Credit Building School FAQ

Credit Building School FAQ

Here are the frequently asked questions that would really help you quickly to understand Credit Building School and other matters related to it.

What is a Credit Building School?
Credit Building School is an e-learning platform that is designed to teach, help and guide anyone how to build credit the right way.

Who is Credit Building School for?
Credit Building School is for those people who are in need to build their credit to have a good credit reputation. It is also for people who need assistance and guidance on repairing their credit score and rating.

Can Credit Building School help all conditions of credit scores?
Basically, there are some conditions that credit building school cannot totally fix because it is up to your actions and decisions. Credit Building School is only here to help you and guide you anything related to credit – not entirely fix everything for you and doing nothing.

How to use Credit Building School?
Credit Building School is a free social network. It is easy to sign up, and membership is free. However, there is premium content that is available to purchase.

Not all people have enough funds for credit building school that’s why we offer consultation, assistance and help repair credit score for free – without having any purchase.

You only need to interact with the people in the community to seek help. But if you choose to purchase premium content, building credit will progress faster than free membership. It will also have a specific problem solved.

When should I use credit building school?
You can use credit building school at any stage of your credit building process.

Even if you have a good credit score and rating, joining a credit building school can help you gain knowledge about it.

You can increase more your credit score and add something positive in your credit profile.

What is a credit score?
A credit score is a 3-digit number that lenders use to evaluate your creditworthiness. It helps lenders and creditors assess your risk as a borrower. The FICO credit score is the most widely used. FICO scores range from 300 to 850. The higher your score, the easier it is to get approved for financing.

How is my credit score calculated?
Most credit scoring models use five fundamental factors to calculate consumer credit scores. Each element carries a different “weight” for how much it impacts your score.

(1) Credit History – 35%
(2) Utilization – 30%
(3) Length of use – 15%
(4) New applications – 10%
(5) Types of credit in use – 10%

What is a credit report all about?
A credit report is a profile of your life as a credit user. It captures the loans and credit lines you’ve maintained throughout your life.

By law, positive and neutral information can remain indefinitely, while negative information is removed after set periods of time. The information contained in your report is what the credit bureaus and creditors use to calculate your credit score.

Anytime you apply for a new loan or credit card, you authorize the company to run a credit check. This means they review your credit report to determine your risk as a borrower.

Why do I have more than one credit report?
Each credit bureau (Experian, Equifax, and TransUnion) maintains its own proprietary version of your credit report.

This means you actually have three stories instead of just one.

Your reports generally contain the same information, although the way it’s reported in each version is unique.

What affects my credit score the most?
Payment history. Skipping payments or paying your credit card late can negatively impact your credit score.

Certain blemishes may remain on your credit report up to 7 years or more. Pay your bills on time, every time is a crucial way to help improve your credit score.

Why is it essential to maintain good credit?
A good credit score is vital for anyone to have. Loans are a necessary part of life for most of us.

Building a solid credit history and maintaining a high credit score can have a dramatic impact on your quality of life now and in the future when you’re considering applying for a loan or even a prepaid debit card.

What is a credit monitoring?
Credit monitoring is a financial service that tracks changes in your credit. It allows you to build confidence effectively and maintain a high score.

The service also alerts you to changes in your credit report that may impact your score, either positively or negatively.

Monitoring allows you to proactively build credit while avoiding actions that lead to a bad rating.

What are the three main bureaus in the United States?
A credit bureau – sometimes called a “consumer reporting agency” – is a business that collects relevant consumer information from creditors and courthouses.

These bureaus then sell that information to interested parties such as potential lenders. Such information is sold in the form of a credit report.

In the U.S., the three major credit bureaus are TransUnion, Experian, and Equifax.

Should I only monitor one bureau or all three?
Although your credit reports should contain the same information, they may have discrepancies.

These may be caused by differences in reporting or mistakes that should be removed.

That gives you a reason to monitor the reports from all three credit bureaus. However, keep in mind that 3-report monitoring is usually more expensive.

What is a credit repair?
Credit repair – which is also called credit restoration and credit correction is the process of disputing mistakes in your report. Between your creditors and the credit bureaus, errors can occur in reporting. This is the financial process of discussing those mistakes. If the information cannot be verified, it must be removed.

How long does it take for credit repair to work?
The process still takes anywhere from 1 to 6months, depending on the number of disputes you need to make. The average consumer usually completes the credit repair process in about 3 to 6 months, but it can be less if your reports only have a few errors to correct.

Do I need to have a credit card to improve my credit score?
No. You do not need a credit card to improve your credit score. There are many alternative options, such as lines of credit, loans, etc.

If your credit score is relatively low, you can even start with a secured line of credit, a cash-secured savings loan or a secured credit card.

Making your payments every month, on time, to a secure loan or line of credit is going to be just as effective as having a credit card and keeping it in good standing.

What is the best credit usage percentage?
The best credit usage percentage for boosting your credit score is ‘as low as you can possibly go.’ While it’s important to show that you can use your credit responsibly, keeping your usage percentage as low as possible is both good for your credit score and good for your financial well-being. Beyond just your credit score benefiting, it also keeps the amount of interest you pay out to a minimum. We suggest not rising above 30%.

What is the best method to pay off my debts?
There are several options, but a popular choice is the snowball method. This means that you pay just your minimum payment on all but your smallest debt, onto which you put the most significant amount you can possibly make each month.

Once the lowest debt is paid off, take the more substantial payment you were making on it and apply it to your next smallest debt, on top of the minimum amount to that you were making each month.

Once that debt is paid off, go to your future smallest debt, with all the monthly funds you were using on the previous two, plus the minimum.

Keep doing this, letting the large payments snowball until you’re paying off your most substantial debt with huge payments every month.

What is the fastest way to improve a poor credit score?
The fastest way to improve a poor credit score is with secured credit products.

Making sure, of course, that you’ve checked your credit report beforehand and dealt with all the issues you see listed there first, getting a secured line of credit, a secured credit card, or a credit building program is going to look at your credit score skyrocket.

As long as you are not missing or late on payments to anything else you owe, these credit products really help bring that score up.

What is the Fair Credit Reporting Act (FCRA) and why it was created?
The Fair Credit Reporting Act (FCRA) was written in 1970 as an amendment to the Consumer Credit Protection Act.

The FCRA provides additional measures of consumer protection in the areas of fairness, accuracy, and privacy of the information collected by the credit bureaus.

It also allows you to personally engage in credit repair and maintenance processes, verifying that the information in your credit report is correct.

What is a charge off and how do I remove them or fix in my credit report?
When an account is unpaid for more than 180 days, a creditor usually writes off the debt as a loss on their financial statements.

This is known as a charge off. Once a deficit is charged off, it is either transferred to an in-house collections department or sold to a third-party collection agency who will likely contact you in attempt to recoup the balance.

What is a credit repair company and how they can help you?
Although you can repair your credit alone, seeking the help of an experienced credit repair company is an option. A worthy advocate is defined by their actions. A good credit repair company will help you.

How long does it take to fix bad credit?
There is no fast and easy answer to this question. The time it takes to repair your credit is entirely dependent upon your personal situation.

What do credit bureaus do?
Credit Bureaus are companies that maintain records of your credit lines and performance.

Records go back seven years, and up to ten years, for bankruptcy data. Creditors, banks, mortgage companies, and other financial institutions supply this information to the credit bureaus, and they compile them into a credit report.

A credit report has details of how you have managed credit in the past. Other lenders can then judge your creditworthiness. They tract the following information:

• Open accounts.
• Closed accounts.
• Credit limits.
• Current balances.
• History of on time and late payments.
• Collection actions.
• Tax and other liens
• Homeownership.
Present address, and former addresses

If I check my credit report, will it hurt my credit score?
No. When you check your own credit report through a service that sells credit reports directly to consumers, you create what is called a “soft inquiry.” These inquiries are listed when you review your own credit report, but they are not shown to creditors and do not affect your score.

What is a credit mix?
Credit mix refers to the types of accounts that make up a consumer’s credit report. Credit mix determines 10% of a consumer’s FICO score. The different types of credit that might be part of a consumer’s credit mix include credit cards, student loans, automobile loans, and mortgages.

Is closing a credit card bad?
Depending on your total available credit, closing a credit card account with a high credit limit could hurt your credit score, particularly if you have high balances on other cards or loans. If you have zero balances, your credit utilization rate is zero, and won’t be impacted by the loss of a balance.

Do inquiries affect my credit score?
A hard inquiry may impact your credit scores and stay on your credit reports for about two years. By contrast, soft credit inquiries won’t affect your scores.

What is a soft inquiry?
Soft inquiries typically occur when a person or company check your credit as part of a background check.

This may happen, for example, when a credit card issuer checks your credit without your permission to see if you qualify for individual credit card offers.

Your employer might also run a soft inquiry before hiring you. Unlike hard questions, soft questions won’t affect your credit scores.

Since soft inquiries aren’t connected to a specific application for new credit, they’re only visible to you when you view your credit reports.

What is a hard inquiry?
Hard inquiries generally occur when a financial institution, such as a lender or credit card issuer, checks your credit when making a lending decision. They commonly take place when you apply for a mortgage, loan or credit card, and you typically have to authorize them.

A hard inquiry could lower your scores by a few points, or it may have a negligible effect on your scores. In most cases, a single hard inquiry is unlikely to play a huge role in whether you’re approved for a new card or loan.

And the damage to your credit scores usually decreases or disappears even before the inquiry drops off your credit reports for good.

What is bad credit?
Bad credit is a record of adverse credit history. It’s typically characterized by negative listings in credit reports and low credit scores generated by those reports. Anything under 600 is generally considered dangerous. This is based on a credit score range for which 850 ranks the highest and 300 ranks the lowest.

What causes bad credit?
Negative listings in credit reports cause lousy credit. These include late payments, collections, charge-offs, foreclosures, liens, judgments, and bankruptcies. Identity theft can also create lousy credit when thieves open new credit accounts in your name or make changes to existing accounts. Until you get identity theft sorted out, you may have bad credit stemming from these unpaid debts.

How does bad credit affect you?
Bad credit can result in:

• The new loan is difficult, if not impossible, to be approved for
• Higher interest rates and deposits if you are approved for credit
• Higher deposits on car rentals
• Higher auto insurance premiums
• Difficulty qualifying for a house or apartment rental
• Difficulty qualifying for a job for which a credit check is required.

When was the Credit Repair Organizations Act enacted?
The Credit Repair Organizations Act (CROA) was signed into law in 1996. The CROA prohibits credit repair companies from:
• Making untrue or misleading statements
• Advising consumers to make false or misleading statements
Urging consumers to change their identity or lie about their credit history
• Demanding upfront payment for services that have yet to be completed.

What is a good credit score?
For a score with a range between 300-850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same scale is supposed to be excellent. Most credit scores fall between 600 and 750.

How often does my credit score change?
Generally, lenders report both positive and negative information to the credit bureaus once per month. So your credit scores can change a bit each month, depending on the news that’s landing on your credit reports.

Who can report to credit bureaus?
Credit card issuers, lenders, can report you; friends and family can’t. If you’ve fallen behind on repaying a loan from a friend or family member, they can’t report you to a credit bureau. Various entities regularly furnish consumer information to credit bureaus such as Equifax, Experian, and TransUnion.

Why don’t I have a credit score?
Credit scoring models cannot generate a score without enough credit information. If you have little or no credit history, you probably will not have a credit score available.

What are score factors?
Score factors or score factor codes are provided with a credit score to explain how items in your credit report influenced the score. These codes can help you understand which items had the most significant impact.

Who calculates my credit score?
Credit scores may come from several sources. Lenders may request that a credit score is provided along with your credit report. Credit reporting agencies offer the service of applying the credit scores from many credit score developers. Lenders specify which credit score they want on the credit report. Credit scores may also be calculated by mortgage reporting companies that compile your credit reports from each of the national credit reporting companies and then deliver the combined reports and scores to the lender. Lenders may also apply their own, proprietary scores after receiving your credit report.

What is the difference between lenders and creditors?
Someone who makes funds available to another with the expectation that the funds will be repaid, plus any interest and/or fees. A lender can be an individual or a public or private group. Lenders may provide funds for a variety of reasons, such as a mortgage, automobile loan or small business loan while the creditor is a party (e.g., person, organization, company, or government) that has a claim on the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property or service to the second party under the assumption (usually enforced by contract) that the second party will return an equivalent property and service. The second party is frequently called a debtor or borrower. The first party is the creditor, which is the lender of capital, service or money.

What is a credit card and how do I get one if I have no credit history?
A credit card allows you to borrow money from a credit card company, with the agreement you will pay a percentage of interest on any outstanding debt at the end of each billing cycle. Responsible credit card use helps build your credit history. There are plenty of options on the market for people with limited credit history. Shop around to find the card with the lowest APR and fees you can qualify for. If you are having trouble being approved for cards, consider a secured credit card that requires a security deposit or asks a parent to add you as an authorized user on his or her card.

How many credit cards should I have to build credit?
There is no “right” number of credit accounts to build a solid credit history. According to Experian, many factors make up a credit score, but late or missed payments, the frequency of credit inquiries, and your credit utilization ratio are all significant factors.1 When you’re starting out with credit, it can be safer, to begin with, one or two cards to ensure you can make payments consistently before adding more.

What is credibility?
Credibility is much like respect; it has to be earned. It takes time to lay the foundation for trust, and consistency to grow it into a solid reputation based on credibility. Here are some ways to build the credibility of your small business.

What is a derogatory mark on my credit report?
A credit report is a history of your behavior as a borrower — the good and the bad. When negative information shows up on your credit report, it’s called a derogatory mark. These derogatory credit marks act as red flags to lenders using your credit report to evaluate you. Each derogatory mark will lower your credit score and make you less creditworthy, but some are more serious than others. Additionally, some derogatory marks will affect your credit less as they age. A late payment from this year, for instance, will look worse than one from five years ago.

Can I fix derogatory marks shown in my credit report?
If you find derogatory marks on your credit report, it can feel like those reminders of past mistakes, hardships, or failures will never go away. They’re out there for lenders to see, and they continue to drag your credit score down. The good news is, like all things, bad credit will get better and improve with time — as long as you prevent further missteps or derogatory marks. Credit reporting agencies are required to remove derogatory items from your credit history after seven years, including late payments, defaults, collections, and foreclosures. Bankruptcies, however, can be listed on your report for up to 10 years.

What does a debt collector do?

Under the federal Fair Debt Collection Practices Act, in general, a debt collector is a person or a company that regularly collects debts owed to others, usually when those debts are past-due. Debt collectors include collection agencies or lawyers who collect debts as part of their business.

Will paying my old unpaid debts help improve my credit score?

Paying debts in collection won’t influence your credit score. It may, however, cause a lender to approve your application for credit once they see that it is paid.

How long does a paid collection stay on my credit report?

Collection accounts stay on the credit report for seven years from the original delinquency date of the original debt, or the time of the first missed payment after which the account was no longer brought current. You may see both the collection account and the account with your original creditor on the credit report.

Rebuilding Credit Strategies

Rebuilding Credit Strategies

Boost Credit Score Quickly

Applying for multiple credit cards at one time is not the way to build credit when starting fresh. In doing this, you rack up numerous hard inquiries on your credit report, which sends red flags to all potential lenders.

As a result, you may be denied, and those inquiries will stay on your credit report for two years.

Whether you are trying to build or rebuild credit, you must select one credit-building method and pay your bills on time for a year before applying for additional credit. This will show the bank that you have demonstrated your creditworthiness.

How long does it take to rebuild credit?
It can take one to two years to build good credit if you follow the strategies presented to you in this chapter. You need to display at least one year of on-time payments before major bank cards like American Express and Visa takes you seriously.

Can you tell me the various ways to build or rebuild my credit?
Yes. There are ways to establish or restore your credit.

Rebuilding Credit Strategies

● Dispute and remove negative items.
● Use a student credit card.
● Use a secured credit card.
● Use retail store cards.
● Have credit unions rebuild your credit loan.
● Obtain a guaranteed bank loan.
● Use a merchandise card.
● Look into a co-signer method.
● Use the PRBC strategy.
● Use MasterCard and Visa cards.
● Use an authorized user technique.

Using a student credit cardThis method is useful for teenagers turning 18 and attending a community college or major university.

This is the best time to get credit because banks are more lenient about approving college students. They don’t worry about the students since they know that the parents will often come to their rescue if they default on a loan.

Because banks want to hook you in your early years, they have created two types of cards that are offered to students. Under both cards, if you are not 21, your parents must co-sign for you unless you can prove that you have the income to pay your monthly credit card bill.

The first is the regular card, commonly offered to members of the public. The second is the student card, which is typically advertised on college campuses and is sometimes mailed directly to students.

With the student card, the credit limit is no more than $1,000, as these cards are good for students to practice paying on time. Regular credit cards come with some type of gift, and you have to show proof that you are a student.

Ask the following questions before you sign a contract or send any money:
● Does your company report to all three credit bureaus?
● When will I qualify for an unsecured line of credit?
● What are your credit card fees?
● Talk with your major local banks and credit unions.

Rebuilding Credit Strategies

What is the best way to find secured cards?
● CreditCards.com.
● CreditCardsleft.com.
● E-Wisdom.com.
● LowerMyBills.com.
● BankRate.com.
● CardRating.com.

Banks are known to issue secured cards with low limits:
● Capital One
● Orchard Bank
● New Millennium Bank
● First Premier Bank

What about retail store cards?
This method is useful if you are building credit for the first time. Retail cards, like those at Macy’s and JCPenney, are easier to get than a major credit card.

The reason these retail cards are easier to get can be narrowed down to the fact that they grant lower limits and the card is tied to merchandise in their store only.

You apply for a card and then make your payments on time for six months. You can then pull your credit report and check your payment history.

How about the credit builder loan – credit union?
This method is suitable if you are building or rebuilding your credit files. You know how important it is to have excellent credit. A credit builder loan is your key to establishing or reestablishing, your credit.

Here’s how it works: the credit union loans you money that is deposited into a certificate of deposit (CD). You make regular payments that are reported to credit-reporting agencies.

Once the loan is paid off, you get the certificate of deposit and have a better credit score. The benefits of this program are that you don’t have to give any money up front, the credit union reports to all three credit bureaus, and you establish a small saving at the end of the 12-month installment period.

Rebuilding Credit Strategies

Can I use a secured bank loan?
This method is useful if you are building or rebuilding credit for the first time. Save $500 to $1,000 and then visit various banks with your credit report in hand, asking them whether they do secure passbook loans based on your savings.

If they agree, ask the loan officer if there is a prepayment penalty, what the interest rate is, and what credit bureaus they report to. Apply for a 12-month passbook loan, then, with the loan from the first bank, go to another bank and open a second passbook loan with a 12-month pay period.

Then, wait three weeks and go to a third bank and repeat the process with the loan from the second bank. Now you have three loans at three different banks for a 12-month payment plan.

Now, start making payments with the loan you received from the last bank. After six months of on-time payments, check your credit report to make sure the loans are being reported correctly. Congratulations, you have just established superior credit with three bank installment loans.

Can I use a merchandise card to build credit?
This method is used when you are rebuilding and building credit for the first time. Using a merchandise card could help you establish a high credit limit fast. Go to Myjewelersclub.com

Once you have made your purchase, the organization will issue you a $3,500 line of credit to purchase more items. The best thing about this card is that they report to Equifax.

You also establish an instant credit trade line, which looks good on your credit report. Besides, there is no credit check, so you avoid having an inquiry on your report.

What about using a cosigner?
Cosigning means that due to your lack of credit or poor credit, the bank would like someone with good credit to back you up in case you default on the loan. This method is suitable when you are trying to build or establish credit.

Talk with a family member or a friend to have them cosign for you since you don’t have any credit. Also, let them know that you are trying to build your credit.

Now, if you stop paying on loan, the bank will go after your cosigner for the balance of the loan. Start with a small loan at the bank and make your payments on time for a year, paying off the balance so that you can release your cosigner.

Rebuilding Credit Strategies

What is PRBC and how do I use this company to build credit?
PRBC is a non-traditional, credit-reporting agency. They track the way you pay your rent, utilities, cable, and cell phone bills.

From there, they compile a payment history report that can be used as supplemental information, along with your credit report, when lenders are trying to decide on whether to issue the credit to you.

FICO has partnered up with PRBC to provide Expansion scores based on your payment history with PRBC. These Expansion scores are only issued to the lenders upon request.

Besides, not all lenders use PRBC to consider your creditworthiness, so you must ask them to pull your PRBC report when applying for credit. To get started with PRBC, you can sign up with them and start reporting your good payment history from your rent, cable bills, utilities, and cell phone bills.

PRBC will then charge you a small fee to verify your payment history and include it in your file. The good thing about PRBC is that your credit report with them is free, and you can get a copy at any time. This method is best if you don’t have any credit or a thin credit file.

When should I apply for a major Visa or MasterCard?
This method is right after you have established at least two years of solid credit history. Your credit report should have one small credit card and one installment loan.

With your mixture of credit trade lines and two years of solid payment history, it’s time to go for the big bank credit cards like Visa and MasterCard.

The FICO scoring model really likes to see consumers with credit cards from major banks. Go to a major bank, like Bank of America, and ask them what type of credit score you would need to qualify for their MasterCard. Then apply to create excellent credit.

Rebuilding Credit Strategies

What is an authorized user?
Have a friend or family member with good credit call up their credit card company and have them add you to their account as an authorized user. The credit card company will issue a card in your name.

Once the card arrives at your friend’s house, he or she will cut the card up. Wait a month later and check your credit report to see if your friend’s entire credit history for that card is on your credit report.

This is a fast way to build credit within 30 days. Now, the downfall to this method is that if your friend makes a late payment or refuses to pay, your credit report will show the same harmful activity, therefore damaging your excellent credit rating. Do consider the potential consequences carefully before moving in this direction.

Rebuilding credit is vital because the creditors like to see a good payment history after damaged credit. Take your time and pick the best rebuild the credit products that will assist you in achieving your credit score goals.

Boost Credit Score Quickly

Boost Credit Score Quickly

Boost Credit Score Quickly

A FICO score is a three-digit number that is built from the information contained in your credit report. It summarizes information like your contradictory accounts, payment history, the amount of debt you carry, the length of your credit history, the amount of new credit you applied for, and the type of trade lines you have in your report.

What is a good score?
Lenders say that with a 720-760 score, you get the best prime rates. With a 620, you get the sub-prime, riskier rates.

● 750-850 – Excellent.
● 660-749 – Good.
● 620-659 – Fair.
● 350-619 – Poor.

How is my score calculated?
Your payment history calculates your credit score, the amount you owe, the length of your credit, what new credit you have applied for, and the type of trade lines you have.

Payment history
Your paying habits are worth 35% of your credit score. If your late payments are recent, it will lower your score more than if you were behind in the past. Also, a 90-day-late indication will severely damage your score over a 30-day mark. Also, public records like tax liens, judgments, and bankruptcies fall into the same category and could take your score down even further, so make sure you are current with the creditors and always pay your bills on time.

Amount you owe
The balance on your accounts is worth 30% of your available credit score. So, using all of your credit will worry lenders and hurt your score. The lower your balance is, the better your score. You want to keep your balances around 7% to 10% for each account. Also, if you make a big purchase and want to maintain the 10% balance level, make sure you pay off your purchased item before your bill cycles. If you pay after the cycle, the lender will report your high balance.

Boost Credit Score Quickly

Length of credit
The amount of time you’ve had your credit makes up 15% of your credit score. The age on your trade lines is significant to lenders because it shows your history regarding paying bills on time or not. Reliability and longevity are good traits for additional credit, so don’t close old accounts. If you have too many accounts and you want to close a few, close the accounts that are new with low limits.

New credit
New credit makes up 10% of your score. The FICO model looks at how many accounts you’ve applied for lately, as well as any new accounts you have opened. The model looks at the time passed since you requested new credit, and the amount of time since you opened another account. If you open too many accounts in a short period, you will look desperate to the lenders, and they don’t like loaning money to needy customers. So try to not apply for more than two new accounts per year.

Type of credit you use
This section makes up 10% of your score. FICO wants to see a healthy mix of trade lines like a couple of major bank cards, retail store cards, and installment loans like a car, personal, or mortgage loan.

How can I improve my credit score?
Remove inaccurate information from your credit report
You can start by removing errors from your credit report. While scanning your credit report, look for any hard inquiries that you did not authorize. Hard inquiries could lower your score as much as five points per inquiry. Get the creditor to prove that you permitted them to pull your credit report, and if they can’t prove it, then the inquiry must be deleted according to the law.

Boost Credit Score Quickly

Contact the creditor
When disputing an item on your credit report, you should not only contact the credit bureaus but the creditor as well. Make the creditor prove that you were late, as they are reporting it to the credit bureaus. If they can’t prove that you were late, ask them to delete the negative item. This can improve your score.

Pay your bills on time
Make a list of all your debts and their due dates. Then, type the due dates into your computer and cell phone calendars with powerful reminders. Use an internet banking program and your online credit card site to send email reminders regarding when your bills are due. Besides, you can set up your accounts to have money automatically taken out at the due date. When paying your bills, you can pay them as they come in using online banking or bill pay or through your financial institution website. Using the various methods mentioned above will help you pay your debts on time. Making each payment on time raises your credit score and keeps you in good standing with your creditors in case you request a credit increase.

Pay down your debt
Put your debts in order from the card with the highest balance to the lowest. Pay each account down to 7 to 10% and keep it there to increase your score. Finding money to help you pay down your debt may be difficult, but there are numerous ways to raise extra cash. You can have a garage sale, sell items on eBay, get an extra job, pull from your savings, borrow from friends, and cut your expenses. Any of these are an option.

Don’t close old accounts
Closing trade lines won’t help. It will hurt your score by reducing your total available credit, and it will make your balances seem higher. It also makes your total credit history look young, and the FICO model likes to see the age on accounts because of payment history. Lastly, you want to keep the cards active by having a monthly bill debited from your card at the end of the month to avoid the creditor closing your account due to lack of use. Most lenders will close inactive accounts after 18 months of not using the card.

Ask for a credit increase
Ask your creditor to raise your credit limit to reduce your balance. This will help raise your score slightly. Only do this if your balances are low with your other credit cards.

Boost Credit Score Quickly

Apply for credit sparingly
Please don’t apply for many accounts in a short period because the credit bureaus will send a Trans Alert to the creditors informing them that you have applied for multiple accounts.

Re-aging
Ask your creditor to re-age your account to improve your credit score. This method is the process by which your creditor agrees to forgive your late payment history and reclassify your account as up-to-date. You must qualify for re-aging, according to the Federal Financial Institutions Examination Council (FFIEC), and establish and follow a policy that requires you to demonstrate a renewed willingness and ability to repay the debt. The account must be at least nine months old, and you must make three consecutive, monthly payments.

Rapid re-score with mortgage lenders
This method is used when you are trying to buy a home. With this strategy, the lender will review your credit report and tell you which item needs to be paid off or fixed. You will then pay off the negative items and get proof from the creditor. You then give the proof to the lender, who will give it to the third-party vendor, who passes the information to the credit bureau. The bureau will then update your credit report, reflecting your new credit score. This strategy is used, primarily, when you are trying to get a house. A third-party vendor offers this feature, and the credit bureau contacts the company. The service is not offered to the public, only to mortgage brokers.

Credit Dispute Information

Credit Dispute Information

Credit Dispute Information

The three main credit bureaus are Equifax, Experian, and TransUnion. These organizations are part of a billion-dollar industry, and they manage various databases that banks and credit card companies subscribe to make lending decisions for most consumers in America regularly. They also sell specialized information to collection agencies and other major industries.

The credit bureaus maintain negative and positive financial records and payment histories for over 100 million consumers throughout the United States. Congress has created a watchdog called the Federal Trade Commission to regulate the credit bureaus through the Fair Credit Reporting Act (FCRA).

What information is in my credit report?

Every credit report looks slightly different, but they all contain the same information about you and your accounts. The consumer credit report starts with a summary of facts and your report number. The following is a list of critical information that you should pay attention to on your credit reports:

Cover Page:

When you first get your credit report, the cover page will have your name, report date, report number, the address of the credit bureaus, Federal Trade Commission disclosures, and other information from the credit bureaus.

Creditor/Collection Agency Name:

Here, the creditor or the collection agency will list their name and address, but no phone number is included. Sometimes, they include their phone number at the end of the credit report near the address section. A partial number of your account will also be listed, to protect you from identity theft.

Credit Dispute Information

Type and Responsibility:

These terms can be confusing at times, but this section describes the types of loans you have and who is responsible for each loan.

Date Open and Date of Status:

This is the date your account was opened and when the creditor or collection agency first reported payment information about you to the credit bureau.

Reported Since and Last Reported:

This is the date the creditor first reported your payment history, as well as the last date they reported your status.

Terms and Monthly Payment:

This is how long you are contracted to pay the debt and how much you pay per month.

Credit Limit/Original Amount:

This area tells you how much your credit limit was when you first opened the account.

Recent Balance and High Balance:

In this area, the credit report displays your most recent balance from your account and the highest balance you ever had with the trade line.

Status and Account History:

This section shows if you are current on your bills or if the account was closed or paid. Furthermore, it also displays your payment history.

Comments:

In this part of the report, the creditor will comment on whether the consumer or the lending institution closed the account. They can also list other comments here.

Credit Dispute Information

History of Your Accounts:

This area will display your entire paying history since you opened the account, and each one of your accounts will be listed in this section. This section on some of the credit reports can be confusing. If you don’t understand the listing, make sure you contact the credit bureaus for a full understanding.

Record of Request for Your Credit History:

In this section, you can see who has requested to evaluate your credit report. Most companies looking at your information are your current creditors and collection agencies.

The shared inquiry area, which is in this section as well, will display companies that are trying to offer you pre-approved credit applications.

Personal Information:

Here you will find your name, address, date of birth, telephone number, spouse’s name/co-applicant, and your employer’s name. No Social Security number will be listed.

Public Records:

This section displays public record information like bankruptcies, judgments, tax liens, civil lawsuits, overdue child support payments, and criminal records.

The remaining portion of your credit report contains addresses of companies that requested your credit report. It also displays various consumer laws from the Federal Trade Commission, contact numbers, common must-ask questions, and sometimes a dispute form issued by the credit bureau.

How to Analyze Your Credit Report

What is a credit report and why is it important?

Your credit report is a snapshot of your payment history for all credit transactions that you have from age 18 until now.

It detailed when you applied for credit, how many positive and negative accounts you have, who has viewed your credit report, and all your personal information.

Reviewing your credit report every four to six months gives you a chance to check for identity theft, inaccurate accounts, and incorrect information.

It allows you to manage your financial situation before applying for a credit card, auto loan, bank loan, mortgage loan, employment, or insurance.

For example, if you check your credit and notice that there are a few negative items on your report, you will have a chance to fix those items before applying for credit. By doing this, you avoid embarrassment and several inquiries, which lowers your credit score.

How does bad information get on my credit report?

Every month, the creditors and collection agencies that you have accounts with will report positive and negative information to the credit bureaus through a computer tape monitoring system that is updated regularly.

The credit bureaus then turn around and update the information. A third-party company usually passes public record information (judgments/tax liens) on to the credit bureaus.

When does negative information come off my credit report?

Each negative item has a federal statute of limitation regarding when it must drop off your credit report. Once the statute of limitation has expired, the item must be deleted from your credit report according to the Fair Credit Reporting Act.

The statute of limitation starts 180 days from the date the account became delinquent.

Federal Statute of Limitations

The statute starts 180 days from the date the account became delinquent. For example, if your payment was

Due on January 1st, but you did not pay it until February 1st, you would be considered 30 days late. Now, count 180 days from February, which will take you to July. This month will be the time the seven-year statute will begin.

Creditors Lenders and Credit Issuers have the deciding role when building credit

Late payments:

Once you become more than 30 days late on any of your bills, the financial institution that you hold a loan with will disclose your late status to the credit bureau. You can be reported as 30, 60, 90, or 120 days late, and, by law, the late marks will remain on your credit report for seven years.

Inquiries:

Whenever you apply for a credit card or a loan, your credit report is checked, which results in a hard inquiry. These inquiries could damage your credit score if you have more than six in two months. They can also stay on your credit report for up to two years.

Charge-offs:

These are debts that the creditor felt that they could not collect on anymore after 180 days, and so they charged them off as a bad debt. However, the creditor can still sell the account to a third-party collector for collection purposes.

Judgments:

If a creditor takes you to court and sues for judgment, this destructive item will be placed on your credit report. The courts issue judgments that can stay on your credit report for up to seven years, but it can be renewed until it is paid or until it reaches the 20-year mark.

Child Support:

If you stop making child support payments, it becomes part of your public record and will, therefore, show up on your credit report. This negative mark can stay on your report for up to seven years.

Foreclosure/Repossession:

Foreclosures take place when you default on your home mortgage, and the bank takes the house back. Repossession is when you can no longer pay your car note, and it goes into default.

The lender will then confiscate the vehicle without your permission and sell it in an auction. Both create negative marks that will remain on your credit report for seven years.

Credit Dispute Information

Tax Liens:

Tax liens are public records that will find their way into your credit report if you default on your tax liability with the IRS. Paid tax liens will stay on your credit report for seven years but, while owed, they can remain on your record forever.

Collection:

If you see an old account on your credit report under the collection trade line, this is a bill that was sold or assigned to a collection agency. It was passed on to the collector from your original creditor because you refused to pay.

This debt can legally stay on your credit report for up to 7.5 years, but you cannot be sued for it after the state statute of limitation has expired. See appendix for the state statute of limitation on revolving accounts.

Bankruptcies

Your credit report will list the date you filed for bankruptcies and the time it was discharged.

Chapter 7 bankruptcies can remain on your credit report anywhere from seven to 10 years depending on your state, and a Chapter 13 bankruptcies will remain on your credit report for seven years.

A dismissed bankruptcies will stay on your credit report for ten years even though it was not discharged. A dismissed bankruptcy means you started the proceedings, but you changed your mind and decided not to complete the process.

Who uses the information in my credit report?

Banks, creditors, car dealers, mortgage brokers, and any other lending institution use your credit report to determine if you are credit-worthy of a loan.

Collection agencies use the information in your credit report to track your location and see what other debts you owe. Insurance companies run your credit report to determine your insurance risk, and employment agencies view your report for employment considerations.

Free Credit Repair Education

Free Credit Repair Education

America is in need of a free credit repair education. Where else can Americans find free credit repair? The best way to learn how to repair your credit is research. Here is a free course that teaches you how to repair your credit: DIY Total Credit Repair course.

Many lending institutions still use the Fico 9 credit score model. Most free credit scores are from vantage score. Sure you can use those as a guide but you’ll want your fico score for the most accurate reflection of your credit score.

We like creditchecktotal.com or identityiq.com for credit monitoring. We also know that they give the most accurate credit score. This information is aimed at helping anyone seeking to learn about how credit works.

Credit monitoring is the most important step in credit repair. You’ll get alerts whenever your credit profile is updated. These alerts are your indicator of actions being taken.

Your credit profile will need a detailed analysis. When you look at your credit report is everything accurate? Can you spot any inaccuracies? Are you familiar with the things that are included in a credit report?

If you are not sure how to do an analysis of your own credit report we can perform a credit analysis for you. Get your credit analysis now!

Once you know what inaccuracies are present on your credit report you can begin the dispute process. Start by writing the reason for your credit dispute and finish with the account number and the account information that you’re disputing.

Wait for a response. The CRA’s or credit reporting agencies have to respond to all written request within 30 days. They will wait until the very last day to respond to your written request most of the time.

Send a dispute to all 3 credit bureaus. The credit bureaus are Trans Union, Equifax, and Experian.

They will perform an investigation of your written request and update your credit report if they agree with your dispute.

73% of all credit report disputes end with some sort of action like an update or a deletion.

Now that you have this free credit repair education what will you do with it? Will you take action?

If we can help in any way simply register for our website and ask any question you’d like.

Creditors Lenders and Credit Issuers

Creditors Lenders and Credit Issuers have the deciding role when building credit

Creditors Lenders and Credit Issuers are in the business of collecting debt, extending credit and earning money from issuing credit lines.

Good credit depends on useful information. To have a good credit score, one must learn about what specific decision and action might affect it.

Having good confidence means that you have demonstrated that you can handle credit responsibly – that you have managed your credit obligations and paid off your debt balances on time.

Creditors, lenders and card issuers play a big part on your credit score because they are the one who decides if you are approved on your application or not.

To build good credit, you need to get first credit. As simple as that but there are difficulties when having a credit. You need to be extra careful with your actions because it might affect your credit score that easy.

Most of you might be confused about what role does creditor, lenders and card issuers play. They are similar in some ways, and they also have differences in some cases. Here, I will show you what their definition is and what roles are they playing.

Difference Between Creditors and Lenders

A creditor may be a person, bank or supplier that has provided credit to a company. A company owes money to its creditors. The amount of money owed to creditors are reported to a company’s balance sheet and categorized as liabilities.

If a creditor required the company to sign a promissory note for the amount owed, the company would record and report the amount as Notes Payable.

If a creditor is a vendor or supplier that did not require the company to sign a promissory note, the company will likely report the amounts owed as Accounts Payable.

Other examples of creditors include the company’s employees (who are owed wages and bonuses), governments (who are owed taxes), and customers (who made deposits or other prepayments).

Some creditors are known as secured creditors because they have a lien or other legal claim to the company’s (debtor’s)assets. Other creditors are often unsecured creditors since they do not have a lien or legal right to specific assets of the company.

It is a person or institution to whom money is owed. The first party, in general, has provided some property or service to the second party under the assumption (usually enforced by contract) that the second party will return an equivalent property and service.

The second party is frequently called a debtor or borrower. The first party is the creditor, which is the lender of property, service or money. A lender is a person or entity which loans money to another person or entity.

A creditor is a person or entity to whom the borrower must repay the money. Sometimes, the lender and the creditor are the same entity, other times they are different entities.

For example, if you get a loan from a bank and then owe the money to the bank, the bank is your creditor. But the bank can sell your debt to another entity, so now, while you borrowed from the bank, you owe the money to the new buyer of your loan who is now the creditor.

If you buy a home and obtain a mortgage to help pay for the price of the purchase, your mortgage loan is funded by a lender. Sometimes lenders keep these mortgages on their books, but more often the loan is “sold” by the lender to a professional investor entity that is now the creditor to whom you make the payments.

Mortgage creditors often employ payment processing companies that are known as “servicers.” Servicers receive the payments you make, deposit the payments with the banks, and record the payment for your mortgage account on the books of the creditor.

Servicers are sometimes also employed by auto loan creditors. Servicers handle the payments and record keeping for auto loan portfolios that are owned by private investor groups, as well as portfolios owned by auto finance companies or large banks.

There are generally two types of creditors: personal and real. Personal creditors are people who loan money to friends or family. 

Real creditors are financial entities who require borrowers to sign legal contracts that grant the creditor some sort of collateral — e.g., car, house, jewelry — if the borrower fails to repay the loan. Let’s look at a scenario with a real creditor, XYZ Bank, to whom you go to for a loan.

If you are approved, and they lend you money, XYZ Bank becomes your creditor. Individuals and companies can have several creditors at any given time, for many different types of debt.

Additional examples of creditors who extend credit lines of money or services include utility companies, health clubs, phone companies, and credit card issuers.

Not all creditors are considered equal. Some creditors are considered superior to others (senior), while others are subordinate.

For example, if Company XYZ issues bonds, the bondholders become creditors senior to Company XYZ’s shareholders. And should Company XYZ then go bankrupt, the senior bondholders are entitled to repayment before the shareholders are.

You are a secured creditor if you have the right to repossess and sell your debtor’s assets if they fall behind in their payments to you – e.g., if you have a mortgage over their house or a hire purchase agreement over their car.

An unsecured creditor is someone who is owed money by a person or a company but does not have the right to repossess or sell any of their assets if they default on the payments.

Most creditors are doing the damage without even realizing and knowing it. Creditworthiness plays a significant role in having your applications approved.

The name sounds pretty self-explanatory—creditors are describing how worthy you are of credit. More specifically, the term creditworthiness is used to describe the likelihood that you’ll default on a credit obligation.

Your creditworthiness is based on how you’ve handled credit and debt obligations up to this point.

Creditors can tell how well you’ve managed your previous credit obligations by looking at your credit report, which is a record of the activity on your credit accounts.

Credit reports can be dozens, sometimes even hundreds, of pages long and every time, consuming for a person to review.

Rather than review your complete credit report to determine your creditworthiness, creditors and lenders use credit scores, which are an objective measure of your creditworthiness based on your credit report information.

A credit score is a three-digit number, often ranging between 300 and 850. The higher your credit score, the more “creditworthy” you are. That means you’re more likely to repay your debt obligations on time.

The more creditworthy you are, the more creditors and lenders are willing to approve your applications and give you a lower interest rate. How often you pay your bills on time is the most significant factor that affects your creditworthiness.

Recent late payments and other delinquencies can make you less creditworthy and, as a result, make it harder to get approved for new credit cards and loans.

Your creditworthiness is also affected by the amount of debt you’re carrying. Having high credit card balances, for example, can make it more difficult to have your applications approved.

The best habit for your creditworthiness is to keep your credit card balances below 30 percent of the credit limit and pay down your loan balances.

Minimize your new applications for credit, only applying for new items as you need to.

When you apply for a loan or other type of credit, such as a credit card, the lender has to decide whether or not to lend to you. Creditors use different things to help them decide whether or not you are a good risk.

Different lenders use different systems for working out your score. They won’t tell you what your score is but if you ask them, they must tell you which credit reference agency they used to get the information about you.

You can then check whether the data they used is right. Because creditors have different systems to work out credit scores, even if you’re refused by one creditor, you might not be denied by others.

You may be able to improve your credit score by correcting anything that is wrong on your credit reference file.

A lender is an individual, a public or private group, or a financial institution that makes funds available to another with the expectation that the funds will be repaid.

Repayment will include the payment of any interest or fees. Repayment may occur in increments (as in monthly mortgage payment) or as a lump sum.

Lenders may provide funds for a variety of reasons, such as a mortgage, automobile loan or small business loan. The terms of the loan specify how the loan is to be satisfied, the period of the loan, and the consequences of default.

One of the largest loans consumers take out are home mortgages. Qualifying for a loan depends mainly on the borrower’s credit history.

The lender examines the borrower’s credit report, which details the names of other lenders extending credit, what types of credit are extended, the borrower’s repayment history and more.

The report helps the lender determine whether the borrower is easy managing payments based on current employment and income. The lender may also evaluate the borrower’s debt-to-income (DTI) ratio comparing current and new debt to before-tax income to determine the borrower’s ability to pay.

Lenders may also use the Fair Isaac Corporation (FICO) score in the borrower’s credit report to assess creditworthiness and help make a lending decision.

The lender evaluates a borrower’s available capital. Capital includes savings, investments and other assets which could be used to repay the loan if household income is insufficient.

This is helpful in case of a job loss or a different financial challenge. The lender may ask what the borrower plans to do with the loan, such as use it to purchase a vehicle or other property. Other factors may also be considered, such as environmental or economic conditions.

The following are the lenders’ responsibilities that they need to follow and apply all the time. Lenders must:

  • Make reasonable inquiries before entering into a loan (or taking a guarantee) to be satisfied that:
    •  The credit provided will meet the borrower’s needs and objectives.
    • The borrower or guarantor will be able to make the payments under the loan or comply with the guarantee, without suffering substantial hardship.
    • Help borrowers and guarantors to make informed decisions.
  •  Help borrowers decide whether to enter into the agreement, agree to variations or any later decisions and to be reasonably aware of the contract’s effect by making sure:
    • advertising is not likely to be misleading, deceptive or confusing to borrowers.
    • the contract’s terms are expressed in plain language in a clear, concise and intelligible way.
    •  Information is not presented in a way that is likely to be, misleading, deceptive or confusing
  • Act reasonably and ethically:
    • when breaches of the loan occur or when other problems arise.
    • when a borrower suffers unforeseen hardship.
  • During repossession including:
    • taking all reasonable steps to ensure goods and property are not damaged.
    • adequately storing and protecting repossessed goods.
    • Not exercising the right to enter premises unreasonably.
  •  Not use oppression in dealings with borrowers:
    • to ensure contracts are not oppressive.
    • their lending powers are not exercised in an oppressive manner.
    • Borrowers are not induced into contracts by oppressive means.
  • Comply with all of their other legal obligations to borrowers. This includes:
    • following the rules about disclosure, credit fees, unforeseen hardship applications, and credit repossession in the Credit Contracts and Consumer Finance Act.
    • not making false or misleading representations or including unfair contract terms as required by the Fair Trading Act.
    • carrying out their services using reasonable care and skill.

Lenders are businesses or financial institutions that lend money, with the expectation that it will be paid back.

The lender is paid interest on the loan as a cost of the loan. The higher the risk of not being paid back, the higher the interest rate.

Lending to a business (particularly to a new startup business) is risky, which is why lenders charge higher interest rates and often they don’t give small business loans.

Lenders do not participate in your business in the same way as shareholders in a corporation or owners/partners in other business forms.

In other words, a lender has no ownership in your business. Lenders have a different kind of risk from business owners/shareholders.

Lenders come before owners concerning payments if the company can’t pay its bills or goes bankrupt.

That means that you must pay lenders back before you and other owners receive any money in a bankruptcy.

The type of lender you will need for a business loan depends on several factors:

• Amount of loan: The amount of money you want to borrow influences the type of lender. For more massive loans, you may need a combination of types of commercial loans.

• Assets pledged: If you have business assets you can pledge as collateral for the loan, you can get better terms than if your loan is unsecured.

• Type of assets: A mortgage is typically for land and building, while an equipment loan is for financing capital expenditures like equipment.

• Startup or expansion: A startup loan generally is much more difficult to get than a loan for development of an existing business. For a startup, you may have to look at some of the more untraditional types of lenders described below.

• A term of the loan: How long do you need the money? If you need a short-term loan for a business startup, you will be looking for a different lender than for a long-term loan for land and building.

The most common lenders are banks, credit unions, and other financial institutions.

More recently, the term lenders have been expended to refer to less traditional sources of funds for small business loans, including:

• Peer-to-peer lenders: borrowing from individuals, through online organizations like Lenders Club.

• Crowdfunding: through organizations like Kickstarter, and others. The good thing about these lenders is that they don’t require interest payments!

• Borrowing from family and friends: Some organizations help sort out the tricky financial and personal issues involved with these transactions. If you are considering a loan from someone you know, be sure to create a loan agreement. These agreements are sometimes called private party loans.

• Borrowing from yourself: You can also loan money to your business as an alternative to investing in it, but make sure you have a written contract that explicitly spells out your role as a lender, with regular payments and consequences if the business defaults.

As you look for a lender, consider the type of loan you need, whether you have any assets to pledge against the loan, and the other factors that will determine your ability to get a business loan and the terms of that loan.

Credit Issuers

A credit card issuer is a bank or credit union which offers credit cards. The credit card issuer extends a credit limit to cardholders who qualify for the credit card.

When consumers make credit card purchases, the credit card issuer is responsible for sending payments to merchants for purchases made with credit cards from that bank.

Credit card issuers are a type of lender. Card issuers accept a certain amount of risk when they approve credit card applicants and extend a credit limit.

Credit card issuers evaluate each application and set the terms for the credit cards based on the applicant’s credit history. Some cards may have rewards or other incentives to entice consumers to sign up for credit cards.

Credit card issuers have to follow government regulations to issue credit cards. They must also work with payment processing networks who help facilitate credit card transactions.

Lots of sensitive cardholder information is transferred in the application process, and credit card issuers must have the infrastructure to handle the number of sales and keep the data safe from hackers.

Wondering who is your credit card issuer? Look at the front of your credit card. Usually, the credit card issuer is the bank whose name is printed at the top of the card.

With private label credit cards, the name of the credit card issuer is printed on the back of the credit card in small print.

It’s important to know your credit card issuer, so you know who to call if you’re having trouble with your card, spot fraud on your account, or need to ask questions about your account.

Credit card issuers can’t issue credit cards all by themselves, they need the help of payment processing networks like Visa and MasterCard.

However, American Express and Discover act as both the credit card issuers and the payment processing network for their credit cards.

The payment processing networks authorize and processing transactions, set the terms of transactions, and help facilitate payments between merchants, credit card issuers, and cardholders.

What Does Underwriter Do?

An underwriter is any party that evaluates and assumes another party’s risk for a fee, such as a commission, premium, spread or interest. Underwriters operate in many aspects of the financial world, including the mortgage industry, insurance industry, equity markets, and common types of debt securities.

Underwriters can play a variety of specific roles, depending on the context of a financial situation. Generally, they are considered to be the risk experts of the financial world. Investors rely on them to determine if a business risk is worth taking.

The most common type of underwriter is a mortgage loan underwriter. Mortgage loans are approved based on a combination of an applicant’s income, credit history, debt ratios, and overall savings.

Mortgage loan underwriters ensure that a loan applicant meets all of these requirements, and they subsequently approve or deny a loan. Underwriters also review a property’s appraisal to ensure that it’s accurate and that the home is roughly worth the purchase price and loan amount.

Mortgage loan underwriters have final approval for all mortgage loans. Loans that aren’t approved can go through an appeal process, but the decision requires overwhelming evidence to be overturned.

Insurance underwriters, much like mortgage underwriters, review applications for coverage and accept or reject an applicant based on risk analysis.

Insurance brokers and other entities submit insurance applications on behalf of clients, and insurance underwriters review the application and decide whether or not to offer insurance coverage.

Additionally, insurance underwriters advise on risk management issues, determine available coverage for specific individuals, and review existing clients for continued coverage analysis.

In equity markets, underwriters administer the public issuance and distribution of securities from a corporation or other issuing body. Perhaps the most prominent role of an equity underwriter is in the IPO process.

An IPO is a process of selling shares of a previously private company on a public stock exchange for the first time.

IPO underwriters are financial specialists, who work closely with the issuing body to determine the initial offering price of the securities, buys them from the issuer, and sells them to investors via the underwriter’s distribution network.

Underwriters purchase debt securities, such as government bonds, corporate bonds, municipal bonds or preferred stock, from the issuing body (usually a company or government agency) to resell them for a profit.

This profit is known as the “underwriting spread.” An underwriter may resell debt securities either directly to the marketplace or to dealers, who will sell them to other buyers.

When the issuance of debt security requires more than one underwriter, the resulting group of underwriters is known as an underwriter syndicate.

The main thing that can go wrong in underwriting has to do with the home appraisal that the lender ordered: Either the assessment of value resulted in a low estimate or the underwriter called for a review by another appraiser.

In some cases, a hitch means that the property might not qualify for the mortgage at all. The home could be deemed uninhabitable or have specific structures that are dangerous.

Less drastically, the appraiser can’t find a permit for a remodel, has seen that the house has had non-permitted improvements, or thinks extensive repairs are required to bring the home up to code.

If it’s not the property, the underwriter’s problem lies with the loan applicant. Since lenders want assurance of timely repayments, they zero in on your reliability to earn money.

Do long, unexplained gaps exist in your employment history? Have you changed jobs within the past two years and taken on a completely different line of work? Are you a temporary employee?

Is the company likely to lay off staffers soon? Mortgage applicants often assume that because they are current on all revolving debt payments, they have excellent credit and a high credit score.

Keep in mind the difference between lenders, creditors, card issuers and underwriters so you will not be confused about it. They are the ones that mostly affect your credit score because the final decision comes from them.

How to Analyze Your Credit Report

How to Analyze Your Credit Report

You can analyze your credit by simply looking it over. It is very important to know what everything is and what everything means. You are reviewing your credit report to ensure that everything on it is accurate.

If you happen to find any inaccuracies you will have to enter into a credit dispute in order to get the inaccuracies resolved or removed.

We offer a DIY Total Credit Repair Course. You will be able to apply everything you will learn in this article to repair your own credit report.

Doing so will save you 100s if not 1000s of dollars. You will also have knowledge that most Americans do not care to have.

After you learn how to analyze your credit report will you take action? Will you fix your own credit? We hope so!

We are here for you and will support you throughout the entire process. Let’s get into the reason why you are here.

You are here to learn How to Analyze Your Credit Report. We’ll start with the basics and progress to the vital info that you came for.

What is a Credit Report?

Can you imagine that when you buy something in the store without checking how much you have in your wallet and you go straight to the cashier?

Unfortunately, when you are about to pay the item, you are in a total shocked because of the price. Just like in a credit report, how can you know if there are any errors or mistakes in your report if you are not going to check it? What if some errors and mistakes affect your credit score?

Credit report refers to an individual report of someone’s credit history prepared by a credit bureau. The credit bureaus collect information and create a credit report based on that accumulated information, and lenders use the reports together with other details to know the loan applicant’s creditworthiness.

When I say creditworthiness, it means that it is a valuation performed by lenders that determines the possibility a borrower may default on his debt obligations.

Repayment history and credit score are the main factors that it considers. Your creditworthiness is based on how you have handled your credit and debt obligations up to this present time.

The creditors can tell how well you have managed your past credit obligations by looking at your credit report, which is a record of the activities on your credit accounts.

Credit reports can be count as dozens, or sometimes even hundreds, of long and very time, consuming for a person to study, analyze and review.

Instead of reviewing your whole and complete credit report to determine your creditworthiness, lenders, and creditors can use your credit scores, which are objective measures of your creditworthiness based on your credit report information.

How to Analyze Your Credit Report continued.

A credit score was often ranging between 300 and 850, which is a three-digit number. The higher your credit score is, the more creditworthy you are.

That means that you are more likely to pay back your debt obligations in time or you make payments on time, the more that the creditors and lenders are willing to approve your application and give you a lower interest rate.

Making payments on time is a big factor that affects your creditworthiness. So, to have a good credit score you will need good feedback on your credit profile. it is wise to pay your debt obligations on time.

Your credit report also includes the information including where do you live, bureau or pay your bills, where do you work, whether you have filed bankruptcy or had a lawsuit judgment and whether you had a home foreclosed or a vehicle repossessed.

An actual credit report may be over 100 pages long. Credit reports are maintained by businesses that are known to be credit bureaus or credit reporting agencies.

These credit bureaus are Equifax, Experian, and Trans Union – the three major credit bureaus in the United States.

Companies that you do business with have agreed to send your debt information to the credit bureaus – at least one of them or maybe all the three who then update that information in your credit report.

Most of your credit card and loan accounts are updated on your credit report monthly. Some businesses do not update your credit report with your monthly payments but will advise the credit bureaus when you become seriously delinquent on your payments.

For instance, your cable bill is not automatically included in your credit report, but if you still over six months on your payments, the account balance might be listed on your credit report as a debt collection.

Your credit report contains detailed information about your credit cards and loans. For credit cards, your balance, credit limit, account type, account status, and payment history are all included on your credit report.

Loan balances, original loan amount, and payment history appear on your credit report. Public records like bankruptcy, foreclosure, repossessions, and tax liens are listed in a separate section of your credit reports.

Credit reports include a list of businesses that have recently checked your credit history either as a result of an application, you made or a promotional screening.

These credit checks are known as inquiries. Your version of your credit report will show inquiries from everyone who’s pulled your credit report, including businesses who look at your report for promotional purposes.

A lender’s version of your credit report only shows the inquiries that were made when you put in some application. You can, and you should always check your credit report.

You should order your credit report once a year to make sure that the information listed is true and correct. If you suspect you have been a victim of identity theft, you should check and monitor your credit report more frequently.

If you want to order your credit report, the following are the ways on how to order it:
(1) through a website, the government set up for that purpose for free,
(2) via promotional offer for free, and
(3) by purchasing from one of the credit bureaus.

Why is Credit Report Important?


Different kinds of businesses check your credit report to make decisions about you.

Bank companies check first your credit report before approving your credit card and loan applications – including mortgage or an auto loan. Landlords review your credit report to decide if he or she will allow you to rent on his or her apartment.

Your credit report affects many parts of your life, so it is essential that the information listed on your credit report is positive and accurate.

Your credit report is the primary source of information for your credit score – which a number that lenders use instead of or in addition to your credit report.

High credit scores show that you have definite information on your credit report while low credit scores show negative information.

Having positive information on your credit report plays a valuable role in your financial issues in life.

Not only is it essential for obvious things like getting a credit card or qualifying for a loan but also for less obvious things like renting a car, getting a cellular telephone service and perhaps even getting a job.

One thing that can happen to you by any chance is that you could be denied a line of credit. A low credit score shoes to lenders that you are a high-risk borrower and there is a high possibility that they will not be able to lend you money – even if you need it the most.

So, be careful about the decisions you make because it will always have an effect on your credit score and will be included in your credit report.

The Three Major Credit Bureaus


There are three major credit bureaus in the United States which are Experian, Equifax, and Trans Union. Their job is to compete to capture, update and store credit histories on most United States consumers.

While most of the information collected on consumers by the credit bureaus are similar, there are some differences.

For instance, the one credit bureau may have unique information captured on a consumer that is not obtained by other credit bureaus or the similar element may be stored or displayed differently by the credit bureaus.

All of the three major credit bureaus are publicly-traded, for-profit companies – they are not owned by the government.

However, the government has legislation called the Fair Credit Reporting Act that regulates how these and other credit bureaus can and must operate well.

How to Analyze Your Credit Report explained.

Credit bureaus collect and hold consumer credit information then sell it to businesses who have a legally valid reason for reviewing it.

For instance, a company with whom you have applied for credit with would have a valid need to look at your credit history. Your information can also be sold to other companies that want to prescreen you for their products and services.

It can only provide information and analytical tools to help businesses make decisions whether to offer you credit and what some sort of interest rate they should charge you.

The bureaus themselves do not make such decisions, but the lenders do.
These three major credit bureaus are often grouped. But they are separate companies that compete for the business of creditors, who may use both the credit reports and scores from these bureaus to help them in making such lending decision.

The data that the bureaus collect come from a variety of sources:


1. Information reported to the bureaus by creditors. Creditors, such as banks and credit card issuers, may report information about their accounts and customers to the credit bureaus. In this context, the creditors are known as “data furnishers.”

2. Information that’s collected or bought by the bureaus can be sold. For some types of information, the credit bureaus purchase the data. For example, a consumer credit bureau might buy public records information from LexisNexis, another credit bureau, and use this information when generating your credit report. Examples of information that a credit bureau may buy include government tax liens or bankruptcy records.

3. Information that gets shared among the bureaus. Although they are competitors, sometimes the credit bureaus must share information. For example: When you place an initial fraud alert with one of the bureaus, it’s required to forward the signal to the other two.

If you look closely at your credit reports, you may notice some differences. One reason for this could be because creditors aren’t required to report information to the credit bureaus. Some may choose to report your account to only one or two of the bureaus or not to report it at all.

Your credit scores could also be significantly different depending on which report your score is based.

This may be because of the potential differences in the data that make up each report.

Discrepancies in Late Payments


A late payment – at least thirty days past due could drop your score as big as 100 points. Just because your wallet got hit with a late payment fee for an overlooked bill does not mean your credit report got hit with a negative mark.

Hypothetically, you can acquire a late fee for being even thirty minutes late with a payment. A lot of creditors automatically requires a fee when your due date passes without having a payment posted on your account.

But if you never have or barely been late before, your chances of having a credit card issuer to reverse a late fee are pretty good. There’s no more significant single factor affecting your credit score than on-time payments, so a late payment is going to sting.

It stays on your credit report for seven years after the account was initially reported late. A late payment’s impact fades with time. If you have otherwise spotless credit and a good score, though, a late payment can knock as much as a hundred points off your credit score.

If your score is already low, and you have consecutive late payments, it won’t hurt it as much. You can’t change the past — but if your credit behavior from here on out shows that you pay on time, every time, that will be reflected in your score.

Banks and issuers consider payment history when assessing your credit risk and deciding whether or not to approve you for credit.

A long-standing history of on-time payments suggests that you are a responsible and reliable borrower; an unfortunate history of on-time payments indicates that you may not be able to pay off debts and could result in a costly loss to the bank or issuer.

Being unreliable with payments is a red flag to financial institutions, and several things can occur when you pay late.

(A) You will usually be charged a late fee.
(B) Your interest rate may rise or increase.
(C) It may end up in your credit report.
(D) It might decrease your credit score.

Paying late is a dangerous credit habit that could lead to more damaging credit actions, such as omitting an account until it becomes delinquent or sent collections. A statement in the collections area, may remain in your credit report for seven long years and may cause even more damage than a late payment.

Reviewing each item in your credit report
You are entitled to a free credit report every twelve months from all the three major credit bureaus such as Experian, Equifax, and Trans Union.

It is important to review your credit profile individually and carefully. But your credit report contains a lot of information, and it can be confusing to navigate, examine and study. Here’s how to decode and understand your report.

For some reasons, experts recommend checking your credit report once a year. Because your credit is a collection of your debt history, it can affect your loan interest rates and ability to open financial accounts.

An annual review helps ensure your report is up-to-date and accurate. Also, if you’re a victim of identity theft, your report might contain errors. To sum up, reviewing your credit keeps you aware of your financial situation.

How to Analyze Your Credit Report broken down.

You might see numerous sections on your credit report, but most of the information is grouped into four main categories:

(1) Personal Information
(2) Public Record Information
(3) Creditor Information and
(4) Credit Inquiries

The personal information is a self-explanatory matter, but this section generally includes your name, social security number, date of birth, employment data, current address, and previous address.

If you have open any legal issues related to your financial status, then they will be included in this section. These records might be bankruptcies, liens, judgment and wage garnishments.

The meat of your report and the eye of it is known to be as Creditor Information. All of your existing lines of credit are included and noted in this section. If you have had any credit turned in to a collection agency, mainly that would be covered too.

Aside from some necessary information, each account also tells you
(1) The status of your mind – whether it is current, open, closed or charged off.

(2) The responsibility of the account – individual or joint
(3) Your account balance
(4) Your most recent payment
(4) Past due information
(5) Your credit limit

Credit inquiries section includes businesses or individuals who have pulled or reviewed your credit report. It might consist of a bank company at which you opened an account, a mortgage lender if you are applying for a home loan.

There are two types of inquiries – hard inquiries and soft inquiries. Hard inquiries are made by lenders when you have applied for a loan or line of credit. If you made too many inquiries like this within a particular time frame, it could count against your credit score.

Soft inquiries are inquiries made when you check out or view your credit report or when a marketing agency pre-approves you for a line of credit.

Banking site offers a handy breakdown of the credit report codes. Here are some of the codes you will encounter and what they usually mean:
• CURR ACCT – this means that account is current, in good standing.

• CURR WAS 30-2 – this implies that account is present, but was thirty days late twice.

• PAID – this means that account balance is paid off and is inactive.

• CHARGEOFF – this implies that unpaid balance charged off, the credit grantor no longer seeks balance and likely has been sent to collections.

• COLLECT – this means that account is seriously past due and has been sent to collection.

• FORECLOS – this means that the property was foreclosed.

• BKLIQREQ – this means that debt was forgiven via chapter 7, 11 or 13.

• DELINQ 60 – this means that the account is sixty days past due.

How to Analyze Your Credit Report in great detail.

If you think that your report contains an error, you can file a dispute. All three of the major credit reporting agencies allow you to submit disputes online. You can also mail in your dispute.

The Federal Trade Commission offers sample dispute letters. According to Bankrate, TransUnion and Equifax offer a mail-in dispute form, and Experian offers this on the last page of the consumer’s Experian credit report.

If it’s your first time reading a report, or if your report includes a lot of activity—especially adverse activity—a credit report can be confusing. Don’t let that deter you from keeping up with your credit. Once you learn how to read it, it’s pretty simple.

Reviewing your credit report is an essential part of understanding your credit health. Always remember that learning your credit scores should not be the end of your credit evaluation.

Knowing how to read your credit report can help you learn how you can improve your credit. Given the fact that it is essential to understand your credit report, you also keep an eye if there are any identity theft happens or fraud.

Fraud Accounts
Fraud accounts are intentionally manipulation of financial statements to create a good appearance of a company’s health. It usually involves employees, account or an organization itself to mislead the shareholders and investors.

Scams affect every part of your life. This kind of people tries to kick you out of your personal information and your money. The most common types of frauds are banking, bankruptcy, health, housing and mortgage, immigration, internet, mas marketing, passport and visa, postal mails, telemarketing, and telephone.

Bank account fraud has occurred if transactions you have not made are shown in your bank statement.

Protect yourself against identity fraud and do remember the following:
• Don’t throw out anything with your name, address or financial details without shredding it first.

• If you receive an unsolicited email or phone call from what appears to be your bank or building society asking for your security details, never reveal your full password, login details or account numbers. Most banks will not approach their customers in this manner.

• If you are concerned about the source of a call, ask the caller to give you the main switchboard number for you to be routed back to them. Alternatively, hang up and call your bank again on the legitimate phone number printed on your bank statements.

• Check your accounts carefully and report anything suspicious to the financial institution concerned.

• If you’re expecting a bank or credit card statement and it doesn’t arrive, tell your bank or credit card company.

• Don’t leave things like bills lying around for others to view.

• If you move house, always get Royal Mail to redirect your post.

• Get regular copies of your credit report from a credit reference agency.
Notify your bank immediately if you see any unusual activity on your account. With numerous such kinds of fraud and scams, it is difficult to figure out where to report each type.

First, you file a report with your local police department. You might also consider reporting to your consumer state protection office.

You can also report specific kinds of fraud and scams to federal enforcement agencies but they usually cannot act on your behalf, but they can use complaints to record the pattern of abuse.

Everything helps the bureaus take action against a particular company or industry. Keep in mind that reporting fraud may not recover everything that you have lost, but it does improve the chance and possibility of getting some of it back and avoid future losses.

It can also help law enforcement authorities to stop scams before other people become victims.

I hope that this article gives you an idea and enough knowledge about why you should check and analyze your credit report. Once you already know to examine your credit report, it would be easy for you to determine errors and mistake if there is one.

Analyzing the credit report is not easy, and it is time-consuming, but you have to be patient and insert some effort because that is a big part of your life as an individual.

Your credit score also lies within it. That is why you need to understand every detail that is included in it.

Just like your credit score, it is also important because all the things you have gone through and all the decisions that you have made are all listed on that report.

To sum up, all of this, be very vigilant in your actions and decisions if you do not want to have a negative mark on your credit report most especially the late payments.

Usually, the late payment is the most common report that is seen in every credit report, and it often remains up to seven long years. You will have a hard time for seven years, and you do not want that to happen, right?

So, know all the things you need to know and understand all the things you need to know what to look for, for you to be aware of items that are on your credit report.

Once you have a negative mark on your credit report, it will affect your credit score, and you need to rebuild it. So be extra careful about everything that is related to your credit score.

There are so many inaccuracies on your credit report that you may not know about. We have listed 30. There can be any combination of these blatant errors on your credit report. It is your job to find and dispute these errors. You will want to check all of the following:

  1. credit limit
  2. terms
  3. status
  4. high balance
  5. frequency of payments
  6. balance
  7. account number
  8. information not the same on all three bureaus
  9. monthly payments on closed accounts
  10. the late payment on accounts in collection
  11. late payments AFTER account close-date
  12. account re-aging
  13. different account open dates across the bureaus
  14. obvious information that is missing
  15. date of last activity
  16. payment amount
  17. monthly payment
  18. date closed
  19. responsibility
  20. date of first delinquency
  21. charge off amount
  22. type of account
  23. sold to/transferred account
  24. payment status
  25. payment status details
  26. creditor name
  27. filing date
  28. court name
  29. late payments
  30. notice of dispute

This concludes How to Analyze Your Credit Report. Did we miss anything? Did we answer every question you may have? If so tell us about it. If not, comment.

Credit Repair – Laws and Agencies That Assist Consumers

Credit Repair – Laws and Agencies That Assist Consumers

Many laws and agencies protect consumers when it comes to credit repair.

CROA- Credit Repair Organizations Act – has the primary task of protecting consumers from companies that charge them money and falsely promise to get negative but accurate items removed from their credit reports. They also help defend against those companies that offer to dramatically improve low credit scores that are based on correct information.

FTC – The Federal Trade Commission is a bipartisan federal agency with a dual mission to protect consumers and promote competition.

FCRA – Fair Credit Reporting Act – The Fair Credit Reporting Act an American company which promotes the accuracy, fairness, and privacy for all data used by consumer reporting agencies.

FDCPA – Fair Debt Collection Practices Act is a section or subsection of the consumer credit protection act. Its primary purpose is to promote fairness in the collection of consumer debts and provide a way for clarifying and challenging debt information to ensure its validity.

CFPB – Consumer Financial Protection Bureau provides a single point of accountability for enforcing federal consumer financial laws. While also protecting consumers in the commercial marketplace.

These organizations all have ways to help you put pressure on credit bureaus and debt collectors.

Life is not about having all the positive vibes that are in your favor. Sometimes it is good, sometimes times it is unfair, and other times random things occur.

You cannot get what you want quickly and freely. There will always be a consequence for each credit decision that you make. That’s why as an adult, or even young adults need to be extra careful in every step they are taking.

Credit is essential as soon as you become a legal adult. Which in America is 18 years old.

Time will come that challenges will unexpectedly come into your life without your permission – that is life all about. The unexpected always seems to happen.

One of the essential things in our lives is money. You cannot survive and live without it. You need to work hard to have it. You need to use it wisely if you want to have no problem with it.

In our society, there is something we call a “credit score.” It is a three digit number that everyone has assigned to them. A credit score is your financial relationship and track record.

You are being tracked based on every single account, payment history and other factors that indicate to lenders their capacity to repay a loan. It is also a specific number that evaluates a consumer’s, and it is based on a person’s credit history.

At some point in our lives, we cannot escape monetary shortage. It is already part of our living. Not all the people who live here in the United States are equal regarding lifestyle.

Even if we work hard for a living, time will come that you will experience money shortage and you have to lend from someone or a bank company. In giving money from the bank companies, you need to comply with whatever agreement you have with the other party.

Fulfilling a contract you have with a bank means your credit score will gain a positive rating – it will increase positively. But keep in mind that some people failed to comply with the agreed due date of payment, and that will cause trouble or hard time for them.

Their credit score will hurt too bad, and they need to do some credit repairing action. Credit repair is not as easy as you think it would be. It requires time, effort and patience to rebuild your credit score.

In some instances, you do not need credit repair companies that offer services that will help you in restoring your credit score.

But for the people who do not know where to begin or what they need to do, they usually need credit repair companies to guide them along their way.

The service fee is involved in this action before a credit repair company perform their job – nothing is free now, anyways.

A good credit repair company will get first your credit reports from the three leading credit reporting agencies to evaluate and know what your credit issues are.

You might be wondering why do you need to get credit reports from all the three agencies, it is because each agency has its own data furnished also known as lenders, credit card companies, debt collectors, etc. who report your credit information to them.

Do expect that some errors may appear on your credit reports, but do not appear on the others. Once the errors are identified, you have to give the credit repair company any supporting documentation you might have.

For instance, if there is a bill on your credit report that your wife or husband was entirely responsible under your divorce decree, you can use that document to prove that it should not be impacting you.

In some instances, it might be challenging to determine what to include as far as the supporting documentation goes. But worry not, because that is another way a credit repair company can help you.

An example of this is if you are a victim of identity theft and a fraudulent account is being shown in your report, it can be difficult to prove if it is not yours since you basically do not have any documents connecting to the account.

When the data furnished and bureaus already receive the dispute and all the supporting information, they will now work with the credit repair company to evaluate if the item should be removed to the credit report.

The primary law that is dictating your rights when it comes to credit reporting matter is the Fair Credit Reporting Act – but there are also laws aside from this that is on your side when it comes to credit repair.

Credit repair companies cannot tell you exactly when your credit score will improve because some consumers have much more complex issues than others.

Every report and every case is unique, and no professional firm can predict an exact outcome. When choosing a credit repair company to fix your fix your bad credit, do not ask about the future but instead ask about what real clients have seen in the past.

There are credit repair companies that will surely help you in fixing your credit. Here is the list of the best credit repair companies in 2018:

• Lexington Law – it is known for its Cadillac credit repair. With decades of experience in the credit repair field, their advantage is they are offering features and services that other credit repair companies cannot match.

Lexington Law has three different tiers of service. The first one is the Concord Standard. It offers the repair fundamentals such as sending faith letters to your lenders, fixing mistakes on your credit report and looking for legal loopholes to get your credit score back to where it should be.

The second one is the Concord Premiere. It basically adds the second level of assistance including monthly credit monitoring and a credit score improvement analysis. The third and last one is the Premier Plus.

It combines identity fraud alerts and personal finance tools to guide you in monitoring your finances. Their services cost at around $89.95 to $129.95 depending on which tier of service you will avail.

It also offers a low-credit repair option, and it is called “Lex OnTrack” that costs for only $24.95. Lex OnTrack offers a minimum credit repair features but can be a perfect alternative for those who are looking even some minimal changes on their credit score without spending too much amount of money.

Do consider that Lexington Law is the only credit repair company that is being run by actual lawyers, so their reputation is too strong. One more thing that is good about them is that they only charge their customer once the work has already completed.

• Sky Blue – Regarding signing up, it is easier if you will call Sky Blue on their phone so that they will teach you how to sign up or you can visit their website.

Sky Blue offers a low-priced service compare to the other companies and offers 5-star customer service. With that being said, the initial fee costs for $69 only and then only $69 per month after that.

Given the fact that it does not have all the fancy bells and whistles that other companies have, Sky Blue is still one of the best services.

They will give you outstanding repair service including fixing a mistake on our credit report, sending a good faith letter to your lenders and looking for legal loopholes to get your credit score back to where it should be.

The coolest feature that Sky Blue has to offer is that you can pause your service if you feel that you need to take a break or you just cannot afford to pay for a month.

Then obviously, you can un-pause it whenever you are ready. As per Sky Blue’s achievement, it receives a rating of A+ rating from the Better Business Bureaus.

It also offers a full 90-day refund regardless of what will be the reason. Users often reach out to say how accommodating and excellent Sky Blue’s customer service, which is somewhat unusual for a credit repair company.

• CreditRepair.com – it is one of the most popular companies in credit repair. Not only are they well branded but they also include so many extra services like identity theft.

Compared to the previous price, CreditRepair.com now offers a most affordable credit repair option which costs at around $49.95 each month.

This tier of service provides the basics of credit repair such as credit bureau challenges, right interventions, etc. without some of the standard practices hat other credit repair companies do offer.

CreditRepair.com also offers a top-tier service at $99.95 which includes all of their best services, they can provide including credit report monitoring and identity theft protection.

It also interacts directly with credit card issuers and the credit bureaus to make sure that changes have been made. In addition to that, they will also monitor your credit and offers a sleek user interface to help you track your progress easily.

One more good thing about this is just like Lexington Law, it will only charge customers once the work has already completed.

• The Credit People – it is known for their 7-day trial. The Credit People are the only credit repair company that offers a free trial. You can try out their services and performances before committing to them.

But take note that the 7-day trial option they offer has a fee of $39 for a seven day of service. It is almost the same with Sky Blue when it comes to its features. They only offer straightforward repair services.

When it comes to the reputation of the company, reviews are mixed on The Credit People. On Better Business Bureau, it has an A- rating while some online reviews were disappointed about the service, but each and everyone agrees that the money-back guarantee is a great perk for everyone.

You get 100 percent money back guarantee at any point if you are not satisfied with their service.

• Pyramid Credit Repair – it is known for its straight-forward pricing, with one plan that costs $99 per month.

You can sign up for the service as a couple, that would probably be $198 each month but expect a 50% discount on the first month. Pyramid Credit Repair does not charge an initial fee just like other credit repair companies do.

Aside from offering essential credit repairing services, they also provide easy-to-use mobile site and website. It is originally designed to track your credit progress easily.

It also has an excellent customer service and dedicated account managers – that’s why they are known for having a pretty stellar online reputation. It is not registered to Better Business Bureaus but does have a mostly 5-star in most online reviews.

Just like Sky Blue, they also offer a 90-day 100% money back guarantee, which is a good deal after all.

Now that you already know what credit repair companies that you will assist you and other when you hit a terrible credit score, you will also need to have a piece of knowledge about the law that is related to credit repair.

Most people believe that credit repair typically begins and ends with FCRA or also known as the Fair Credit Reporting Act. But that is not the only law regarding credit repair. In this portion, I will state some laws and explain it further.

The first one is the Credit Repair Organizations Act or CROA. It was signed into law in the year 1996, sometime in September. Credit Repair Organizations Act (CROA) was passed to help manage the credit repair industry to protect each and everyone from the improper and deceitful practices common o a credit repair scam.

It requires companies that offer credit repair services to advertise and communicate in a well-manner and honesty to the customers. The Credit Repair Organizations Act is part of the larger set of laws called the Consumer Credit Protection Act.

It also intends to protect the consumer from any unfair advertising and business practices by credit repair organizations. The Credit Repair Organizations Act is the primary law that protects your rights as an individual during the credit repair process.

The second one is the Federal Trade Commission. It is created in the year of 1914, and its primary function is to prevent unfair methods of competition in commerce as part of the battle to bust the trust.

As years go by, the Congress passed an additional law giving the agency a more prominent authority to police anticompetitive actions. The Federal Trade Commission protects consumers by taking complaints about businesses that do not make good and positive output on their promise and cheat people out of money.

They also share these complaints with heir law enforcement partners and then use them to scrutinize fraud and eliminate unfair business actions. It is known to be an independent agency of the United States government, that is established in 1914.

Its primary mission is the promotion of consumer protection and the elimination and prevention of anti-competitive business practices. The Federal Trade Commission is the one that is responsible for providing consumer protection and making sure that the business practices are remaining fair.

It also deals with the complaints that are filed such as deceptive advertising, scams, and monopolistic practices. The third one is the Fair Credit Reporting Act.

As per Wikipedia, the Fair Credit Reporting Act is U.S. federal government legislation enacted to promote the accuracy, fairness, and privacy of the consumer’s information that is contained in the files of consumer reporting agencies.

This means that the credit reporting agencies are not allowed to give your personal and vital information to anyone right away. The Fair Credit Reporting Act that regulates the collection of credit information and the access to credit reports.

This law was passed in the year 1970 to ensure the fairness, the privacy of personal information. The fourth one is the FDCRA or the Fair Debt Collection Reporting Act.

As per Investopedia, it is a federal law that limits the behavior and actions of third-party debt collectors who are attempting to collect debts on behalf of another person or entity.

It is also the principal law that governs debt collection practices. This means that the act creates guidelines under which debt collectors may conduct business, define the rights of consumers involved with debt collectors, and prescribes penalties and remedies for violations of the Act.

Experts say that consumer should face the fact and deal with debt collectors but do keep in mind also their rights and protection. The debt collectors are the people that companies hired on a commission basis by banks and credit card issuers to collect on past-due accounts.

The Fair Debt Collection Reporting Act is the first to look for answers on what is and is not allowed to do when debt collectors come calling. The fifth one is the Fair Debt Collection Practices Act.

Here are some key provisions of the Fair Debt Collection Practices Act is the law:

(1) Protects against harassment – an example of this is excessive phone calls, threats of violence, harm, arrest, and abusive language.

(2) Allows consumers to look for proof that they owe the money that debt collectors want. (3) Prohibits disclosure of debts to others who are not legally authorized to know anything about the debts. (4) Bans contacts with the consumer at convenient times.

(5) Grants consumer the right to sue the debt collectors by an individual or in class actions for violation of the law. This law intends to prohibit third-party collection agencies from harassing, threatening and another inappropriate manner towards someone who owes money.

Now that you already know what to do in case this happens to you do not be afraid to fight for your right even if you owe money from someone. It is best to have knowledge about this to know what to do in case situation like this occur.

The sixth one is the Consumer Financial Protection Bureau or simply CFPB. It is also known as the Bureau of Consumer Financial Protection. It is responsible for consumer’s protection in the financial sector.

People who are keeping their money in the banks and credit unions, pay for goods and services with their own credit cards and rely on loans to buy houses, cars, appliances, etc. are protected by the Bureau of Consumer Financial Protection.

It’s is to promote transparency and fairness for credit cards, mortgages and any other consumer financial products, goods and services. It is known to be established by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

There are some key points that you need to remember about credit repair. First, do not expect significant changes overnight. Because credit repair takes time and requires regular credit monitoring and a shift in the way you go about personal finance.

Second, it can be tough to navigate the complex world of the credit industry all by yourself most especially when it comes to disputing negative information on your credit file.

Third, it is never a bad idea, and there is nothing wrong to consult a credit repair expert if you are not sure about the law or any methodology regarding credit repair and credit services.

Fourth, do consider that the credit repair process is lengthy and requires extra time and effort especially if you have a sizable credit history.

Fifth, taking with debt is also hand in hand with taking a closer look at your spending habits and finding ways on how can do save and lower down your spending.

Sixth, if you enlist the services of credit repair companies such as Lexington Law, Sky Blues, etc. you can cancel it anytime. Lastly, know how to educate yourself on your rights as a consumer including what the Credit Repair Organization Act and Federal Trade Commission are all about.

Now you already know the laws and agencies that you should know, always fight for your rights especially if you know that you are in the correct position.

Specifically, in debt collectors, you do not really know how traumatic it can be until you experience something you cannot imagine with a debt collector.

Some people cannot think properly after the incident happened to them. Sometimes they tend to forget their rights and what the debt collector disobey. It is safe and vital that you have knowledge about laws that would really save you from something or from someone.

As a person, you do not want to be humiliated by someone. Everyone deserves respects even if it is about money. Obviously, you can know what kind of attitude a single person has when it comes to money.

Some might get mad easily to the point that they cannot control themselves and their mouth and some are not. In this new generation, money plays a huge part in everyone’s lives.

Sadly, some people are being controlled by the power of money. They forget who they are and where they come from. So if you do not want to have constant balance from the bank companies or from someone, always use your brain when it comes to money decision.

Still, purchase what you need the most and what are the essential things you need. You can live without having luxurious items. It feels so good when you do not have debt and when you have a good credit score rather than having debt or credit card balances plus hitting your credit score too bad – it’s double trouble, right?

If you want to enjoy all the things in your life accordingly, start to practice having a good credit score. Because given the fact that you will not waste your time rebuilding it. Your credit score will determine how comfortable your life will be because even getting a job will base on your credit score.

I hope that this article truly helps you understand the laws and agencies that will surely assist you in credit repair. As a consumer, always be a responsible one and do not ever overuse your power and your rights. Do not degrade someone just because you think that you have all the reasons with you.

Keep in mind that these credit repair companies require service fee for their work. Luckily, there are credit repair companies that will only charge you once they already completed their work but some need initial costs to start and begin with the process.

Most credit repair companies cost too much amount of money but worry not because they have all the services you might be needing in performing the procedure.

Some credit repair companies do offer budget-friendly offers but do expect that they can only do essential credit repair services. I hope you do not need to undergo this kind of situation because honestly, this is not an easy one.

So, practice the habit of charging only the goods and services that you think you can afford to pay at the right time.

Credit Mix Affects Your Credit Score

Credit Mix Affects Your Credit Score

To help diversify your credit profile you will need to handle a variety of credit types, called credit mix. Loans and Credit Cards have many different types of terms in which to repay.

Check out our free course here: Learn Everything You Need To Know About Credit Scores

Most people like a refresher course to remind them about the factors that influence their credit scores.

Everything you do that is connected with credit, everything you purchased using your credit card and every application you applied for will definitely be shown and included in your credit history and will undoubtedly affect your credit score.

If you are not aware of these things, your credit score will obviously suffer, and you will take time to rebuild it. Your credit score is one of the critical factors that matter to your life – from the very beginning up to this point.

It helps you increase your purchasing power, your financial security, and stability, and keep you and your family safe from predatory payday loans and title loans.

In this article, we will tackle and explain the five categories of information that make up your credit score. Also what is credit mix is all about. For you to know how everything affects your credit score and to understand what is a credit mix.

Your credit mix refers to how many different kinds of credit do you have. Do you ever wonder what your credit mix is really worth it?

Given the fact that your credit mix is the least important part of your credit score, most of the people think that they can just ignore it because it is lesser significant.

But they’d be wrong! Credit mix takes up to 10 percent of your FICO score. They may not seem like a huge part of your credit score, but always keep in mind that every point does matter.

If you only have a student loan, applying and getting a new credit card would help mix up your accounts.

However, if you encounter a problem with overusing your credit cards, it is not in your best to have one just to get a different kind of credit account.

Unless you definitely need something like a personal loan, car loan or mortgage, no one would recommend to open a new credit account just to mix up your types of accounts.

You totally do not need to go out and get a home mortgage or even an auto loan if you do not need it to add to your mix. You can always acquire a small personal loan if you need to buy a particular item instead of having another credit.

To prove your credit mix, you can begin with effectively managing different credit card accounts as well as installment loans.

Even though opening new credit card accounts may have the possibility of lowering your credit score in the beginning, successfully having and using numerous credit cards will benefit you as time goes on.

Installment loan covers anything such as mortgages, personal loans, student loans and auto loans as well. Having these different kinds of loans will determine your ability to diversify your credit usage and habits effectively.

Although keeping your credit mix at a reasonable level will absolutely benefit your credit score, it is good to keep in mind that your credit mix makes up only 10 percent of your total and overall credit score, so it is something that should not be overly stressed about.

As what I mentioned earlier, you should worry the least about your credit mix, as it is much less critical to your credit score than making all your payments on time and paying down your debt and balances.

But when it comes to applying and getting a loan, most especially a longer-term one, you will definitely want to have the lowest interest rates possible.

In another way, you will be stuck in bad credit loans and no credit check loans, which have much higher prices and can also leave you stuck in a cycle of debt.

Your credit mix might not be as crucial as your payment history or your amounts owed, it is absolutely worth keeping an eye on.

Many people erroneously believe that they need to pay off their credit cards before they buy a car or house.

While it is essential to keep revolving credit balances low, less than 25% of the credit limit, you should carry balances on several credit cards. You should also keep credit lines open.

Do not think that paying off a card and canceling it is going to help; it won’t. Instead, pay down the balances on your cards and go buy a new car or house.

When it comes to maintaining a good mix of credit, most advisers recommend that you have one loan for every 3 to 5 credit cards. Eligible loans include mortgage accounts, auto loans, equity lines of credit and personal loans.

You should also spread out your credit card debt among multiple cards rather than carrying only one or two cards, 3 to 5 is ideal.

If you have numerous credit cards with low balances, make sure that you pay all of your payments on time. Do not transfer all of your balances to one card.

If you receive a credit card with a lower interest rate, swap it for one of your cards with a higher interest rate. You can transfer high-interest balances to a card with a lower interest rate but keep your high-interest account open.

Remember; keeping multiple accounts in good standing is the goal. Having a lot of revolving credit accounts is not going to hurt your credit score as long as you pay attention to your debt ratio and your mix of credit.

If you have a lot of credit card debt and want to purchase a car, pay down your credit card balances and go shopping for a car. Another great way to improve your debt ratio is to ask for increases on your credit card limits.

This does not mean that you have to charge more on your cards. In fact, you should not. All you are trying to do is improve your revolving debt ratio, not your spending power.

Improving your credit score takes a lot more than paying your bills on time. Sure, paying your bills is a big part of it, but you must also pay attention to more subtle details such as the mix of credit to boost your credit standing.

Remember that if a consumer has one account and is about to apply for a loan, runs out and opens three credit cards a month before applying, it will not immediately boost the credit scores.

In most cases, the situation will drop the credit scores since new credit hurts credit scores until it becomes seasoned. Consumers should prepare well in advance by building a variety of credit before applying for a loan.

Installment Loans


An installment loan is a loan in which there are a set number of scheduled payments over time. Many different types of loans are installment loans, including mortgages and auto loans.

A credit card may require a monthly minimum payment, but it is not an installment loan. Let us say Janyn took out a $5,700 installment loan to consolidate high-interest credit card debt.

After a 4.75% administration fee, his amount financed was $5,429.25. With an APR of 29.95% and a 36-month term, he will pay back the loan in 36 regular monthly installment payments of $230.33.

In general, payday loans are for a shorter duration, have a higher interest rate, and are often paid back in a single lump sum payment on the borrower’s next payday.

In contrast, an installment loan can last for many months, and payments are evenly spread out over the term of the loan. With an installment loan, you borrow once (up front) and repay according to a schedule.

Mortgages and auto loans are conventional installment loans. Your payment is calculated using a loan balance, an interest rate, and the time you have to repay the loan.

These loans can be short-term loans or long-term loans, such as thirty-year mortgages. Installment loan payments are generally regular (you make the same payment every month, for instance).

In contrast, credit card payments can vary: you only pay if you used the card, and your required payment can vary greatly depending on how much you spent recently.

In most cases, installment loan payments are fixed, meaning they don’t change at all from month to month. That makes it easy to plan ahead as your monthly payment will always be the same.

With variable-rate loans, the interest rate can change over time. Your amount will change along with the rate. With each payment, you reduce your loan balance and pay interest costs.

These costs are baked into your payment calculation when the loan is made in a process known as amortization. Installment loans are the easiest to understand because minimal changes after they are set up, especially if you have a fixed-rate loan.

You will know (more or less) how much to budget for each month. However, if you make extra payments (with a large lump sum, for instance), you may be able to lower your payments with a recast.

To calculate your payments, use a loan amortization calculator, or learn how to do the math manually. Using installment loans can help your credit.

A healthy mix of different types of debt tends to lead to the highest credit scores, and installment loans should be part of that mix.

These loans suggest that you’re a savvy borrower; if you fund everything with credit cards, you’re probably paying too much. But do not go over crazy with installment loans, use what you really need.

A student loan, a home loan and perhaps an auto loan are sufficient. Some installment loans can definitely hurt your credit score.

Mortgage Loans


A mortgage is an agreement that allows a borrower to use the property as collateral to secure a loan. In most cases, the term refers to a home loan:

When you borrow to buy a house, you sign an agreement saying that your lender has the right to take action if you don’t make your required payments on the loan.

Most importantly, the bank can take the property in foreclosure — forcing you to move out so they can sell the home. One of the most fundamental aspects of buying a home is figuring out how you are going to afford it.

Most home buyers take out long-term loans called mortgages that give lenders a claim on the home should you forfeit.

Factors that go into financing a home purchase might include determining the best type of mortgage for your means; understanding the mortgage rates that may be available in your area, and figuring out whether you qualify for a mortgage, to begin with.

For first time home buyers, seeking and qualifying for mortgages can be a bewildering process, although home ownership typically improves your credit rating.

This section includes articles to help you understand these and other necessary information about mortgages and loans so you can feel confident when you walk into a lender’s office.

A mortgage is a transfer of an interest in real estate as security for the repayment of a loan. This article provides an overview of the loan process, the consequences of foreclosure, and definitions of key phrases.

There are several different types of mortgages, and understanding the terminology can help you pick the right loan for your situation (and avoid going down the wrong path).

• Fixed-rate mortgages are the simplest type of loan. You’ll make the exact same payment for the entire term of the loan (unless you pay more than is required, which helps you get rid of debt faster).

Fixed rate mortgages typically last for 30 or 15 years, although other terms are not unheard of. The math on these loans is pretty simple: Given a loan amount, an interest rate, and some years to repay the loan, your lender calculates a fixed monthly payment.

• Adjustable rate mortgages are similar to standard loans, but the interest rate can change at some point in the future. When that happens, your monthly payment also changes — for better or worse (if interest rates go up, your payment will increase, but if rates fall, you might see lower required monthly payments.

• Second mortgages, also known as home equity loans, aren’t for buying a house — there for borrowing against a property you already own. To do so, you’ll add another mortgage (if your home is paid off, you’re putting a new, first, the mortgage on the home).

Your second mortgage lender is typically “in the second position,” meaning they only get paid if there’s money left over after the first mortgage holder gets paid. Second mortgages are sometimes used to pay for home improvements and higher education.

• Reverse mortgages provide income to homeowners who have significant equity in their homes. Retirees sometimes use a reverse mortgage to supplement income or to get lump sums of cash out of homes that they paid off long ago.

With a reverse mortgage, you don’t pay the lender — the lender pays you — but these loans are not always as good as they sound.

• Interest only loans allow you to pay only the interest costs on your loan each month. As a result, you’ll have a smaller monthly payment. The drawback is that you’re not paying down debt and building equity in your home, and you’ll have to repay that debt someday.

These loans can make sense in certain short-term situations, but they’re not the best option for most homeowners hoping to build wealth.

• Balloon loans require that you pay off the loan entirely with a large “balloon” payment. Instead of making the same payment over 15 or 30 years, you’ll have to make a large payment to eliminate the debt. These loans work temporarily for financing.

• Refinance loans allow you to swap out one mortgage for another if you find a better deal. When you refinance a mortgage, you get a new mortgage that pays off the old loan.

This process can be expensive because of closing costs, but it can pay off over the long term if you get the numbers to line up correctly. The loans don’t need to be the same type.

Bank Credit Cards


This apparently refers to a card that is issued by a financial company which enables the customer to borrow funds. Issuance of this credit card means that the cardholder will pay back the original amount borrowed from the bank company or with additional charges depends on the agreement.

It also offers you a line of credit that can be used to make purchases, balance transfer or cash advances and it is requiring you to pay back the loan amount in the future.

Credit cards can be thought of as plastic money. Issued by financial institutions (mostly banks), they offer cash (credit) that needs to be repaid within a stipulated time. Credit cards are a handy way to make payments and keep a record of your purchases.

All you need to do is swipe your credit card online or at retail stores and you are done. Many also use these cards to pay monthly bills, insurance premiums, etc.

Besides being convenient, there are other benefits of using credit cards too. A credit card is a card that allows you to borrow money against a line of credit, otherwise known as the card’s credit limit.

You use the card to make significant transactions, which are then reflected on your bill. You are charged interest on your purchases, though there is no interest charged if you do not carry your balance over from month to month.

Credit cards have high-interest rates, and your credit card balance and payment history can affect your credit score. Below are other facts about credit cards:

 A credit card is a line of credit you can access with your card.

 Generally, you must sign on these purchases (exceptions may be at the gas pump or for small amounts at a drive-through window).

 You will pay interest on the purchases made if not paid off in 30 days.
Both credit and debit card have similar risks when it comes to identity theft.

If your credit or debit card information has been compromised, you will need to contact your bank immediately. You should also take additional steps and monitor your credit report to make sure that your identity was not stolen.

Additionally, it is essential to check your statements each month to make sure you can identify all charges. That way, you can get any fraudulent charges refunded immediately.

Also be sure to report it immediately, since banks limit the length of time that you can report a fraudulent charge on the account.

Retail Credit Cards


Customers first apply for a store credit account, which often includes a physical charge card. In nearly all cases, these charge cards are offered in partnership with a bank, although only the retailer’s name may appear on the card.

When used, these store charge cards work exactly like other credit cards, but they can only be used for purchases from the retailer that offers it.

Also, some stores may offer credit cards that are directly issued by the bank and co-branded with the retailer. These credit cards can be part of a larger payment network and can be used for purchases at other merchants that accept credit cards in that network.

Having a retail credit account has several advantages. First, you can earn rewards in the store’s loyalty program. Also, cardholders may be sent coupons and invitations to special events.

Having a retail credit account is also an easy way to track your spending at a particular store. Retail credit accounts are widespread, but they are not for everyone.

By understanding the advantages and drawbacks of this kind of credit, you can make the right decision the next time you are offered an application for a store credit account.

Gas Station Credit Cards


A gas credit card is a type of credit card – which is different from a prepaid card – issued by a gas station. Using a gas credit card, you can pay for gas at the pump while taking advantage of discounts and perks offered by the card issuer.

You can usually apply for a gas credit card at the gas station or online. With some cards, you may be able to choose a billing date that works for you.

Though a gas credit card can help you track your gas expenses and save money at the pump, there are pros and cons to consider. Despite the limited use, gas credit cards can be helpful for those who are having trouble getting approved for a traditional credit card.

This is because gas credit cards may be easier to get approved for that rewards credit cards. A gas credit card may be a good option for those with fair credit who are looking to rebuild or establish their credit.

As an added bonus, it is not as easy to overspend on a gas card because it’s not accepted outside the gas station. Gas credit cards can reward loyal customers by offering discounts and fuel credits.

A fuel credit may be applied to your bill as a statement credit, effectively saving you money. The problem is, you may have minimal use with these cards. It’s also important to keep in mind that gas stations sometimes offer discounts for paying with cash.

While gas credit cards can save consumers money at the pump, a gas rewards, a credit card could offer even higher returns. Unlike gas credit cards, which are distributed by gas stations, gas rewards credit cards are traditional credit cards that offer points or cash back on gas purchases.

Gas cards may look like regular credit cards on the surface, but there are differences to take note of. One of the main differences is where you can use them.

While gas credit cards might be useful for consumers looking to build credit, they may not be as reward-friendly as traditional cards. Before you apply, weigh the costs as well as the pros and cons to determine what type of card is best for your situation.

Most (but not all) credit card companies offer their cardholders more protection against identity theft than is available to debit cardholders. This alone is a strong vote in favor of using your credit card at the gas pump.

But identity theft protection isn’t the only benefit. Some credit cards offer rewards in the form of airline miles, hotel points or cash-back incentives.

No matter what the reward, the key is that you’re gaining something in exchange for using the card. Very few debit cards offer that perk.
Now that you already have the knowledge about credit mix.

It is important to know also what is a credit mix and its other related matters behind it. Because it is also one of the factors that might affect your credit score even though it is only 10 percent of your score.

Always keep in mind that every score matters and every decision will affect your credit score.