Is It True or Is It A Myth?

Myth # 6

Nonprofit organizations like Consumer Credit Counseling Services (CCCS) can help me restore my credit.

Nonprofit debt counseling services assist people who are in debt over their heads and seeking an alternative to bankruptcy. CCCS are funded and controlled by credit grantors and credit bureaus. When you are working with CCCS your creditors will often note this on your credit report. This is a huge red flag for prospective credit grantors. Some of the very worst credit reports we see are participants in CCCS or similar programs.

Do you have questions about credit?     Call Us!

Bill Spragg at 281 804 – 3333 or BSpragg@LcaNow.com

OR

Harry Bradley at 713 419 – 7151 or HBradley@LcaNow.com

Is It True or Is It A Myth?

Myth #5

I can create a totally new credit file by getting a Federal Tax ID number or changing a few numbers on my social security number.

This fraudulent scheme is complex, but more importantly – It’s ILLEGAL. Lying on a credit application is a criminal offense. With modern technology linking computer systems, it is virtually impossible to pull off. It is in your best interest to hire adequate representation and confront the credit bureaus, armed with the “rights” congress granted YOU through the consumer protection laws.

Do You Have Questions About Credit?     Call Us! 

Bill Spragg at 281 804 3333 or BSpragg@LcaNow.com

Harry Bradley at 713 419 7151 or HBradley@LcaNow.com

Is It True or Is It A Myth?

Myth 4

If I build enough good credit, it will offset my bad credit and make me credit worthy.

The slightest amount of bad credit is devastating to your chances of being approved by a creditor. The approval is almost always never in the hands of a human sitting at a desk across from you. An approval is derived from a computer achieving a “point” total. Generally, even the slightest amount of negative credit (regardless of the amount of good credit) will result in a declination.

Do You Have A Question About Credit?    Call Us!

Bill Spragg at 281 804 3333 or BSpragg@LcaNow.com

Harry Bradley at 713 419 7151 or HBradley@LcaNow.com

Is It True or Is It A Myth?

Myth 3

Credit bureaus allow me to submit a 100 word explanation. Creditors will read my statement and take it into consideration. 

Not so! This statement only verifies some of the negative items on your report. Your explanation should be the FIRST thing deleted from your credit file. No creditor will consider the information submitted in your statement.

Do You Have A Question About Credit?     Call Us!

Bill Spragg at 281 804 3333, or BSpragg@LcaNow.com

Or

Harry Bradley at 713 419 7151 or HBradley@LcaNow.com

Is It True Or Is It A Myth?

Disputing a credit report is easy – anyone can do it themselves.

Disputing a credit report is easy. However, getting results from the credit bureaus as a “layperson” is amazingly difficult, complex and infuriating. The Federal Trade Commission receives more complaints against credit bureaus than any other type of business. In February 2000, the 3 major credit bureaus paid a 2 million dollar fine for ignoring consumers after they requested information regarding their files. Remember, the credit bureaus are primarily interested in protecting their profits. Sparking an enormous number of lawsuits, the bureaus do everything in their power to impede any progress you might attain, when attempting to restore your own credit. Trying to restore your own credit is likened to blindly representing yourself in a court of law. Restoring your own credit is like repairing your own transmission. It is possible, but you have to be willing to invest a great deal of time, educating yourself about the law, courtroom procedures, etc. You will also assume the risk of your inexperience by realizing it will take you much longer than you expected and even more important, your own efforts will be less effective than that of a professional.

Do You Have A Question About Credit?     Call Us!

Bill Spragg at 281 804 3333, BSpragg@LcaNow.com

OR

Harry Bradley at 713 419 7151, HBradley@LcaNow.com

Is It True or Is It A Myth?

Myth #1

There are items such as bankruptcies, foreclosures and tax liens that are impossible to remove from a credit report.

There is NOTHING in the law that states a negative item must remain on a credit report for any period of time. We have experience in removing every type of negative item from our member’s credit reports.

Do you have a question about credit?   Call us!

Bill Spragg at 281 804 3333 or BSpragg@LcaNow.com

OR

Harry Bradley at 713 419 7151 or HBradley@LcaNow.com

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What Caused My Credit Score To Go Down?

Keep in mind, everyone’s credit report is unique to each individual. Some have excellent credit and others have very poor credit and everything in between. The situations below will lower your credit score in a range of points as shown next to each item, based on your credit situation.

Bankruptcy  –  120 to 220 points reduction

Foreclosure  – 150 to 160 point reduction

Short Sale  – 105 to 160 point reduction

Settle Credit Card Debt For Less Than Balance  –  65 to 125 point reduction

One 30 Day Late Payment  –  60 to 110 point reduction

Maxed Out Credit Card  –  10 to 45 point reduction

Do You Have Questions About Credit / Credit Issues? Call Us!

Bill Spragg at 281 804 3333, BSpragg@LcaNow.com or

Harry Bradley at 713 419 7151, HBradley@LcaNow.com

How Are Credit Scores Calculated? Part 5 0f 6

New Credit / Recent Credit

New credit is not always a bad thing. Some borrowers may need to add new credit to help build a score, when buying a home. However, opening new accounts can hurt a credit score, particularly if you apply for a lot of credit in a short time and don’t have a long credit history. Credit scores factor in the following:

  1. How many accounts the consumer applied for recently,
  2. How many new accounts the consumer has opened,
  3. How much time has passed since the consumer applied for credit,
  4. How much time has passed since the consumer has opened an account

Scoring models look for “Rate Shopping”. Shopping for a mortgage or an auto loan may cause multiple lenders to request your credit report many times each, even though a person is only looking for one loan. Auto dealers are notorious for running 3 to 15 credit reports. This is known as shot gunning the credit. Fortunately, to compensate for this, the scoring models counts multiple inquires in a 14 day period as just 1 inquiry.

For most people, a credit inquiry will take less than 5 points off of their score. However, inquires can have a greater impact if you have few accounts or a short credit history. Large numbers of inquires also means greater risk. According to MyFICO.com, people with 6 inquires or more on their credit report are 8 times more likely to declare bankruptcy than people with no inquires on their report.

Part 6 of 6 To Follow Shortly

Do you have credit questions, Contact Bill Spragg at 281 804 3333, BSpragg@LcaNow.com or Harry Bradley at 713 419 7151, HBradley@LcaNow.com

How Are Credit Scores Calculated Part 4 of 6

Length Of Credit History

This is not as important as the previous topics but it still matters. It considers the age of the oldest account and the average age of all of your accounts. It is possible to have a good score with a short history but typically the older the account, the better.Young people can still have a high score as long as other factors are positive. If a person is new to credit then there is little they can do to improve a credit score. The only solution is to open an account and be patient.

Part 5 of 6 will follow shortly

For questions, contact Bill Spragg at BSpragg@LcaNow.com or 281 804 3333 or Harry Bradley at HBradley@LcaNow.com or 713 419 7151