Archive for June, 2013
For many in America 2008 to 2013 represents a time of financial challenge. Abrupt changes in lifestyle, employment, and financial health were thrust upon many because of the crash of the United States economy. For some these challenges meant paying bills late, foreclosures or short sales of homes, and Bad Credit.
This Credit Isn’t going to Fix Itself
Now that the worst may be over for you and you have achieved some financial balance its time to repair your credit. Most think that only time will repair their credit but that myth is far from true. If fact only about 2% of American’s ever make any attempt at fixing a problem that can cause many other challenges in your financial life. The time to fix your credit is now and no matter what your issue it is possible to achieve a 700 plus credit score in 6 to 12 months instead of the 7 years your may have been told you had to wait.
It’s not what you know, but what you think you know that Ain’t So
Your credit score is determined by a number of factors and in my 12 years in lending I have seen people do more damage to their credit by doing the things they believe make their credit stronger because they really have no idea. Credit is a mix of good payment history, low balances of certain types of debt, the mix of the types of account you have and the age of the accounts you have, and the removal of past negative items. All of these factors can be controlled and manipulated to achieve a strong credit score. It is a myth that you need to suffer for years after a bad period for your credit to repair itself.
I have personally witnessed credit scores go from 520 to 720 over a period of 180 days by clients working with a licensed and bonded credit professional and following their instructions to the letter. Repairing your credit should not be expensive nor should it be painful. A great credit repair program should follow three easy steps, and be able to show you past proof of performance.
Step 1 – Removal of all or most negative past items on your credit report. There are a number of legal and ethical ways to challenge the items on your credit report. If there is a legal way to remove an item your credit professional should be able to find it.
Step 2 Add positive credit to your report. There are certain types of credit you will need to add to your report. Revolving and installment trade lines. Your credit professional should have the relationships to get you new credit with solid and reputable lenders.
Step 3 – Perfect management and maintenance of your new and existing credit to keep the ratios at a level where it positively effects your report. Too many people think never having missed a payment means they have good credit. I have seen many borrowers with perfect payment histories that have scores on the low 600s.
Focus on a Great Score because the Computer Does
If you don’t have credit scores over 720 you need to get there now. Low scores can get you denied credit, charged higher than market interest rates, denied employment, and it may even cause your existing creditors to raise the interest rates they are currently charging you. Don’t make the mistake of working with a company that only focuses on removing negative items, that alone will not give your 700 credit. Lending decisions and credit pricing is done mainly by the score so give yourself the best chance by having a great score.
If you want a licensed, bonded and professional company to get you to 720 and beyond we have resources that we can refer nationwide. Just call me at 410-908-5987.
Wishing you Wealth Wellness and Wisdom,
Manager of Wealth