Thursday, February 14, 2013
Wednesday, January 9, 2013
Client testimonial.
Sam is a client of mine that I've helped over the past 2 months. He's in our credit repair program and we were able to delete a large amount of his bad credit, and he's now rebuilding his credit and is being approved for new credit.
Jason Hall
Direct- 949.505.9971
Fax- 866.567.8054
For excellent credit advice, I can be found on...
Thursday, January 3, 2013
Rapid rescoring and credit card balances.
Here's an old myth that consumers AND Loan Officers need to remember. The 50% utilization on a credit card to help your scores is NOT going to give a large increase to your credit scores.
FICO (Fair Isaac and Co.) has specific criteria when it comes to balances and limit utilization rates on revolving accounts (credit cards). There are 3 thresholds that you need to be aware of. These are 30%, 10%, and 0%. If you can only afford to pay down your cards due to large limits, at least get them down to 30% of the limit to increase your scores. Next is 10%, but the absolute best position is to have them ALL paid off completely.
The reason I say "ALL" paid off is due to the aggregate utilization calculation. FICO takes a look at the sum of all balances and limits, this is the aggregate utilization rate. It also takes a look at the linear utilization (each individual account).
So the best advice for your credit scores is to pay down or off all of your credit card accounts. Then you "rapid rescore" those account balances, or you can wait up to 30 days for the new balances to post from your creditor to the bureaus. Then re-pull credit.
Jason Hall
FICO (Fair Isaac and Co.) has specific criteria when it comes to balances and limit utilization rates on revolving accounts (credit cards). There are 3 thresholds that you need to be aware of. These are 30%, 10%, and 0%. If you can only afford to pay down your cards due to large limits, at least get them down to 30% of the limit to increase your scores. Next is 10%, but the absolute best position is to have them ALL paid off completely.
The reason I say "ALL" paid off is due to the aggregate utilization calculation. FICO takes a look at the sum of all balances and limits, this is the aggregate utilization rate. It also takes a look at the linear utilization (each individual account).
So the best advice for your credit scores is to pay down or off all of your credit card accounts. Then you "rapid rescore" those account balances, or you can wait up to 30 days for the new balances to post from your creditor to the bureaus. Then re-pull credit.
Jason Hall
Certified Credit Expert
Direct- 949.505.9971
Fax- 866.567.8054
For excellent credit advice, I can be found on...
Tuesday, November 13, 2012
Monday, November 5, 2012
What is Rapid Rescore?
What is Rapid Rescore?
Rapid rescore is updating information to TransUnion, Experian, and Equifax on account information to improve your credit scores in a matter of days. This is done with easily obtained documents from your creditor or collection company. We process the rescores through the proper channels at the credit bureaus. Our most popular rapid rescores are credit card balances and removing collections. Low balances on your credit cards reflected on your credit report increases your credit scores. Collection accounts deleted from your credit report also increases your credit scores.
What is the credit repair and dispute process?
Our processing department will challenge all bad credit accounts with TransUnion, Experian, and Equifax each month. When the creditor doesn't respond to the dispute based upon the format of our letters, then the bureaus will delete the negative credit. If the account is verified, we will continue to dispute that account. The credit bureaus have 30 days to mail your investigation results to you.What do I do with my unpaid collections?
We encourage our clients to settle their collections. With them paid (partial or in full) it is much easier for us to have them deleted. The collection companies lose interest in answering our disputes after they've been paid. But do not wait to start your credit repair program after your collections are paid, you will need assistance in settling these accounts, and we can help you do that also.
I have perfect on time payments, but my credit scores are still low and don't understand why?Payment history is only 35% of your credit score. There are another 65% to your credit scores that need to be addressed. Credit card balances are also a key ingredient to your credit scores, they control 255 points on the FICO scale. If you have perfect on time payments, and have credit card balances that are maxed out, your scores will be much lower than if you carried balances below 30% of the credit limits. Our Rapid Rescore process can help increase your scores in 5-7 days.
Rapid rescore is updating information to TransUnion, Experian, and Equifax on account information to improve your credit scores in a matter of days. This is done with easily obtained documents from your creditor or collection company. We process the rescores through the proper channels at the credit bureaus. Our most popular rapid rescores are credit card balances and removing collections. Low balances on your credit cards reflected on your credit report increases your credit scores. Collection accounts deleted from your credit report also increases your credit scores.
What is the credit repair and dispute process?
Our processing department will challenge all bad credit accounts with TransUnion, Experian, and Equifax each month. When the creditor doesn't respond to the dispute based upon the format of our letters, then the bureaus will delete the negative credit. If the account is verified, we will continue to dispute that account. The credit bureaus have 30 days to mail your investigation results to you.What do I do with my unpaid collections?
We encourage our clients to settle their collections. With them paid (partial or in full) it is much easier for us to have them deleted. The collection companies lose interest in answering our disputes after they've been paid. But do not wait to start your credit repair program after your collections are paid, you will need assistance in settling these accounts, and we can help you do that also.
I have perfect on time payments, but my credit scores are still low and don't understand why?Payment history is only 35% of your credit score. There are another 65% to your credit scores that need to be addressed. Credit card balances are also a key ingredient to your credit scores, they control 255 points on the FICO scale. If you have perfect on time payments, and have credit card balances that are maxed out, your scores will be much lower than if you carried balances below 30% of the credit limits. Our Rapid Rescore process can help increase your scores in 5-7 days.
Monday, September 3, 2012
Wednesday, August 29, 2012
Will Shopping For Best Mortgage Rates Affect My Credit Score?
I've heard that multiple inquiries into my credit history from lenders will affect my credit score. To get the best rate, don't lenders have to look-up my credit score? I also want to get pre-approved, so again, if I fill out multiple applications, will this affect my credit score?
A: What you need to be aware of, the lender you choose is going to pull your credit more than once.
They will pull your credit at the time of application, and they will pull it again right before they fund your loan.
If your score drops, they may deny your loan at the closing table.
So when you make your application and submit your paperwork to your lender, it is highly recommended that you DO NOT increase your balances on your credit cards. It would actually be best to pay off your credit cards a month before your initial application for the home loan. This will allow time for the new balances to report to the bureaus, maximizing your credit scores.
Credit card utilization plays a key role in your credit scores.
Monday, August 27, 2012
Why monthly payment plan credit repair is a loser plan.
Are you frustrated that your credit repair is not getting the results you'd hoped for?
Were you attracted to the low monthly payments for service?
Well, here's why your repair is not going the way you'd hoped...
From a business standpoint, can a company survive on a $60-$80 monthly payment if they do a good job? Is it their best interest to do a fast job in this business model?
The answer is no.
In order for any credit repair company to be profitable, they have a net a specific dollar amount per client. If they do a good job, and collect a setup fee and 1 month payment, then they're only going to gross about $200. Once you deduct the marketing costs, lights, rent, paper, toner, phones, hourly wages, etc..they will operate in the red if all they collected was $200.
So how do they make money? They only dispute a couple items per month, all the while extracting money out of your bank account every month, for many months, sometimes years. That's how they make money. And they tell you that if they dispute all of your credit all at once it will throw up some "red flag" at the bureaus. This is not true. You have the right to dispute your credit accounts per the Fair Credit Reporting Act (FCRA).
And you wonder why "credit repair" has such a bad name? This is why...
The best formula for success in credit repair is to show up with all guns blazing...disputing everything at all bureaus, rapid rescoring, disputing inquiries, everything.
Four out of five credit reports contain errors, and if they go unchallenged, they will continue to hurt your credit rating. Keeping your from your new home, keeping you from your new car, or even from your new job.
Take control of your credit report and fire those that don't have your best interest in mind. Call me at 949-505-9971 or email me at jason@rapidrescorecredi.com if you'd like to employ a company that has your best interest in mind...raising your credit scores in the shortest amount of time possible.
Were you attracted to the low monthly payments for service?
Well, here's why your repair is not going the way you'd hoped...
From a business standpoint, can a company survive on a $60-$80 monthly payment if they do a good job? Is it their best interest to do a fast job in this business model?
The answer is no.
In order for any credit repair company to be profitable, they have a net a specific dollar amount per client. If they do a good job, and collect a setup fee and 1 month payment, then they're only going to gross about $200. Once you deduct the marketing costs, lights, rent, paper, toner, phones, hourly wages, etc..they will operate in the red if all they collected was $200.
So how do they make money? They only dispute a couple items per month, all the while extracting money out of your bank account every month, for many months, sometimes years. That's how they make money. And they tell you that if they dispute all of your credit all at once it will throw up some "red flag" at the bureaus. This is not true. You have the right to dispute your credit accounts per the Fair Credit Reporting Act (FCRA).
And you wonder why "credit repair" has such a bad name? This is why...
The best formula for success in credit repair is to show up with all guns blazing...disputing everything at all bureaus, rapid rescoring, disputing inquiries, everything.
Four out of five credit reports contain errors, and if they go unchallenged, they will continue to hurt your credit rating. Keeping your from your new home, keeping you from your new car, or even from your new job.
Take control of your credit report and fire those that don't have your best interest in mind. Call me at 949-505-9971 or email me at jason@rapidrescorecredi.com if you'd like to employ a company that has your best interest in mind...raising your credit scores in the shortest amount of time possible.
Sunday, July 29, 2012
What "brand" of credit score do you watch?
There are few numbers in life that matter as much to your financial outlook and well-being as your credit score. But which credit score is the right one? The most important? And, for that matter, how come your scores are often different from one reporting agency to the next?
Confusion is the norm for consumers when it comes to this important financial gauge, and the simple truth is that these scores were never meant for the general public to see, but the following should shed some light on the subject.
Credit Score History
Prior to the creation of standardized credit scores, lenders and loan officers would often develop their own "score card" to asses the risk of lending to a particular borrower. This score card was based solely on a credit report and could vary drastically from one lender to the next. The major issue with this original method was that it was based on a loan officer's ability to judge risk rather than a common set of rules and specific calculations.
So, in the 1970's, the Fair Isaacs Company set up the first credit scoring system in order to help remove the inherent inconsistencies that arose from having each lender perform their own credit diagnostics. It has since become known as the FICO score and the algorithm has been widely adopted by America's largest credit reporting agencies.
That said, your actual credit score may differ from one reporting agency to the next, which logically brings up the next question. Why?
Why Would My Score Differ Between Credit Agencies?
The three major credit reporting agencies are Equifax, Experian, and TransUnion. The reason that your score may differ from one to the next is dependent on the credit report that each receives and the scoring model they use.
What this means, is that Equifax might not have exactly the same information on you as Experian and vice versa. Equifax may be missing an account that either helps or hinders your score and will therefore report a different final credit score than Experian. If the system was perfect, this wouldn't happen, but since it isn't you want to make sure (if your score is lower than expected from any of these agencies) that they have all of the proper information.
Other Available Scores
While FICO is the most famous, there are, in fact, several other versions and providers of credit scores. VantageScore, NextGen, BEACON, and EMPIRICA are a few of the other popular sources used in the financial services industry. Some scores are directly developed by credit bureaus while others, like FICO and CreditXpert, are developed by outside companies.
Most alternatives to FICO are still modeled after the same statistical method in terms of the output number, but the major difference for most lenders and other agencies that need to buy credit scores is cost. Companies like FICO charge the reporting agencies a licensing fee for each score generated so the agencies, in turn, have created competing scores in an attempt to provide a lower-cost option to their customers. Basically, the cost savings of buying and using non-FICO scores is tempting to some banks and credit card companies because they need accurate risk assessment of millions of accounts.
Is there a "Best Score?"
In order to protect revenues, credit reporting agencies will often position their scores as the best or most predictive. In reality, all scores must adhere to similar guidelines to be truly predictive, regardless of the final output number. All credit scores are built from the same base set of data and statistical procedures.
Like many products and services in the marketplace, there are a plethora of different options for you (and the businesses that serve you) to choose from, simply because every buyer is different. Based on cost and effectiveness in each buying situation, there are credit scores for sale to satisfy each customer.
Score Ranges
Just as a point of reference, it may be important for you to know what the score ranges are for each of the major reporting agencies. While each agency uses internal predictors of certain events (for example: how likely you are to file bankruptcy), the final credit score is not meant as a probability-meter for any specific event. In any case, the higher your score the better, as it is a general gauge of your overall credit worthiness in the eyes of lenders.
- FICO: traditionally between 300 and 850
- Experian: 330 - 830
- Equifax: 300 - 850
- TransUnion: 300 - 850
- VantageScore: 501 - 990 (often assigned a letter grade, A - F)
Note: Because there are now dozens of credit scores that measure many different probabilities, consumers should not be overly concerned with the type of score but rather monitor changes within a single score.
Scores Constantly Change
It is also important to note that your credit score is, technically, a continuous variable, which means it can change minute to minute. In reality, scores change when your credit report changes.
To Sum it All Up
While each available credit score is used as a predictor of your credit health, the key point to remember is that all scores are related to each other and are based on the same statistical information. So no score is "best" and you don't need to worry about why one score is different than another.
You also don't need to fret about the "number" of your credit score in relation to anything but itself. That number, at any given time, is merely a snapshot and what's truly important is improving that total. Make your payments on time, avoid over-extending yourself, and steer clear of too many credit accounts, and your score will improve in no time- no matter where that score is coming from.
Sunday, July 22, 2012
Credit scores and credit reports 101
These are the three major credit bureaus (aka credit reporting agencies): Equifax (EQ), Experian (EX), and TransUnion (TU). In the past, consumers were able to purchase all three of their FICO scores at this site; however, since February 2009, consumers no longer have the option to purchase their EX FICO score at this site. For more information on this, please click on the links below.
The Sale Of Experian-Based FICO Scores On myFICO Has Been Discontinued
FAQ For myFICO Customers About Experian-Based FICO Scores
Knowing that we cannot buy our Experian-Based FICO score, are there any other sources where we can "access" our EX FICO score? Yes, but it is limited. One way to access your EX FICO score is thru your mortgage lender. Once you apply, your lender can share your EX FICO score with you. Don't worry, the vast majority of mortgage lenders pull FICO scores. A second way to access your score is to become a member of a credit union in Pennsylvania, PSECU.
To get started, you’ll need to find out what your EQ and TU FICO scores are to properly grasp your overall credit picture. If you are able to access your EX FICO score, that's even better.
What is the range of FICO scores?
What is the range of FICO scores?
FICO (aka Classic or BEACON) scores can range from 300 to 850, but the majority of scores usually fall within the 600s and 700s.
FICO, FAKO, HUH?
FICO, FAKO, Credit Score, PlusScore, ScoreX, Vantage are all the same right? WRONG!
FICO = The score lenders use and the only score you care about.
FAKO = Any score that isn't a FICO. Most people like to buy the ScoreWatch product because you can quite often get updates as to your current EQ FICO score. myFICO Identity Theft Security Deluxe is similar to Score Watch except that is monitors TU. There is no FICO monitoring service for all three credit reporting agencies.
FICO, FAKO, Credit Score, PlusScore, ScoreX, Vantage are all the same right? WRONG!
FICO = The score lenders use and the only score you care about.
FAKO = Any score that isn't a FICO. Most people like to buy the ScoreWatch product because you can quite often get updates as to your current EQ FICO score. myFICO Identity Theft Security Deluxe is similar to Score Watch except that is monitors TU. There is no FICO monitoring service for all three credit reporting agencies.
ScoreWatch: http://www.myfico.com/Products/ScoreWatch/Description.aspx
myFICO Identity Theft Security Deluxe: http://www.myfico.com/Products/IDF/Description.aspx
www.myfico.com sells FICO scores for EQ and TU.
www.truecredit.com or www.transunion.com sells FAKO scores only.
www.myfico.com sells FICO scores for EQ and TU.
www.truecredit.com or www.transunion.com sells FAKO scores only.
Yet www.transunioncs.com sells FICO (TU score only). I have no idea why transunion.com doesn't sell FICO but transunioncs.com does.
There are generally two reasons why you might not be able to get a score from MyFICO. Your score does not contain enough positive data to calculate a score, or there is a fraud alert on your file.
Classic or BEACON FICO scores are generally the best indicator of credit-worthiness and a good overall indicator of where your credit (mortgage, credit card, auto,etc.) stands.
Credit card enhanced scores (or bankcard enhanced scores) are specific indicators of credit worthiness with regards to credit cards only (not mortgages, auto, loans, etc.).
Auto-enhanced scores are specific indicators of credit worthiness with regards to an auto loan. Consumers cannot purchase auto-enhanced scores.
Your actual FICO score ranges from 300-850, remember you have three separate FICO scores for each credit reporting agency EQ, EX, and TU.
Scores higher than 720-750+ are ideal. Any higher really doesn't matter. Once you get this high, you have excellent scores regardless.
Also, just because you have your score today doesn’t mean you can walk into the car dealership tomorrow and say “I have an 800+ FICO please give me the APR I want on my loan”, the lender may calculate a completely different FICO score and if you were to pull your FICO score again that day it may be different for you.
Remember, a FICO score is a quick look at the overall status of your credit. It may mean getting a better APR on the credit card you want, but it likely won’t determine whether you get the card or not (your credit report(s) will!).
How is my score calculated?
Classic or BEACON FICO scores are generally the best indicator of credit-worthiness and a good overall indicator of where your credit (mortgage, credit card, auto,etc.) stands.
Credit card enhanced scores (or bankcard enhanced scores) are specific indicators of credit worthiness with regards to credit cards only (not mortgages, auto, loans, etc.).
Auto-enhanced scores are specific indicators of credit worthiness with regards to an auto loan. Consumers cannot purchase auto-enhanced scores.
Your actual FICO score ranges from 300-850, remember you have three separate FICO scores for each credit reporting agency EQ, EX, and TU.
Scores higher than 720-750+ are ideal. Any higher really doesn't matter. Once you get this high, you have excellent scores regardless.
Also, just because you have your score today doesn’t mean you can walk into the car dealership tomorrow and say “I have an 800+ FICO please give me the APR I want on my loan”, the lender may calculate a completely different FICO score and if you were to pull your FICO score again that day it may be different for you.
Remember, a FICO score is a quick look at the overall status of your credit. It may mean getting a better APR on the credit card you want, but it likely won’t determine whether you get the card or not (your credit report(s) will!).
How is my score calculated?
-35% affects Payment History. Meaning any lates; collections; charge offs; bankruptcies; judgments; liens or the such will hurt the score. All is time based, the older the information the less it is contributing to the scores.
-30% affects Utilization. It is best to have several accounts with low balances distributed then it is to have fewer accounts maxed out. To figure utilization: Balance (divided) by Credit Limit = percentage. Lower than 10% recommended per account, this is one of the fastest means for increasing the over all credit score.
-15% affects Established History. The longer you maintain open accounts with creditors the better. When first starting out of course this is not easy; but this is where getting added as an Authorized User to another persons established credit comes in best. Remember that the contributor must have an account that has long history; clean payment record; high credit limit; and low balance. Also need to check with the creditor to insure that they have a policy to report authorized user accounts to all three major credit reporting agencies.
Note: Authorized user accounts are the best way to go; since you are not legally responsible for the debt rather than Joint or Co-Signer accounts. Also, if this account starts to report negatively; these accounts are usually easier to remove from the credit reports by either contacting the creditor and requesting termination of the relationship; or disputing through the CRAs.
Update: In its original form, FICO 08 would not use AU accounts in scoring. It has been modified: FICO 08 now WILL continue to countlegitimate AU accounts. As of the end of 2010, the EX version of FICO 08 is only being used by a few lenders.
10% affects Inquiries. Don't apply for credit unless you know you can get it or that you need to get it; unnecessary credit inquiries are going to hurt the scores - especially if your over all credit file is small to begin with.
-30% affects Utilization. It is best to have several accounts with low balances distributed then it is to have fewer accounts maxed out. To figure utilization: Balance (divided) by Credit Limit = percentage. Lower than 10% recommended per account, this is one of the fastest means for increasing the over all credit score.
-15% affects Established History. The longer you maintain open accounts with creditors the better. When first starting out of course this is not easy; but this is where getting added as an Authorized User to another persons established credit comes in best. Remember that the contributor must have an account that has long history; clean payment record; high credit limit; and low balance. Also need to check with the creditor to insure that they have a policy to report authorized user accounts to all three major credit reporting agencies.
Note: Authorized user accounts are the best way to go; since you are not legally responsible for the debt rather than Joint or Co-Signer accounts. Also, if this account starts to report negatively; these accounts are usually easier to remove from the credit reports by either contacting the creditor and requesting termination of the relationship; or disputing through the CRAs.
Update: In its original form, FICO 08 would not use AU accounts in scoring. It has been modified: FICO 08 now WILL continue to countlegitimate AU accounts. As of the end of 2010, the EX version of FICO 08 is only being used by a few lenders.
10% affects Inquiries. Don't apply for credit unless you know you can get it or that you need to get it; unnecessary credit inquiries are going to hurt the scores - especially if your over all credit file is small to begin with.
Tip: When applying for credit pull your own credit report first (this is a soft hit and won't drop your scores). With credit report in hand go visit your local banks or credit unions. Show them the reports; and don't allow them to pull a credit report of their own unless they can say for sure that you will be approved, this way you save your self unnecessary pulls on your credit report if they decline you. If they say yes, you are approved, then they will need to pull credit report to seal the deal.
Mortgage & Auto industry has special rules for inquiries: all applications for credit resulting in pulled credit reports within a 14 day period of time will only count as one inquiry & will be suppressed from affecting credit scores for 30 days. So if you plan to go shopping for a mortgage or a car, do your research first picking what companies you want to apply with and do this all within a 2 week period of time so that the scores are not affected too much.
-10% affects Mix of Credit. Use different types of credit (revolving; installment; auto; mortgage...) evenly.
Also remember the advice which a lender gives you is productive for getting a loan; but not always good for the credit scores. If they tell you to consolidate and close accounts be careful how you go about this, most people's compliance usually results in dropped credit scores. You are shrinking your overall available credit limit verses your balances... so remember you don't want to hurt the utilization by consolidating and closing accounts behind you.
What types of information are NOT used in calculating my FICO score?
1. Your race, color, religion, national origin, sex or marital status
2. Your age
3. Your salary, occupation, title, employer, date employed or employment history
4. Where you live
5. Certain types of inquiries such as promotional, account review, insurance or employment related inquiries
6. Any information not found in your credit file
7. Any information that is not proven to be a predictive of future credit performance
How often does my score change?
Mortgage & Auto industry has special rules for inquiries: all applications for credit resulting in pulled credit reports within a 14 day period of time will only count as one inquiry & will be suppressed from affecting credit scores for 30 days. So if you plan to go shopping for a mortgage or a car, do your research first picking what companies you want to apply with and do this all within a 2 week period of time so that the scores are not affected too much.
-10% affects Mix of Credit. Use different types of credit (revolving; installment; auto; mortgage...) evenly.
Also remember the advice which a lender gives you is productive for getting a loan; but not always good for the credit scores. If they tell you to consolidate and close accounts be careful how you go about this, most people's compliance usually results in dropped credit scores. You are shrinking your overall available credit limit verses your balances... so remember you don't want to hurt the utilization by consolidating and closing accounts behind you.
What types of information are NOT used in calculating my FICO score?
1. Your race, color, religion, national origin, sex or marital status
2. Your age
3. Your salary, occupation, title, employer, date employed or employment history
4. Where you live
5. Certain types of inquiries such as promotional, account review, insurance or employment related inquiries
6. Any information not found in your credit file
7. Any information that is not proven to be a predictive of future credit performance
How often does my score change?
Your credit file is continually updated with new information from your creditors. The FICO score is calculated based on the latest "snapshot" of information contained in your file at the time the score is requested. Therefore, your FICO score from a month ago is probably not the same score a lender would get from the credit reporting agency today. Fluctuations are quite common.
Why are my scores different?
Your scores may be different at each of the three main credit reporting agencies as the FICO score only considers the data in your credit file from that agency. If your score from the three credit reporting agencies is different, it is probably because the information those agencies have on you differs. Also keep in mind that there is a different FICO formula for each credit reporting agency.
How can I improve my score?
Why are my scores different?
Your scores may be different at each of the three main credit reporting agencies as the FICO score only considers the data in your credit file from that agency. If your score from the three credit reporting agencies is different, it is probably because the information those agencies have on you differs. Also keep in mind that there is a different FICO formula for each credit reporting agency.
How can I improve my score?
It takes time and there is no quick fix. In fact, quick fix efforts can backfire. Scores reflect credit payment patterns over time with more emphasis on recent information. The best advice is to manage your credit responsibly over time.
Scores automatically improve, as one's overall credit picture gets better. That means showing a historical pattern of paying your bills on time and using credit conservatively.
Here are some suggested tips to follow:
DO:
1. Pay your bills on time. Delinquent payments and collections can have a major negative impact on your score.
2. If you have missed payments, get current and stay current. The longer you pay your bills on time, the better your score.
3. If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor. This will not improve your score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.
4. Keep balances low (1-9% util) on credit cards and other revolving credit. High outstanding debt can affect a score.
5. Pay off debt rather than move it around.
6. Re-establish your credit history if you have had problems.
7. Opening new accounts responsibly and paying them off on time will raise your score in the long term.
8. Note that it is OK to request and check your own credit file. This will not affect your score, as long as you order your credit file directly from the credit reporting agency or through an organization authorized to provide credit files to consumers (such as myFICO).
9. Apply for and open new credit accounts only as needed.
10. Have credit cards but manage them responsibly. In general, having credit cards and installment loans (and paying timely payments) will raise your score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.
DON'T:
1. Close unused credit cards as a short-term strategy to raise your score. NEVER close an open account unless it is costing you money!
2. Open a number of new credit cards that you do not need, just to increase your available credit. This approach could backfire and actually lower your score.
3. If you have been managing credit for a short time, do not 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 do not have a lot of other credit information. Also, rapid account build-up can look risky if you are a new credit user. 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.
Here are some suggested tips to follow:
DO:
1. Pay your bills on time. Delinquent payments and collections can have a major negative impact on your score.
2. If you have missed payments, get current and stay current. The longer you pay your bills on time, the better your score.
3. If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor. This will not improve your score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.
4. Keep balances low (1-9% util) on credit cards and other revolving credit. High outstanding debt can affect a score.
5. Pay off debt rather than move it around.
6. Re-establish your credit history if you have had problems.
7. Opening new accounts responsibly and paying them off on time will raise your score in the long term.
8. Note that it is OK to request and check your own credit file. This will not affect your score, as long as you order your credit file directly from the credit reporting agency or through an organization authorized to provide credit files to consumers (such as myFICO).
9. Apply for and open new credit accounts only as needed.
10. Have credit cards but manage them responsibly. In general, having credit cards and installment loans (and paying timely payments) will raise your score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.
DON'T:
1. Close unused credit cards as a short-term strategy to raise your score. NEVER close an open account unless it is costing you money!
2. Open a number of new credit cards that you do not need, just to increase your available credit. This approach could backfire and actually lower your score.
3. If you have been managing credit for a short time, do not 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 do not have a lot of other credit information. Also, rapid account build-up can look risky if you are a new credit user. 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.
Tuesday, July 17, 2012
Tips for raising your credit scores.
3 Important Things You Can Do Right Now
- Check Your Credit Report – Credit score repair begins with your credit report. If you haven't already, request a free copy of your credit report and check it for errors. Your credit report contains the data used to calculate your score and it may contain errors. In particular, check to make sure that there are no late payments incorrectly listed for any of your accounts and that the amounts owed for each of your open accounts is correct. If you find errors on any of your reports, dispute them with the credit bureau and reporting agency.
- Setup Payment Reminders – Making your credit payments on time is one of the biggest contributing factors to your credit score. Some banks offer payment reminders through their online banking portals that can send you an email or text message reminding you when a payment is due. You could also consider enrolling in automatic payments through your credit card and loan providers to have payments automatically debited from your bank account, but this only makes the minimum payment on your credit cards and does not help instill a sense of money management.
- Reduce the Amount of Debt You Owe – This is easier said than done, but reducing the amount that you owe is going to be a far more satisfying achievement than improving your credit score. The first thing you need to do is stop using your credit cards. Use your credit report to make a list of all of your accounts and then go online or check recent statements to determine how much you owe on each account and what interest rate they are charging you. Come up with a payment plan that puts most of your available budget for debt payments towards the highest interest cards first, while maintaining minimum payments on your other accounts.
More Tips on How to Fix a Credit Score & Maintain Good Credit
Payment History Tips
Contributing 35% to your score calculation, this category has the greatest effect on improving your score, but past problems like missed or late payments are not easily fixed.
- Pay your bills on time.
Delinquent payments, even if only a few days late, 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 after being late, the more your FICO score should increase. Older credit problems count for less, so poor credit performance won't haunt you forever. The impact of past credit problems on your FICO score fades as time passes and as recent good payment patterns show up on your credit report. And good FICO scores weigh any credit problems against the positive information that says you're managing your credit well. - 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 rebuild your credit score immediately, but if you can begin to manage your credit and pay on time, your score should increase over time. And seeking assistance from a credit counseling service will not hurt your FICO score.
Amounts Owed Tips
This category contributes 30% to your score's calculation and can be easier to clean up than payment history, but that requires financial discipline and understanding the tips below.
- Keep balances low on credit cards and other "revolving credit".
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 cards) debt. 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 rebuild 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.
To summarize, "fixing" a credit score is more about fixing errors in your credit history (if they exist) and then following the guidelines above to maintain consistent, good credit history. Raising your score after a poor mark on your report or building credit for the first time will take patience and discipline.
Monday, July 16, 2012
What to do with your collection accounts?
So you have to get your credit scores up and have collection accounts that are unpaid on your report. Here's the plan of attack to deal with them.
- Pull your credit report, all 3 bureaus. Not all collections report to every bureau. You can get a 3 in 1 report through just about any credit monitoring website.
- Make a list of all of your collections that you intend to pay. At the end of your report there is a list of creditors that usually includes phone numbers.
- Start to negotiate to pay what you can afford to settle. The dollar amount doesn't factor into your credit score, so start with the smallest ones.
- Offer 50% of what's owed. A lot of times the collection companies will settle for less. When they agree to a dollar amount, request a "deletion letter" in exchange for payment. If they won't give you a deletion letter, still pay the debt. It will be easier to remove via dispute and it will also stop the re-reporting of the debt. The re-reporting refreshes the debt to the bureaus which is considered a new derogatory.
- On the accounts that you obtained a deletion letter, you must then "rapid rescore" the account. Contact me 949-505-9971 and I'll handle this part. It will be deleted in a week, which will increase your credit scores.
- On the accounts that you weren't able to obtain a deletion letter, we will need to submit our written disputes to have them deleted which takes 30 days to get the results.
For more information on increasing your credit scores, visit our website at www.rapidrescorecredit.com
Saturday, July 14, 2012
Rapid Rescore Credit Fan Mail
Here's an email from a recent client. I love getting these...
Jason,
It has been a long time you've heard from me. You started the process for me and helped me raise my score from a 594 up to the low 700s and it is greatly appreciated. I am also in the process of refinancing my car loan. Wells Fargo and Blue Harbor are in the middle of countering each other's offers. I think they'll be able to get me from my current 14.1% down to around 5.09%. My approval letters have showed my score with Experian anywhere from 694 with Bank of America, to 710 with Amex, to 725 with Wells Fargo all in the last week. There has been so much activity with my total credit lines going from 2800 to almost 9800 over the course of a week that I'm not really sure how to score my credit until after the dust settles. Anyhoo, just wanted to let you know that I appreciate you starting the process for me. The freedom of having that credit weight lifted off of your shoulders is a feeling of pride and relief like no other. Please take care and I hope you'll accept my sincere thanks for your time and your help.
Best,
Tonya
Jason,
It has been a long time you've heard from me. You started the process for me and helped me raise my score from a 594 up to the low 700s and it is greatly appreciated. I am also in the process of refinancing my car loan. Wells Fargo and Blue Harbor are in the middle of countering each other's offers. I think they'll be able to get me from my current 14.1% down to around 5.09%. My approval letters have showed my score with Experian anywhere from 694 with Bank of America, to 710 with Amex, to 725 with Wells Fargo all in the last week. There has been so much activity with my total credit lines going from 2800 to almost 9800 over the course of a week that I'm not really sure how to score my credit until after the dust settles. Anyhoo, just wanted to let you know that I appreciate you starting the process for me. The freedom of having that credit weight lifted off of your shoulders is a feeling of pride and relief like no other. Please take care and I hope you'll accept my sincere thanks for your time and your help.
Best,
Tonya
Tuesday, July 3, 2012
Tips for raising credit scores.
Great short video from JohnU. on raising your credit scores before your mortgage application.
For more info contact me at 949-505-9971
Jason Hall
Sunday, June 24, 2012
Removing dispute from credit report.
I always have my clients deal directly with the credit bureaus when removing dispute remarks. We've had a 100% success rate.
Experian
475 Anton Blvd.
Costa Mesa, CA 92626
714-830-7000 is answered by a live human being, tell them you need the Executive Customer Service Team to end the dispute(s), hours are 8AM-5PM Pacific Time
475 Anton Blvd.
Costa Mesa, CA 92626
714-830-7000 is answered by a live human being, tell them you need the Executive Customer Service Team to end the dispute(s), hours are 8AM-5PM Pacific Time
Equifax
1550 Peachtree St, NW
Atlanta, GA 30309
404-885-8300 is answered by a live human being, tell them you need to speak with someone in the Executive Consumer Service department.
TransUnion
555 W Adams St
Chicago, IL 60661
312-985-2000 it has a machine greeting but just stay on the line and you are transferred to a live person, tell them you need to speak with someone in the Special Handling Department, you'll have to wait a little bit as they need to connect to customer service then get it elevated to the Special Handling Department (it is hit or miss, TransUnion often proves to be the most challenging)
If you cannot get the Special Handling Department, then when contacting the normal customer service reps you should say:
I need to dispute the compliance condition remarks code of "AID" (Account In Dispute) because I am no longer disputing the account.
I need to dispute the compliance condition remarks code of "AID" (Account In Dispute) because I am no longer disputing the account.
The customer service rep should be able to immediately end the dispute, as in during the phone call.
There are some situations that disputes cannot be ended by the consumer, and must be ended by the creditor, such as if there are multiple disputes on the same trade line. Remember to always be patient with the customer service reps, as they are trying to help you but may have limited communication skills depending on where the customer service call center is based. If there are confusing terms being used, don't be afraid to admit you do not understand what they are saying and ask for them to reexplain or to transfer you to someone in the U.S.
There are some situations that disputes cannot be ended by the consumer, and must be ended by the creditor, such as if there are multiple disputes on the same trade line. Remember to always be patient with the customer service reps, as they are trying to help you but may have limited communication skills depending on where the customer service call center is based. If there are confusing terms being used, don't be afraid to admit you do not understand what they are saying and ask for them to reexplain or to transfer you to someone in the U.S.
Friday, June 15, 2012
Thursday, June 14, 2012
Why inquiry deletion and rapid rescoring fast track a credit score increase.
For most people, they think that removing bad credit marks from your credit reports will boost your credit scores the most.
But in reality, to push your scores the highest you need to look at all areas that affect a credit score.
Inquiries can hurt your scores by up to 85 points. And if you have more than 5 inquiries over the past 12 months, it's driving your scores down. Deleting these excessive inquiries can further help your credit scores.
But what if your credit card balances are maxed out or near the limit? You need to pay them down to 30% of the credit limit, and rapid rescore the balances. Rapid rescoring will have those balances updated in a few days. Low balance to limit ratios help boost your scores also.
So, with removing bad credit items, removing inquiries, and paying down credit cards and rescoring...this will have a tremendous positive effect to your credit scores. This all can happen within a month.
With proper planning, you can have really good credit scores in a decent amount of time.
For more info go to RapidRescoreCredit.com or call 949-505-9971 for a free credit report consultation.
But in reality, to push your scores the highest you need to look at all areas that affect a credit score.
Inquiries can hurt your scores by up to 85 points. And if you have more than 5 inquiries over the past 12 months, it's driving your scores down. Deleting these excessive inquiries can further help your credit scores.
But what if your credit card balances are maxed out or near the limit? You need to pay them down to 30% of the credit limit, and rapid rescore the balances. Rapid rescoring will have those balances updated in a few days. Low balance to limit ratios help boost your scores also.
So, with removing bad credit items, removing inquiries, and paying down credit cards and rescoring...this will have a tremendous positive effect to your credit scores. This all can happen within a month.
With proper planning, you can have really good credit scores in a decent amount of time.
For more info go to RapidRescoreCredit.com or call 949-505-9971 for a free credit report consultation.
Saturday, June 2, 2012
Credit scores
Credit scoring is a big business, which is why there's more than one company out there offering credit scores to mortgage lenders, auto-loan financers, credit card firms and insurance companies. After all, a credit score is the closest thing to a crystal ball when it comes to determining whether a person is likely to meet his or her debt obligations.
Your credit score is generated by a sophisticated mathematical formula that reduces your credit history -- found in your credit report -- to a single number. The higher the number -- your credit score -- the more creditworthy you are perceived to be, earning you benefits such as lower interest rates, lower down payments and even lower insurance premiums (high scorers tend to file fewer claims).
The fact is, you don't just have one credit report, you have three -- one each from Equifax, Experian and TransUnion (shorthand: the Big Three). These three major credit reporting bureaus regularly receive information from creditors and other entities about whether you pay your bills on time, how much and what types of credit you have, how much credit you've used and whether you've paid back money you owed, among other data. However, the Big Three often do not all receive all of the same data -- the information in your credit reports can vary from one bureau to another. That means one credit scoring model, say from FICO, can yield different scores depending on which credit report it reflects.
Perhaps you've heard about FICO -- the oldest credit scoring service, originally debuted by Fair Isaac and Company in 1958. It has dominated the credit-score market for decades, selling its service to the Big Three -- a slightly different version for each -- who then marketed their scores under various brand names to lenders and other institutions. FICO has also come out with a variety of other scoring models, fine-tuned to particular segments of the market (e.g., the NextGen Score for assessing consumer-credit risk, and another scoring model for insurers).
More Scores
In 2006, the Big Three launched their own credit scoring product -- VantageScore -- as a competitor to FICO. The VantageScore mathematical algorithm differs from that of FICO, giving more or less weight to different types of credit behavior. Also, FICO scores range from 350 to 850, whereas the VantageScore range is 501–990.
Also jumping in, CE Analytics developed the CE Score, which is licensed to websites including Community Empower and Quizzle and sold to lenders and investment banks, but given free to consumers. CE Scores range from 350-850.
Despite the competition, FICO is still the go-to score for the vast majority of mortgage lenders.
Checking Your Credit
Since all of your possible credit scores are based on the information in your credit reports, it is critical that the information in those reports is accurate. Fortunately, the Fair and Accurate Transactions Act mandates that each of the Big Three provide you with a free copy of your credit report once every 12 months. Before applying for a mortgage, be sure to check your credit reports and correct any problems you find -- look for outdated information, open accounts you thought you had closed, information that belongs to someone else, clerical errors, identity theft, etc.
Your credit report will indicate how you are managing your credit overall, but the Big Three won't provide you with your actual credit score unless you pony up a small fee -- usually under $10. VantageScore is the only score that Experian and TransUnion will supply directly to consumers, even though they may supply a different score to lenders. Equifax sells the actual FICO score to consumers. Or, you can go to www.MyFICO.com, sign up for a free 10-day trial of ScoreWatch® to get your free FICO score, then cancel the service within the 10-day period to avoid charges. You can also browse www.Quizzle.com and get your CE Score for free in exchange for some personal information.
Wednesday, May 30, 2012
Inquiry Deletion Process
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So how many are too many?? Typically, within the past 12 months, more than 5 hard inquiries can start to drive your scores down.
Biggest abuser of inquiries are when you apply for auto financing. What the dealer doesn't tell you in most cases, is that they are going to submit your application to multiple banks, which are each going to pull your credit.
So you do you protect yourself from this abuse?? Setup your financing BEFORE you shop for a car. Go to your local bank or credit union and apply for an auto loan. That way, when you're ready to shop you already have the terms and check ready for the purchase.
For more information regarding removing your inquiries, visit RapidRescoreCredit.com
Friday, May 11, 2012
Inexpensive Credit Reports
With credit monitoring sites getting more expensive, I went searching for a cheaper solution and found one. If you are a Costco member, you can get a 3 in 1 report from Identity Guard for as little as $7.49 per month. This is pretty cheap compared to TrueCredit and others that charge $29.99 per month for the same information.
To sign up, go to http://costco.identityguard.com/
To sign up, go to http://costco.identityguard.com/
Wednesday, April 18, 2012
The Mechanics of Rapid Rescore
How Does
Rapid Rescore increase my credit score?
Rapid Rescoring
increases your credit score when you update information on
accounts to show lower balances, paid in full status, account deletions,
settlements, etc. Your credit report can potentially contain old information that
can hurt your credit score. Creditors typically update credit reports only once
per month. Some creditors only update credit reports four times per year. It is
important to take control over what is reporting in your credit report.
accounts to show lower balances, paid in full status, account deletions,
settlements, etc. Your credit report can potentially contain old information that
can hurt your credit score. Creditors typically update credit reports only once
per month. Some creditors only update credit reports four times per year. It is
important to take control over what is reporting in your credit report.
How Much will
Rapid Rescore Increase my Credit Score?
Implementing a well thought out rapid rescore strategy can potentially increase
your credit score by 15-35+ per account rapid rescorein just 5-7 business days. Rapid
rescoring several accounts may increase your credit score much higher. It is not
unheard of to see increases of 100+ points by rapid rescoring several accounts.
Our credit experts will help you to create a rapid rescore strategy that
will maximize your credit score.
Rapid Rescore
is expensive & typically exclusive to Industry Professionals.
Not anymore. Now you have the ability to take advantage of the rapid rescoring process. Rapid rescore has been the most utilized method of increasing credit scores when applying for a mortgage. Everyone of our credit repair programs offers you an unlimited amount of rapid rescoring. You can rapid rescore as much as you want.
Not anymore. Now you have the ability to take advantage of the rapid rescoring process. Rapid rescore has been the most utilized method of increasing credit scores when applying for a mortgage. Everyone of our credit repair programs offers you an unlimited amount of rapid rescoring. You can rapid rescore as much as you want.
When should I
Rapid Rescore?
You should rapid
rescore your accounts about a week and a half to two weeks before applying for
credit. By rapid rescoring your accounts you can increase your credit score
substantially and save yourself thousands in finance charges. Rapid rescoring
can help you get approved for credit that you might otherwise be denied for due
to inaccurate or outdated information on your credit report.
How do I
Rapid Rescore?
To successfully
rapid rescore an account, you must provide us with the necessary documentation
reflecting the information that needs to be changed. Proper
documentation will typically be in the form of Account Statements,
Letter from Creditors and Court Documentation.
The
documentation must include the following information:
- Your Full Name
- Account Number
- Creditors Letterhead
- Creditors Contact Information
- The Information to be updated
Unacceptable
Documentation:
- Website or
Internet printouts
- Canceled Checks
- Receipts
- Hand Written Letters or Notes
- Third Party Documentation
To start your Rapid Rescore simply fill out our online application.
Monday, March 5, 2012
FICO scoring model is a software that generates your scores. The 5 categories on your report are defined here... http://ping.fm/IM3FM
Know the score. Online credit scores sold to consumers aren't "FICO" scores that banks use.http://ping.fm/pqJQA
Thursday, February 23, 2012
Tuesday, February 21, 2012
What is Vantage Score?
In the 1970s, the Fair Isaacs Company created the first credit scoring system, dubbed the FICO score, which has since been standardized as the industry’s leading credit score model to assess potential borrowers. More recently, the VantageScore was created in collaboration with the three big credit bureaus - TransUnion, Equifax, and Experian - as a new generic proprietary credit score model marketed as a more “consistent interpretation” and “accurate score” than FICO. What exactly can you expect from the VantageScore that differs from the classic FICO, and what does it mean for your credit score?
The Basics
From Credit Karma’s consumer-friendly, free TransRisk score, the lender standard FICO, to the new-kid-on-the-block VantageScore, the plethora of credit score models can be mind-boggling. Every model uses a different algorithm that weighs each part of your credit report differently, which explains why you may have a 750 from Credit Karma and a 762 from FICO. We’ve previously addressed how to understand the credit score differences; there are indeed many different credit score models, but they are all highly correlated. They use different ranges, different formulas, and the information found on your credit report can differ from bureau to bureau, but all the models aim to assess your credit history and translate it into your 3-digit credit score number.
The VantageScore
The big three credit bureaus, TransUnion, Equifax, and Experian, offer their own proprietary models but usually provide the FICO score to lenders. So they created the VantageScore model to create a consistent credit score model across the three bureaus to compete with the FICO score. Thus, they can offer lenders a more “standardized” score from the bureaus and cut out the Fair Isaacs Company.
VantageScore is being touted as “The New Standard in Credit Scoring”, and it can potentially be big business if the bureaus can compete successfully with the stranglehold FICO has on lenders. It just depends on whether lenders will be willing to change to a different model.
The VantageScore offers additional features, such as predictive scoring and a 24-month review of credit history, that the classic FICO model doesn’t incorporate. Here are some of the main differences between the two competitors.
| VantageScore | FICO |
|---|---|
Additional features:
|
|
Bottomline
The VantageScore’s particular credit scoring method is especially good news for thin file consumers and consumers who may have prior negative actions against them but have a good, recent credit history.
VantageScore is one of dozens of models in use. Whether you choose to check your VantageScore, FICO, Credit Karma, or any other score, what is more important is that you monitor and manage your credit health by checking your credit score every few weeks. Keeping track of your credit score over time, not just once or twice, will give you your most valuable insights into how to adjust your credit habits to build towards a healthy score.
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