The Use of FICO Scores in Mount Pleasant, South Carolina

 Credit Repair  Comments Off on The Use of FICO Scores in Mount Pleasant, South Carolina
Jan 252017
 

In Mount Pleasant FICO Score is Important

Here are the Best Ways to Improve Your Credit Report FICO Score

In Mount Pleasant, South Carolina one of probably the most common discussions amongst friends could be connected to credit reports. The reason behind this is the score achieved by any individual would significantly influence the amount of home mortgage, loans and many other financial services.

To put it simply, a credit rating is similar to a report card from Mount Pleasant High School (I know, we have all been through that) where you would get a reprimand for a low grade but a reward for a good grade.

In contrast to what lots of folks in Mount Pleasant believe, there is not one universal way of categorizing credit report where the last time you took an extra 5 cents from the cashier would be recorded on your credit history.

There is, a widely used well known credit score in the USA, known as FICO or Fair Isaac Corporation. FICO score basically indicates the likelihood of a person to default on a loan and this is a commonly accepted tool by most banking and mortgage companies in Mount Pleasant.

Before engaging in the discussion on how FICO rating could be boosted, it important to have a rough idea on what your FICO rating is based upon.

Essentially, FICO rating is separated into a few statistical components where these components are made up from:

  • 35% – punctuality of payment historically
  • 30% – the amount of debt, expressed as the ratio of current revolving debt (credit card balances and others) to total available revolving credit (credit limits).
  • 15% – length of credit history.
  • 10% – varieties of credit used (installment, revolving or consumer finance).
  • 10% – recent application for credit and/or amount of credit obtained recently.

The very first step to improving a FICO rating is to get a copy of your personal credit report. This can be attained from Equifax, TransUnion or Experian.

Then, prepare yourself for the distress (or joy if you’re an accountant) of examining all the numbers and ensuring everything adds up to the best of your understanding.

The reason is due to the fact that if something is wrong in your credit history, it’s best to get all of them corrected because it can take up to several months to get a update entered.

If you have serious credit car debt where the majority of your credit card balances are close to the credit line, it’s best if you pay them off as soon as possible. If you need help paying off debt, contact Operation Care for financial coaching. Call them at 844-207-3818.

The banks and lenders prefer a significant gap between a credit card balance and the credit limit, approximately a ratio of 40% between balance/limit. Paying off high balance credit card debt would definitely increase the FICO score as it impacts 30% of the FICO score.

Afterward, it is equally important for you to pay off your debt promptly. Even if you have the ability to pay off your debt, it would not have the desire impact on your FICO score if you do not pay your debt on schedule and every month.

The punctuality of your payment takes up 35% of your score and it is vital to know that paying your debt on time NOW is outweighed by the fact that you paid your debt on time 3 years ago.

It is always important to keep your longest standing account. Because the longer you have your financial history established; the easier it is for the creditors or banks to know how reliable your FICO score is.

For example, even though you score a relatively high score, if you credit history is just five years when compared with an average rating with a credit history of 30 years, the person with the longer credit history would possibly qualify for a larger loan or a lower interest rate.

In conclusion, it’s a not nuclear physics when it comes to raising your FICO score. All it takes is for you to decrease your credit card debt, pay your bills on schedule and keep track of where you are heading in your spending, mortgage and loans.

The experts at Credit Repair Companies can help you better understand your credit report. Enroll in one of their coaching programs to improve your score.

Even if you don’t live in Mount Pleasant, South Carolina you can call toll free 844-207-3818 in order to get started increasing your FICO score and fixing your credit report.

Beware of Debt Counseling Scams

 Personal Finance  Comments Off on Beware of Debt Counseling Scams
Apr 112016
 

Debt Coaching Fraud

Frustrated with debt scamsEverywhere in the world today, people are becoming submerged in debt. Everywhere you look, it is possible to purchase today and pay tomorrow, consumers are steadily falling into this trap everyday, and before they know it, they are so far in debt they are unsure how to get out. This is where debt counseling comes in; however you need to be made aware of debt counseling frauds. Some are only in place to take your money.

Legitimate debt counseling companies do not claim to be not-for-profit if they are not. There have been cases where a company has claimed this and ended up swindling their clientís money. There are ways to protect yourself; you should check a debt counseling company’s reputation thoroughly before investing your time and effort into them.

Never conduct business with a company that requires any upfront fees or asks you for voluntary contributions. This is a red flag, legitimate debt counseling companies advise you on money management, budget development, debt and educational material and occasionally workshops.

Essentially, it is none of their business regarding the details of your situation or requires you to be approved. They should discuss your financial situation and help you in developing a plan to eliminate the problems.

You can also check your local government agency or better business bureau, to ensure that they are indeed legitimate and no complaints have been filed against them.

The other things that will tell you rather or not a debt counseling service is legitimate include the following things. If they promise lowered payments, leave, only interest rates can be lowered not payments. If they ask you for your account numbers prior to giving you a quote, this is not necessary at all. If they group the quotes together instead of giving you a breakdown of how each creditor will be handled, this will leave you with no idea of how long it will take to pay off each account.

There are also questions you should always ask when choosing a debt counseling service. These questions should include charges for educational material, a disclosure in writing of fees that are charged, if they are properly licensed to do business in your area, what will happen if you cannot afford their fees, what type of services do they offer and if the counselors are certified and who certified them. This is your money and your financial well-being, do not leave any stone un-turned.

There are new bankruptcy laws that makes filing bankruptcy harder for everyone. To file a chapter 7 will be nearly impossible if you are currently employed. They have formed a test that you will have to pay showing that your income is less than the median income for your area. Along with these new laws, it has become required to obtain debt-counseling services when filing bankruptcy.

Choose the debt counseling company very carefully and ensure they are legitimate. You do not want to cause more harm or damage to your credit, so choose reputable companies wisely.