wexler entered the following legal opinion in the Federal Supplement, "Since allowing third parties to assist consumers will likely lead to the expedited correction of credit reports, it will further the purposes of the [Fair Credit Reporting Act].*
The credit repositories, on the other hand, have declared war against credit repair services and those selling how-to-do-it-yourself instruction, lambasting them in the media. Some consumers have been chastised by the credit bureaus for relying on "unethical methods" of credit repair.
Be careful, lest you experience an unscrupulous credit repair business. It is buyer beware - time to do your due diligence. At the very least, verify the following information:
• How long has the company been in business?
• Are they bonded?
• Are you given a warranty - the credit repair business promises a refund if certain results don't occur?
We realize that all things being equal, you'll do business with those you know, like and trust. We have built our business one relationship at a time. Get to know us. You'll like us and you'll trust us. Contact Innovative Credit Consultants today.
* Source: “Can credit repair companies be trusted?”
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Debt Relief
Do you need debt relief? Do you find yourself feeling overwhelmed by debt, even hopeless? There are reasons you may be struggling to pay your bills and need debt relief. Making your minimum monthly payments could cost you many times the principal and take up to thirty years to eliminate your debt. There is a vast difference between making your monthly payments and resolving your debt.
Some Facts About Debt Relief Alternatives
Credit Counseling or Debt Consolidation as debt relief: A credit counseling debt relief plan does not erase your credit history. Your creditors will continue to report information on accounts that are handled through a debt relief plan. For example, creditors may report that an account is in debt relief credit counseling, that payments may have been late or missed altogether, or there are write-offs or other concessions. Under the Fair Credit Reporting Act, accurate information about your accounts can stay on your credit report for up to seven years - that's seven years after your last payment on each account. A demonstrated pattern of timely payments will help you obtain credit in the future. Does that sound like debt relief?
Bankruptcy as debt relief: Many people do not understand all of the consequences when filing bankruptcy. Bankruptcy attorneys will often try to convince you that there are minimal consequences associated with bankruptcy. The reality is that bankruptcy has consequences far beyond your credit report. Federal Law requires you to disclose the filing of bankruptcy, regardless of the timeframe, when asked on any future employment application, loan application, mortgage application and numerous other documents you may be required to fill out in the future. Does that sound like debt relief or even credit repair?
Debt Settlement as debt relief: If you have cash, you may be able to negotiate with creditors to accept a lump sum payment for less than the actual balance due. In order to obtain a favorable settlement, it typically must be paid in full within 10 days of reaching an agreement. Some creditors refer to debt settlement as debt forgiveness, settlement in compromise, or a negotiated settlement. Any amount of debt forgiven is normally reported to the IRS, so that you pay income taxes on that amount. Attempting to get debt relief through settlement is looked upon more favorably than filing bankruptcy. Does that sound like debt relief or debt solution?
Does paying off past-due accounts neutralize their negative status?
The credit score associated with your credit report is determined by use of a very complex algorithm applying weighted values to many data factors. Very important is length of your credit history, the number and types of accounts you have on record, how much is owed compared to your total credit line, and how timely payments have been made.
Delinquency, collection activity, and charged off items do a great deal of damage to your credit report and may make credit repair a necessity. When these past dues are paid, or brought current, this pay off is usually considered to be recent activity. Do not make applications for a mortgage or other new credit until many months after making payoffs.
Have questions? We have answers! Contact the professionals at Innovative Credit Consultants today by phone at 800-666-6050 (967-2673) or email at info@icreditinc.com.
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How to Improve Your Credit
If you have had credit problems, be prepared to discuss them honestly with a mortgage professional. Responsible mortgage professionals know there can be legitimate reasons for credit problems, such as unemployment, illness or other financial difficulties. If you had a problem that's been corrected and your payments have been on time for a year or more, your credit may be considered satisfactory.
If you are currently in excess debt, there are four ways to control it:
· If your credit is not in terrible shape, you can reduce your other expenses, even if it means making hard choices or changing your lifestyle to fit your income. Consider selling a second car, taking equity out of your home, applying for a non secured signature loan, obtaining a loan from a relative, selling your home and paying off your debts with the proceeds and then renting, cashing out your 401K/retirement benefits or selling family heirlooms, jewelry, etc.
· If your credit is already damaged or one of the above isn't an option, go through Consumer Credit Counseling Services (CCCS). Check your yellow pages for the local number. CCCS may be able to help you pay off your debts as if you were in a Chapter 13 bankruptcy, but you don't actually file for bankruptcy.
· If CCCS won't take you, you may want to consider bankruptcy. Claiming Chapter 13 bankruptcy takes longer than a Chapter 7, but your credit will end up in a little better standing. Chapter 13 bankruptcy gives you up to 5 years to pay off your debts. The disadvantage is that you're in bankruptcy for up to 5 years plus your credit report shows your bankruptcy for 7 more years after you have finished paying off your debts.
· If you are so far in debt that you can never repay it, then the best solution may be a Chapter 7 bankruptcy. A Chapter 7 bankruptcy is the least desirable from a credit standpoint. The disadvantage is that this shows on your credit report for 10 years from the date of filing your bankruptcy. Creditors are starting to tighten their credit requirements, and you may have a tough time getting future financing.
If your debts are under control now, but want to improve your bad credit history, the most important factor is to make your monthly payments on time. Use pre-addressed envelopes enclosed with your statements to mail your payments and call the company if you don't receive your usual statement. Also send your payment as early as possible if you carry a balance. Most companies calculate interest on a daily basis, so the sooner they receive your payment, the less interest you'll pay.
Don't procrastinate. The sooner you get started, the sooner you will be able to achieve clean credit. It's the day your payment is received that counts, not the postmark date. Give the post office sufficient time (five business days is a good guideline) to deliver your mail. Late payments may mean late fees, higher interest, and/or a negative mark on your credit report.
Never send cash. Open a checking account if you don't have one, or spring for a money order and keep your receipt. Finally do not forget to tell your creditors your new address when you move.
If you are worried about making payments, make a list of your debts and when the payments are due. Contact your lenders immediately if you think you will have trouble meeting the monthly payments to arrange a payment schedule.
Taking money from your retirement account or tapping the cash value of your life insurance policy to pay bills or living expenses may have serious implications you haven't considered, so try to get advice from an expert before you take any major financial actions.
Credit cards can be invaluable in a crisis, since they allow you to charge items and pay them off over time. But they can also be dangerous if you aren't careful and charge more than you can afford. If you do use credit cards, choose those with the lowest interest rates and pay them back as soon as you can to cut your costs.
Have questions? We have answers! Contact the professionals at Innovative Credit Consultants today by phone at 800-666-6050 (967-2673) or email at info@icreditinc.com.
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Boost Your Credit Score
By Lynn Brenner - Published: October 2, 2005
Want to save yourself some serious money and develop clean credit? Then boost your credit score! It’s easier than you think and can save you thousands of dollars by lowering the interest rates on your mortgage, bank and car loans. Improving your use of credit can help cut your insurance premiums too.
What’s a Credit Score?
Your credit score is a three-digit number between 300 and 850. It’s called a FICO score, after its creator, the Fair Isaac Corp. Lenders use your score to determine your interest rates. The lower your score, the more you pay. A score above 700 helps you get the best rates. Lenders also use a FICO score to decide whether to approve your credit application, whether to increase your credit limit and how to treat you if you make a very late payment. (You can find out your score at www.myfico.com for $14.95.)
Contrary to popular belief, your FICO score isn’t determined by your age or income. It’s based on your past use of credit, as recorded by agencies like Experian, TransUnion and Equifax. But a recent survey found that 79% of all credit reports contain mistakes! To make sure your report is accurate, order a free annual copy from each agency. (Go to www.annualcreditreport.com or call 1-877-322-8228 or write to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, Ga. 30348-5281.) You’ll have a chance to correct any errors. If there’s accurate negative information on your report, consider calling the creditors and asking if they’ll remove it. A creditor may agree to erase a single late payment from an otherwise pristine record. Take the Right Steps Here’s how to become a smarter borrower:
• Pay bills on time. Payment history is the single most important factor in a credit score. Any bill overdue 30 days or more shows up on your credit report. A credit-card issuer who sees a pattern of late payments on that report may raise your interest rate — even on a card you’ve always paid on time.
Ignore any offers to skip payments on your credit-card bills, adds Greg McBride, a senior financial analyst at Bankrate.com. If you accept, you’re only doing the issuer a favor: The interest just keeps accruing on your unpaid balance.
• Reduce your credit-card balances. A recent survey found that 28% of consumers think maxing out a credit card improves a credit score. The opposite is true: The closer you are to your credit limit, the worse your score. If your limit is $5000, for example, carrying a $1250 balance (25% of your limit) is considered much better than carrying a $3750 balance (75% of your limit). Try to keep your balances below 30% of your available credit. If you use a high percentage of your available credit, there’s a greater risk that you’re spending beyond your means and will have trouble making payments. That lowers your score.
Before FICO scores, consumers were advised to close unused lines of credit before applying for a mortgage, so prospective lenders would not worry that they’d take on too much debt. That’s no longer good advice, says McBride. “If you’ll be in the market for a mortgage or a car loan within the next couple of months, I’d refrain from closing unused lines of credit. It will have a negative short-term impact on your credit score. Let’s say your total balance on credit cards is $10,000 and your total limit on all cards is $40,000. If you close unused lines of credit, you’ll increase your ratio of debt to available credit — and hurt your FICO score.”
Limit your credit applications. Every time you apply for credit, the prospective lender checks your credit report. Too many credit inquiries can lower your score. But FICO counts credit inquiries by different car or mortgage lenders in any 45-day period as just one credit check, so you’re not penalized for comparison shopping.
Build a track record. With no credit history, you have no credit score. Recent graduates should establish a history with a single credit card or gasoline company card before applying for a car loan or a mortgage. But you don’t have to carry a card balance, says McBride. FICO scores don’t distinguish between consumers who carry a balance and those who don’t. It’s always a good idea to pay your monthly balance in full if you can.
Good credit has its rewards!
Have questions? We have answers! Contact the professionals at Innovative Credit Consultants today by phone at 800-666-6050 (967-2673) or email at info@icreditinc.com.
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Establish a Credit History
In order to establish good credit, you need a good credit history. If you have no credit history at all, it is easy to start creating one. Follow these simple steps and you will not only establish good credit but will not later need credit repair services.
Opening a bank account is the simplest and safest way to manage your finances. By opening a savings account or a checking account, you can build good credit by saving money and earning interest, easily paying bills and tracking expenses. Responsible use of a checking account or an Automatic Teller Machine (ATM) card will reflect favorably in your credit report.
If you have services in your name (telephone, gas, and electric), make sure you pay them in full and on time. Pay any loans and credit accounts on time each month. At least pay the minimum, if there is one.
Applying for a credit card and using it responsibly can help you build a good credit history. If you have been denied a credit card in the past, you may want to investigate a secured credit card, where you put a pre-determined amount of money in an account as a deposit in the bank. The secured card can be used in the same way as a credit card with the same convenience and payment flexibility. Gasoline companies and retail stores also offer their own credit.
Other Credit Factors
Mortgage companies look at other information besides your credit score and credit profile before deciding whether to approve your mortgage. They also consider:
• Income Stability
• Employment history
• Monthly debts in relation to your income
• Savings amount and methods
• Mortgage type
• Property type and value
• Down payment amount
• Timeliness of rent and utilities payments
The results of this analysis will determine if you have clean credit.
Have questions? We have answers! Contact the professionals at Innovative Credit Consultants today by phone at 800-666-6050 (967-2673) or email at info@icreditinc.com.
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No Quick Fix For Credit Repair
By Naomi Smith
Credit repair, is this really possible? Can a company or an individual really remove bankruptcies, judgments, liens, and bad loans from your credit file? Can anybody really erase your bad credits and legally create a new credit identity for you?
The answer is NO! The Federal Trade Commission or FTC will tell you that this is just a scam. That this person or company will just rob you of your hard earned money. There is no way that anybody can quickly fix creditworthiness. The only way to improve your credit report is through sticking to a personal debt repayment plan, which takes time and effort.
Sometimes, when people are so desperate they can get blinded by these enticing advertisements. Bear in mind that even if you are in desperate need to fix your credits, you have to be cautious as there are people out there who would try to scam you. One definite way that you can recognize a scam is when a company promises to clean up your credit report when in fact no companies can ever improve anybody's credit report with the things they promise people of, legally. Removing accurate negative information from anyone's credit report is just not legally possible.
These people are not there to help you. They are there to rob you of hundreds or even thousands of dollars for service fees and can't possibly fix your credits. Stay away from companies that want you to pay for credit repair services. This is against the law as under the Credit Repair Organizations Act, companies SHOULD NOT requires you to pay unless they have already completed the services that they promised.
You should also stay away from companies that don't tell you your rights and will not advise you of ways that you can improve your credits yourself for free. And any companies that do not recommend you to directly contact major national credit reporting companies are also up to no good, especially companies that promises to get rid of most or all of your negative credits, which as stated earlier is clearly not possible.
It is also illegal to invent a new credit identity and a new credit report using your Employer Identification Number instead of your Social Security Number.
And it is also not legally possible to dispute all information in your credit report regardless of accuracy and timeliness.
Remember that if you do anything illegal and commit fraud, this can only add to your problems, as this will probably bring you legal troubles. Lying on a loan or credit application, misrepresenting Social Security number and obtaining an Employer Identification Number under false pretense is a federal crime and will only bring you jail time if discovered. So it is better if you do your credit repair legally and try not too mind so much the processes that you have to do or even the amount of time it takes as this is the only way to rid you of your credit problems.
Naomi has first hand knowledge on what being in debt is all about as she lost her job and ran into some tough financial times. Now, that she is through it, she would like to pass some valuable knowledge on consolidation of debt along to others.
By N. Smith
Have questions? We have answers! Contact the professionals at Innovative Credit Consultants today by phone at 800-666-6050 (967-2673) or email at info@icreditinc.com.
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