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Another New Credit Score Is Coming

April 13, 2017 by  
Filed under Blogs, Credit Score

VantageScore

If you use CreditKarma.com you might be familiar with the fact that the scores they report are sometimes 5 points off your actual FICO score and sometimes 50 points off. Well, get ready for more fun as the most popular credit score for consumers and least used credit score for lenders gets an overhaul.

VantageScore, a collaborative project from Experian, Equifax, and TransUnion gets it’s 4th upgrade and it will undoubtedly cause a lot of confusion.The VantageScore was created back in 2006 when the credit bureaus noticed a trend of consumers interest in their own scores. Instead of selling consumers scores which they had to buy from other companies – the credit bureaus now had their own scores they could profit off.

So what’s the big change you ask?
Well, this new iteration of the VantageScore will score how much of your debt you actually pay off every month. In short, consumers who pay their credit card debt off in full every month will see their scores increase while those that transfer the debt from month to month will see a decrease in their scores.

According to TransUnion, consumers who do not pay off their cards in full each month are 3 to 5 times riskier than people who pay in full each month. And VantageScore v4.0 will be the first score tracking and scoring this data.

What does this mean to you?
Pay your credit cards off every month to get the most out of your VantageScore and make sure that your credit card balances are under a 20% utilization when the creditor reports your information to the credit bureaus.

What else is new?
VantageScore v4.0 will completely ignore medical collections which are older that 6 months and have been paid by insurance. Unpaid medical collections will see a significant decrease in their impact to your score.

In Conclusion
VantageScore v4.0 is set to be released Fall of 2017 so, you may notice some changes in your scores on CreditKarma.com, CreditSesame.com, Quizzle.com, etc… but, don’t forget one very important thing. At this point, those scores are completely useless because very few lenders actually use the VantageScore scoring model for their lending decisions.

Your Credit Score Is About To Get a Shakeup

Credit

Mark this date, July 1, 2017.

This is the date when 12 million consumers could see their FICO credit scores increase and more importantly this is the date when millions of Judgments and Tax Liens will be purged and deleted from credit reports.

As part of a nationwide settlement from over 30 states, the 3 credit reporting agencies. Experian, Equifax, and TransUnion, will remove these public records from consumer credit reports if the lien or judgment does not match a minimum of 3 out 4 criteria which are name, address, date of birth, and social security number.

This does not mean that ALL judgments and tax liens are going to be deleted but, those 12 million consumers with at least 2 errors on their accounts can expect to see their scores increase about 20 points come July.

But, that’s not all, the new guidelines will also include a requirement that public records are checked and updated at least every 90 days – if the guideline isn’t followed, the judgment and tax liens are to be removed off the credit reports.

This is a big win for consumers and a huge step in the right direction toward accuracy and fairness.

FREE Credit Score – Exposed

March 21, 2017 by  
Filed under Blogs, Credit Score

free credit score guy
Remember those catchy TV commercials advertising free credit scores? Haven’t seen them in a while have you? Well, that’s because they were deceptive and the credit scores were completely useless and not actually free.

Most lenders, whether they are auto, home, credit card, etc… use FICO scores to determine consumer creditworthiness but, those scores belong to the Fair Isaac Company and the credit bureaus have to buy them from FICO in order to sell them back to the consumers. This wasn’t very profitable so the credit bureaus found a way around this by creating their own credit scores. The Vantage Score was born, a score the credit bureaus could provide to consumers without having to pay anything to FICO. Unfortunately, because no lenders use Vantage Scores, consumers are tricked into buying scores which are completely useless. But, it doesn’t end there, once a consumer gets their useless score they are automatically enrolled in credit monitoring ranging from $16 to $30 per month.

What You Need To Know

Although there are plenty of places that advertise free credit scores like CreditKarma.com, Credit.com, CreditSesame, Quizzle.com, etc… most of these scores are VantageScores and are NOT used by lenders. There are credit card companies like Discover, Barclays Bank, and Capital One which offer a free FICO scores, you can also purchase your FICO scores directly from the Fair Isaac Company via their website www.myfico.com.

Back To The Credit Bureaus

The CFPB (Consumer Financial Protection Bureau) found that 2 credit bureaus deceptively advertised that the scores which they provided were the same ones that lenders used to determine creditworthiness. TransUnion and Equifax were ordered to pay a $5.5 million fine and give $17.6 million in refunds. In a statement from Richard Cordray, director of the CFPB, “Credit scores are central to a consumer’s financial life, and people deserve honest and accurate information about them.”

Neither TransUnion nor Equifax admitted any wrongdoing and stated that they had complied with the law and were committed to better educating consumers about their credit.

Conclusion

All credit scores are NOT created equal, understand that the type of credit score you’re looking at is just as important as the score itself.

How to Increase Your Credit Scores

January 17, 2017 by  
Filed under Blogs, Credit Score

excellent credit score

If you’ve ever been denied credit or are being charged high interest rates for a mortgage, auto loan, or credit card, it may be time to take a look at your credit scores.

Your credit score, a history of how well you repay debt, determines your creditworthiness and in most cases determines whether you are qualified for a loan as well as the rate of interest that you will be charged.

A high credit score guarantees the best rates and terms on loans, while a low score almost always means that you will end up paying 3 to 5 times more for a loan than someone with good credit.

Increasing your credit score can change your life by saving hundreds of thousands of dollars in interest fees and giving you access to capital to buy your own home, buy a car, and even start a business.

Increasing your credit scores doesn’t happen overnight, it’s a long painstaking process which takes time, patience, organization, and a knowledge of consumer protection law. This is why it’s so important to start planning for the future and working on improving your credit scores well in advance of when you will need it.

To increase your credit scores, you will want to work on the following five factors.

Payment History (35% of Your Credit Score)

Paying your bills on time is the best way to ensure a high credit score. Late payments, collections, repossessions, and other derogatory and delinquent information will bring down your credit scores. If you have derogatory information reporting on your credit report, it is important that you get proactive and work on removing as much of it off your reports as possible. You can also hire a credit repair service to leverage consumer protection statutes given to you by FACTA, FCRA, and FDCPA to legally remove negative accounts from your reports.

Amounts Owed (30%)

The utilization rate of your credit cards, also known as the balance to credit limit ratio, makes up approximately 30% of your credit score. Keep your credit card balances at or below a 20% utilization rate to maximize your credit scores.

Length of Credit History (15%)

The average age of your open accounts makes up 15% of your credit score. Keep your oldest accounts open as long as possible and your scores will increase. Those with a short length of credit history are penalized because they have not had credit for very long while those with a long length of credit are benefited with a higher score.

Mix of Credit (10%)

Maintaining a good mix of revolving accounts (credit cards) and installment accounts (accounts with a set length of term like auto loans, mortgages, and student loans) will increase your credit scores by showing lenders that you can maintain and use both types of accounts.

New Credit (10%)

Every time you apply for credit, an inquiry reports to your credit report. These inquiries represent a history of all of your applications for credit over the course of the last 2 years. Too many inquiries will lower your credit score and make you look like you’re desperate for credit. Ideally, limit yourself to no more than one inquiry every 6 months.

CreditFirm.Net has helped thousands of consumers just like you remove negative information from their credit reports and improve their credit scores by leveraging consumer protection statutes like the FACTA, FCRA, FDCPA, HIPAA, and more.

Since 1997, CreditFirm.Net has helped our clients purchase homes, get low interest auto loans, and save millions of dollars by improving their credit scores.

 

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

Average FICO Credit Scores Hit All Time High

September 23, 2016 by  
Filed under Blogs, Credit Score

FICO score

As America leaves the economic crisis behind and heads toward economic recovery, the American people are also seeing recovery. According to a study conducted by the Fair Isaac Company (FICO), the creators of the FICO score algorithm, consumer credit scores in America are getting better. In fact, the average FICO score in the US is now 699, an all time high.

Fewer credit defaults, fewer charge-offs, fewer collections, and fewer late payments are attributed to this increase. Consumers seem to be understanding the importance of credit and becoming more educated about their credit scores. In short, Americans are being more responsible with their credit.

A FICO score of 699 means that for the first time since the development of the FICO score, the average American is on the verge of a “Good Credit Score”. (According to the following chart from FICO).

Excellent Credit: 750+
Good Credit: 700–749
Fair Credit: 650–699
Poor Credit: 600–649
Bad Credit: Below 600

Is your credit score better today than it was a few years ago?

If not, here is a list of things you can do to improve your credit scores.

Pay Your Bills On Time
Payment history is one of most important factors in a consumer credit score. Pay your bills on time and your score will gradually increase, miss a payment and your score can drop over 100 points in no time at all. Make sure that you pay all of your bills on time, every time, no matter what.

Pay Down Your Credit Cards
The Utilization rate of your credit cards is a huge factor in calculating your credit scores. Ideally, you balance should be no more than 20% of your credit limit, which means that if your credit limit is $500, your balance should never exceed $100. Keeping high balances on your cards and going over your credit limit drags down your credit scores so work toward paying your balances down and watch your scores increase.

Repair Your Credit
If you have derogatory accounts such as late payments, charge-offs, collections, judgments, etc… reporting in your credit reports you will need to repair your credit. You can either learn to fix your credit yourself or hire a professional credit repair service to help you.

CreditFirm.Net has helped thousands of consumers just like you remove negative information from their credit reports and improve their credit scores by leveraging consumer protection statutes like the FACTA, FCRA, FDCPA, HIPAA, and more.

Since 1997, CreditFirm.Net has helped our clients purchase homes, get low interest auto loans, and save millions of dollars by improving their credit scores.

Is your credit score at least 699?

 

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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