It’s important to note that raising your FICO credit score is a bit like losing weight: It takes time and there is no quick fix. In fact, quick-fix efforts can backfire. The best advice is to manage credit responsibly over time. See how much money you can save by just following these tips and raising your credit score.
Payment History Tips
* Pay your bills on time.
Delinquent payments and collections can have a major negative impact on your FICO score.
* If you have missed payments, get current and stay current.
The longer you pay your bills on time, the better your credit score.
* Be aware that paying off a collection account will not remove it from your credit report.
It will stay on your report for seven years.
* If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor.
This won't improve your credit score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.
Amounts Owed Tips
* Keep balances low on credit cards and other “revolving credit” Below 30%.
High outstanding debt can affect a credit score.
* Pay off debt rather than moving it around.
The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.
* Don't close unused credit cards as a short-term strategy to raise your score.
* Don't open a number of new credit cards that you don't need, just to increase your available credit.
This approach could backfire and actually lower your credit score.
Length of Credit History Tips
* If you have been managing credit for a short time, don't open a lot of new accounts too rapidly.
New accounts will lower your average account age, which will have a larger effect on your score if you don't have a lot of other credit information. Also, rapid account buildup can look risky if you are a new credit user.
New Credit Tips
* Do your rate shopping for a given loan within a focused period of time.
FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur.
* Re-establish your credit history if you have had problems.
Opening new accounts responsibly and paying them off on time will raise your credit score in the long term.
* Note that it's OK to request and check your own credit report.
This won't affect your score, 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.
Types of Credit Use Tips
* Apply for and open new credit accounts only as needed.
Don't open accounts just to have a better credit mix - it probably won't raise your credit score.
* Have credit cards - but manage them responsibly.
In general, having credit cards and installment loans (and paying timely payments) will raise your credit score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.
* Note that closing an account doesn't make it go away.
A closed account will still show up on your credit report, and may be considered by the score.
www.ncrcreditplus.com
Sunday, November 22, 2009
Saturday, November 21, 2009
Hey, it's not my bill to pay !
Dear Debt Adviser,
A debt collector called me last week about a debt from 2002! I know this is not my debt. It's for a phone bill from a different state! They had my Social Security number and everything. This is a debt that showed up on my credit report a few years back and I notified the credit bureau that it wasn't mine. They supposedly reviewed it and the matter was to have been resolved, but I never got any paperwork. Now this debt collector is calling and harassing my family and sending me notices. What do I do?
Do I have to pay for another credit report and file a complaint again? This is so upsetting and really causing a lot of stress for me. Can you steer me in the right direction? Thanks so much!
-- Amy
A:
Dear Amy,
I know how upset you must feel. Having a collector harass you out of the blue is a lot like being the victim of an assault or a crime. Will anyone believe you? How do you prove your innocence? And it is so embarrassing for most of us.
Fortunately, the law is on your side. The Fair Debt Collection Practices Act, or FDCPA, says you have 30 days to respond to a collection attempt and you are well within your rights to dispute the alleged debt. The collector might have the wrong person, or you could be the victim of a scam to get money for a bogus bill. Either way, you have the right to have the collection agency prove that you owe the money.
All you need to do is ask that they provide proof of the debt. Write to them using certified mail, with a return receipt requested. Keep copies of everything and notes of any calls. Demand communication through the mail. Having information mailed opens any possible scammers to mail fraud charges and ups the ante for them. For more tips regarding the FDCPA, go to the Federal Trade Commission's Web site or search under FDCPA.
When you dispute the bill, the collector must stop all collection activity and send you proof before reinitiating contact. If they violate this provision, you can have them sued.
As for your credit report, you no longer have to pay for your credit reports from the three major credit bureaus. All you need to do is visit AnnualCreditReport.com and you can receive a copy of your credit report from Equifax, Experian and TransUnion absolutely free with no strings attached once every year. I typically recommend that requests for reports be spaced out throughout the year rather than getting all three at once, unless it is necessary to see everything that is being reported at one time. Getting all three right away would probably make the most sense for your current situation, but going forward you could space out your review of each bureau's report throughout the year.
I want you to take a look at your credit reports and see if the phone bill debt shows up as "in collection," or for that matter at all. Because this isn't your bill, you need to again dispute the debt with the bureau, or you can dispute it directly with the creditor that reported it. The dispute process will be spelled out in the materials you get from the bureaus. The Fair Credit Reporting Act requires that the credit bureau investigate the dispute and if there isn't sufficient proof that the debt is yours, it must be removed. I also suggest that you write to the creditor and tell that firm to stop reporting debt incorrectly.
Errors on credit reports are not unusual for the simple reason that billions of pieces of information are reported, mostly by computers, and mistakes are bound to happen. Still, that doesn't help your sinking stomach when the phone rings. Once you have disputed the bill and sent your letters, screen your calls with caller ID or an answering machine. If the harassment continues, see an attorney. They just love dealing with collectors who are bullies and mistaken. And that will be the end of that tune!
Good luck! www.ncrcreditplus.com 866 4696599
A debt collector called me last week about a debt from 2002! I know this is not my debt. It's for a phone bill from a different state! They had my Social Security number and everything. This is a debt that showed up on my credit report a few years back and I notified the credit bureau that it wasn't mine. They supposedly reviewed it and the matter was to have been resolved, but I never got any paperwork. Now this debt collector is calling and harassing my family and sending me notices. What do I do?
Do I have to pay for another credit report and file a complaint again? This is so upsetting and really causing a lot of stress for me. Can you steer me in the right direction? Thanks so much!
-- Amy
A:
Dear Amy,
I know how upset you must feel. Having a collector harass you out of the blue is a lot like being the victim of an assault or a crime. Will anyone believe you? How do you prove your innocence? And it is so embarrassing for most of us.
Fortunately, the law is on your side. The Fair Debt Collection Practices Act, or FDCPA, says you have 30 days to respond to a collection attempt and you are well within your rights to dispute the alleged debt. The collector might have the wrong person, or you could be the victim of a scam to get money for a bogus bill. Either way, you have the right to have the collection agency prove that you owe the money.
All you need to do is ask that they provide proof of the debt. Write to them using certified mail, with a return receipt requested. Keep copies of everything and notes of any calls. Demand communication through the mail. Having information mailed opens any possible scammers to mail fraud charges and ups the ante for them. For more tips regarding the FDCPA, go to the Federal Trade Commission's Web site or search under FDCPA.
When you dispute the bill, the collector must stop all collection activity and send you proof before reinitiating contact. If they violate this provision, you can have them sued.
As for your credit report, you no longer have to pay for your credit reports from the three major credit bureaus. All you need to do is visit AnnualCreditReport.com and you can receive a copy of your credit report from Equifax, Experian and TransUnion absolutely free with no strings attached once every year. I typically recommend that requests for reports be spaced out throughout the year rather than getting all three at once, unless it is necessary to see everything that is being reported at one time. Getting all three right away would probably make the most sense for your current situation, but going forward you could space out your review of each bureau's report throughout the year.
I want you to take a look at your credit reports and see if the phone bill debt shows up as "in collection," or for that matter at all. Because this isn't your bill, you need to again dispute the debt with the bureau, or you can dispute it directly with the creditor that reported it. The dispute process will be spelled out in the materials you get from the bureaus. The Fair Credit Reporting Act requires that the credit bureau investigate the dispute and if there isn't sufficient proof that the debt is yours, it must be removed. I also suggest that you write to the creditor and tell that firm to stop reporting debt incorrectly.
Errors on credit reports are not unusual for the simple reason that billions of pieces of information are reported, mostly by computers, and mistakes are bound to happen. Still, that doesn't help your sinking stomach when the phone rings. Once you have disputed the bill and sent your letters, screen your calls with caller ID or an answering machine. If the harassment continues, see an attorney. They just love dealing with collectors who are bullies and mistaken. And that will be the end of that tune!
Good luck! www.ncrcreditplus.com 866 4696599
How Credit Affects You?
Your credit score may look like a harmless three-digit number, but don’t be fooled. A good credit score can be your ticket to the best interest rates whenever you borrow money. A bad credit score, on the other hand can hurt you in many different ways.
What Is "Bad Credit?"
Many people who have bad credit often find themselves in difficult situations financially. But what exactly does it mean to have "bad credit," "blemished credit," or "less-than-perfect credit?" Well, it can mean a few things. A person can have bad credit from not paying their credit card bills or monthly mortgage payments on time or missing them altogether.
It may be that you shared an account or two with your spouse who had bad borrowing habits which affected your credit. Or it could be that you've gone through a bankruptcy or foreclosure process.
Your credit score is affected by numerous things such as whether you pay your bills on time, whether or not you borrow a lot of money from numerous accounts, the amount of time you've been borrowing, and the types of credit you're using (eg. auto loan, mortgage, credit cards, etc.) The more negative marks you have on your credit report (such as late payments, bankruptcies, etc.), the lower your credit score.
How Can Having Bad Credit Hurt You?
Having a poor credit history or a low credit score can seriously affect you financially. One of the things that can happen is that you could be denied credit. A low credit score indicates to lenders that you are a high-risk borrower and they may not be willing to lend you money.
How to Improve Your Credit Score
Having poor credit is an uncomfortable subject for many. And in order to do something about it, you have to first acknowledge the problem. Don't lose yourself in a sense of denial. Once you accept that you're having difficulty, it's easier to take steps to improve your situation.
If you do nothing else, the most important thing you can do to improve your credit score is join NCR Credit Buillding Program. We present each client with a specific action plan, where we advise specific / personalized credit strategies that you can utilize to maximize a strong, healthy credit profile. We will structure a plan that will consist of deleting negative items as well as establishing new lines of credit.
What happens when you apply for credit.
When you apply for credit, you authorize the lender to ask for a copy of your credit report. This is how voluntary inquiries appear on your credit report.
The inquiries section of your credit report contains a list of everyone who accessed your credit report within the last two years. The report you see lists both voluntary inquiries, spurred by your own requests for credit, and involuntary inquiries, such as when lenders order your credit report to offer you a pre-approved credit card.
Here are some of the areas where bad credit can affect you:
Mortgages
If you have a credit score of 720 and above, you will likely be able to receive a lender’s best rate on a mortgage or home equity loan. Between 675 and 719 you could end up having to pay up to half a percentage more than someone in the top category. Between 620 and 674, you may need to provide more documentation than those with higher scores and could end up paying as much as 2 percent more than borrowers with excellent credit. Below 620 you’re considered “sub-prime” meaning that you are considered to have less-than-perfect credit and it may be more difficult for you to find a lender. You could also be charged rates up to 3.5 percent higher than a lender’s best rate, which could mean tens of thousands of dollars in additional interest over the life of your mortgage.
Credit cards
It’s almost impossible to do without a credit card in today’s economy. Unfortunately, credit cards often carry relatively high interest rates (18 percent is not uncommon). Cards issued by financial institutions, may offer a scale of rates for different cardholders. If you have excellent credit, you can often get a major credit card with a rate of less than 10 percent. With a poor score, however, you may be stuck with a rate that’s twice as high. However we can assist you with obtaining Credit Cards, visit apply for Credit Cards on our menu or call and speak to a representative.
Consumer loans
Bad credit will likely result in you paying a higher rate for your car loan, unsecured line of credit and most other types of consumer loans. There are too many variables here to provide exact numbers, but the above guidelines for mortgages demonstrate how interest rates can increase for people with low credit scores.
Insurance
Insurance companies in many states use credit scores to help them set your homeowner's and auto premiums. They argue that people with low credit scores are statistically more likely to make claims, so no matter how careful you may be behind the wheel or in your home, bad credit may result in your having to pay more than other people with similar vehicles and property.
Employment
Under U.S. law, prospective employers are generally allowed to investigate your credit report in order to help decide whether or not to hire you for a particular position. Laws vary by state but, in general, they are required to obtain your written consent in order to do this. While you may refuse, there is always the chance you may not be hired. Obviously, a low score could potentially be an obstacle to getting a job.
Other areas
A poor credit score can affect other areas of your life that you’ve probably never considered. For example, landlords can check your score (with your consent) before renting an apartment, and utility,phone companies may require customers with bad credit to pay a deposit when opening a new account.
You can’t repair bad credit overnight, but you can gradually improve your score if you commit to changing your habits. The long-term financial payoff that you receive will make it well worthwhile. Call NCR Credit Plus 866 469 6599
What Is "Bad Credit?"
Many people who have bad credit often find themselves in difficult situations financially. But what exactly does it mean to have "bad credit," "blemished credit," or "less-than-perfect credit?" Well, it can mean a few things. A person can have bad credit from not paying their credit card bills or monthly mortgage payments on time or missing them altogether.
It may be that you shared an account or two with your spouse who had bad borrowing habits which affected your credit. Or it could be that you've gone through a bankruptcy or foreclosure process.
Your credit score is affected by numerous things such as whether you pay your bills on time, whether or not you borrow a lot of money from numerous accounts, the amount of time you've been borrowing, and the types of credit you're using (eg. auto loan, mortgage, credit cards, etc.) The more negative marks you have on your credit report (such as late payments, bankruptcies, etc.), the lower your credit score.
How Can Having Bad Credit Hurt You?
Having a poor credit history or a low credit score can seriously affect you financially. One of the things that can happen is that you could be denied credit. A low credit score indicates to lenders that you are a high-risk borrower and they may not be willing to lend you money.
How to Improve Your Credit Score
Having poor credit is an uncomfortable subject for many. And in order to do something about it, you have to first acknowledge the problem. Don't lose yourself in a sense of denial. Once you accept that you're having difficulty, it's easier to take steps to improve your situation.
If you do nothing else, the most important thing you can do to improve your credit score is join NCR Credit Buillding Program. We present each client with a specific action plan, where we advise specific / personalized credit strategies that you can utilize to maximize a strong, healthy credit profile. We will structure a plan that will consist of deleting negative items as well as establishing new lines of credit.
What happens when you apply for credit.
When you apply for credit, you authorize the lender to ask for a copy of your credit report. This is how voluntary inquiries appear on your credit report.
The inquiries section of your credit report contains a list of everyone who accessed your credit report within the last two years. The report you see lists both voluntary inquiries, spurred by your own requests for credit, and involuntary inquiries, such as when lenders order your credit report to offer you a pre-approved credit card.
Here are some of the areas where bad credit can affect you:
Mortgages
If you have a credit score of 720 and above, you will likely be able to receive a lender’s best rate on a mortgage or home equity loan. Between 675 and 719 you could end up having to pay up to half a percentage more than someone in the top category. Between 620 and 674, you may need to provide more documentation than those with higher scores and could end up paying as much as 2 percent more than borrowers with excellent credit. Below 620 you’re considered “sub-prime” meaning that you are considered to have less-than-perfect credit and it may be more difficult for you to find a lender. You could also be charged rates up to 3.5 percent higher than a lender’s best rate, which could mean tens of thousands of dollars in additional interest over the life of your mortgage.
Credit cards
It’s almost impossible to do without a credit card in today’s economy. Unfortunately, credit cards often carry relatively high interest rates (18 percent is not uncommon). Cards issued by financial institutions, may offer a scale of rates for different cardholders. If you have excellent credit, you can often get a major credit card with a rate of less than 10 percent. With a poor score, however, you may be stuck with a rate that’s twice as high. However we can assist you with obtaining Credit Cards, visit apply for Credit Cards on our menu or call and speak to a representative.
Consumer loans
Bad credit will likely result in you paying a higher rate for your car loan, unsecured line of credit and most other types of consumer loans. There are too many variables here to provide exact numbers, but the above guidelines for mortgages demonstrate how interest rates can increase for people with low credit scores.
Insurance
Insurance companies in many states use credit scores to help them set your homeowner's and auto premiums. They argue that people with low credit scores are statistically more likely to make claims, so no matter how careful you may be behind the wheel or in your home, bad credit may result in your having to pay more than other people with similar vehicles and property.
Employment
Under U.S. law, prospective employers are generally allowed to investigate your credit report in order to help decide whether or not to hire you for a particular position. Laws vary by state but, in general, they are required to obtain your written consent in order to do this. While you may refuse, there is always the chance you may not be hired. Obviously, a low score could potentially be an obstacle to getting a job.
Other areas
A poor credit score can affect other areas of your life that you’ve probably never considered. For example, landlords can check your score (with your consent) before renting an apartment, and utility,phone companies may require customers with bad credit to pay a deposit when opening a new account.
You can’t repair bad credit overnight, but you can gradually improve your score if you commit to changing your habits. The long-term financial payoff that you receive will make it well worthwhile. Call NCR Credit Plus 866 469 6599
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