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.
If you have a bad credit score, the best thing to do is to look into credit repair. However, you may be unsure whether a credit bureau or lender can help you. Here’s a look at when each organization can help you with your credit repair efforts.
There are a few different avenues to explore when it comes to repairing your credit. You can either go through a credit repair agency, work with your lenders or repair credit yourself.
Credit repair companies work with your creditors and credit bureaus to ensure the information is up-to-date and accurate. They also guide you through the process of disputing inaccurate entries and checking if there are fraudulent accounts. In addition, they also offer credit monitoring and advise you accordingly.
You may also be able to work directly with your lenders to try and remove negative items from your report. However, it can be time-consuming, and you may feel you are not getting results.
Another effective way to repair your credit is taking measures into your own hands. This includes paying off debt, disputing credit report errors, and maintaining good financial habits. Even though it takes some time and effort, it’s usually the most successful approach to improving and having a good credit score.
Credit repair can be tricky and time-consuming, so you might wonder if it’s worth paying someone to help you. Well, you can save money if you have the time and patience to do it yourself. But if you’re not comfortable dealing with the complexities of credit repair, it might be worth paying someone else to do it for you.
There’s no guarantee that paying someone will actually improve your credit score. If you are to pay for credit repair services, use credible credit repair companies because fraudulent companies make things worse for you. How can you tell apart credible from fraudulent agencies? Fraudulent agencies:
A legitimate credit repair company will only offer to help remove inaccurate information from your credit report that may harm your credit score. Remember, credible credit repair companies can’t do what you can’t do on your own.
Yes! A lender can fix your credit if you take proactive steps. First, you need to check your credit report for any inaccuracies and dispute any errors you find therein. If you can prove to the lenders that the entry is inaccurate, your lender is obliged to correct the mistake on your credit report.
Using a lender is often more effective than going through a credit repair agency, but it can still be time-consuming and might be difficult to get results.
Repairing your credit is crucial if you want to enjoy low-interest rates when taking loans. To repair your credit to raise your score fast, here are some steps you can take:
Credit repair can take as little as three months or longer if you have faced foreclosure, bankruptcy, or a history of late payments. At Ascent Network, our credit repair experts provide credit profile audits to see how they can help improve your credit score. They also help you improve your credit by verifying and restoring the correct entries on your credit report.
Besides credit repair and credit score improvement, Ascent Network offers debt settlement, foreclosure prevention services, debt consolidation, and education loan negotiations. Ascent Network also provides financial counseling so you can take charge of your financial freedom. Why not be among Ascent Network’s clients and have a FICO score increase of 105 or more?
Credit companies and lenders can help you improve your credit scores. If you use a credible credit repair agency like Ascent Network, they will contact the credit bureaus and dispute incorrect information found in your credit report. If you choose to use the lenders, you must be proactive and follow up using the information provided to repair your credit.
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, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.
A debt collection company is a company or agency that collects payments on outstanding debts. Debt collectors work for creditors, such as banks, credit card companies, and retailers. They may also be buyers who purchase debt at a fraction of its face value with the intent of recovering the entire debt owed.
If you have defaulted on your payments or any outstanding debt, you may have received regular phone calls and letters from a collection agency trying to recover the debt.
If you are in such a situation, understanding how debt collectors work will help you know how to deal with them. We will discuss all you need to know about debt collection and the debt assistance available to you.
When you stop making payments, your account is sent to a debt collector, and this information shows up on your credit report as collections. Your credit score takes a hit, and you start receiving calls and letters from debt collectors. But what can you do when a debt collector contacts you?
Reputable debt collectors do not use scare tactics or intimidation to retrieve money from the past-due account. Instead, they should name the original creditor, including how much you owe them. They should also inform you that you have 30 days to dispute the debt in writing if the collection account is erroneous.
If a debt collector contacts you, you have the right to request verification of the debt. If they can’t prove that you are the defaulter, you can ask them to cease contacting you and to remove the collection from your credit report.
Debt collectors work on a commission basis, meaning they only get paid if they successfully collect payments, or they may also charge a fee for their services.
If you cannot agree with your debtor, you can use an attorney to advise you on the best action to take. Credible credit repair companies also help negotiate with debtors on your behalf and also provide financial advice regarding your debt.
Debt collectors typically contact debtors by phone, email, or letter to request payment. If you do not respond to a debt collector’s request for payment, the debt collector may take legal action, such as filing a lawsuit to recover the debt. If the judgement is passed against you, a debt collection agency may seize your possession or wages to pay for the debt.
Ignoring debt collectors is also detrimental because your debt will keep growing as interest will keep piling up.
When you ignore debt collectors, you may miss validating if the debt is legitimate or not. This may harm your credit score even though the debt is erroneous.
Whether it’s legitimate or not, getting in touch with the debt collector provides more insight into the debt. If it turns out that there was an error in the collection letter, it helps prevent any late fees or penalties from being charged against your account.
N/B: If you receive a court summons regarding your debt, it is wise not to ignore it as it may be legitimate. Unscrupulous debt collectors may fabricate one. However, you should look up the court’s contact information online to confirm the accuracy of the notice. To avoid manipulation from unscrupulous debt collectors, do not use the contact information on the document you receive.
If a debt collector has contacted you, you have certain rights under the Fair Debt Collection Practices Act. For example, a debt collector may not contact you at an unreasonable time or place or use abusive or threatening language.
Debt collectors can not pretend to work for a government or consumer reporting agency. They are also prohibited from publicly shaming you for your debt or collecting a debt you don’t owe.
A debt collector is forbidden from calling you before 8:00 a.m or after 9:00 p.m. If you request in writing for them to stop calling you regarding your debt, they are mandated to honor your wish and stop contacting you.
If you think a debt collector has violated the Fair Debt Collection Practices Act (FDCPA), you can file a complaint with the FCPB.
You can remove collections from your report by disputing inaccurate information such as:
People do many things when they find themselves in financial trouble, such as late payments, but they don’t always think through the consequences of their actions. Before you pay off collections, you should ask yourself these questions:
You are required to pay your debts on time to have a good credit score. However, if you are late on payments, debt collectors will try to collect the money owed to them. You will receive lots of calls and letters as they try to collect a debt. If you feel they are harassing you, you can write and ask them to stop contacting you or file a complaint. Here at Ascent Network, we help you manage your debts and remove collections from your report to maintain a good credit 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 it 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.
When you fail to honor your debt obligation, your creditor sells your debt to collectors, and the negative information is reported to the three major credit bureaus (Experian, Transunion, and Equifax).
Collections accounts stick to your credit report for seven years from when your account became delinquent, making you look uncreditworthy to potential creditors. Here are some steps to increasing your credit score by removing collections.
To get collections off your credit report fast, you must be proactive and check your report thoroughly. Get your free credit report by visiting AnnualCreditReport.com or from the three major credit bureaus. Compare the details against your records. If you don’t have your payment records, log into the account to check your payment history.
To check for negative accounts, go to the credit history and accounts section to find information on missed or late payments. Check the account status to see if it’s paid, charged off, or closed. Check the account number and the date the debt became delinquent. Once armed with these details, you can take the following steps:
Dispute a collection account if:
A delinquent account falls off your credit report seven years from the date it went delinquent. However, you may still find the account is not closed. File a dispute with the credit bureau, so they can remove the collection report from your account.
If a collection report is incorrect, gather all the documentation to show the collection appears on your report erroneously. Send a dispute with your correct contact information, indicate the mistake with account numbers, and explain how the information is incorrect. The bureau will have 30 days to correct the errors.
The best dispute reason for removing collections is by asking the collection agency to validate the debt. Most often, documents get lost as debts are shuffled from one collection agency to another in an attempt to recover their money. In such scenarios, original documents get lost, and inaccurate details are passed on to debt collection agencies.
You should use this loophole to ask them to verify if the debt belongs to you. They will have to remove collections from your credit report if they can’t validate the debt.
When the above steps don’t work, you need to ensure you don’t cause much damage to your credit score. You need to continue paying your debt as you wait for validation from the credit bureau or until you pay your debt fully. You can arrange a payment plan with your creditor and stick to it.
Once a collection account is reported to the three major credit bureaus, the negative information will remain for seven years. Unfortunately, despite having paid your debt fully, some lenders will consider this information when offering you loans. This affects the interest rate because they consider you uncreditworthy and offer you loans with higher interest rates.
Consider writing a goodwill letter, sending it to the collector or creditor, and politely asking them for a goodwill deletion by pointing out that you have fully paid the debt. If the creditor or collection agency agrees, ask for a written agreement that you can present to credit bureaus just in case the agency fails to update them.
Credit score improvement depends on several factors, such as the scoring model used and other items found on your credit report. In fact, paying off your debt can hurt your score at first before you see major improvement. However, you may see some positive changes a month or two after updating the collection account.
Credit repair companies like Ascent Network are experienced in credit score improvement. They know how to negotiate with creditors to remove collections from your report to improve your credit score.
Credit repair companies get much better results than you would alone. They offer additional information that helps you improve your score even further. Before you choose a credit repair company, ensure they are reputable.
It is possible to remove collections from your credit report to improve your credit score only if you become proactive, check your credit report, analyze the information, and take the necessary steps. You can also use a reputable credit repair company with the experience to 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.
Credit repair is very important. If you have bad credit and cannot get approved for any kind of loan, you need to get your credit in order. The good news is that you can repair it yourself.
Yes, with the right information and guidance, you can improve your credit score.
Below are steps you should take:
Your report has all your credit information, and you can get a copy from the three major credit bureaus: Experian, Equifax, and TransUnion. Check your reports from all three bureaus because some creditors may not report to all of them. You can also get a free copy at AnnualCreditReport.com.
It is good to check your report monthly to see if there is a new entry you did not authorize. Or if there is an account that is time-barred.
If you find a new account in your credit report that you aren’t aware of, report it to your creditor. Call each of the three major bureaus and ask them to correct any inaccurate information in your report that may affect your score, ability to get loans, or other forms of financing.
Your credit report also shows if an account is past its statute of limitations (time-barred), so you can dispute and have it removed.
Paying your credit card bills on time helps you improve your credit score and helps you qualify for low-interest rates. You also save money from late payment fees that can be as high as $35.
Pay your cable and utility bills using your credit card to build a good payment history that helps improve your credit score.
Minimizing hard inquiries is an essential step in repairing your score. When you apply for new credit, it shows up on your report as a hard inquiry. A hard inquiry causes a drop in your score.
If you have multiple loans or credit card bills, it is easy to forget to make some payments. Debt consolidation is an easy way to combine payments into one new loan at a lower interest rate. Consolidating your debts helps improve your credit score if you make timely payments.
Given that you may be busy, it is easy for payment to skip your mind. Setting up reminders helps you make on-time payments that are crucial in improving your credit score and avoiding late fees. If you do not set payment reminders, you may end up paying late fees.
If you are behind on payments, call in advance so they can give you an extension before charging late fees or increasing interest rates on loans.
Credit repair may take three to six months, depending on the severity of your delinquencies and bad habits, such as late payments or accounts in collections or bankruptcy records that affect your credit score.
It may take up to 18 months to get your credit score from poor to fair.
So, can you make your credit perfect? Yes! You can do it on your own or work with a fast credit repair company like the Ascent Network to get the help you need. Here are some tips for repairing your credit:
Yes, using a credit repair company is an easy way to repair your credit. They have experts and know how to handle all the problems that may arise while repairing your bad credit ratings.
These companies provide credit repair services to help set up payment plans with creditors so that you can pay off any debts on your report. They also negotiate and make arrangements for how you will be making payments on overdue debts.
Credit repair companies are experts in credit laws such as The Fair Credit Reporting Act (FCRA), The Fair Debt Collections Practices Act (FDCPA), and The Fair Credit Billing Act (FCBA). They use their understanding of the law to help leverage them in your favor. Look at credit repair reviews from service providers to make sure they are legit and deliver as promised.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call at 1-877-871-2400. Ascent Network helps consumers all over the United States. It is available locally in Huntington Beach, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms, CA.
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 … Continued
Read MoreIf you have a bad credit score, the best thing to do is to look into credit repair. However, you may be unsure whether a credit bureau or lender can help you. Here’s a look at when each organization can help you with your credit repair efforts. Who can help you repair your credit? There … Continued
Read MoreA debt collection company is a company or agency that collects payments on outstanding debts. Debt collectors work for creditors, such as banks, credit card companies, and retailers. They may also be buyers who purchase debt at a fraction of its face value with the intent of recovering the entire debt owed. If you have … Continued
Read MoreWhen you fail to honor your debt obligation, your creditor sells your debt to collectors, and the negative information is reported to the three major credit bureaus (Experian, Transunion, and Equifax). Collections accounts stick to your credit report for seven years from when your account became delinquent, making you look uncreditworthy to potential creditors. Here … Continued
Read MoreCredit repair is very important. If you have bad credit and cannot get approved for any kind of loan, you need to get your credit in order. The good news is that you can repair it yourself. Can I Fix My Credit Myself? Yes, with the right information and guidance, you can improve your credit … Continued
Read MoreWE COMMUNICATE WITH ALL THREE CREDIT BUREAUS FOR YOU:
