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Why Your Credit Limit Increase Was Denied

September 15, 2014 by  
Filed under Blogs, Credit Cards

by: .
why your credit limit increase was denied

9 Reasons Your Credit Limit Increase Request Was Denied

Ever wonder why your credit card company wont raise your credit limit? Here are some common reasons of why your credit limit increase request was denied, and what to do to increase the credit limit on your credit cards.

1. The account was recently past due

What it Means
You recently either missed a payment or made a late payment on your account. Generally, credit card companies don’t approve credit line increase requests on accounts that have a late payment within the last six to nine months.

What to Do
You may want to enroll in AutoPay or use customized alerts to help stay on top of your accounts. Pay your credit card bill on time and your chances of getting a limit increase gets much better.

2. The average balance on this account has been too low

What it Means
When a credit card company reviews requests for credit line increases, one of the things they look at is the payment history of your account. If you regularly use your card and make payments on time, it builds your account’s payment history. If you don’t use your card, theres little to no payment history to review.

What to Do
Use your card more, just make sure that you use your card responsibly. Be sure to pay on time and try to make more than just the minimum payments and keep your balance at a 20% utilization rate.

3. The account has not been open for at least 6 months

What it Means
The credit card company needs time to establish how the account has been used and its payment history. Once they have this information, it’s used as a guideline to help determine if the account qualifies for more credit.

What to Do
Feel free to request a credit line increase after your account has been open for at least six months.

4. The credit bureaus have reported a recent delinquency

What it Means
Your credit report shows you’ve recently paid one or more of your creditors late. Generally, credit card companies don’t approve requests for credit line increases on accounts that have had late payments withinin the last six to nine months.

What to Do
Make sure you are paying all of your creditors on time. If you have questions about what’s on your credit bureau report, contact the three bureaus: Equifax, Experian, and Transunion to resolve the issues or hire a company to do so on your behalf.

5. Your average monthly payment has been too low

What it Means
If you received this reason, it generally means you’re carrying a balance and not making large enough monthly payments to qualify for a credit line increase upon request. Both the payment history and the amount of your payments help us to determine if your account qualifies for a credit line increase.

What to Do
Manage your account responsibly. Be sure to make payments on time. In general, customers that make larger payments are more likely to be eligible for a credit line increase.

6. You recently exceeded the credit limit on your account

What it Means
You recently went over the credit limit on one of your credit card. Generally, credit card companies don’t approve credit line increase requests when one of a customer’s accounts has recently been over the limit.

What to Do
Check over your account information often to be sure that you’re not over your credit limit. Using the credit card companies’ customized alerts to tell you when your getting close to the credit limit makes a lot of sense.

7. Your outstanding debt is too high compared to your income

What it Means
When credit card companies review requests for credit line increases, they look at income and expenses. Your housing expenses and outstanding overall debt, as reported by the credit bureaus, might be too high for your income. Generally, credit card companies don’t approve credit line increase requests for customers that have high balances on revolving accounts.

What to Do
Pay down your credit card balances on all of your credit cards at or below 20% of your credit limits and if your employment status or income changes, be sure to contact your credit card company to update your information.

8. There are too many recent inquiries on your credit report

What it Means
According to the information reported by the credit bureaus, there have been numerous requests for new credit over the last 12 months.

What to Do
Keep in mind that when you make numerous applications for credit, it can lower your credit scores and affect how creditors evaluate credit line increase requests for your account. Be selective about how often you apply for credit. And if you don’t recognize any inquiries reporting to your credit reports, contact the three bureaus: Equifax, Experian, and Transunion to resolve the issues or hire a company to do so on your behalf.

9. Your current credit score is too low

What it Means
Based on the information reporting in your credit reports, your current credit score is too low to qualify for a credit line increase.

What to Do
– Pay your bills on time
– Keep your utilization rate at or below 20%
– Don’t close old accounts
– Establish a good mix of credit
– Limit your inquiries
– Get proactive and leverage consumer protection laws like the FCRA to remove derogatory information from your credit report or hire a credit repair agency like CreditFirm.Net to do so on your behalf.

 

Why Choose CreditFirm.net?

Assurance. Our Credit Repair process was developed by experienced attorneys.

Speed. Documents are typically processed and sent out for investigation within 3-5 days.

Support. Award winning customer service guarantees your satisfaction.

CreditFirm.net Review

Living With Bad Credit

July 16, 2014 by  
Filed under Blogs, Credit Score

by: .

living with bad credit

Your credit is one of the most important determining factors which directly contributes to your quality of life. So it makes sense that a bad credit score can wreak havoc and cause an undue burden on just about every consumer.

Here are 6 ways bad credit can affect your life:

1. Struggles Getting a Loan

If you have goals such as being a home owner, having your own car or paying for children’s college tuition, you will need money to do so and if you cannot afford to pay cash, you will need to apply for a loan. And in order to get approved for the loan, you will need to have a good credit score.

Unfortunately, most consumers with bad credit continue the downward spiral and never know the feeling of being a home owner or having a brand new car. This is why it is so important to stop the cycle of bad credit and improve your life by fixing your credit.

2. Increased Interest Rates

Consumers with good credit qualify for the top tier interest rates on everything from credit cards to mortgages to auto loans. If you have bad credit you will automatically have increased interest rates on these things which in turn elevate your monthly payments and end up costing you hundreds of thousands of dollars more than if you had good credit.

3. Difficulty in Renting

When it comes to renting, credit plays a crucial part in determining whether you will are approved for an apartment, as well as the size of the security deposit which will be required. Consumers with bad credit are often asked to put down 2-3 months worth of rent as a security deposit while those with good credit often times have their security deposits waived. This is why it is so important that you get your credit up to par before looking for an apartment.

4. Increased Utility Costs

Just like landlords, utility companies often times require a security deposit from consumers with bad credit. When considering that services such as telephone, gas, cable, internet, and electricity will all need deposits of $50 to $500 each to activate; the cost of bad credit quickly escalates.

5. Higher Insurance Premiums

Insurance agencies all differ from one another, but insurance underwriters determine your insurance premiums in pretty much the same way. No surprise here but your credit score is a very important part of that. An individual with a poor credit score can pay double the amount on car insurance as an individual with the exact same driver profile with excellent credit standing.

6. Difficulty finding a Job

When applying for a job, most employers will review an applicant’s credit reports prior to hiring them. It is believed that bad credit is a sign of irresponsibility and a lack of financial competency. Some even go so far as saying that applicants with bad credit are more likely to steal than those with good credit.

That’s why it is so important to put your best foot forward by making sure that your credit is at its’ absolute best so that you can maximize your earning potential and get the highest paying job that you can get.

Need Help?

If you need to repair your credit report and improve your credit score, the experts at CreditFirm.Net are here to help.

 

Why Choose CreditFirm.net?

Assurance. Our Credit Repair process was developed by experienced attorneys.

Speed. Documents are typically processed and sent out for investigation within 5 days.

Support. Award winning customer service guarantees your satisfaction.

CreditFirm.net Review

3 Financially Responsible Things…

That Will Ruin Your Credit Score

May 28, 2014 by  
Filed under Blogs, Credit Score

by: .
common credit myths

There’s a lot of advice on the internet about managing your finances and credit, some useful, and some that is completely wrong. You see, doing something that most consider financially responsible isn’t always going to benefit your credit and in some cases will actually hurt your credit scores.

So lets take a look at 3 common “financially responsible” tips that actually hurt your credit.

1. Asking for a lower credit limit

If you have trouble controlling yourself around a credit card, lowering your credit limit can hedge the amount of debt that you can accumulate and protect you from yourself.

But, considering that 30% of your credit score is calculated from your credit utilization rate (the percentage of debt you owe in relation to your credit limit), lowering your limits will increase the utilization rate and lower your credit scores.

Try to show some restraint and not use up all of your available credit limit. Keep your credit card balances at or below 20% of the credit limits, and watch your scores increase.

2. Paying off an installment loan early

Paying off your mortgage or auto loans early may seem like a good way to improve your credit, but it’s not.

I know this goes against logic, but stick with me here.

Paying off an installment loan early raises your utilization ratio. That’s right, credit utilization is not just calculated from credit cards, but installment loans like auto loans and mortgages too.

For example, if you have a $20,000 auto loan with a $5,000 balance ($5,000/$20,000=25% utilization) that you pay off early, your available credit will drop by $15,000, the utilization rate will become N/A, and your score will drop. (The utilization rate only counts open and active accounts).

Now, I’m not saying that you shouldn’t pay off your debt early, you just need to consider the repercussions. Paying off your installment loans early can save you a lot of money in interest. But if you’re trying to raise your credit score, it’s a better idea to pay off your credit cards, which will still remain open, even with a $0 balance.

3. Opening a bunch of credit cards all at once

Our first two points lead us into our third. Some people think that the best way of lowering your credit card utilization rates (the balance to limit ratio), is by opening up as many credit cards as possible, in order to increase the amount of available credit.

And although it sounds good in theory, there is a major issue with this, every time you apply for credit, an inquiry is reported to your credit report. Too many inquiries and your credit score drops. How many is too many? Experts say that you should limit yourself to one inquiry every 6 months.

So don’t apply for too much credit at once and lower your credit card utilization rate the old fashion way, pay down your credit cards.

Need Help?

If you need to repair your credit report and improve your credit score, the experts at CreditFirm.Net are here to help.

 

Why Choose CreditFirm.net?

Assurance. Our Credit Repair process was developed by experienced attorneys.

Speed. Documents are typically processed and sent out for investigation within 5 days.

Support. Award winning customer service guarantees your satisfaction.

CreditFirm.net Review

What’s Holding You Back From Perfect Credit?

by: .
850 credit score

What’s holding you back from a perfect 850 credit score?

Believe it or not, there are only a few main factors that are used to calculate your credit scores.

Based on these factors, and a credit scoring scale of 300-850,  the top reasons why your credit score isn’t higher is listed below, along with a few nuggets of advise on how to raise your credit scores.

The Top Four Reasons

1. Payment History

Your payment history accounts for 35% of your credit scores, and is the single most important factor used when calculating a credit score. Having red marks on your credit like late payments, collections, repossessions, etc…, lowers your credit score immensely.

What you can do

Pay your bills on time and fix your past mistakes. You can hire a credit repair agency to work on improving your payment history by leveraging consumer protection laws that clean up your credit reports. The Fair Credit Reporting Act gives you every opportunity to get your credit back in order, use the law to your advantage.

2. Credit Utilization Rate Is Too High

Your utilization rate is the percentage of credit that you owe (your balance) in relationship to your credit limit.

Example: Balance = $800 | Credit Limit = $1,000 | Utilization is ($800/$1,000) 80%

Lenders view a high utilization rate as a proven indicator of increased credit risk.

What you can do

Pay down your credit card balances and decrease your utilization rate to 20% or less. This means that you should never spend more than 20% of your credit limit.

3. Your Credit History Is Too Short

Your average length of open credit accounts for approximately 15% of your credit score. This shows lenders your experience with credit and lenders prefer consumers with a long length of credit over ones with a short credit history.

What you can do

Do not close old accounts, keep them active and open and they will increase your length of history. You should also limit opening new accounts because every new account decreases your average length of open credit. Be patient and your credit history will grow with time.

4. You have too many inquiries on your credit report.

Every time you apply for credit, a history of that application shows up on your credit report, this is known as an inquiry.

Inquiries are about 10% of your overall credit score and having too many of them drastically lowers your creditworthiness.  

Your inquiries can lower your score a small amount, typically 10 to 20 points.

What you can do

Apply for credit only when you need it and try to limit yourself to a maximum of one inquiry every 6 months.

If you have too many inquiries reporting to your credit reports, a credit repair agency like CreditFirm.Net can challenge those inquiries and work on removing as many of them as possible.

 

Bottom Line:

Pay your bills on time, keep your balances low, don’t apply for too much credit at once, don’t close old accounts, and if your credit report has a few red marks, hire a professional credit repair agency like CreditFirm.Net to help you fix your credit.

 

Why Choose CreditFirm.net?

Assurance. Our Credit Repair process was developed by experienced attorneys.

Speed. Documents are typically processed and sent out for investigation within 5 days.

Support. Award winning customer service guarantees your satisfaction.

CreditFirm.net Review

How Divorce Impacts Your Credit

April 10, 2014 by  
Filed under Blogs, Misc

by: .

credit after divorce

Don’t Neglect Your Credit During A Divorce

Although divorce procedures do not directly impact your credit, the indirect impact can quickly devastate your credit scores in no time at all.

Things such as child support, joint accounts, and joint liability all of a sudden enter the fold. And with extra responsibility, comes a greater risk of default.

But, have no fear, there are steps you can take to protect your credit during a divorce.

Get Your Credit Report
It is absolutely crucial that you are aware of every account that is reporting to your credit report. Joint account holders and co-borrowers have 100% liability in just about every case. Get a copy of your credit report from all 3 credit bureaus, have a seat and go through every open account in your credit file. Make a list, and give it to your attorney.

Divorce Decree
A divorce decree does not relieve your liability in any joint accounts which you incurred with your spouse. You are 100% liable and 100% responsible for ALL joint accounts even if the court decrees otherwise.

That’s right, even if the court decrees that your spouse is 100% responsible for a certain debt, you are still liable to the creditor in case of default. A divorce decree does not nullify a signed debt obligation. Whether it’s a credit card, auto loan, or mortgage, if your name is on the original contract, you ARE 100% liable for the debt. This means that if your spouse fails to make a payment or defaults on the loan, it will be reflected in your credit report. Plus, the credit grantor has a legal right to take legal action against both you and your spouse.

So what do you do to protect yourself?

  • Close or separate all joint accounts. Talk to your ex-spouse, if possible. Go through all your debt and decide who should be responsible for each and every account. Call your creditors and ask them how to transfer your joint accounts to individual accounts. If your spouse decides to be less than cooperative, paying off the debt and closing the accounts may be your best bet.
  • You may have to refinance your home to get one name off the mortgage, or you might need to sell your home and divide the proceeds. Even if your name is removed from the title or deed, if your name is on the mortgage, you are responsible for the loan.
  • Continue to pay ALL bills on time.
  • DO NOT LISTEN TO YOUR RELATIVES who tell you to run up your spouses debt and stop paying the bills because it’s the other person’s problem. You have just as much liability in the accounts as your spouse, so you will be ruining both your credit scores, which you will need in order to start over.

Re-Establish Credit
If you were left with few to no open and active accounts after the divorce, you will need to begin to re-establish credit. A good way to start is by getting a credit card with a small credit limit. Pay your bills on time, keep you balance low, and your credit score will increase. If getting approved for a credit card becomes problematic, consider applying for a secured credit card in order to re-establish credit.

If Divorce left your Credit in Shambles
Consider hiring a credit repair service to help you move forward and get your life back together.

CreditFirm.net has helped thousands of our clients get their credit back on track and start fresh with an improved credit report and score. So why wait, get started today and be one step closer to better credit.

 

Why Choose CreditFirm.net?

Assurance. Our Credit Repair process was developed by experienced attorneys.

Speed. Documents are typically processed and sent out for investigation within 5 days.

Support. Award winning customer service guarantees your satisfaction.

CreditFirm.net Review

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