Do you want to take control of your finances? You may have to check your financial standings with the three credit bureaus. You can get free credit reports every week through December 2023 to track your progress.
A credit bureau, also known as a credit reporting agency, is a company that collects and maintains individual consumer financial data. This data includes information such as credit card and loan payment histories, current balances, and any past bankruptcies or legal actions.
The three credit bureaus are:
These bureaus collect information from creditors and compile it into a credit report, which lenders use to determine whether or not they will grant you credit. It is important to regularly monitor these reports for errors and fraud. Mistakes can affect your ability to get loans or credit cards.
The three credit bureaus are different companies, and each one maintains its own credit report information as reported by the lenders. As such, your three credit reports will likely be at least slightly different at any point in time. So, which of the three credit bureaus is most important? They all are. Therefore, it is important to get your 3-in-1 report to know your true credit standing.
You are entitled to a free credit report once every year from the three major credit bureaus. It is recommended to request one report every four months from the three credit reporting bureaus so that you can track your progress throughout the year and catch any errors as quickly as possible.
Visit www.AnnualCreditReport.com and request your free report from each bureau, or call 1-877-322-8228.
You can also request your credit report via mail by completing the Annual Credit Report Request Form and mailing it to:
Annual Credit Report Request Service
PO Box 105281
Atlanta, GA 30348-5281
You have to provide information such as your name, address, social security number, and date of birth in order to access your credit report. Make sure to review your reports carefully and dispute any inaccuracies with the corresponding bureau. Remember that you may have to pay for additional information or credit scores since they come separately.
Managing and improving your credit is key to financial success, so don’t neglect checking in with the three credit bureaus regularly. It could make a big difference in terms of interest rates, loan eligibility, and overall financial health.
Your credit score is a major factor in determining your overall financial health in the eyes of a lender. A high credit score means banks and other lenders see you as a low-risk borrower, which could lead to your receiving lower interest rates on loans and credit cards. On the other hand, a low credit score could lead to denied applications and increased interest rates.
That’s why it’s important to keep an eye on your credit report and dispute any inaccuracies. Your credit report reflects your credit history, so if you have mistakes on your report, it could negatively impact your score.
If you have a low credit score, you can take steps to improve it.
The most important action to take is to request your credit report from the three major credit bureaus. As we have seen earlier, the report is the lens lenders use to get a clear picture of your financial discipline. Reviewing your credit report allows you to identify mistakes or fraudulent activity.
Errors in your credit report can negatively impact your credit score, and thus the need to check each report from different credit reporting bureaus for any inaccuracies. If you find any errors, dispute them with the corresponding bureau as soon as possible.
Pay your bills on time, including credit card and loan payments. This shows lenders that you are responsible and reliable in making payments.
Maintaining a low balance on your credit cards also improves your credit score. Try to keep the balance below 30% of its limit, as it shows lenders that you are not overextending yourself financially.
Only apply for new credit when necessary and avoid opening multiple accounts in a short period of time, as this could signal financial instability to lenders.
These steps may not immediately improve your credit score, but by consistently following these guidelines, you will see a gradual increase in your credit.
Credit repair can be challenging, especially when you don’t know where to start. Working with a reputable credit repair company makes the process easier and more efficient as they have the resources and expertise to improve credit scores. The Ascent Network has helped many people improve their credit scores by identifying errors and creating personalized plans to improve financial health.
It is important to regularly check all three of your credit reports for accuracy and address any discrepancies as soon as possible to maintain a healthy financial standing and improve your overall credit score. Taking control of your finances starts with understanding where you stand, and the three credit bureaus can provide insight into that picture.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States and is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.
Your credit score is a number that determines your creditworthiness and impacts everything from the interest rate you are offered on a loan to the rent you are charged for an apartment. Lenders use this number to determine whether you’re a good candidate for a loan and, if so, what interest rate they’ll offer you.
Your credit score can range from 300 to 850. The higher your score, the better your creditworthiness, and you will likely enjoy a lower interest rate when applying for loans. Here’s a breakdown of where scores fall within that range:
There are five main factors that influence your credit score: payment history (35%), credit utilization (30%), length of credit history (15%), new credit (10%), and credit mix (10%). Let’s take a closer look at how each one affects your credit score.
Your payment history has the biggest impact on your score — 35%, to be exact. That’s because it’s a good indicator of future behavior. So, when you habitually make late payments or miss payments altogether, your score will suffer. On the other hand, if you have a long history of timely payments, your score will be impacted positively.
Credit utilization is how much you owe on all your credit accounts and is expressed as a percentage. It is calculated by dividing your current balances by your total credit limits. For example, let’s say you have two credit cards with limits of $5,000 each for a total credit limit of $10,000. If you carry a balance of $2,500 across both cards, your credit utilization would be 25%.
The length of your credit history makes up 15% of your score. That’s because lenders like to see a track record of responsible borrowing behavior. So, if you have several years’ worth of timely payments, your score will be higher than someone who just opened their first line of credit.
Opening several new lines of credit in quick succession can make you look like a riskier borrower — especially if you don’t have much else in terms of borrowing history. That’s why 10% of your score is based on new credit accounts and inquiries into your report. So if you’re planning on applying for new lines of credit, try to space out those applications over several months to avoid any negative impact on your score.
The final factor that impacts your score is credit mix, with 10%. It is based on what kind of debt you have. A healthy mix will work in your favor. That means having both installment loans (loans with set terms like auto loans or mortgages) and revolving debt (debt with no set terms like lines of credit or credit cards). Having both types of credit shows lenders that you can manage different types of debts responsibly.
If your credit score is on the lower end, there are several steps you can take to improve it.
Understanding what impacts your credit score is important because it helps you make informed decisions about managing your finances. By improving factors like payment history and credit utilization, you can increase your chances of getting approved for loans and securing lower interest rates.
Over the years, Ascent Network has helped many people with bad credit improve their credit scores, and their scores improved by 100+. Not only do we help you with credit repair and improving your score, but we also show you how to keep your credit score up.
Remember, even if some factors are out of your control, there are still things you can do to improve your overall creditworthiness in the eyes of lenders. By following these guidelines, you can ensure that you have a strong credit score and access to the best rates and terms when applying for loans in the future.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States and is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.
Missing student loan payments puts your account under delinquent or default status. This leads to higher interest on loans, loss of eligibility on some student aid programs, and worse, repossession of property.
Can late payments on student loans be removed? What happens when you don’t get them removed? Will removing student loans from your credit report affect your credit score?
A default student loan occurs 120 days after delinquency on a private loan and 270 to 360 days for federal loans. Your score is likely to drop by 100 points! Once your lender accurately reports the late payments, the information will not be removed.
However, if the information reported is incorrect, you can dispute the information and have it removed. To remove a student loan from your credit report due to fraud or inaccuracies, file a dispute with the three major credit reporting agencies – Equifax, Experian, and TransUnion. Ask them to remove the inaccurate loan details from your credit report.
An investigation will be launched, and the information will be removed from your credit report when it is clear the loan was taken without your authorization.
Student loan forbearance is an agreement you make with the lender to reduce or postpone student loan repayment for a designated period. Forbearance is only temporary relief to help you deal with a sudden hardship and helps prevent your loan from defaulting. Unfortunately, forbearance increases the amount you owe.
If you are unemployed and the student loan is weighing you down, you can apply for deferment, which can be interest-free.
Still, both forbearance and deferment are short-term solutions to help you catch up with the payments when your loans haven’t defaulted. Still, you need to pay your student loan as soon as your financial situation improves.
On August 24, 2022, President Joe Bidden announced that his administration would waive student loan debt for qualifying Americans. But, are all student loans eligible for late repayment forgiveness?
To qualify for the federal government forgiveness program, you must have taken direct federal loans or took a Stafford loan. Non-federal loans, handled by private loan companies, don’t qualify for the federal loan forgiveness program.
Another way to get student loan forgiveness is the income-driven program that stretches out to a term of 20 or 25 years from the standard repayment period of 10 years. After making on-time qualifying payments for the period, whatever balance you still have is usually forgiven. Income-driven payments are usually capped between 10% to 20% of your income.
No. As Aaron Huebner explains in this Youtube video Q&A session, a student loan is possibly one of the worst debts because it has a negative connotation and doesn’t go away! So, consolidating your defaulted loan will not remove late payments.
Debt consolidation opens a new entry in your credit report but won’t erase the late student payment history. The report will keep showing until the end of seven years when it naturally drops off your credit report.
Regarding credit scoring, payment history, length of credit history, amounts owed, new credit cards, and credit mix affect your credit score. When you consolidate your student loan, you get to lose these crucial additions. However, properly taking charge of your student loan repayment plan gives you a good credit score that helps you apply for future loans and credit cards.
These are some of the federal student forgiveness programs you can apply for if you qualify:
Managing student loans may need some counseling, especially if you have been falling behind on your payments. Ascent Network has a qualified team to help you take charge of your finances. Whether you are applying for forbearance, deferment, or disputing an incorrect student loan entry, you can trust Ascent Network to help you improve your score.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States and is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.
Is it possible to negotiate the rate you pay in interest on your credit cards? If you carry a balance on your credit cards, the answer to this question could save you a lot of money in interest.
Generally, credit cards charge cardholders an annual percentage rate (APR). This APR is how the credit card company charges you for the privilege of using their card. The percentage amount can vary. Some credit card companies charge more than others, and often the APR you are charged is based on your credit score.
It is important to know how much the APR is on your cards. Even lowering your rate a few percentage points could save you thousands of dollars.
Interest rates vary by card. But, more than that, they are based on the risk the credit card company is taking by issuing you credit. Just like any other lender, they need to weigh how much of a risk it is that you will not make your payments on time and in full. Where loans for large items have your house or your car as collateral in case you default, credit companies do not have any real-property items to use as collateral.
This is why many credit card companies’ interest rates are often higher than those of banks and other lenders. If you have a low credit score, you are a higher risk to the company; therefore, your interest rate is likely higher than those with excellent credit scores.
After climbing for 20 straight weeks this summer and spring, the current national average credit card APR is a little more than 18%. The average changes often, so it is a good idea to do your research when looking for a competitive APR.
Generally, the answer to that question is, no, you cannot. However, there are always exceptions. Primarily, when you have a higher credit score, you are a better risk for the lender. And the less risk you are, the lender realizes they can make more money off of you without fear.
Therefore, you can go to them and let them know you are unhappy with their high interest rate. Let them know you may move on to another lender. They might reply with a counteroffer or another program that they can offer that has a lower APR because they would like to keep your business.
This has the potential to work only if your credit score is above 680. If it is below that, you will most likely be stuck with your current interest rate until you can improve your credit score.
If your goal is to lower your interest rate, you first need to increase your credit score. Your score is derived from information contained in your credit report. The higher the number, the better your score.
Here are a few ways to improve your score over time:
It is unlikely you will be able to decrease your interest rate, but it is not impossible. Do everything you can to increase your credit score, and once you do, contact your credit card company. Let them know you want a better APR. If you are not a credit risk, there is a possibility they will honor your request.
The worst that can happen is that they say no. Nothing lost; nothing gained. But, if they say yes, it could save you thousands in interest. It never hurt to ask.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States. It is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, Indio, and Thousand Palms.
Charge-offs, late payments, bankruptcy, and defaulting on loans cause you to have bad credit. It is no secret that the longer you continue having bad credit, the more money it costs you.
Each time you take out a loan or swipe your credit card, there is a system in place that tracks and keeps a score. Your credit score, whether bad or good, comes into play whenever you want a loan, and it affects your insurance premiums.
Here’s a look into how much bad credit costs you.
A bad credit score is detrimental because it prevents you from qualifying for the best mortgage rates. This means you pay more over the term of your mortgage. What may seem like a slight difference in interest rate adds up to thousands of dollars over the repayment period.
A credit score below 580 only allows you to secure credit cards that require a minimum deposit of $100 to $200 to open a credit account. In addition, applying for the card is likely to cause your credit score to go down more because applying for a new card creates a hard inquiry on your credit report.
Your bad credit score negatively affects your auto insurance premiums because you are viewed as a high-risk borrower and more likely to file claims. A person with a credit score of 800 or higher pays approximately $1,297 a year, but someone with a credit score of 579 or lower pays $2,717 a year. Clearly, having a bad credit score could potentially cost you $1,420 a year when paying your auto insurance.
Career advancement is everyone’s dream as it comes with better pay. But before employers entrust you with more responsibilities, they may pull your credit reports to ensure you are someone who is responsible, especially if the new position comes with financial responsibilities.
Credit repair is a process that takes time and effort, but results are usually noticeable within three to six months. The length of time varies from one individual to another, depending on how much damage has already been done to their credit reports and what has already been done to correct it.
Here’s how you can repair your credit:
There is a lot of confusion surrounding the terms “credit restoration” and “credit repair.” Both involve correcting errors on your credit report and taking steps to improve your credit score. But there are some key differences between credit restoration and credit repair.
Credit restoration entails removing negative items from your credit report. You do this by negotiating with your creditor or disputing the information through the Fair Credit Reporting Act (FCRA) by proving identity theft or demonstrating that the item is inaccurate.
On the other hand, credit repair is the process of taking action to improve your credit score by paying off debts and maintaining a good payment history.
A credit score is a snapshot of your creditworthiness, and credit lenders use the credit score to make very important financial decisions about you. But is there a difference between a 600 and 620 credit score?
Here’s how VantageScore views your credit score:
This is how FICO views your credit score:
No. Credit repair actually helps you improve your credit score by removing negative information from your report and replacing it with positive information. Your FICO score, for example, will improve by a few points as a result of a clean slate on your report.
Bad credit costs you your financial freedom from getting auto loans, mortgages, and getting promotions. If you have a poor credit score, you can still improve it in a few months.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States and is available locally in California in Huntington Beach, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.
Do you want to take control of your finances? You may have to check your financial standings with the three credit bureaus. You can get free credit reports every week through December 2023 to track your progress. A credit bureau, also known as a credit reporting agency, is a company that collects and maintains individual … Continued
Read MoreYour credit score is a number that determines your creditworthiness and impacts everything from the interest rate you are offered on a loan to the rent you are charged for an apartment. Lenders use this number to determine whether you’re a good candidate for a loan and, if so, what interest rate they’ll offer you. … Continued
Read MoreMissing student loan payments puts your account under delinquent or default status. This leads to higher interest on loans, loss of eligibility on some student aid programs, and worse, repossession of property. Can late payments on student loans be removed? What happens when you don’t get them removed? Will removing student loans from your credit … Continued
Read MoreIs it possible to negotiate the rate you pay in interest on your credit cards? If you carry a balance on your credit cards, the answer to this question could save you a lot of money in interest. What Is an APR? Generally, credit cards charge cardholders an annual percentage rate (APR). This APR is … Continued
Read MoreCharge-offs, late payments, bankruptcy, and defaulting on loans cause you to have bad credit. It is no secret that the longer you continue having bad credit, the more money it costs you. Each time you take out a loan or swipe your credit card, there is a system in place that tracks and keeps a … Continued
Read MoreWE COMMUNICATE WITH ALL THREE CREDIT BUREAUS FOR YOU:
