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Monthly Archives: January 2015

Fan Mail

Hi Jason,

I just want to update you my new score.
                                      Experian            Transunion          Equifax
August 2014                     523                      505                      505
January 2015                    631                     638                       605
____________________________________________________
After 6 months with your program my MID score has increased from 505 to 631,
which is 126 increase in my score within 6 months.
It is fantastic ! and thank you for your service.
There are a few items that still needed to be deleted, and I will keep my fingers crossed.
Thanks so much…
Van

Collection Accounts And Credit Repair

I speak with dozens of people every week regarding their credit report and scores.  Some have tried credit repair on their own or have hired a credit repair company to help.  One of the trends that I hear is that their collection accounts either weren’t removed or they were removed temporarily but came back onto the report.

Removing collection accounts isn’t always as easy as it sounds.  And one of the first questions I have, are the collections paid?  This is key to increasing the odds of a deletion.

Think of it in the eyes of the collection company, their motivation is to collect money on the debt.  The main leverage they have over the consumer is the reporting of the collection to the credit bureaus.  This keeps your credit scores low, and typically it’s when you need your credit score is when these collections end up getting paid.  But just paying the collection doesn’t boost your scores, it’s the deletion of the account from your report.

So if any credit repair company tells you not to pay your collections, they’ll get them deleted….find a new credit repair company.  Not paying your collections and hiring a credit repair company to get them deleted is a recipe for failure.  It’s a waste of time and your money.

The process of removing a collection account is to pay, ask for a deletion at time of payment, if they don’t agree then still settle for less.  This will lower the odds of them answering your dispute of the account after settlement.

I hope you found this informative and if you have any further questions about your credit report and scores feel free to contact me direct.

Jason Hall

President and Certified Credit Expert

RapidRescoreCredit.com

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Direct- 949.505.9971

Mobile- 808.633.5023

Credit Card Balances And Your Credit Scores = The Direct Link

score updown

Credit card utilization (balance in relation to limit) is a key role player in your credit scores.  Your scores can sometimes significantly increase or decrease based upon the balance reporting to the credit bureaus.  In essence, 30% of your FICO scores (165 points) are a factor in your overall credit score.

One of the statements I often hear when consulting my clients about their credit, “I make my payments on time on my credit cards, I don’t understand why my scores are low.  I pay off my cards every month”.

My question at that point is “When do you pay off your cards?”  The answer I typically hear “on the due date”.

The problem with that is your balances have already been reported to the credit bureaus.  Almost all credit card banks report your balances at the STATEMENT DATE not the DUE DATE.  Did the little light bulb turn on in your head?

That’s great that you pay off your cards monthly, but you’re doing it too late.  So simply reset your payment date 4 days before your statement date on your accounts.  You can max out your cards and pay them off using this process and never get caught with high utilization on your credit card accounts.

If you have any questions about your credit report and scores, feel free to contact me direct.

Jason Hall

President and Certified Credit Expert

RapidRescoreCredit.com

RapidRescoreBlog

Rapid Rescore Credit On Facebook

Rapid Rescore Credit On LinkedIn

Direct- 949.505.9971

Mobile- 808.633.5023

Fax- 866.567.8054

D.I.Y. Removing a 30 Day Late From Your Credit Report

As you read my blog, you’ll notice that I share useful D.I.Y. (do it yourself) tips on raising your credit scores.  These are easy fixes that you should know.  And one of them is removing a late payment on your credit.

Banks know that there are many options out there to consumers, and client retention is important.  So they will sometimes “bend the rules” a little to keep you happy.  One of these instances is removing a missed payment from your credit account.  A recent late payment reporting can have a significant reduction in your credit scores.  I’ve witnessed a 60-80 point credit score drop with a new 30 day late come onto my clients credit.

In the case where it was an isolated event, you’ve not been late on the account before there’s a pretty good chance the bank will let it slide.  If you’ve been late on the account before, or have multiple lates reporting they’re not going to help.

So if you’re a good candidate for a “good faith deletion” of the bad mark on your credit, call customer service and request the late be removed from your credit report.  You may end up getting what you need.

For any other scenarios regarding your credit scores, feel free to contact me to discuss.

Jason Hall

President and Certified Credit Expert

RapidRescoreCredit.com

RapidRescoreBlog

Rapid Rescore Credit On Facebook

Rapid Rescore Credit On LinkedIn

Direct- 949.505.9971

Mobile- 808.633.5023

Your Credit Scores Can Change Daily

Separating myth from fact is what I find myself explaining every day with clients.  There are soo many opinions when it comes to your credit scores it’s no wonder people get confused.

So to clear the air, I’d like to share the facts about credit score changes.  Your credit scores are based upon bits of data on your credit report.  It considers age of accounts, payment history, credit card utilization percentages, number of hard inquiries, and mixture of credit.

If a credit card balance updates to the credit bureau, if a late payment is recorded, if a new inquiry is registered, etc, etc the scores will change.  So it’s not every 30 days your scores change, it is each time you (or a bank) requests your credit report and the data is run through the scoring software that calculates your scores.

If you have specific questions about your credit scores and how to raise them, feel free to contact me direct.

Jason Hall

President and Certified Credit Expert

RapidRescoreCredit.com

RapidRescoreBlog

Rapid Rescore Credit On Facebook

Rapid Rescore Credit On LinkedIn

Direct- 949.505.9971

Mobile- 808.633.5023

What’s Your 2015 Financial Resolution? Here Are 10 Things To Consider Regarding Your Credit Rating..

Many of us are preparing to make New Year resolutions – such as eating healthier, exercising more, being more productive and improving financial health. All of these are lofty goals, but in terms of enhancing your wallet, there are a few simple things you can do in regards to your FICO Score that can reap long-term financial benefits.

So after you pack up the holiday decorations, finish that last piece of fruit cake and send off 2014 with a bang, follow these 10 steps to help increase your financial fitness – in 2015 and beyond.

1. Get your credit report.

Your credit report is a snapshot of how lenders see you. There are three national credit reporting agencies in the U.S. (Equifax, Experian and TransUnion) and you should get a copy of your report from each. All U.S. consumers are entitled to one free credit report a year – visit http://www.annualcreditreport.com to find out more.

Checking your credit report – or your FICO Score – will never have a negative impact on you.

2. Check your FICO Score.

Your FICO Score is a 3-digit numeric summary of the information contained in your credit report, which lenders use to assess your potential credit risk. While there are many different brands of credit scores made available to consumers, the one that is most relevant and used by most lenders is the FICO Score.

Your FICO Score and credit report will give you a detailed breakdown of your score – review this closely, and focus on those areas where the most points are being lost.

3. Correct any errors.

You want to make sure the information in your credit file is accurate – even small clerical errors could have a big negative impact on your FICO Score. If you find an error, follow the dispute resolution processes the credit reporting agencies have created and manage. They have 30 days to investigate and resolve the dispute. If erroneous information is discovered and removed from the report during the dispute process, your FICO Score will reflect the revised information the next time your score is requested.

4. Pay your bills on time.

Perhaps easier said than done, but this is the most important factor in your FICO Score. The more frequent and recent your missed payments, the greater the negative impact on your score.

Don’t get discouraged: it’s not the end of the world if you have a history of missed payments. The FICO score is “forgiving” by design as the points deducted for reported missed payment information gradually lessen as time passes, provided there are no additional new missed payments.

5. Pay down your debt.

The amount of credit debt you carry can have a big impact on your credit score – especially debt on revolving credit (credit cards, retail store cards, etc.). A key factor in the score is your revolving utilization percent; for example, a $7,000 balance on a card with a $10,000 limit = 70% credit card revolving utilization. The higher the utilization percentage, the more points deducted.

A great goal is paying down your balances so that revolving utilization is 30% or less. In addition to helping your FICO Score, you’ll pay less on interest each month.

6. Only apply for credit when needed.

Applying for credit (an inquiry) and opening new credit could cause your score to decrease.

Does this mean you should never seek new credit? Not necessarily – but you should be mindful. If you need to get a new car or you’re planning for a student loan, take the time to research rates, lenders of interest and financing options before you apply. This strategy can help reduce the number of inquiries posted to your credit report and help you secure a more competitive interest rate.

7. Be mindful of being a co-applicant or co-signing for a loan.

Many people agree to be a co-applicant on a loan or co-sign for credit with a family member or friend without fully understanding the potential consequences. If approved, you are legally responsible for that debt.

When you co-sign a loan or are a co-applicant, the lender will usually pull a credit report on everyone listed on the credit application form and that can result in credit inquiries being posted on your credit report. In addition, that approved credit loan or line will likely be reported as a new credit obligation on your credit report shortly thereafter – including credit balances and any missed payment information all of which can have an impact on your score.

8. Think twice before requesting a line increase on your credit cards.

Imagine this: you’re planning a big purchase, or going on that big vacation next week and would like some extra credit. Why not call up your credit card company to request a line increase?

By proactively making this request, you are seeking additional credit and the credit card company will likely access your credit report to help them make the decision to grant that line increase request and by how much. That credit inquiry could impact your score.

9. Don’t close unused, inactive credit accounts. 

You might have several credit cards or retail store cards sitting in your sock drawer, gathering dust. It may seem like a good idea to close them – but this type of action will not increase your score, and could potentially hurt it. If you don’t use the cards anymore, simply cut them up and dispose of properly – but don’t ask the credit card company or credit reporting agency to close them.

10. Be patient – it takes time.

This may be the hardest step of all, but it’s extremely important since changes to your FICO Score do not happen overnight. The score is complex and examines data in multiple ways to determine a consistent pattern of paying bills on time and keeping debt levels low. As you demonstrate those behaviors, the score will adjust over time reflecting your lower level of risk.

Good luck with all your New Year resolutions! Be sure to leverage the myFICO educational center as a helpful resource as your progress your 2013 course to a better FICO score.

For an outline of what you can do to raise your credit scores in 2015 contact me direct and we can go over your credit report.

Jason Hall

President and Certified Credit Expert                    

RapidRescoreCredit.com

Rapid Rescore Credit On Facebook

Rapid Rescore Credit On LinkedIn

Direct- 949.505.9971

Mobile- 808.633.5023

Fax- 866.567.8054