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Monday Mailbag 12/17/2018

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Question:
What can the credit card companies do if I stop making payments?

Answer:
1. After 6 months on non-payment your credit card debt will be charged off by the credit card company.

2. The credit card company will report the charged-off status to your credit report – lowering your credit scores and making it significantly more difficult for you to obtain credit in the future.

3. The credit card company will likely either send the delinquent debt to a collection servicing company or, if enough time has passed without the creditor being able to recover the debt – they may sell the debt to a collection agency altogether.

4. The collection agency will now report the past due debt on your credit report. At this point, you will likely have the original creditor (credit card company) reporting a charged-off account (with a $0 balance) and a collection agency reporting the account in collection (with the full balance + fees and interest). Your credit scores drop even lower. Although some people consider this illegal, as long as the original creditor is not reporting a balance, it is 100% legal for 2 credit furnishers to report 2 separate accounts for the same debt.

5. After multiple letters, notifications, calls and voicemails and some time of not being able to collect on the debt, the owner of the debt may decide to file a civil suit against you in court. Whether it’s the original creditor or the collection agency, the owner of the debt may be able to get a court judgment against you. This court judgment may report in the public records section of your credit report – dropping your scores even lower.

6. With a court judgment in hand, eventually, the owner of the debt may decide to take matters into their own hands and stop asking for their money and just start taking it. With a judgment in place, the owner of the debt can go back to court and get a wage garnishment order. This will allow them to withhold a percentage of your wages as well as gain access to money you have in your personal checking or savings accounts.

Ultimately, it’s always better to pay your bills on time but, sometimes unforeseen circumstances happen and if you have any questions about unpaid, past due, or charged-off credit cards – our credit consultants are here 24/7 to help.

If you have any questions, feel free to contact us at any time.

Are you ready to get started on your journey toward a better credit score?

 

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

Monday Mailbag 10/29/2018

October 29, 2018 by  
Filed under Blogs, Monday Mailbag

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Question:
I’m thinking of buying a DIY credit repair course from ##########. Have you ever heard of them? Is it a good deal? Should I do it?

Answer:
I have never heard of this company but, it seems like they are selling a do it yourself (DIY) kit which only includes letter templates to send to the credit reporting agencies. Disputing is a great way of getting derogatory information removed from your credit reports but, you’ll want to make sure that you do much more than dispute with the credit bureaus. The FTC did a study about 12 or 13 years ago which found that on average 1 out of every 5 disputed accounts resulted in a deletion, they then followed up the study 10 years later and found that the number changed from 1 out of 5 disputes resulting in a deletion to 1 out of 25 accounts resulting in a deletion. So basically, the deletion rate went from 20% to 4% in 10 years. This is mainly due to the credit reporting agencies automating the dispute resolution process. The reason I’m mentioning this is that nowadays if you want to increase the effectiveness of your credit repair, it is important to do more than dispute the negative information. It’s important to do Method of Verification follow-ups, Debt Validation, GoodWill intervention, Permissible Purpose Verification, etc… in order to get more removals. Just make sure that the information that you’re purchasing from that site includes more than dispute templates, which you can find online for free. Make sure that the information that you are purchasing includes all of the techniques I mentioned, and more so that you can get the most out of your credit repair.

If you have any questions, feel free to contact us at any time.

Are you ready to get started on your journey toward a better credit score?

 

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

Monday Mailbag 10/22/2018

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Question:
Would it hurt my credit score to close 2 cards and open a new credit card with better points?

Answer:
Short answer, YES. 15% of your credit scores are calculated from something called “Length of Credit History” in which the average age of your open accounts factors tremendously. By closing your oldest accounts and opening a new card you are severely shortening the average age of your open accounts and this will adversely impact your credit scores.

For example, let’s say that your 2 open accounts are a 4-year-old credit card and a 6-year-old credit card. That would come out to an average length of credit history of 5 years. If you close your 2 active credit cards and open a new account your average length of credit drops from 5 years (60 months) to 1 month (as soon as your new card reports). This new shortened length of credit will significantly drop your scores.

Instead, feel free to apply for the new credit card (with points) but, keep your other accounts open and active. This will preserve your credit scores and ensure that you don’t endure a significant drop in your credit scores.

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Question:
Why does Discover give me a different FICO score than Credit Karma?

Answer:
Discover most likely uses the FICO 08 BankCard Score while Credit Karma uses a VantageScore v3.0 scoring model. The reason for the difference in your credit scores is due to the fact that these 2 different credit scoring models calculate the scores differently, even if based on the same data from the same credit report.

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Question:
What does “AMEX/DSNB” mean on a credit report?

Answer:
AMEX = American Express
DSNB = Department Stores National Bank
Basically, this is an American Express credit card which was issued by Department Stores National Bank. DSNB also issues cards for Macys and Bloomingdales.

Are you ready to get started on your journey toward a better credit score?

 

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

Monday Mailbag 10/15/2018

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Question:

My credit card debt keeps increasing. I keep spending and spending, it’s very hard for me to stop. How do I stop spending and pay down my credit card debt?

Answer: 

If you don’t have the self-control to stop using your credit cards then you really only have one option to pay down your debt. Cut up all of your credit cards and use a debit card or cash for your monthly expenses. Create a budget to make sure that your expenses are lower than your income and have money saved over at the end of the month to pay down your credit card debt.

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Question:
What does an outstanding judgment on a credit report mean?

Answer:
A judgment refers to a court’s decision to side against you in a lawsuit. Basically, it means that someone (person or company) filed a civil lawsuit against you, won, and a judgment was entered against you.

An outstanding judgment refers to the fact that the judgment is unpaid and still open.

In most cases, we see judgments originate from charged-off credit cards or other collection accounts. Ultimately, a court has decided that you are liable for the debt.

A judgment may also give the plaintiff (the person or company which filed the judgment against you) legal authority to garnish your wages, garnish of your tax refund, or even access the money in your bank accounts to recover their funds.

According to the FCRA, judgments can report for a period of up to 7 years on consumer credit files from the filing date.

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Question:
How long does it take to remove inquiries from a credit report?
Answer:
Hard inquiries can report on consumer credit reports for a period of up to 2 years from the date that they are initiated.A hard inquiry may be removed before the 2-year clock expires if the creditor which is reporting the inquiry cannot provide documented proof of their permissible purpose for pulling your credit report.- – –

Question:
How accurate is the credit score you get on Mint.com?

Answer:
Mint.com’s credit score is calculated using the VantageScore v3.0 scoring model.
90% of all lending decisions in the U.S. are made using FICO credit scores. Depending on the information reporting in your credit reports, your VantageScore and FICO score might only be 5 points off of 50 points off. Every situation is different and sometimes the VantageScore is very accurate but, sometimes it’s completely off. If you’re interested in seeing your actual FICO scores you can access them at myFICO.com.

Are you ready to get started on your journey toward a better credit score?

 

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

Monday Mailbag 10/8/2018

October 8, 2018 by  
Filed under Blogs, Credit Cards, Credit Score, Monday Mailbag

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Question:
It seems that I can only cancel within the first 5 days based on your credit repair agreement. If I want to cancel 4 months from now how do I go about doing that? Are there any penalties or fees involved?

Answer:
You can cancel the service at any time. The 5-day cancellation window is something that all credit repair companies have to give their clients in accordance with the Credit Repair Organizations Act (CROA). It’s basically a cooling off period where you can cancel the service if you decide you changed your mind and not incur any charges. You can cancel the service at any time via the following page: https://creditfirm.net/signup/cancellation/. There are no cancellation fees or penalties.

Question:
I paid off all my credit cards to 0 and my scores dropped. What happened?

Answer:
According to FICO, in order to reach an optimal credit score, the balances on your credit cards should be as low as possible without being $0. Based on statistics, the average credit card utilization rate for consumers with FICO scores of 780 or higher from 2017 was 5.8% (or $58 balance for every $1,000 credit limit). If the balances on your credit cards are $0 it looks like you’re not using your credit and this means that there are fewer data points from which to calculate a score, hence the drop in your scores.

Question:
What does investigation mean? Investigation into what?

Answer:
By investigation, we are referring to disputes that we initiate with the credit reporting agencies into the derogatory accounts reporting in your credit reports. We request that the credit reporting agencies (Experian, Equifax, and TransUnion) investigate and verify all of the derogatory information that they are reporting in your credit reports. Data points which include, the payment history, status, balance, dates, etc….

If you have collection accounts reporting in your credit reports, we also request that the collection accounts be validated and that the furnishers provide copies of the original agreements from the original creditors as well as the billing statements to corroborate the information that they are reporting in your credit reports.

Are you ready to get started with your journey to a better credit score?

 

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

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