Clean Credit
Three Steps to Starting Your New Business With a Clean Credit Score
Clean Credit
No matter the circumstances that led to your bad credit history, it can be improved through diligent credit history clean-up or repair. You can escape the trappings of bad credit. It is legal and ethical 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 clean-up 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.
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 clean credit, contact the professionals at Innovative Credit Consultants by completing the above form, so you can determine your best course of action.
Clean Credit Is Not Always Easy to Achieve
Everybody wants a clean credit report but if your credit has gone south then it is time to take charge and work back towards a clean credit report.
The first step you can take to obtain a clean credit report is to request a copy of your credit report from the three main credit bureaus. Look carefully through the report and note down any possible discrepancies. You will need to carefully scrutinize each report and see if any of the entries are incorrect. If you find some incorrect records then you will need to write a letter of dispute. Once you submit the letter your claim will be investigated. It can take six months for a dispute to be resolved so make sure you follow up regularly.
You can find sample letters of dispute in credit repair kits. These kits can be obtained for free from debt management companies in your local area. You can also find them online or at the IRS. Credit repair service provides can also give you a credit repair kit.
Having bad credit can impact your life in many ways. You may not be able to buy a car if you need finance, you will be unable to get a home loan or credit card and even a store card. Basically you will not be trusted with credit or loans if you have a bad credit rating. Thankfully you can reverse this situation over time. These clean credit report kits will guide you step by step through the process of getting your finances in order quickly and without fuss.
People fall into bad credit for different reasons. It can occur from a failed business venture, health or family problems or many other reasons. Whatever the case, unfortunately the credit bureau does not consider emotions so neither should you. You must do what has to be done to repair your credit rating, even if it all seems too hard at times. Once you have repaired your credit you will feel a massive weight fall off your shoulders.
If your dispute is incorrect then the only way to get a clean credit report is to wait the required amount of time for the data to be erased. This can be from six to ten years in most cases. In the mean time you must maintain excellent credit and financial habits by paying all your bills on time and meeting financial responsibilities.
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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Three Steps to Starting Your New Business With a Clean Credit Score
By: Michael G. Peterson
For many people, starting their own business is a personal dream. Before fulfilling your personal dream, it's necessary to get your personal finances in order. At this early stage you'll be using your own personal finances to start your business and if you want to succeed you must approach your personal finances with a professional eye.
Avoid funding start-up expenses via credit and running up huge credit card debt. Instead you should apply for a business loan, which has the benefit of being a one-time loan with typically lower interest rates than a credit card. However, in order to get good terms on your loan, you will have to have your credit card debt in order first.
Without an established business credit history, lenders will have to look to your personal credit to negotiate your terms. You don't want personal credit problems starting your business credit off on a bad foot. A clean credit score will help you get the low interest rates you need to start your business on solid financial ground.
Step One. Pay off your credit card debt.
Once you know where your credit weaknesses lie, zero in on them to start improving your standing. Your goal will be to completely eliminate all credit card debt. It may seem like an insurmountable task, but in reality, paying it off as fast as you can is actually easier and less expensive than paying it off over a period of many years.
First, start paying double the monthly minimum on the balance with the highest interest rate, while paying the minimum monthly due on everything else. By paying down that highest-interest balance, you will save yourself from potentially spending thousands extra in interest - and you'll be done in half the time. Once you have paid off that balance, move on to the one with the next highest interest, and so on down the line. Eventually you will enjoy the freedom of zero credit card debt. In fact, if you find yourself having a hard time staying away from credit card purchases take them out of your wallet and bury them in your closet until you have improved your financial situation.
Step Two. Check your credit report.
Have you seen your credit report? You can get a copy of yours by visiting freecreditreport.com. Look over it carefully to make sure there are no mistakes that could have negative effects on your credit and your interest rate.
If you find any mistakes, you may dispute them through the credit-reporting agency. The creditor then has 30 days in which to respond to your dispute. If they fail to respond within 30 days, the disputed information is expunged. If it is a particularly old debt, creditors may not even bother to respond. Disputing credit report mistakes is definitely worth a try since you have nothing to lose but bad credit.
Step Three. Pay bills on time.
Your credit is not based solely on your ability to pay off your credit card debt. You must also demonstrate that you are responsible when paying your bills: utility bills, car payments, and rent for example. Try to pay all of these on time and in full and it will reflect well on your credit report. If you have trouble remembering to pay your bills on time, try to keep them all in a highly visible place so you will have a constant reminder to pay them.
Many utility bills may be paid online these days, so you can simply check with your utility companies to set up automatic payments. Not only do you maintain good credit by paying on time, but you also avoid paying late fees, and saving money is always a wise financial move!
Before you establish your own business, it is imperative that you begin with a clean slate: no debt, healthy credit, and responsible financial habits. When you have a good credit score to begin with, your business will have a stronger start and will be easier to run. Good finances mean success. Best of luck with your new business venture!
About the Author: Michael G. Peterson is the Vice President of American Credit Foundation, an IRS 501 (c)(3) non-profit consumer credit counseling organization that has assisted thousands of individuals and families with their financial situations through seminars, education, counseling services, and, debt management plans. For more information, and free consumer resources visit debtguru.com
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The Power of Positive Credit and the Perils of the Poor Score
Now more than ever, with the tougher economic times comes the common need to rely on loans and other forms of financing.
Additionally, the "me generation" consumer of the 80s has disappeared and been replaced by a consumer with more common sense about what they and their families can and can't afford. At the same time, affordability has now become completely dependent on your individual credit history and score. Improving your score is becoming way more of a necessity. Whether it's a manageable home mortgage, an affordable new car loan, good solid insurance, a college education, or any other form of "life requirement," a solid credit history and score can make the difference between a handshake and a "no thanks."
Your credit affects more than you think, and it costs far more to do nothing about your credit problems than it does to optimize it. What follows are just a few aspects of your financial life that are affected by your credit.
Suspect Credit Extends Interest Rates and Financial Waste on Mortgages
A typical home mortgage can cost way more in interest if you are buying a home with less than perfect credit. Lower credit scores mean higher interest rates, and the difference between a 740 and a 680 score can bump it up by 1%. On a $500,000 mortgage, this can save $150,000 over its duration. The "American dream" is to own a home, and with solid credit, you can be an owner not a renter. Today more than ever, people are relying completely on their credit history and resulting score to make the home rent or buy decision for them.
Good Credit All but Ensures Agreeable Auto Financing
In general, people with low credit scores often have a more difficult time leasing cars than buying, not to mention getting auto insurance. Your FICO score is the first thing that most auto lenders will look at to determine: if they want to give you a lease or loan you money, what credit tier you will fall into, what rates you will qualify for, what terms they will give you, how much they will let you borrow, and how much down payment, if any, you may need to pay. Good credit vs. bad credit can also tilt the scales as far as getting loan approval. For many car loans, scores of 680 or lower automatically place you at a high risk and may require larger down payments and higher interest rates.
Your credit score and credit history are obviously the two primary background factors that influence your ability to acquire loans of any type. At Innovative Credit Consultants, we pride ourselves on our ability to provide excellent credit repair consulting services, and strive to empower individuals through self-education. We can provide different services depending on the laws and regulations of the states in which we operate. Visit our website any time at www.icreditinc.com or contact us at 800-666-6050 (967-2673).
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Good Credit Rating: Hold Onto It
By Lara Sawyer
Contrary to what most people believe, the foundation of a healthy financial life is not a good credit rating. Even if a good credit standing will save you lots of headaches and will give you the key to obtaining the finance you need, it does not ensure the wellbeing of your financial situation. And what does? Habit. Not everyone can claim they are well fit when it comes down to managing their finances. A healthy financial life implies not only managing your income wisely, but also being able to save and knowing how to do so.
If your credit history is reasonably good, your score will also be as good as your credit history. The key now is finding out the way to maintain the high-quality of ones credit standing, so-to-speak. This may seem as something difficult to achieve, but it is not the case at all. It is usually people's prejudices and preconceived ideas what keeps them from attaining their financial goals. In this article you will find interesting and useful information on how to hold on to your good credit rating. Read on to find out more!
Get Familiar With Your Credit Report: It Does Not Bite
Credit reports are something people are not used to checking out. They know their score is fairly good, so why bother to take the time to go through every single input on the report? They believe it is a waste of time, but they could not be more wrong. Checking out your credit report on a regular basis will ensure that all the information therein is correct. You have to bear in mind that humans put together these reports, and humans do make mistakes. By controlling the inputs on your report once every six months, you will be able to spot any suspicious looking entries which might be unfairly bringing down your credit score.
If you happen to find an input that you know for sure is incorrect, you will be able to take the necessary measures to correct it. The process by which an inaccurate entry is corrected can take some time, but it is well worth it.
Living On A Budget
Not everyone likes the idea of living on a budget, and I certainly cannot blame them. This subject is surrounded by several myths, which are certainly hard to shake off. Just like credit reports, budgets do not bite. In fact, they can and will make your life easier in many different ways. This article does not aim to teach people how to make a budget, so we will not dwell on that subject. There are many excellent guides on the issue, which you will most certainly benefit from.
What I mean to point out are some of the advantages of living on a budget. A regular family with a certain, limited monthly income will find it easier to spot good saving opportunities and unnecessary expenditures if they take a few minutes every day to write down the money flow. It is simple, if you do not know how much is coming out, you will hardly be able to control what comes in. Budgeting is sometimes associated to saving, but this is only because at some point one thing will lead to the other. Begin budgeting and your life will change for good, and in a positive way.
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What is a Good FICO Score Good For?
Few things strike up a debate faster than asking what good is a FICO score these days? There are those who totally spurn the idea of some 3rd party determining their credit worthiness. There are others who worship the mighty FICO, well aware of its ability to save them money on future loans, insurance, and even affect their job hunt. I fall somewhere in the middle.
I would not suggest someone go out of their way to wreck their FICO score, but I also wouldn't recommend people be too concerned with their credit scores, either. For far too long we have been beholden to this score, and taken on unnecessary debt in the name of improving our standing. If you manage money wisely, make smart decisions when it comes to debt - including the type of debt you take on, and how well you repay it - you should have no trouble securing a high FICO score.
And here are a few benefits...
Higher FICO, Lower Mortgage Payment
According to the research at Information Research Services (infomars.com), as reported by MyFICO.com, the difference in a 620 credit score and a 760 credit score means a $197 lower mortgage payment (on a 30-year, fixed rate mortgage of $200,000). This is based on rates as of March 27, 2009, and may fluctuate some, but you get the idea. Having an upper-tier FICO score can lead to significant savings in interest on real estate purchases.
Not only will optimal rates be available only to those with higher credit scores, but it could mean the difference in qualifying for a mortgage loan, or having to pay additional points to secure a decent interest rate. The mortgage industry is probably the biggest supplier of FICO worries because most of us cannot afford to pay cash for a house, so financing is our only option.
Drive Cheaper
For those who opt to finance a new car purchase on shorter terms (36 months), a FICO score greater than 719 saves you about $119 a month over those with credit scores below a 590. Personally, I don't plan to ever finance a car again, but if I did I would obviously want to qualify for the lowest rates possible. Bad enough car payments are as high as they are these days, but toss on another $100 due to high interest charges and it becomes downright ridiculous.
Higher Scores Lead Better Employment?
This is an area where there just isn't much hard evidence to support FICO's (and much of the financial press) claim that low credit scores can affect employment. I'm sure employers in certain industries would be interested to know your FICO score as one piece of determining your overall employment potential, but using FICO as a screening tool has so many limitations.
Credit scores don't tell employers a thing about the level of education someone has achieved, their savings and other assets, their work ethic, their trustworthiness, etc. For instance, I used to work with someone who had trouble finding a job in her degree field (accounting) because she had gone through a nasty divorce and her ex-husband destroyed both their credit through running up unpaid credit cards, gambling, and a host of other financial problems.
It was only when she discovered this was going on behind her back that she ultimately asked for divorce, but the damage to her credit was done, as a couple of the accounts were in both their names (her husband forged her signature as a co-applicant). Even though what he did was a crime, it was a nightmare to get accounts removed from her report, and things continued to "pop up" for months.
Potential employers looking for someone to handle their company's money may incorrectly toss her resume based on a low credit score, when in fact she was probably more qualified than many other candidates in terms of education, work history, etc.
I'm sure you could dig up an employer or two to own up to using FICO scores for screening purposes, but most won't. I'm also sure you'd be hard pressed to find anyone in the banking industry that believes is not true. Again, we've been oversold on FICO and its importance in our society.
Don't get me wrong, I think there is a place for credit scoring in helping insurers and potential lenders determine the risk of a potential customer. However, I don't think it is fair to label people with low (or non-existent) scores as bad, as if they deserve to walk around with some type of "Scarlet Letter" reading FICO=607 on their forehead. Credit scores are but a small piece of the overall picture of someone's creditworthiness, and to allow it to be the lone determining factor is just plain lazy on the part of lenders.
As consumers, the onus is on us to manage our credit wisely, check our credit reports periodically, and don't go out of our way to damage, or enhance, our FICO score. If you find yourself in my friend's situation, dealing with a low FICO, there are plenty of ways to improve your score on your own. Do not let desperation lead you to one of these "credit repair" places who charge fees for things that you can do yourself. The number one thing that improves your credit score is time. Yes, it heals credit wounds, too.
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What Is Considered A Good Credit Score?
By Paul Tomlinson
Along with your credit report, you can also request your credit score (also called FICO). There will be a charge to get your credit scores from each credit reporting agency but along with your credit report, this will be the tell tale sign as to your buying power. If you are given the choice of buying an all in one report, which includes your credit report from all 3 agencies along with your credit scores, don't choose that option. This type of report is usually more of a summarized report and won't include all the information that you need to see on your credit report.
The way I see a credit score is that it is a number that not only predicts your potential buying power but also your risk. Some see it as your ability to make credit payments on time. This credit score is your number at a particular point in time and it can change at any moment
What is considered a good credit score? So why does your credit score matter? Are you looking to purchase a car in the near future? Maybe just getting auto insurance to go along with that new car you are thinking about. Perhaps moving into an apartment or house shopping? What about that credit card application that just showed up in the mail at 1.9% for the first six months? Hey, that department store said that I could get 10% off my purchase today if I apply for their store credit card. I'm looking for a job and I wonder what my future employer thinks of me
All of the above could be dependant on your credit score or what some call FICO (Fair Isaac Corporation). FICO scores range from 300-850, the higher the score the better or what is also considered to be a lower risk. FICO comes up with their score through a mathematical equation. Either the credit report itself and/or the FICO score is passed on to the lender when a request for credit is made on your behalf.
How do you rank?
FICO Credit Score Percent of People
With the following Score:
300 - 499 2%
500 - 549 5%
550 - 599 8%
600 - 649 12%
650 - 699 15%
700 - 749 18%
750 - 799 27%
800 - 850 13%
If you are considering a mortgage, although FHA says that you only need a 620+ credit score, 650 or above is considered adequate. Mortgage brokers and banks really like to see that FICO at 720 and above.
Generally, a FICO score below 700 entails some sort of risk. Your goal should be to get your score at 720 or above and keep it at that level.
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