What’s on a Credit Report?
Seriously, how are we, the average Joe or Jane on the street, supposed to build (or rebuild) our credit when no one ever teaches what’s on our credit to begin with? Well, here’s the answer:
• Contact information (no impact on credit score): It simply includes the names, addresses, employers, and, sometimes, marital statuses under which you have applied for credit in the past.
• Credit/Trade Lines: Details on the various lines of credit the consumer has had in the past 7-10 years, including balances, terms and their history of on-time payments. Continue reading “What’s on a Credit Report?” »
Debt Management Programs and Credit Scores
Financial Myth: Don’t Debt Management Programs Hurt my Credit Score?
When entering our debt management program (DMP), keep repeating to yourself…”I am here to get out of debt.” Nothing worthwhile is ever very easy, including a DMP. For one, our program requires you to close all credit accounts that are on the program. This may even briefly lower the debt balance-to-credit limit ratio portion of your credit score. However, by sticking with the program until your debt is completely paid off, this short drop can pale in comparison to the potential credit score increase debt-free clients see at the end of the program.
One common question is, “I heard its better to file bankruptcy. Is that true?” While bankruptcy may be a valid option for some, it is generally accepted that declaring bankruptcy is the single most damaging event in your credit history. A bankruptcy stays on your credit report for ten years, lowering your credit score. DMPs are designed to last five years or less. Actual participation in the program itself has no affect on your FICO credit score.
Within 30-60 days of entering a Debt Management Program, a notation is generally added to your credit report by your creditors. That notation exists so that while you are in a DMP, no new unsecured credit lines should be issued, such as credit cards or signature loans. This notation is generally removed by the creditors upon completion of the DMP.
Despite the growing number of studies that show that individuals in Debt Management Programs are more likely to eliminate their debt than those in the control groups that do not seek such counseling, there are still a few lenders that misunderstand the credit report notation.
If you’re considering a car or home loan, please call us first to review your budget and analyze your current financial situation. Then, if you run across a lender that will not work with you for a secured loan (home or car) because of the credit notation, let us know. We know there are many lenders that work well with our clients.
If you have any suggestions or stories on how you’ve experienced relief from credit cards and other debt feel free to share in the comment section below. Tips, tricks and other suggestions are always welcome!
1-877-OUT-DEBT (688-3328)
Low Credit Scores Growing Among Consumers – CBS News Segment featuring Todd Christensen
I want to share the story and video that aired last week on KBOI CBS TV. Todd Christensen, Debt Reduction Services Director of Education, shared some excellent thoughts on the current decline in overall consumer credit scores.
Click to view ‘Low Credit Scores Growing’ segment
Here is the text version article which can also be found on www.KBOI2.com.
Credit Report and Your Rights
Have You Pulled Your Credit Report Lately?
Information found on credit reports and that three-digit number called a credit score havebecome such integral decision-factors in our lives. Do you feel as though you are now judged upon your credit report and credit score more than ever?
We have the opportunity—and the right—to see our credit reports and ensure that they are accurate, which is especially important before you apply for a loan. Here are some steps to taking advantage of the FACT Act to monitor your own credit: Continue reading “Credit Report and Your Rights” »
How to Dispute Discrepancies on Your Credit Report
The odds of there being error on your credit report are pretty good. Errors do occur frequently, but they can also be fixed. Here is the recommended way to dispute errors with the Consumer Reporting Agency. Continue reading “How to Dispute Discrepancies on Your Credit Report” »
Importance of Credit Scores
Have You Checked Your Credit Report Lately?
The word credit can be heard every day from the TV, ads in the paper, and even the radio.
What is credit? It is the ability to borrow based on the promise of repayment. Lately, everything seems to be based on a person’s credit score. Here are a few ways credit scores affect the price you pay for the following items:
- Personal Life insurance: Having a bad credit score can drop you to the lower tiers causing you to pay a higher premium, though your health is still the most influential factor. Continue reading “Importance of Credit Scores” »
Credit History – The Importance of Maintaining Good Credit
Credit (an agreement to repay a loan over time) is becoming ever more pervasive in our society. What used to be the exclusive privilege of the wealthy has only in the past 50 to 100 years become available to the masses. Continue reading “Credit History – The Importance of Maintaining Good Credit” »
Wise Usage of Credit, Credit Cards and Your Money: 8 Tips
Here are 8 tips that will help you use your credit wisely. Following these principals should help increase your credit score and standing.
- Make all payments on time. Don’t wait until the last minute to send a payment.
- Pay off the entire balance every month. You’ll never be charged interest this way. Continue reading “Wise Usage of Credit, Credit Cards and Your Money: 8 Tips” »
Protecting Your Identity
Identity theft occurs when, among other things, someone uses your personal information, without permission or consent.
Identity thieves usually target the following personal information such as:
Your Name – Date of Birth – Phone Number – Email Address – Bank or Credit Card Account Number – Social Security Number – Driver’s License Number – Passwords and PIN’s – Medical or Dental Information – Vehicle Identification Number – Tax Payer Identification – Signatures
How Does Identity Theft Happen? Continue reading “Protecting Your Identity” »