How can I build credit from scratch?
The first step is pulling a credit report online to confirm if you have a credit score with all three credit bureaus. There are several websites you can pull from, inclduing fico.com. Once you confirm that you have or do not have a credit score then you can move forward with applying for a secured credit card either at your local bank or a creditor. Keep in mind that some banks have done away with secured credit cards due to the financial climate that we are in at this time. If your bank does not provide secured credit cards consider asking a parent, sibling, or spouse to add you on to their credit card if it has a positive payment history and low balance. If either a secured credit card was approved with your credit status or you were added on to an account as an ‘authorized user’ to someone else’s credit card you will then notice within 60 – 90 days credit scores will show up within your credit profile or your scores improve due to these options. It doesn’t end there that is why it is important to talk to our team in order to provide a full educational plan to help build credit.
What is considered great credit?
Credit scores that are over 700 with at least three active lines of credit.
What is considered bad credit?
Credit scores that are 640 or less and have a lot of collection or charged off debt, as well as not enough active credit.
What's a secured credit card? How is it different than a unsecured credit card?
A secured credit card is when you secured a revolving debt with your assets or cash. An unsecured credit card is when the creditor approves you for a revolving debt that the creditor has given you with a set limit.
Is it bad if I have no credit? (implications)
Yes, it is never good not to have credit since most lenders or creditors require that you have it in order to achieve the best financial terms available for financing either for a credit card, home loan or car loan.
How can I build credit without credit cards?
You can’t. Building credit requires an active revolving account, installment loan or mortgage loan.
If someone co-signs on a loan with me, does it still build my credit?
How does my business build credit?
There is a big difference between business credit versus personal credit. With personal credit your credit is pulled with consumer agencies (Experian, Equifax, and Trans Union). With business credit there are business credit reports available through Experian, Trans Union, and Dunn & Bradstreet. The credit profiles for personal versus business credit is different as well. Personal credit reports have four factors that affect a credit score while a business credit report has one factor that affects it. With personal credit the four factors that affect a credit scores are 1. a good mixture of credit. 2. payment history. 3. Utilization. 4. Inquiries. With business credit the one factor that affect this score is 1. payment patterns.
Am I personally responsible for loans in my business' name?
Yes. Most loans require that the business owner personally guarantee that loan or credit card. So, if that business owner defaults on that revolving debt of loan it will report to the personal and business report as a charged off or collection debt.
What is credit counseling? What should I expect?
Credit counseling is a service that we provide that starts with an educational financial plan. We pull a ‘soft’ pull credit report with all three credit bureaus first. Then we begin by placing a plan to either dispute a debt due to its inaccuracy or payment status. We also begin planning a settlement for debts that are accurate and make sure to help you with a budget in order to implement this plan.
What is a credit repository? (what companies)
Credit bureaus (Experian, Equifax, and Trans Union).
How do I select a credit repair company that's legitimate?
Make sure that you always ask for at least three references before you begin working with a credit repair company. If they cannot provide references then stay away as it may be a scam company that promises false results.
What is bankruptcy and when should I consider this as an option?
Bankruptcy is when you default on your debt completely and do not have the financial means to pay off your debts. There are different types of bankruptcy and a bankruptcy attorney can guide you in choosing the best type of bankruptcy available for your financial circumstance.
How can I avoid bankruptcy?
There are ways to avoid bankruptcy. One way is to work with our firm to help you become debt free with our Debt Settlement program.
Does Credit repair really work?
Yes, we have saved our clients over 25 million dollars with our debt settlement program within the 19 years that we have been in business.
Can I fix my own credit?
Yes, absolutely. However, working with a professional team to guide you is helpful as to avoid making any mistakes.
How long will bad credit effect my credit score?
Bad credit can affect you for years if not dealt with properly. If you take the right steps and work with a legitimate credit restoration company then you should experience positive results anywhere within 6-12 months.
Can my children be at risk for ID theft?
Yes, they can be at risk of identity theft at any age.
What is ID theft? (all forms)
Consumer identity theft, civil identity theft and criminal identity theft.
How can I prevent ID theft?
By taking the proper measures to protect your credit. If you are dealing with civil or criminal charges contact the local authority and file an identity theft police report immediately. Next contact your local attorney general’s office and a file complaint to protect yourself.
What are lenders looking at to approve me for a loan?
Lenders are looking at several factors when approving you for a loan. Do you have high enough credit scores to qualify for this loan? Do you have enough credit history? Do you make your payments on time? Are you over-leveraging yourself with your debts? Do you have consistent employment?
What risks do I face if I co-sign on a loan with someone?
You are risking your credit if the person you became a co-applicant for defaults on that credit card or loan.
Is it hard to get approval for a personal loan?
If applying for a loan, regardless of the amount, the required financials and credit scores will always be an important factor. A personal loan of $500.00 may not be as hard to qualify for as a loan of $100,000.00.
What's the credit score needed for a personal loan?
With all loans, most lenders require at least a 640 credit score. It also depends on the bank or lender. Before applying for a loan you should always ask what the required credit score is so that you save your credit from damage due to this ‘hard’ pull.
What's the credit score needed for a business loan?
Business loans have higher requirements for credit scores. For personal credit scores usually, the minimum credit score requirement is 680 but depending on the lender they may pull both personal credit reports and a business report. If they pull a business report they require an ’80’ paydex score as well.
How much should credit repair services cost?
The cost of credit repair can start at $99.00. Credit repair, just like any other credit restoration service, if done correctly, will cost you anywhere from 1-10% of your total debt. Just like in any business, you pay for what you receive. So, if you want a professional team to help you get out of debt and save you 50% – 75% of your total debt and help restore your credit, be prepared to pay a professional team for that service.
What are the chances of getting a loan?
It all comes down to credit scores. If you’re applying for a home loan and you have a 580 credit score, you have no unpaid collection debt and enough credit history with your active lines of credit with low balances then you will qualify for a home loan. If your credit score is lower than 580, if you have debts that are charged-off or in collections and if you do not have a sufficient amount of credit then you will not qualify for that home loan.
What happens if I'm late making a payment on my car loan?
Payment history is about 35% of a credit score. Payment history is extremely important to lenders. If you’re late you are risking your credit score and chances of qualifying for a loan.