Past delinquencies make up 35% of your credit score. Obviously paying your bills in full and on time will have the greatest positive affect on your credit score. The credit scoring model looks at the level of delinquency. For example a judgment will have a greater negative impact on your score than a collection. Always try to avoid public records such as bankruptcy, tax liens, and judgments.
Also, activity in the last 24 months has the greatest affect on your score. When looking a credit repair strategies concentrate on activity in the last 24 months first. Pay off collections in Escrow NOT before. By paying an old collection you will make it new again because the date of last activity will change.
If you would like to learn more about credit scoring and how past delinquencies affect your credit score, please contact us at info@intcredit.net.
There is a lot of misinformation out there about what a credit score really is. Simply put – a credit score is a 3 digit number that seeks to quantify how likely a borrower is going to be 90 days late on a payment. Why 90 days? At 90 days, lenders spend more to maintain the account. Calls increase, increased notices go out, the lender may turn the file over to another department or collection company.
Each score is specific to each bureau. The score is generated by analyzing the information in the consumer’s credit report at THAT particular point in time. The higher the score the less the odds of default. For instance statistically, a consumer with a credit score of 800 and above has a 1292 t0 1 chance of becoming 90 days late while a consumer with a credit score between 620 to 659 has a 38 to 1 chance of being 90 days late.
Your credit score is more important than ever. When it comes to credit what you do not know can cost you big. Stay tuned for more Credit 101.
Today credit is more important than ever. Financial institutions are supposed to loosen their lending requirements, but the opposite has happened. As recently as 18 months ago, you could qualify for prime lending with a 720 credit score. Now, in most cases, you need at least a 750 credit score.
As lending requirements go up, so must your credit knowledge. When it comes to credit what you don’t know will hurt you. Below I have listed five reasons I believe consumers do not get the credit help they need.
1. Credit denial. “My credit is not THAT bad.” Your credit may not be THAT bad, but if your score is not a 750, you need to work on it.
2. Procrastination. “I’ll get around to it.” The fact is that many consumers do not get “around” to working on their credit and the financial damage continues.
3. Timing. “I am not going to apply for credit, so I can wait to fix my credit.” Credit restoration can be a long, drawn out process. If you wait until you need it, it may be too late.
4.Affordability of credit repair. “I can’t afford to pay someone to fix my credit.” The fact is, there is nothing a credit repair company can do for you that you cannot do yourself. If you are not going to take the time to work on your own credit, you cannot afford not to get help. Which brings me to number five.
5. Underestimating what your credit is costing you. Even with today’s rates you could be paying more than over $3400 per year in interest on a $200,000 home if your credit score is a 620 versus a 760. That’s OVER $280.00 per month. Could you use an extra $280.00 per month? For more information see mortgage calculators on banrate.com and myfico.com.
Do not play into the hands of the banks by not working on your credit. If you do not have the time, knowledge, and patience to work on your own credit, hire a professional. Working with the right professional will save you thousands of dollars in the long term.
It’s 8:00am on Saturday morning and you are looking forward to sleeping in. Suddenly you are awakened by the telephone ringing. You answer the phone only to be greeted by, “Is this….” it is a debt collector. As you wipe your eyes, the debt collector begins to telling you “This is a an attempt to collect a debt, any information obtained will be used for that purpose.”
Most debt collectors are very good at informing consumers that they are attempting to collect a debt, how much the alleged debt is, and telling you to pay up. But there are things you need to know that a debt collector won’t tell you. Knowledge is power. A debt collector won’t tell you:
You do not have to disclose personal information such as place of employment, banking information, and sources of income.
You can prevent debt collectors from calling you by notifying them in writing to stop calling you. Once the debt collector recieves written notice they can only contact you to tell you they won’t call you anymore or to notify you what actions they may take such as filing a lawsuit.
You may be “judgment proof” or “execution proof”. If you are unable to meet your current living expenses or you recieve certain types of income they cannot collect from you.
They are attempting to collect on a debt that is past the statute of limitations. If you make a payment, you renew the debt.
They may not report to the credit bureaus. Not all collection companies report the credit bureaus.
Debt collectors cannot call you before 8:00am or after 9:00pm,. This time is based upon your local time not theirs.
Debt collectors cannot use profane or abusive language.
You can report any problems you have with a debt collector to your state Attorney General’s office (www.naag.org) and the Federal Trade Commission (www.ftc.gov),
It is imparative that you familiarize yourself with the Fair Debt Collection Practices Act (FDCPA). This federal law protects consumers against unfair debt collection practices.
That you may be able to settle with the debt for pennies on the dollar.
That medical collections should not appear on your credit report due to current privacy laws. Your medical information is protected under the Health Insurance Portability and Accountability Act (HIPAA).
Knowing your rights is the first step to dealing with any debt collector. Familiarize yourself with the FDCPA and other consumer protection laws by visiting www.ftc.gov,
After a bankruptcy filing many consumers feel that their credit is ruined. Consequently, they do not check their credit reports. There are two major issues with that train of thought. First, bankruptcy will hit your credit hard, but your credit can recover. Secondly, even though your credit score is typically lowered by a bankruptcy there are steps you can take to minimize the impact.
Steps To Take:
Get a copy of your credit report. You can obtain a free one by going to http://www.annualcreditreport.com (I suggest you do this 3-6 months after discharge).
Carefully review your credit report for errors.
Make sure any account listed in the bankruptcy is notated as “Zero” balance and “Included in bankruptcy”
Also review the public record section of your credit report to ensure that judgments included in the bankruptcy have been released and are notated “bankruptcy”
If you find errors on your credit report, send a letter of dispute to the 3 credit reporting agencies.
Be diligent in your efforts. Dealing with credit reporting agencies can be time consuming and frustrating. If you feel you would like to consult a professional please contact me at 317-410-4110 or email: info@intcredit.info.
