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Bad Credit Employment Discrimination

June 20, 2013 by  
Filed under Blogs, Credit Report

by: .
credit employmentA story far too common.

Daniel Stone was a successful accountant at a major firm where he had worked for the last 6 years. He just bought a house when something completely unexpected happened, he lost his job.

Like many others, Daniel was let go due to the economic recession.

Without a steady paycheck, Daniel was forced to live off his credit cards for as long as he could. His health insurance lapsed which brought on a pile of medical expenses due to a minor illness. As the job market dried up, the medical bills began to accrue and the credit cards began to compound with interest charges. Mr. Stone could no longer afford to pay any of his bills and his credit score took a tumble.

As the job market got better and the newspapers were publishing stories of an economic recovery Daniel was still being turned down for jobs left and right. Daniel didn’t know what to think, he had plenty of experience working for a major accounting firm for over 6 years and a great education at a prestigious university. But here he was, no job, living in a home on the fast track to foreclosure, constantly hounded by bill collectors, and living off government assistance.

Daniel just couldn’t understand why he wasn’t able to find a job, until one day he received a letter. A letter from an employer which turned him down for a job, explaining that he was not hired due to the adverse information in his credit report.

Consumers tend to think that credit reports are only used in the lending industry by banks and credit card companies. But the reality is, according to a recent SHRM study, over 47% of employers use credit reports to screen job applicants.

If a consumer loses their job, they can’t pay their bills, and now they can’t get a job because they couldn’t pay their bills, because they lost their job.

Daniel Stone, the accountant, can relate to that. Standing in his kitchen, he holds up his credit report. “This is the cause of all my problems, if it wasn’t for this, I could have had any job.”

“I tell my story to anyone who’ll listen”, said Mr. Smith. “Even the clerks at the unemployment office, and they tell me, ‘We hear that story all the time, about the credit, if you’ve got bad credit, you’re not getting a job.’ ”

Tough economic times are difficult for everyone, especially for those with low credit scores. Just remember one thing, bad credit is not a permanent problem. Become proactive, fix your credit, and take back your life.

And Mr Stone, he was able to get a job with a credit repair company who knew that a bad credit score was not a character issue, it was a financial issue, an issue which since has been resolved.

 

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.

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The Credit Dispute Process Gets an Upgrade

by: .

credit bureaus
Have you ever wondered what the credit bureaus do with all of the documents you send them?

All of the bank statements showing your bills were paid on time, all of your police reports, affidavits, cancelled checks, etc… corroborating your innocence. It all goes into one place:

The Shredder

Up until now, the credit bureau’s automated account verification system known as e-OSCAR, which forwards dispute codes to credit furnishers, was not equipped to handle anything except for a 3 digit code summarizing your dispute. So all of the documents you carefully put together are taken to the shredder and destroyed.

This of-course is a violation of the FCRA which states that the credit bureaus must forward all received documents to the data furnishers for review.

Well, things are about to change!

According to Stuart K. Pratt, president and CEO of the CDIA, starting at the end of the year, the credit reporting agencies Experian, Equifax, TransUnion, and Innovis, will be forwarding all of the documents they receive to the creditors reporting on your credit report.

The days of having your 3 page essay explaining why your account is being incorrectly reported, being squashed into a 3 digit code are over.

Why?

Because it’s ILLEGAL and the CFPB’s recent report outlining the credit bureau’s business practices  finally got some reaction from the Senate. In fact, 3 of the 5 Senators in the Commerce, Science and Transportation Subcommittee questioning Mr. Pratt had inaccuracies in their credit reports. And because it took one consumer 14 years to fix a merged credit report.

What does this mean for you?

For the first time, in a long time, creditors and data furnishers will be able to see your full dispute letter along with all of your supporting documents to why the account they are reporting is incorrect.

Bottom Line

The credit repair process should improve and become faster, better, and more transparent. We at CreditFirm.net applaud the work of the Senate Commerce, Science and Transportation Subcommittee for fighting for your consumer rights and your privacy.

 

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 Credit Impacts Your Ability To Get A Job

June 11, 2013 by  
Filed under Blogs, Credit Report

by: .
employer Credit background check

Employers have been using credit reports to determine whether to hire a prospective applicant for well over 20 years.

Lets take a look  at your credit report and find out what it says about the type of employee you are.

1. Payment History – Punctuality

Payment history is a great way of gauging  your time management skills. Paying your bills on time shows potential employers that you can be trusted to stick to a schedule and always be on time. If you don’t pay your bills on time, the employer will assume that you may have a tendency to come to work late.

2. Utilization Rate – Organization

The utilization rate shows your dependency on debt. A low utilization rate (20% or less) shows that you know how to manage your finances and only rely on credit for the purpose of convenience. A high utilization rate shows that you are overly dependent on debt and have a difficult time living within your means. This basically tells the employer that you are disorganized and can’t manage your finances.

3. Length of History – Stability

The length of your credit history shows that you have demonstrated good financial habits for a long time. The more stable your credit report looks, the more trustworthy you become in the eyes of the employer. A short length of history may bring up questions of instability and whether you’re in it for the long haul.

4. Mix of Credit – Multi-Tasking

Having a mix of credit between installment and revolving accounts shows that you are a responsible individual who has a balanced amount of debt. You don’t rely too heavily on any one financial obligation and can understand and manage different types of loan obligations at once. Having only one type of accounts may throw up a red flag and show your potential employer that you have a one track mind and an inability to multitask.

5. Inquiries – Responsibility

Too many inquiries within a short period of time says a lot about you. Mainly, it says that you’re hungry for credit, and this is never good. Inquiries show that your either in a very difficult time and severely need an extension of credit to stay afloat, or that you’re just starting to build your credit and may be biting off more than you can chew.  Responsible people build credit gradually, little by little, and account by account, and make sure that they can handle what their are undertaking.

Conclusion

Although bad credit does not always indicate the type of employee you are, it is widely used tool that many employers use when judging a potential applicant. Your credit report is used to gain insight into your personality and dependability. Give yourself the best chance at landing your dream job by keeping your credit report clean and well balanced.

Solution

If you have a few red marks on your credit report, do something about it. Be proactive, fix your credit, and give yourself the opportunity for a brighter future.

If you need help to improve your credit reports, CreditFirm.net is here for you.

 

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

10 Things Which Prevent A Home Loan

June 6, 2013 by  
Filed under Blogs, Credit Report

by: .

home loan

There are many reasons to why a consumer can be turned down for a Mortgage. Lets take a look at the 10 most common causes of mortgage denials based only on credit reports.

  1. Have open collections with balances. 
    • Most Lenders will not approve a consumer for a mortgage if they have any outstanding collections with balances. This is currently the case for all FHA Loans and most conventional mortgages. (Medical Collections do not apply.)
  2. Have had a Bankruptcy within the last 2 years. 
    • Lenders want to see 2 years of perfect payment history after a Bankruptcy is discharged. If your Bankruptcy was less than 2 years ago, you will have a very hard time finding a lender to approve you.
  3. Have had a Foreclosure within the last 3 years. 
    • Most lending institutions won’t even consider your loan application if you have had a foreclosure within the last 3 years. So focus in improving your credit scores, paying your bills on time, and rebuilding your credit while your within that 3 year range.
  4. Have an unpaid judgment against them. 
    • An unpaid judgment not only decreases your credit score, but gives the plaintiff First position over your assets should you ever default. Banks don’t like to be in Second position and will most likely deny anyone with an unpaid judgement against them.
  5. Have an unpaid Tax Lien. 
    • Like an unpaid judgment, the holder of the Lien carries First position over the bank.
  6. Have multiple social security numbers reporting on their credit file. 
    • As strange as this sounds, I have seen consumers with 6 different social security numbers on their credit reports. Whether it was due to merged reports, identity theft, or typos, this sends up a huge red flag, and lenders don’t like red flags.
  7. Have unpaid charge-offs/profit & loss write-offs on their credit report. 
    • Like collections, these accounts must be reported as paid or at a $0 balance before your loan can be processed further.
  8. Have made a late payment of over 30 days within the last 6 months. 
    • This is a typical rule for FHA loans, but more and more conventional loans are following this precedent.
  9. Client is on OFAC list (Office of Foreign Assets Control). 
    • This basically means that you are a terrorist. Really, I’m not joking. If you’re on the OFAC list you may want to read this ASAP.
  10. Consumer is listed as deceased.
    • This is pretty self explanatory, if you’re dead, you can’t get a mortgage. And if you’re really alive but your credit report says your dead, you’re going to have to get everything straightened out before anyone will approve you for anything, especially a home loan.

Hope you enjoyed reading the list, take care of yourselves and 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.

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What You Need to Know About Credit Inquiries

by: .
credit report inquiries

Accounting for 10% of your overall FICO score, Inquiries are a subject of much debate.

Let’s go back to basics about Inquiries.

An inquiry is a record of any company viewing your credit report for the purpose of reviewing your credit history. The Fair Credit Reporting Act (FCRA) allows any organizations to view your credit file as long as they have permissible purpose.

Permissible purpose is defined by the FCRA as;

• Ordered by a court or a federal grand jury subpoena.
• Instructed by the consumer in writing.
• For the extension of credit as a result of an application.
• For employment purposes.
• For the underwriting of insurance.
• To review a consumer’s account.
• To determine eligibility for a professional license.
• In connection with child support.

Not all Inquiries are created equal.
There are two different types of inquiries; hard inquiries and soft inquiries.

Hard inquiries occur when someone checks your credit report for the purpose of extending credit.
Common hard inquiries are credit checks from:
• auto lenders
• mortgage lenders
• credit card companies
• landlords
• cell phone companies
• utility companies
• collection agencies

Soft inquiries, also known as an “Account Review Inquiries”, occur when:
• You check your own credit report
• An employer checks your credit
• A lender checks to see if you qualify for a pre-approved offer
• A current creditor reviews your report

Soft inquiries do not impact your credit score, in fact, they only appear on your consumer credit report. This means a lender checking your credit will not see any soft inquiries.

Hard inquiries account for 10% of your overall FICO score and remain on your credit report for 2 years from the date they were initiated. But the only hard inquiries which impact your credit score are those ran within the last year.

Quick Tip: To get the most positive impact from this category, try not to have more than 1 inquiry every 6 months.

Finally, we saved the best for last.
Inquiries ran within a one week time-frame within the same industry are grouped together and only count against your FICO score as one inquiry.

So if you went car shopping and your auto dealer sent your credit application to 12 different lenders who each ran your credit report; don’t worry, although all 12 inquiries will report on your credit history, they will only impact your credit score as a single inquiry.

Have a question for us? We’d love to hear from you.

Just email your question to info@CreditFirm.net

 

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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