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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

11 Credit Score Principles You Should Know

July 21, 2016 by  
Filed under Blogs, Credit Score

credit scores

 

Credit scores can seem like a very complicated topic for most people but, it doesn’t have to be. Deep down there are a few core fundamental principles that will help you better understand your credit, lets go through them.

1. Credit Report
Your credit report is a history of how well you repay debt. It includes your payment history on debt such as mortgages, auto loans, credit cards, personal loans, student loans, as well as collection accounts from third party debt collectors, inquiries and public record information such as any bankruptcies, Tax Liens, or Judgments. You credit report also contains your personal informations such as your names and aliases, addresses, date of birth, phone numbers, and employers.

2. Credit Bureaus
Your credit history is maintained by companies often referred to as credit bureaus or credit reporting agencies. These companies gather and collect information about you and your payment history from creditors, debtors, and third party data furnishers. The 3 largest credit bureaus are Experian, Equifax, and TransUnion.

3. Credit Score
Credit scores are calculated by aggregating the information from your credit reports and running that info through a mathematical formula designed to score your report into a simple 3 digit number.

4. Different Credit Scores
Not only are there different scores for each of the 3 credit bureaus, there are several different credit scoring models which are used to get credit scores themselves. For Example, the most commonly used credit scoring model is the FICO score but, most people don’t know that there are 49 different scoring models of the FICO score. There are also a plethora of other models used to generate scores like the TransRisk Score, Vantage Score, Plus Score, ScorePower Score, etc…. Each of these scoring models uses a different scoring range and mathematical formula to aggregate a score. This is why credit scores differ from place to place.

5. Credit Score Factors
According to FICO (Fair Isaac Company), the developers of the lending industry’s most widely used credit score, the FICO score, there are 5 main factors which are used to calculate your credit score. Those factors, in order of importance are; payment history, credit utilization, account age, mix of credit and inquiries.

6. Free Credit Reports
You may obtain a free copy of your credit reports once a year from the government mandated website www.annualcreditreport.com.
You may also obtain a free credit report from some free credit monitoring services like;
www.creditkarma.com (FREE TransUnion and Equifax Credit Reports)
www.quizzle.com (FREE TransUnion Credit Report)
www.freecreditreport.com (FREE Experian Credit Report)

7. Free Credit Scores
There is no law currently requiring the credit bureaus to provide you with a free credit score but, there are a few websites out there providing consumers with a free credit score. Please note that none of these scores are FICO scores and they will likely differ from your actual FICO score.
www.creditkarma.com (FREE TransUnion and Equifax VantageScore 3.0 scores)
www.quizzle.com (FREE TransUnion VantageScore 3.0 score)
www.creditsesame.com (FREE TransUnion VantageScore 3.0 score)
www.credit.com (FREE Experian VantageScore 3.0 score)

8. Checking Your Own Credit Wont Hurt Your Scores
There are 2 different types on inquiries which report on your credit report, hard inquiries and soft inquiries. When you apply for credit (mortgage, auto loan, credit card, etc…) a hard inquiry reports on your credit report and lowers your score. Checking your credit through any of the sites we listed above incurs a soft inquiry, which means that it is just you checking up on your own credit. Soft inquiries do not lower your credit scores so check your own credit through soft inquiries as often as you like.

9. Negative Information Can Report For…
According to the Fair Credit Reporting Act (FCRA), derogatory information can report for up to 7 years from the date of the first key delinquency, with a few exceptions. Chapter 7 Bankruptcy may report for up to 10 years and a Federal Tax Lien may report indefinitely or 7 years from the date it is paid. This means that if you opened an account is 2010 and became delinquent in 2015, the account may continue to report derogatory info until 2022, 7 years from the date that the account became delinquent (2015), not from the date the account was opened (2010).

10. A Low Credit Score Can Ruin Your Life
A low score means that you will be stuck paying higher interest rates on everything form a mortgage, to an auto loan, to a credit card, even your insurance rates are influenced by your credit scores. It has even become common practice for employers to check credit reports to determine whether an applicant is financial responsible. Consumers with bad credit are deemed higher risk and more likely to commit fraud or steal.

11. The Good News
Bad credit isn’t permanent. CreditFirm.Net has helped thousands of consumers just like you remove negative information from their credit reports and improve their credit scores. Since 1997, we have helped our clients purchase homes, get low interest auto loans, and save millions of dollars by improving their credit scores. Will you be our next success story?

 

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

Why is Good Credit Important?

September 17, 2015 by  
Filed under Blogs, Credit Report, Credit Score

bad credit

We all know that we should strive to have a good credit score, but, why?

Why is having good credit important?

Here is a list of 6 things you will need to have good credit for.

1. Renting an Apartment

Your credit will determine whether you will be approved to rent an apartment as well as the security deposit which will be levied on you. Consumers with low credit scores are often times hit with high security deposits which can equal up to 2 months of rental payments while those with high credit scores may not be required to put down a deposit at all.

2. Setting Up Utilities

Got your new apartment or home? Great, now it’s time to set up your utilities. Electricity, Gas, Water, Cable, Phone, Internet providers will all check your credit in order to determine whether you qualify for service and if you do, the amount of security deposit you will need to put up to establish service. Just like renting an apartment, consumers with low credit scores are often times hit with high security deposits which can range between $250 to $500 per service, equaling thousands of dollars of deposits, while those with high credit scores are not required to put down any deposit at all.

3. Buying a Car

Your credit score will determine the amount of loan which you qualify for, the interest rate, length of term, down payment, and monthly payment amount. Consumers with low credit scores may not even qualify for a loan but, if they did manage to squeak by, the fees would be astronomical.

Lenders would likely ask a consumer with bad credit for;
– Large down payment
– High interest rate
– Short length of term (typically no longer than 36-48 months)
– Small loan amount

But, if you have good credit, lenders will typically offer;
– No down payment
– 0% interest rate
– Long length of term (72-84 months)
– Large loan amount
In the end, the person with good credit can pay less for a more expensive car without having to put a penny of his money down.

4. Getting Insurance

Now that you have a car, you will need to get insurance for it. You may not have known this your credit score actually determines your insurance premium, the amount you pay for insurance. According to certain experts in the insurance industry, a credit score can be an even better predictor of getting into an accident and costing the insurance company money, than your driving record. Consumers with bad credit will have higher insurance premiums than those with good credit.

5. Getting A Job

You got an apartment, a car, utilities, insurance, now it’s time to get a job to pay for all of those things right? But, what does your credit have to do with you getting a job or a promotion? Sometimes, Everything! More and more employers are checking candidates credit reports in order to determine their hire-ability. Job seekers with bad credit are seen as risky because they are looked at as irresponsible, disorganized, and in some cases may be more likely to steal. While those candidates with good credit are looked at as responsible members of society which are organized enough to maintain good credit and likely be the same way at work.

The military also has certain set standards for credit as well. Those with bad credit will never be given top secret security clearance. According to the Department of Defense, “Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information. An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds.”

That pretty much speaks for itself.

6. Emergency

We should all have a rainy-day/emergency fund but, most don’t. So what happens when emergencies hit and you don’t have the cash? Consumers with good credit have a wide variety of financing options, 0% credit cards, low interest rate personal loans, seems like theres always someone willing to lend you a helping hand when you have good credit. But, those with bad credit get caught up in high interest/fee credit cards and pay-day loan places which put them in a never ending spiral of high fees and constant indebtedness.

I don’t know about you but, it seems like only rich people can afford to have bad credit. Consistently over-paying for services and leaving large deposits which they will likely never see again.

Can you afford to continue living with bad 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 3-5 days.

Support. Award winning customer service guarantees your satisfaction.

CreditFirm.net Review

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