Credit Doctor of GA assist people who have encountered credit problems by restoring bad or broken credit.
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"TRUE COST OF BAD CREDIT" PART 2 I. Financial Cost a. Measurable i. Loans 1. Credit Card a. No 0% balance transfer offers b. Rates in 20% - 30% range not 9.99% c. No rewards cards d. Low limits i. $300.00 – $500.00 instead of $10,000.00 2. Auto a. Rates in 18% - 25% range not 0% for 72 months b. Higher down payment requirements c. Forced to purchase used vehicle instead of New 3. Mortgage a. Rates as high as 10% instead of below 6% i. On $200,000.00 loan at 30 years, this is a difference of $200,175.00 in INTEREST! b. Programs that have tougher qualifications i. HIGHER DOWN PAYMENTS ii. More money in reserves (savings) iii. Higher credit score requirements c. NOT QUALIFYING FOR HOMEOWNERSHIP i. Being forced to rent or lease 1. Paying the landlord’s mortgage for them a. Since you are paying a mortgage anyway, shouldn’t it be YOURS? 2. Not having the tax deductions of home ownership 3. Not able to build equity in the residence 4. Forced to live in tight quarters with neighbors that you have no control over who they are: a. Noisy / Loud b. Parking 4. Insurance Rates a. Auto i. $65.00 per month with great credit ii. $198.00 per month with bad credit 1. This quote is based on the following assumptions: Commuter Driver, No Tickets / Accidents, Liability (100/300/100), PIP (5000), OTC Deductible (500), Collision Deductible (500), Monthly Premium b. Home i. $640.00 per year with great credit ii. $1141.00 per year with bad credit 1. This quote is based on the following assumptions: New Home, Asphalt Shingle Roof, 2 Car Garage, No Previous Claims, HOA Policy, Annual Premium 5. Employment a. Many jobs now do credit checks before hiring and if your credit is not good, you are NOT hired. i. This is NOT just for jobs with security clearance or jobs where the employees handle money. Please let me know of any questions that you may have regarding our service. My vision is to see you with the type of credit that will allow you to have the things in life that you want and deserve!
Are credit scoring systems reliable? Credit scoring systems enable creditors or insurance companies to evaluate millions of applicants consistently on many different characteristics. To be statistically valid, these systems must be based on a big enough sample. They generally vary among businesses that use them. Properly designed, credit scoring systems generally enable faster, more accurate, and more impartial decisions than individual people can make. And some creditors design their systems so that some applicants — those with scores not high enough to pass easily or low enough to fail absolutely — are referred to a credit manager who decides whether the company or lender will extend credit. Referrals can result in discussion and negotiation between the credit manager and the would-be borrower.
What is credit scoring? Credit scoring is a system creditors use to help determine whether to give you credit. It also may be used to help decide the terms you are offered or the rate you will pay for the loan. Information about you and your credit experiences, like your bill-paying history, the number and type of accounts you have, whether you pay your bills by the date they’re due, collection actions, outstanding debt, and the age of your accounts, is collected from your credit report. Using a statistical program, creditors compare this information to the loan repayment history of consumers with similar profiles. For example, a credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. A total number of points — a credit score — helps predict how creditworthy you are: how likely it is that you will repay a loan and make the payments when they’re due. Some insurance companies also use credit report information, along with other factors, to help predict your likelihood of filing an insurance claim and the amount of the claim. They may consider this information when they decide whether to grant you insurance and the amount of the premium they charge. The credit scores insurance companies use sometimes are called “insurance scores” or “credit-based insurance scores.”
7 Ways to Boost Your Score 1: Correct all inaccuracies on your credit report. Look for late payments, collection accounts, dates accounts opened, balances, dates of last activity, etc. Make sure everything is 100% accurate. 2: Make sure all of your credit lines are correct! Are the credit limits posted correctly? If not, they can damage your score. If you have had a bankruptcy, do accounts show a zero balance? 3: Remove negative marks on your credit ! If you have been a good paying customer but have a recent issue, contact your creditor / lender and ask for a goodwill deletion. If you have a collection, see if they will take a negotiated payment for a letter of deletion. Get the letter in writing before paying! 4: Pay your credit cards down to under 30% The scoring system likes to see credit card balances below 30% of the total credit limit. 5: Do not close old accounts ! Golden Accounts are great for your score. The longer an account has been opened the more value it gives you. Make sure to use it once every 6 months just to keep it active. 6: Avoid applying for new credit ! Every time you apply for credit, your credit account gets checked. Also, accounts opened less than a year hurt your score. 7: Have a good mixture of accounts opened. The credit scoring system likes to see at least 3 revolving accounts and 1 installment account on your credit report.
It Pays to Know When to Close Accounts If you want to raise your credit score and lower debt, don’t do it by closing accounts. To determine your score, lenders look at how much of your available credit you’re using. If you’ve closed accounts and still have balances, you’ll appear to be using more of your credit. If your credit card issuer has raised your interest rate or added a fee, it might be worthwhile to close the account but your score will suffer, at least temporarily. Be especially careful about closing accounts right before applying for a loan.
Closing Bank Accounts and Your Credit Score Many people don’t know that closing accounts can affect your credit score – but not always in a positive way! Knowing the right way to close an account will help you maintain healthy credit. The right way Before you close any accounts, you should first evaluate how many accounts you have, what they are costing you, what you use them for, and how they may affect your credit score. Closing an account may save you money in annual fees, or reduce the risk of fraud on those accounts, but closing the wrong accounts could actually harm your credit score. Check your credit reports online to see your account status before you close accounts to help your credit score. A good mix of credit is important, and too many accounts of the same type may be hurting your score. But remember, accounts that have been open for a long time, and those with high credit limits but low balances, may have a positive impact on your credit score. If you still decide to close some accounts to help your credit score, start by looking at inactive accounts that you no longer use. Cards that you don’t use, but charge high annual fees, may be candidates for closure in order to save you money. When you close accounts, remember to keep at least one of your older credit accounts open. And consider keeping enough accounts open so your total balances on all open cards is less than 35% of the total credit limits. If controlling your spending is a problem, designate one card for regular use and try to pay the balance in-full each month to help your credit score. Keep the other cards in a safe place for emergencies only so that you are not tempted to overspend. The wrong way Try not to close the oldest account on your credit reports. This could shorten your active credit history and damage your score. Don’t just throw away old cards and expect your accounts to close automatically. When you close accounts, the correct way is to call or send a letter to the customer service department of the card issuer (not the credit reporting company). You should receive an account closing confirmation letter in 10 days. You shouldn't be tempted to cancel several accounts all at once when you close accounts. Gradually paying down and closing accounts may be the best plan if you are unsure about the impact on your credit score, or the amount of debt you need to carry. If you want to cancel multiple credit accounts, space the closures over time to avoid this being viewed negatively by potential creditors. Avoid putting all your balances on one card as you close accounts to help your credit score. If your credit balance increases to above 35% of your available limit on that card, it could negatively affect your credit score. Keep monitoring your credit reports for updates once the accounts are closed to help your credit score. Wait 30-60 days for the creditor to report the closed account and the credit reporting companies to update records. While the accounts and payment histories will stay on your report for seven or more years, they should be marked as "closed."
Your report is divided into six main sections: 1. Identifying Information (name, address, birth date and Social Security number) 2. Employment 3. Consumer Statement 4. Account Information 5. Public Records 6. Inquiries Late payments create a negative record. Generally, negative records will stay on your report for up to 7 years (up to 10 years for certain bankruptcy information). Positive records can remain on your credit report longer Your Credit Report is updated every 30 days Your credit report is updated with new information from your creditors approximately every 30 days, to reflect your account balances and payments you make. Check your credit every 6-12 months Not all creditors report to all three companies; the companies obtain their data independently, so your credit reports from TransUnion, Equifax and Experian could substantially differ. That's why it's important to check your three credit reports every 6-12 months to ensure that the information is accurate and up-to-date.
What Affects Your Credit Score? Wondering when judgments and bankruptcies will no longer appear on your credit reports? Check the dates on records in your credit report. Generally, here's how long judgments and bankruptcies remain on a credit report: Bankruptcy Generally, Chapter 7, 11 and 13 bankruptcies appear as public record items on your credit report for up to 10 years after filing. Chapter 13 bankruptcy records are sometimes taken off sooner, 7 years after filing, depending on the credit reporting company’s policy. When you receive an Order of Discharge in bankruptcy, your creditors should mark those accounts that were discharged as "Included in Bankruptcy" and they will stay on your report for up to 7 years. Charge-off accounts Generally, if a delinquent account is charged-off, the charge-off record appears on your credit report for up to 7 years. Closed accounts Generally, negative or derogatory information about delinquent accounts remain on your credit reports for up to 7 years. Positive closed accounts (without late payments or other delinquencies) may appear for longer than 7 years. Collection accounts Generally, accounts sent to collections will be listed on your credit report for up to 7 years, beginning 181 days from the most recent delinquent period before the collection activity. A collection account’s status should change to "paid collection" once you've paid off the entire amount. If you settle with the collection agency for less, your credit report may list the account as "settled for less than full balance." Inquiries When a creditor or lender checks your credit in connection with an application, you'll usually see a "hard inquiry" on your credit report. Generally, these stay on your report for as long as two years, and may lower your credit score slightly. When a creditor reviews the credit report of an existing customer, or when you access your own data online, a "soft inquiry" typically shows up on your credit report. Soft inquiries don't lower your credit score or appear to businesses checking your credit. Judgments Generally, most court judgments, including small claims, civil and child support, stay on your credit reports for up to 7 years from the date they were filed. Late payments Generally, if you make a payment late, the delinquency could appear on your credit report for up to 7 years. Tax liens Under federal law, city, county, state and federal tax liens could stay on your report indefinitely. Generally, after the lien is paid, the record of it stays on your credit reports for up to 7 years from the payment date.
Importance of Good Credit...We all know how important credit is in our lives. Without credit you can't rent a car, book a hotel, travel, borrow money, get a mortgage? Need I go on? The list is endless, and I think you get the idea. When You have Bad Credit You Have to: Pay a higher deposit for renting an apartment Pay a deposit for using everyday utilities (cable, electricity and water) Pay more for insurance (life, health, auto, home, boat etc.) Pay a higher interest rate on automobile loans Pay a higher interest rate on home loans Pay more for EVERYTHING!
FACT: Six out of ten Americans are victims of a "bad credit rating." This plague is spread by the credit bureaus and the credit card companies that entice and trap ordinary Americans, so they wind up facing financial ruin.
Dear Experian, My Experian credit report has some accounts that have “Status: Paid, Closed/Never Late” with “Status Details: this account is scheduled to continue on record until” with a date. Is this a good thing on my report, a bad thing, something I want to get taken off? The status indicating the account is paid, closed and never late is a positive thing to have in your credit report. That status indicates you managed the account very well, which shows lenders you are a good credit risk. You shouldn’t want it to be deleted. The “paid” status indicates the account is no longer open or active and will no longer be updated with payment information. Experian retains paid or closed accounts with no negative information associated with them for 10 years from the date they are reported paid or closed. Doing so means the positive information will remain in your credit report longer than negative information, such as late payments, which remain typically remain for seven years. Keeping the positive information longer than the negative information helps you rebuild a positive credit history if you’ve had any problems in the past. You also need some open, active accounts with low balances to fully demonstrate that you are continuing to manage credit well.
Generally, negative credit records, such as collection accounts, bankruptcies and late payments, will remain on your credit reports for 7-10 years. Paying off the account sooner doesn't mean it’s deleted from your credit report, but listed as “paid.” Of course, it’s smart to pay your debts, but expect the major change in your report to come after negative records expire.
How long can BAD credit stay on your Credit Reports: Good credit permanently Negative credit - 7 years late payments Collections charge-offs child supports Judgments Chapter 7, 11 and 12 Bankruptcy - 10 years Chapter 13 Bankruptcy - 7 years Inquiries - 2 years UNLESS you do something about it!
BAD CREDIT is when you have… Have low credit scores of 350 to 640 Prevented from getting a good job Been turned down for loans Do you have any of these on your reports: Late payments Bankruptcy Collections Judgment Repo Child Support Tax Lien Charge-Off