Posts Tagged ‘future’
When many people think about credit repair, they think about “ removing negative“ from their credit report. Unfortunately, they stop there. What those people are missing is that there is more to improving your credit score than just removing negative items.
A portion of your score consists of credit utilization, for instance. So while removing negative accounts is great, you’ll be even better off if you can start building positive payment history too.
While many people focus completely on the “historical”aspect of credit repair (i.e. fixing things that have already gone wrong), a much better approach is to not only try to fix things from the past but also work on the future by attempting to rebuild credit.
And how exactly is that done?
Let’s say that you have some late payments, collections, charge-offs, and other negative items on your credit reports. It’s great that you’re attempting to clean up your credit by tackling those things, but there is a lot more that you can do that will help your credit score.
You might do something like…
1. Get a $5,000 or $10,000 line of credit added to your credit report using a merchandise card that reports to at least one major credit bureau. This will raise your high credit limit substantially and may help open the door for pre-approved credit offers.
2. Get a couple more credit cards, such as a sub-prime (high fee) Visa or MasterCard or a secured credit card. Whether you use one type of card or both, make sure that they report to the credit bureaus (as they are useless for rebuilding credit if they do not.)
3. Make regular purchases using your Visa/Master cards and run up manageable balances. Pay them off over the course of 10 months or so, and then do it again. This way you will build positive payment history. Do the same thing with the merchandise card to add to the positive payment history you are building.
4. Be sure to NEVER miss a payment or be late. If you do, you’re working against your goal of rebuilding credit. You must pay on time every time, period.
5. Make sure you are “OPTED IN” to marketing offers based on your credit and relationships with your creditors. This will help insure that you start receiving pre-approved offers as quickly as possible.
6. If you have any existing credit cards that are maxed out or have very high balances, consider moving the balances around or paying off some of the balance so that the usage isn’t so high (though the merchandise card account should help with this).
7. After you have started receiving credit card offers in the mail, pick a good one and apply. You can also try starting with a department store card as sometimes these cards will be easier to get approved for.
The whole point of this process of “rebuilding” credit is to build up payment history and add new positive accounts to your credit report so that your credit will look better to lenders offering loans and credit cards with better terms. Most people will find that their credit score goes up as a result of their efforts, and in anywhere from 3 months to a year they will be getting all kinds of offers in the mail for better credit cards with lower fees and higher credit limits.
Did you break any records in 2015? The answer is yes.
Ok well maybe not you personally. But the rest of America made 2015 the most traveled year in recorded history. This has a lot to do with low gas prices and a whole lot of other stuff that matters (but not here and not right now).
So 2015 saw more people traveling and that inevitably means more car accidents. The Senior VP of the Insurance Information Institute, Jeanne Salvatore, notes that “When the number (and severity) of accidents rise, claims costs increase.” This also means that the cost of everything else in the realm of auto accidents goes up. Salvatore says “Everything is costing more – from the size of claim settlements to litigation costs, medical costs to auto repair, which has gotten more expensive because people are buying more new, more expensive cars.”
So you might be wondering at this point why am I here talking about auto accidents in 2015? Well the people that already know why should keep reading but for everyone else let me drop a quick (but important) knowledge bomb on you! Insurance premiums are going up as a result of increased travel and more accidents. And here’s the important part. The rates you get on your car insurance are not just based on driver history. Insurance companies take into account your FICO Score. And you guessed it. The lower your score is the higher your premiums are going to be. Now this isn’t always the case but overwhelmingly happens throughout the U.S.
Here’s the big takeaway. Whether you live in a state that does not allow your credit to affect your premiums or your insurance company doesn’t factor your score you are still wasting money on a bad score. Dan Sater, Nationally Recognized, Credit Expert and our Members-Only Forum Expert notes that having a bad score can cost you almost $40,000 over a 5-year period.
The truth is you need to have a good credit score. But there are so many faceless and greedy companies out there that are actively trying to keep your score low and drive you deep into debt. Don’t let this happen. We don’t want it to happen.
That’s why we created the Credit Repair Intelligence System and paired it with The Debt Free Bible. These two systems work to get you out of or keep you out of debt and to improve your credit score saving you tens of thousands of dollars. Imagine being able to save that money for your children’s college education, or save up for that dream house.
I am not going to lie to you. Building or rebuilding your credit can be hard and tedious. But it really doesn’t have to be. The Credit Repair Intelligence System is proven to work and has helped thousands just like you build great credit to achieve their dreams and save money.
But I understand it’s a big commitment to live a happy and debt free life. I’m not going to force you to be happy or buy your dream house. But I do want you to at least take the first step towards a great credit score. We developed a Starter’s Guide to Building and Protecting Your Credit that details some things you need to know about credit before you start. This guide is normally 50 bucks but I’m giving it away for $14.95 and I’m covering the shipping and handling for you because I don’t want anything in the way of your credit greatness.
To get the Starter’s Guide Just fill out this form and you’ll get free shipping!
You can also start with our complimentary e-book on the 28 Secrets That The Banks and Credit Agencies Don’t Want You To Know.
But if you are ready to completely get rid of your debt and build great credit to live your dream life then you need to get the Credit Repair Intelligence System and The Debt Free Bible. When you buy both you get the DFB for 50% off. You really cant lose since there is a 30 Day Money Back Guarantee. So stop wasting your time (and MONEY).
We all know a low credit score will make everything in the world of finance more expensive because of higher interest rates from lenders due to being considered a greater credit risk (i.e. higher interest rates on car, homes and credit cards). While this may be considered common knowledge by some, it’s truly devastating effects are understood by few.
EXAMPLE: if you purchase a $200,000 home on a 30 year fixed mortgage at 8% interest instead of 6% (because of your credit score); that 2% is going to end up costing you a total of $96,934.11 over the term of the loan. Now, think about how many “extra” years you’ll have to work to pay off $96,934.11 because of an extra 2% in interest?
The part few people talk about is all the other areas in life where a low score will increase your cost of living on an annual basis. For example, in addition to paying more for a car, home and credit cards, a low credit score will most likely have you paying more for the following as well.
1. AUTO INSURANCE. As many as 92% of the 100 largest personal automobile insurers use credit information to underwrite new business, according to a 2001 study by Conning & Co., an insurance-research and asset-management firm.
2. HOMEOWNERS INSURANCE. Many insurance companies see a correlation between low credit scores and increased property insurance claims. Therefore, a low score will result in higher rates.
3. LIFE and HEALTH INSURANCE. Customers who are unable to pay their monthly insurance premium thereby pass along that increased cost to the insurance company whose stuck with the bill… resulting in a loss for the company. Since customers who pay without lapse are more profitable it is felt by many that a low credit score now even affects a monthly life and/or health insurance premium negatively.
One of the more shocking areas where a low credit score will you cost you is in the area of employment. It’s estimated as many as 42% of employers now do credit checks on applicants before hiring them (according to a 1998 survey by the Society for Human Resource Management).
While many employers claim they only do it to “verify” information on your application (such as where you live and where you have worked etc.) we can both assume they are taking the liberty to “have a peek” at how you handle your financial affairs as well. According to the
to Public Research Interest Group (PIRG) as many as 79% all credit reports contain errors — 25% of which are serious enough to cause the denial of credit (according to a 2004 report).
And that’s all the more troubling in light of the increasing impact a bad credit report can have, says Ed Mierzwinski, director of PIRG’s consumer program.
“It’s outrageous that the credit bureaus are claiming their scores are accurate enough to take people’s lives and screw with them like this”.
Remember that nobody else is going to look after your credit for you. The credit bureaus certainly won’t. It’s up to you to make the decision and take action to improve your credit score, your financial well-being, and your life.
Wait what? Why should I Ignore my credit score?
There are so many reasons but we decided to just name the 7 most important.
If you don’t need to buy a car what the point of having a great FICO Score? It’s just kinda silly to put in the effort of building and keeping great credit especially if my girlfriend loves my beat up honda. Its got character!
She has great credit and pays for everything since my credit card only has a limit of $500 a month. I can get used to that!
Looks like we were wrong! You should pay very close attention to your credit score!
To get started right away with building great credit check out our Starter’s Guide To Building And Protecting Your Credit!
Are You The Parent (OR Grandparent) Of A New College Or High School Grad?: A Post From David M. Frees III J.D.
Are you the proud parent of a newly minted and soon to be “independent” adult? Ready to cut the cords and to stop paying their monthly bills?
Well, now’s the time to get ahead of a very dangerous and counter intuitive situation – The FICO credit score. And, this is one area of financial life where what you don’t know can hurt you and your child who is heading out into the world.
And by the way, when they first go out on their own, credit cards seem like a good way for them to pay the bills…. until they have gigantic and unmanageable debt AND as a result a bad credit score.
You see, nobody ever teaches our kids how to build and keep great credit.
And most kids don’t know that their credit score will radically affect whether or not they can buy a home, to buy or lease a car, rent an apartment, get reasonably priced auto or homeowners’ insurance, get a job and more.
That’s right, a good or bad credit score can mean a yes or no on these and many other buying decisions and bad credit or no credit rating can mean higher prices – much higher prices for car, rental, and home mortgage payments and even prevent your new adult from getting a job.
And I don’t know about you but once they move out of your house it’s hard (on both kids and parents) to have them move back in…especially if that could have been prevented with a little good advice and some “credit secrets”.
So let me tell you two stories to help you to understand why teaching our kids (as soon as possible) about how to get and to keep good credit.
Ray told me that he had always paid cash, even for his car and truck, and never had a credit card. He’d never really done anything wrong but……his credit score was only 680. You see that having absolutely no credit history can be just as harmful as a damaged credit history. He just hadn’t done a few things that really mattered.
Now that may not sound too bad, but he and his fiancée didn’t even qualify for a mortgage. His wife-to-be had a better score and could qualify on her own but they really needed their combined income to get the house that they wanted.
Even in the best-case scenario, where they did qualify, their interest rate, and therefore their monthly payment, would have been dramatically higher.
In this case, there was a happy ending.
I knew CR Publishing’s Alex Frees (yes he’s related) and put them in touch with Alex and The Starters’ Guide To Building and Protecting Your Credit.
With a few carefully executed strategies (described in The Starter’s Guide To Building and Protecting Your Credit) he was able to take his score from 680 to over 775. Those kids got their mortgage and their first home as a result of working hard, saving money for a down payment, AND having good credit scores.
So what’s the moral or the story?
Help to educate your recent grads…. before they make credit mistakes…about what to do to build and keep good credit.
Some of the rules are obvious – pay your monthly bills on time – and others are less apparent. For example, did you know that there are good reasons to get a second credit card and some bad reasons that can damage your credit score.
Are you aware that it’s not just how much credit you have available, but how much of the available credit you have used.
Do a few important things right and your score goes up. Miss them, or do them the wrong way or in the wrong order and you can easily damage your score.
Well, if you’re like me – a parent but not an expert on consumer credit scores – then getting your kids access to educational resources like the Credit Repair Intelligence System (a comprehensive guide to building and keeping better credit) and the super inexpensive The Starter’s Guide To Building and Protecting Credit can mean the difference between their life long financial success and independence and that knock on the door where they want to move back in.
Help your new grad to get a better start in life. It’s easy and effective to help them learn…. right from the start…how to build and keep a great FICO credit score.
Enjoy the exciting life of being a parent and grandparent!
Dave Frees, JD
P.S. I promised you a second story so here it is:
I knew another recent grad. He started life with a credit card balance that he couldn’t pay off. That in and of itself isn’t a problem. But, as the balance grew (he was using it to supplement his income) he was also using more and more of his available credit line.
This negatively affected his FICO score and the interest rate on his balance went up…and so did his monthly payment.
The next thing you know he missed or was late with a payment and his score dropped again.
He got another card but did the same thing there (and his interest rate was higher from the start).
It didn’t take long before the rent on his apartment was too much (along with his credit card debt) and he could no longer qualify to buy a new or used car.
Moving back in with his parents was the next step.
All of that could have been avoided with a little advanced help. Help your kids to study up on FICO. To learn more about credit and how it’s computed. And, if it makes sense get them a copy of The Starters Guide For Building and Protecting Your Credit or The Credit Repair Intelligence System.
Often it is hard to pin point one area of debt or credit repair to start. That is why when the Credit Repair Intelligence System was created it covered multiple topics. Its just the nature of the beast. Similarly, to building or repairing credit you can’t do just one thing. You often have to try multiple strategies at the same time.
The same goes for fixing debt! There is not one strategy that will fix everything. And experts would probably agree that you often have to use several and combine some strategies to be most effective.
That is why The Debt Free Bible combines 19 different strategies and secrets that are ready for you to discover right now. The Debt Free Bible is over 280 pages of knowledge that is ready to be absorbed.
But be aware…
This is not some fly by the night system. It actually took a little over 2 years and over $25,000 to create it. Our friends at Zodiac Publishing really created something special for the country here.
Just some of the methods can start helping immediately:
• Use the ”Method Matrix” to compare 19 get out of debt methods and pick the best one (page 222)
• Discover how to get one bank pay off another bank with the ”IR Method” (page 163)
• How to use the ”Overflow Method” pay off any debt faster (page 159)
• How to pay off your bills FASTER with no extra money using the ”RR Strategy” (page 167)
• Why the ”LBF Technique” gives you a psychological advantage to become debt free (page 169)
• Why the ”HIF Method” should be used FIRST on debts over 24% interest (page 171)
• How the ”Division Method” and a calculator can get you debt free 8 YEARS SOONER (page 173)
• Pay off your mortgage in only 6 YEARS with the ”AP Strategy”
But using just The Debt Free Bible or The Credit Repair Intelligence System is sometimes not enough. Luckily we are able to provide both for the ultimate debt fighting and credit building system.
Not only that but we are there every step of the way! Our Members-Only Forum, staffed by our Credit Expert Dan Sater (Check Out his Bio), is there for you to access and ask him questions! Having some guidance through the credit building or repair process is what separates us from the other guys. And now with The Debt Free Bible you can build the debt free life that you want and deserve for you and your family.
What Our Lawyers Make Us Say: CR Publishing publishes and provides quality and actionable do it yourself products and information to consumers who want to improve credit and/or to get rid of debt. The articles and information provided herein are for informational purposes only and are not intended as a substitute for professional advice.
FICO is a registered trademark of the Fair Isaac Corporation in the United States and other countries.
Credit Building, Credit Repair, Credit Counseling and Debt Reduction/Negotiation – What’s The Difference? And What Do YOU Need to Know?
In most instances, rebuilding your credit, paying down your debt and regaining your financial freedom starts with “credit repair.”
Credit Repair should not, however, be confused with other credit services such as debt consolidation, credit counseling, or debt negotiation.
Credit repair is a process that you can do on your own, or, with the help of experts. If you don’t know where to start in the DIY world of understanding and building or rebuilding credit then visit creditrepairpublishing.com for effective tools and access to a community.
But, there are also companies that specialize in helping consumers dispute and delete inaccurate, unverifiable, and untimely items on their credit report that are being illegally reported. These companies very widely in quality. But if you need this type of help, you can call us for an appropriate referral.
You should also know, that at CR Publishing we believe that Credit Repair is also about helping you to understand your credit and showing you how to build positive credit so that you can have the positive credit profile and score you deserve.
And a better credit profile (FICO Score) means better pricing on everything from credit cards and credit lines to insurance and mortgages.
But what about these other things?
Debt consolidation is the process of combining all outstanding debts in one loan account. The purpose of debt consolidation is usually to lower monthly repayments or lower interest rates on a loan. It can be beneficial but be careful!
Debt reduction is, on the other hand, a process of carefully understanding debt and creating the best system to reduce your debt and then to build better credit and wealth. It is the foundation of being debit free. At CR Publishing we now all have a powerful resource The Debt Free Bible for those who are looking to reduce Debt and to become Debt FREE. Click here for access to this resource.
Credit Counseling is advice given by counselors to people about how to use credit responsibly and how to get out of serious debt. When a person participates in credit counseling their creditors may note it in their credit reports.
The fact that they have resorted to a credit counseling program is a huge red flag for prospective credit grantors. Remember, paying off debts is a step in the right direction, but it does not necessarily restore or build your credit. credit.
Debt negotiation is when a 3rd party negotiates with creditors and establishes a payment plan on behalf of the debtor. Before starting debt or credit counseling, or debt negotiation consider the Credit Repair Intelligence System, The Debt Free Bible, or our amazing offer when you get both.
Want more information? REGISTER HERE to get our updates and resources.
It seems to me that there may be solid, usable methods to getting into the “VIP Departments” of the credit bureaus, and that there may be some real advantages to doing so if you can pull it off.
If you don’t already know, each credit bureau has a “vip department” where the issues and disputes relating to “important” people get taken care of.
The most obvious way to become a VIP is to be someone who can do some damage to the credit bureau: an attorney, a politician, a high profile business person or celebrity. There may be other ways to have your disputes handled by the VIP department, though.
One forum member, for example, reported that their disputes were being handled by the “priority” department because they had an attorney contact the bureau on their behalf. Will this work for all of us? Probably not all the time, no, but we may have other options.
Are you a VIP? If so how did you get there? Seriously, if you’re reading this and you care to share the details with the world, please feel free.
As for our part, we will keep working and researching to see what may come of this potentially powerful angle to credit repair. Stay tuned, and I’ll try to keep you updated as we learn more about how to become a VIP.
If you haven’t already heard the news, here’s the sum of it: the bureaus are now using “OCR” (Optical Character Recognition) technology to “read” disputes via computer and, if possible, automatically categorize them and even possibly flag them as frivolous.
For the credit bureaus, OCR is an attempt to automate more of their process. By reducing the need for human labor and categorizing and cataloging disputes via computer software as they are received, the credit bureaus can accomplish several things:
- Reduce the likelihood of human error
- Reduce staffing costs
- Automatically “fingerprint” disputes and store in a database
- Detect if similar disputes have been received before
- If the dispute can be automatically categorized (with a numerical e-Oscar code), the dispute can be forwarded to the creditor via e-Oscar with no human intervention whatsoever. At the very least, the computer can do all the work and a human can just review the results and click a button to approve it.
Where the problem really gets kicked into high gear is starting at item #3.
Here’s the problem:
- 100% of credit repair companies use form letters of some kind.
- 99% of credit repair books tell you to do the same
- If the bureaus can tell you are using a letter that they’ve seen before (such as a template from a credit repair product), they may flag your dispute as frivolous “right out of the box”.
So let’s say you buy some “Dummy Credit Repair” book and do what it says. You use their templates (the ones that match your problems) to send to the bureaus. Maybe you have been a victim of identity theft and have several accounts that are genuinely “NOT YOURS”. So you pick the appropriate template, and send them away.
Then the bureaus receive your letters and their computers say “Hey, we’ve already gotten hundreds of letters that look just like this… this is obviously frivolous.” And before you can say “OCR”, your dispute is rejected (or in many cases seemingly ignored).
Here’s the thing you really need to know about OCR: The only way it will hurt you is if you aren’t prepared for it.
If you are aware of it, and will take steps to protect yourself, the letters O C and R will remain mostly harmless for you.
What steps can you take? We’re still working on what we believe will be the best answer for this, but for now, the following will have to suffice:
- Don’t use a credit repair company.
- Hand write your disputes, or use strange fonts with unusual colors. This makes it difficult for the “OCR” scanner to read your dispute, requiring (hopefully) an actual human being to take a look at it.
- Make sure your disputes are HUMAN READABLE… use standard letter formats that make sense. The delicate balance is to thwart the computer without totally screwing up your chances when your dispute reaches a live person.
We are working on methods to help consumers better deal with the potentially negative effects of those three innocent letters. I’ll be sure to keep you posted as we further develop those methods.
I read a newspaper article recently that had this headline: “Your Bad Luck Is a Windfall For Airlines”. The article talked about how change fees and cancellation fees produce about $2 BILLION in revenue per year for the airline industry. So missed flights, changed plans, traffic jams, and more… all this “bad luck” leads to billions for the airline industry.
I got to thinking about this and realized that the airline industry isn’t the only industry making a killing off of consumers’ bad luck. Creditors, credit bureaus, and collection agencies make more money when things go downhill for you. (Notice that I included “credit bureaus” in that list… remember, it is more profitable for them if you have bad credit–more on that in a later post!)
These companies can’t really be faulted 100% for this, because it is really widespread and more or less just the way the system works. Your doctor, your mechanic, your attorney, and your plumber also profit from your bad luck… but it’s not like you’re going to do your own brain surgery any time soon, so you’re probably glad that your doctor is around to help.
What we can really take from this is that there is a positive side to everything; and the key for us is finding that and applying it so that it can benefit us. You may think your bad credit is nothing-but-bad for you. Think again. We all KNOW it has a negative side, but look for the positive side.
Many consumers have totally screwed up their credit, and ended up on our web pages in an attempt to dig themselves out. Many of those same consumers then decide that they wanted to help others dig out too, and end up starting their own profitable credit restoration businesses as a result. Some do it part time, some even full time, but in either case they have now crossed over and have learned to profit from their own bad luck.
Even if you don’t want to start a credit repair business, you could still profit from your bad credit. By fixing your credit today, and positioning yourself for the future, you could be setting yourself up to take advantage of one of the biggest financial opportunities of the next 50 years. What’s the opportunity? If you don’t already know, we’ll leave that for another post.