Tuesday, August 28, 2018

10 Surprising Things That Won’t Affect Your Credit Scores

Many consumers are confused by what will affect their credit and worry about making a mistake that will lower their credit scores. Here are some of the things that do NOT affect your credit scores in any way.

Having good credit is essential for a healthy financial life. Not having good credit will not only cause you to be denied credit but will cause you to pay more for any credit you get, with lower limits, and deprive you of opportunities. Just considering a car loan, average credit card usage, and a mortgage, the increased costs for someone with poor credit over just 5 years, in comparison to someone with great credit, can be up to $39,000!!!

Your Income – income is not factored into your credit scores. Actually, there are many people with excellent income that use credit poorly and have low scores.

Your Education – How much education you have or how great the school and ivy league school you may have gone to doesn’t boost your credit scores.

Your Address - Although some zip codes throughout the country can have consumers with greater incomes, magnificent homes, and higher average credit scores makes no difference to your credit score. It is how you pay your bills and manage your credit that counts.

Pulling Your Own Credit - I see so many people afraid to pull their credit for fear of the damage it might do to their credit scores. The only time a credit pull can damage your credit is when you actively apply for credit or a loan. YOU pulling your own credit report is considered a soft pull and NEVER affects your scores no matter how many times you may pull it.

Rent Payments – Private landlords don’t generally have access to the credit bureaus and the large rental companies don’t report to the bureaus unless you leave a balance or do damage at the end of your rental.

Your Spouses Credit – Everyone’s credit history is kept separately at the credit bureaus. The only time credit information will affect the other partner is when the borrowing is done jointly, or, if you co-sign for someone else.

Credit Counseling – The FICO scoring model looks at credit counseling as a neutral event and does not remove points from your credit scores because you asked for help.

Insurance Payments – Car insurance and homeowners insurance companies do not report to the credit bureaus. However, if you fail to pay your bill, a car insurance company can send your account to a collection agency that will report you as a collection to the bureaus.

Utility Bills – Utility companies do not report you to the credit bureaus, so if you are late in paying you may have to pay a late fee but your credit won’t be damaged. You don’t want to be so late that the service gets charged off and sent to collections.

Debit Cards, Pre-Paid Cards – I have been asked on numerous occasions about getting a debit card or a prepaid credit card to help boost one’s credit scores. It won’t help. Since there is no credit being extended, just a convenient way to use your own money, these cards are never reported to the credit bureaus.

Credit Scoring Advisor provides credit repair across the US.
contact us at 631-465-9565 for more information

Tuesday, June 26, 2018

The Most Overlooked Area When Reviewing Your Credit Report

By Daniel Sater, Nationally Recognized Credit Expert and Credit Expert Witness

When pulling your credit report, it is important for you to spend time reviewing your Personal Identifying Information (PPI) section of the report. A credit report has 5 components. This section with you name, addresses, phone numbers, social security number, and date of birth, among other personal information is the only section of a credit report that is not scored. So why should this be an important section for you to spend your time on? Because, it may alert you to reported items that is lowering your credit scores.

What to Look For
If someone is trying to use your identity, some information will show up in this information section. Are all the addresses listed belong to you, now, or in years past? Is there a social security number listed that does not belong to you? Is your name misspelled? These could be signs of someone misusing your credit for themselves – Identity Theft. If information reporting on your credit report is not yours, it may be the first clue that you are a victim of Identity Theft. If accounts not belonging to you are showing up on your credit report, you may have someone else’s account possibly damaging your credit scores.

How This Information Gets Placed on Your Credit Report
The credit bureaus rely on identifying information to connect accounts that should be showing up on your credit reports. In their efforts to ensure that all accounts belonging to you are reported on your credit report, they use a fuzzy logic that is designed to consider human errors in the entry of data. For example, they only need to match the first two letters of your first name, a partial address match, or seven of the nine digits of your social security number to place an account onto your credit report.

Removing false identifying information from your credit report will help to prevent accounts, not belonging to you from being added to your report. This can help reduce Identity Theft ensure that your credit doesn’t get mixed up with others, which commonly happens.

At Credit Scoring Advisor, we will challenge the credit bureaus to delete these false reporting of personal information at no charge for our clients. Give us a call today 631-465-9565 to see how we may help you improve your credit scores. Visit our website… www.CreditScoringAdvisor.com

Credit Scoring Advisor is a national credit repair company with an 87.64% deletion rate in 2017 that we have achieved for our clients.
Better Knowledge – Better Tactics- Better Results

Monday, January 15, 2018

Don’t Keep Beating Yourself Up Over Past Poor Credit

Daniel Sater - Nationally Recognized Credit Expert   1-10-2018

Many consumers give up on their credit when they have gone threw a tough time which caused their credit to be damaged. They somehow feel their credit is damaged forever. Not true. After all, you get a “New Life” after 7 years has past. No negative account can stay on for more than 7 years when it will drop off your credit report! (With the exception of Bankruptcy and some accounts under Federal law)

Over the Years Your Credit Will Improve Without You Doing Anything.
That’s right! As each year passes, the “mathematical predictability” of you defaulting on any account become less and less, meaning that you will have fewer and fewer points taken from your credit scores. This is how credit scoring models work. The more recent the event that caused damage, the more points you will lose.

An Example of How Credit Damage Works Over Time
When I was still doing mortgages, I had a couple come into my office with every account held jointly. The husband also had 27 collections and charged off accounts from 5 and 6 years prior. The difference in their scores caused by these 27 negative accounts? – Just 30 points was the difference in their credit scores. The damage diminishes rapidly over time.

The Sooner You Get Your Credit Back on Track…the More Money You Will Save; the Better Credit You Will Qualify For to Add to Your Credit Profile.
Although your credit life can be self-healing, it only happens over time. It is important to add new credit and dispute accounts that are inaccurate or incomplete. We have help thousands of clients remove damaging accounts resulting in re-building their credit scores.

Another Secret for Getting Back to Higher Credit Scores
Once you are in negative territory, you are only compared and scored against others who have a similar profile with damaged credit. Anything you do to separate yourself from those others, can get you better scores faster.
The key is reestablishing positive credit. Two ways you can do this if you have little remaining credit, is to become an Authorize User on a credit card of a family member and to open a Secured Credit Card, but, you will need to deposit a good amount of money in a savings account at the bank. Small amounts won’t do much for you or your credit.
Another Way…
You can also get a merchant card in your name reporting to all three credit bureaus with a $5,000 credit limit. Drop me a note at dan@CreditScoringAdvisor.com and I can send you the information sheet with a link to sign up.
We ARE the experts in Credit Repair. Our founder, Daniel Sater, is a Nationally Recognized Credit Expert, Speaker & Author, and a Certified FICO Professional who also trains and coaches numerous Credit Repair Companies across the country and speaks at industry conferences. We are the people that other credit repair companies go to for answers.

With Credit Scoring Advisor you get personalized, not computerized service from someone who will fight for you to improve your credit profile. Dan handles every file personally to ensure the best results for our clients. You have continued access throughout our process to a recognized credit expert.
Better Knowledge – Better Tactics – Better Results
We would love to hear from you, give us a call, 631-465-9565