Category Archives for Credit

5 Overlooked Perks of Good Credit

There are many benefits to having good credit, and, if you have bad credit, to repairing it. Now, we all know that a poor use of credit, paying high interest to big credit companies, is a money waster for everyone.

However, there are a lot of perks for people who use credit to their advantage.

Let’s take a look at what good credit can do for you.

1. Lower Insurance Rates

Insurance companies will often look at your credit score when determining your rate for auto insurance, homeowner’s insurance, and life insurance. The higher your credit, the less risky you appear to be and statistically people with high credit are better drivers, responsible homeowners, and make well thought through life decisions.

2. Better Rental Agreements

Most landlords run a credit check on their applicants. If an applicant has a low credit score they’re likely to either reject them completely or charge a much higher deposit. Conversely, people with higher credit scores in a better position to negotiate their rates.

3. Lower Financing Rates on Your Car Lease

Nobody loves an astronomical monthly car payment, but everyone wants the car. When you have stellar credit, you’re in a position to bargain with your car dealer for a lower than usual financing rate. Clean credit tells the dealer you’re a responsible borrower, and if you can’t get a lower rate, you might get a better price. Good credit opens all kinds of options for you.

4. Excellent Mortgage and Refi Rates

Good and clean credit makes a mortgage broker’s heart sing. They’re much more likely to offer you a lower interest rate (saving your potentially hundreds of thousands of dollars over the term of the loan). Great credit also give you bargaining power when it comes to negotiating closing costs and other fees. Remember, banks are competing for your business, good credit makes them want to compete for yours.

5. Top Notch Credit Card Deals & Buyer Protection

The best rewards credit cards come knocking at your door when you have good credit. It pays to use these cards (as long as you pay off the balance each month) because they often offer cash back deals, free gifts, and low rates. Also these desirable cards offer the best buyer protection that shields you against fraud, identity theft and other problems.

At the end of the day, it pays to have a strong credit rating. Credit is something to be used to your advantage, we’ll show you how. Contact us today for your complimentary credit assessment.

Why Credit Repair Takes Time

Honestly we wish we had a magic wand that could fix all negative credit reporting in one go, but unfortunately, credit repair doesn’t work that way.

As with any kind of rehabilitation, credit repair takes time.

Remember that your credit report is a history, it lets lenders know how you’ve managed credit over long periods of time. While disputing negative information that is inaccurate, obsolete or unverifiable on your credit report, repeating those disputes every 30-45 days, and bringing your accounts current will elevate your score quite a bit right away, you have to demonstrate by keeping low balances and paying on time, that you’ve taken control of your credit over time.

That’s why it’s so important to learn how to manage your credit after the initial reparations have been made.

The exact time it will take to restore a strong credit history depends on you, your past, and how you manage your credit moving forward. Often the more severe your past issues were, the longer it takes to restore your credit history. The good news is it can be done! Negative information doesn’t last forever.

Credit repair takes time and consistency, which is why it’s crucial to have someone manage the process for you. Many individuals who go it alone try once and fail to follow up, which is why their credit never becomes as good as it could be.

We’ve seen incredible results for our clients. If you have any questions about the process or how we can help you, please email us or give us a call right now!

7 Tips To Maintaining Good Credit

1. Pay Your Bills On Time
Being late on payments is the number one contributor to poor credit. Just pay on time, even if you’re paying the minimum balance, if it’s on time, it doesn’t hurt you. Collections have a major impact on your score, so avoid those altogether by paying your bills on time.

2. Get Current and Stay Current
If you have missed payments, bring them up to day asap. The longer you pay your bills on time after being late, the more your score will increase. Older credit problems contribute less to your overall score so delinquent payments won’t haunt you forever, if you get current now.

3. Keep Your Balances Low on Revolving Credit
This is simple, don’t max out your credit cards. You want to keep low balances on your cards. High outstanding debt can negatively affect your credit score.

4. Don’t Close Unused Credit Cards
Some people think that closing unused cards is a short term strategy to improving their credit, but it’s not a good one to adopt. In fact, owing the same amount but having fewer open accounts may lower your scores.

5. Don’t Open New Credit Cards You Don’t Need
We’ve also seen this strategy of opening cards to increase your available credit. However, this approach can backfire and actually lower your credit score because every time you apply for a card, it counts as a ‘hard inquiry’ which affects your score.

6. Re-establish Your Credit History
If you have had problems in the past, opening a few new accounts responsibly and paying them off on time will raise your credit score in the long term.

7. Have Credit Cards –
Have them, but manage them responsibly. Having credit cards and installment loans, as long as you’re making payments on time, will rebuild your credit score. Someone with no cards, and no loans, tends to be viewed as higher risk than someone who has responsibly managed credit cards.

Finally know that checking your credit score does not affect your credit score in a negative way. As long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers it counts as a ‘soft inquiry’ and doesn’t impact your score.

So don’t stay in the dark, check your score, and watch it increase. If you have any questions about how we can help you get back on the credit fast track, please email us or give us a call right now!

3 Actions You Can Take Right Now to Improve Your Credit Score

While credit repair does take time, there are a few actions you can take right now to improve your score.

1. Check Your Credit Report
Credit repair begins with your credit report. If you choose to have a free credit consultation with us, that’s where we’ll begin.

If you haven’t already, request a copy of your credit report (it’s free and doesn’t affect your score) and check it for errors. Make sure there are no late payments listed incorrectly and that the amounts owed are correct. If you find errors, that’s the time to dispute them, and we can help with that.

2. Set Up Payment Reminders
Timely payments are the backbone of good credit. They are absolutely one of the biggest contributors to your score. So, either set your payments up on autopay, or set a reminder for yourself to pay them. This will begin increasing your score immediately.

3. Reduce Your Debt
This is the hardest one, but when you pay down your debt, not only does it create peace of mind for you, but it also increases your score. Make a list of all your accounts and what you own, then set up a payment plan for yourself, paying down the highest interest cards first while maintaining timely payments for the others.

Taking these three steps will go a long way to improving your credit score and your peace of mind. If you have any questions about how to go about disputing claims and repairing credit thoroughly, contact us today. We’re here to help.