5 Things Your Credit Repair Service's Contract Must Specify

Hiring a credit repair service is certainly the route you want to take to get back on the right track. There are certain things you can take care of on your own, but something as serious as your credit needs to be left for the professionals. To make sure you hire a safe and reliable company, here are five things your contract must specify.

1. Payment terms

Unfortunately, you are going to have to pay the service for their work. Prior to agreeing to anything, make sure the contract you sign specifies exactly what the payment terms for the services is. You want to know exactly how much you are going to pay for all of the services that are done.

2. Description of services

Having a detailed description in the contract of the services that will be performed eliminates any risk of you being scammed. You want to know specifically what the company is going to do for you to repair your credit. The more information that is detailed, the better off you are in the long run.

3. How long will it take?

Any credit repair service can get you back on the right track, but how long is it going to take them? Even you can begin to repair your own credit over a year or two. However, most people do not have this long to get things turned around. This is precisely why you want to hire a service because they are professionals. Although it may not be possible to give a specific date, there should be a ballpark estimate of how long it is going to take.

4. Guarantees

Are there any guarantees the company is willing to make? A legitimate credit repair service will offer a money back guarantee if they cannot repair your credit by a certain amount of time. This shows they are confident about what they can accomplish.

5. Contact information

The last thing you want your contract to specify is the company's name and contact information. This should include an email address, phone number, and physical address. You want to make sure you can get a hold of someone to have all of your questions answered. After all, you are trusting a company to take care of your finances and credit problems.

The more information your contract includes, the better off you are. You do not want to assume a company will perform certain services and not have it in ink. These are just a few of the many things you want your credit repair service's contract to specify.

What is a Good FICO Score

FICO scores are calculated to determine one's creditworthiness. A good FICO score would ascertain one's capacity to pay for credits or loans for a particular period and would establish one's creditworthiness. Good FICO scores range from 660 to 850; the higher one's FICO score is, the more creditworthy s/he is.

When one has a good FICO score, the best perk that one can get out of it is that s/he can get loans or credits faster. Due to the power of the internet, good FICO scores may be delivered at high speeds directly to finance institutions to enable these firms to speed up their decisions on loan approvals. Good FICO scores are also invaluable in fair credit decisions which focus on the information related to credit risks rather than personal factors. Although credit reporting agencies strongly attest that credit scores are not affected by factors such as gender, race, marital status or religion, there are a number of people who disagree which is why good FICO scores are highly regarded, since having a good standing may obliterate the effects of personal factors. Further, good FICO scores would ensure more available credit to consumers since these ratings provide precise information which finance firms may use to approve loans and credit. Good FICO scores are also predictive in nature since they can be used to predict the person's ability to manage his/her credits in the near future. Since good FICO scores may obtain additional credit and loans, an individual having a good FICO score decreases credit costs for borrowers. Lower costs and increased efficiency in the credit granting process amassed by finance firms have been passed onto creditors which makes credit costs lower.

Good FICO scores are possible despite having poor credit performance in the past. Poor FICO scores only provide a limited picture of the risks which the individual had in the past which s/he was able to overcome to come up with a good FICO score and will not haunt him/her forever.

Fix Bad Credit - 3 Amazing Insider Secrets That the Credit Bureaus Don't Want You to See!

The Credit Bureaus exist for one reason, and one reason only...to make money! Each and every one of the bureaus is a publicly traded company. They make most of their revenue by selling information to lending institutions, insurance companies, utility companies, credit card issuing banks, and employers.

They DO NOT make money by researching your disputes...in fact, it costs them time, money, and resources to investigate them. Is it any wonder then who the bureaus ultimately serve?

Bureau Secret #1 Credit Bureau Reports - Your 92 Scores

Reports and scores are created "on the fly" whenever they are requested by you, a creditor, or a lender. In fact, you can have up to 92 different scores...23 different scores for each Bureau: Trans Union, Experian, Equifax and don't forget the little known "other" bureau named Innovis.

Remember your credit scores can vary drastically depending on who pulls the report and the particular profile applied to you. This Bureau process is especially problematic if you are thinking of getting a home loan or mortgage. The score you see if you request it from a major reporting bureau or an on-line service WILL be different - and probably much higher than the score you receive from a Mortgage Broker.

Why?

One reason is that when you pull a report from an online service 18 elements of identification have to match exactly. For example, all of the letters of your last name need to match. That means you are more likely to get accurate information.

When the bureaus pull reports for lenders, usually only 9 elements have to match, for example only 2 letters in your last name. So, more errors and erroneous information will appear on your score - lowering it. Why do the Bureaus provide different - and LOWER - scores to lenders?

Because they've decided that by reporting lower - more conservative scores to lenders, they would be less likely to be sued by lenders if the borrower defaults on the loan.

Do you think the major reporting bureaus care about showing lenders your true credit worthiness? I am here to tell you that they don't! Matter of fact, if you would like to find out more information about how the bureaus are royally screwing over the American Consumer, I have created a newsletter that details shocking news about the 3 Major Bureaus

Bureau Secret #2 Credit Bureau Reports - Your Scores are NOT Accurate

Did you know that your score is probably inaccurate? According to a recent Public Interest Group Research study, more than 70% of Reports contain errors. Oh sure, the Bureaus say to the public that only 20% of reports contain errors, but that's a bunch of Bureau bologna, because when they are in court under oath they admit that more than 50% of reports contain errors.

What kind of errors are probably on your report - and making you pay more for your home, auto loan, insurance, credit cards and student loans? The study found that 29% of reports contain serious errors that don't belong including; false delinquencies that can kill your score.

41% of reports contain personal demographic information that was incorrect, outdated, or misspelled.
20% of credit reports - 1 in 5!!!! were missing major loan mortgage or other information to demonstrate the worthiness of the consumer.
26% of reports contained accounts that were in incorrectly listed as open (or) "closed by credit grantor." When your account is "closed by grantor" it looks like you did something wrong and that's bad for your scores.

Bureau Secret #3 What Is Your Real, Accurate, and True FICO Score?

Did you know that over 90% of the financial institutions in the world will use scores from one organization only? The name of that company is Fair Isaac Corporation or as they are more commonly known FICO.

The location where I recommend that you purchase your credit scores from is from the Fair Isaac Corporation at their main website. Now, I recommend going to a certain section of their website where you will get a true picture of why your scores are behaving the way they are

This website will not only give you the most current status of your reports, but it will also show you your FICO Scores from all 3 bureaus.

This is the only place you should ever get your scores, because your FICO scores are the ones from where most lenders will base their acceptance of your credit application.

I find it interesting that the major bureaus also have their own version of scores that they try to sell to you and I. However none of the people you are trying to get to extend you a loan will even look at those scores! It is just another example of the greedy bureaus trying to squeeze more and more money from us.

Let's Wrap This Up...

So as you can see, there are many myths disguised as truths when it comes to credit and credit repair. There are also hidden secrets that the credit bureaus don't want you to know. I hope that since you are now armed with this knowledge, you won't fall victim to false information that exists out there.

Your Credit Score Insider, Mark J. Garcia

Ways You Can Overcome Bad Credit

Bad credit is something that can haunt you for years and years. Once you've gotten a low credit score, it can take years to rebuild it back up to par. In fact, it can take only a day to drag down your credit score and up to 10 years to repair the damage. Individuals who find themselves dealing with bad credit on a daily basis may feel like there is no hope when it comes to pulling themselves free from the debt. Although everyone feels this way one time or another, it is good to keep in mind that bad credit is something which can be repaired over time. The key to doing so is to come up with a plan to rid oneself of the troublesome debt and then stick to that plan until the bad credit has been repaired. When trying to overcome bad credit, there are a few tips which one might find come in handy along the way.

Consider Consolidation Alternatives

Debt consolidation is a technique which individuals with both good credit and bad credit use from time to time. It is a way for debtors to bundle all of the debt which they have into one nice, neat loan. One will find a number of advantages to doing so. First, the borrower will only have one interest rate to deal with as opposed to many. Secondly, those who consolidate all of their past debt will find that it is easier to take care of paying off the debt as they are better able to keep track of it. Lastly, the total amount of the monthly payment should be lower with consolidated debt than it is with individuals who do not consolidate and simply pay money on their individual loans each month.

Limit Credit Card Purchases and Loans

Another way to overcome bad credit is to pay for items with cash whenever it is possible to do so. It can often be very tempting to hand over that credit card to the cashier whenever purchases are being made. Many individuals pay for items via credit cards so that they have their available cash should it be necessary to use it down the road. This is an understandable feeling yet one which can get debtors into a bit of trouble in the long run. Every time one uses their credit card they are adding onto not only the principal debt of their credit card balance but the interest portion of the debt as well. This is what can really rack up the dollars and make the total credit card balance high.

As for loans, these too should be avoided unless extremely necessary with regard to individuals who have bad debt and are looking to overcome it. Loans will often carry high interest rates with them which can put an individual further into the debt abyss. If a loan is absolutely necessary, try to choose one with a favorable interest rate and reasonable loan terms. Just be sure to shop around for the best loan in the end and acquire loans sparingly.

New Car or Truck Loans and Your Credit Score

If you're in the market for a new car or truck, you are probably excited to choose the model, the paint job, and all of the accessories that come with the vehicle. However, your ability to finance the vehicle is just as important - if not more important - than all of the cool details and add-ons.

Most people opt to purchase a new car or truck through financing, which is the process of paying for a vehicle with loan installments. Financially, this is a much more manageable method of vehicle ownership than paying for a vehicle in one giant, multi-thousand dollar lump sum.

You can obtain a car or truck loan directly through your dealership of choice; through a bank, or through a private individual. Each method of payment comes with inherent risks and rewards (for example, loan rates through banks can be higher - but you might not have legal recourse, should there be an issue with a private or family loan). Before deciding upon a loan type, these risks and rewards should be weighed carefully.

For many Americans, though, the biggest risk factor when purchasing a new vehicle is whether or not they will actually be eligible for the loan in the first place. An individual's credit score determines his or her credit-worthiness - this number will tell the lending institution whether or not that person will reliably make car or truck payments. The lower your credit score, the lower your chances are of securing a loan at an affordable rate. In fact, some people with especially bad credit scores might find that they are having trouble securing a loan in the first place.

What is a credit score, and how does it affect your ability to secure a new car or truck loan?

Kenneth Elliot wrote in the Mar. 21, 2008 edition of the American Chronicle, "...[T]he FICO score remains a primary tool for lenders. It may not determine the final decision, but it definitely influences the 'first cut' when presented with a stack of applications to approve or disapprove."

FICO stands for the name of the consulting firm that developed standards for credit score calculation, the Fair Isaac Corporation. The FICO scoring rubric is the method most commonly used to determine an individual's credit-worthiness. In the United States, credit bureaus or credit reporters analyze an individual's financial past - debts, loans, utility bill payments, previous car loans or mortgages, and more - to determine whether he or she is a good lending risk. A FICO score ranges from 300 to 850. 850 is the highest credit score possible; individuals with high scores have little or no trouble securing loans. Conversely, credit scores near the lowest end of the FICO score range indicate individuals who are high-risk borrowers; these people usually have extreme difficulty managing their debts.

CNN Money reports that the average American carries over 9 thousand dollars in credit card debt. Late or missed credit card payments are one of the biggest factors that lower individual credit scores. Many people spend more money than they actually make, and become attracted to the allure of credit-based purchases -- which seem like easy money at first. Those individuals with high debt-to-income ratios might not be able to afford monthly credit card payments. After a few months of missed or late payments, an individual might find that his or her credit score is surprisingly low.

The FICO credit score is determined by a sum of factors. Each factor of a person's credit history is given a different weight in the final evaluation of his or her financial situation. When determining a credit score, the greatest weight is given to the individual's debt and bill payment histories (Is he or she timely or perpetually late?) and the total amount of debt he or she carries. Less important - but still contributing to the final credit score - are an individual's credit history length; the types of debts he or she carries, and how often he or she has applied for new credit. Individuals who make timely bill payments, who have established long credit histories, and who have demonstrated convincing abilities to manage debt often have the best credit scores.

Before you are eligible for a car or truck loan, you will be asked to supply your lending institution of choice - be it the car dealership, the bank, or a private individual - with some information about yourself. Information required might include complete contact information; a social security number; details about your mortgage or apartment lease, and employment records. The lending institution will turn your information over to one of three credit reporting agencies - Equifax, Experian, or TransUnion. The credit reporting agency uses the FICO algorithm to determine your credit score.

If your credit score is less than stellar, don't despair. You might still be able to finance a new vehicle. Remember: You always have two options when it comes to pitting a bad credit score against stringent car or truck loan terms. You can work to improve that score, or you can shop around for lenders who are willing to work with you. However, if your credit score is good, then you are a preferred borrower, and you will probably be able to get loans with attractive (meaning low) interest rates. Go out there and get that new car or truck loan!

Credit Clean Up - Time to Take Out the Garbage

The time has come to work on some credit clean up. First of all you need to find some ways that you can save money that you can put towards your debt to help when it comes to fixing the credit that is giving you so much grief.

You have to sit back take a deep hard breathe and a long hard look in the mirror and decide if you are willing to make the tough decisions or not.

Once you have decided you have to understand there is no turning back unless you want to look at yourself as a failure. Don't you think things are already bad enough without having to always return to the day you failed.

Are you a smoker? Well guess what its time to quit. in many places smokes are up around 10 bucks a pack. If you are a pack a day smoker that is $300 dollars a month you are absolutely throwing away. Not to mention all the future health care costs when the dumb habit catches up to you and all you have to look forward to is dyeing.

So you enjoy taking the wife out to supper. Well by the looks of things this has been happening way too often. The average nice meal costs about $100 dollars. I know you are saying that you only take her out once a week or so. guess what that's another $400 dollars a month towards your debt.

All you need to understand is that you can cook her a nice meal at home and end up with much better results.

Just in this small article I have showed you how you can save at least $700 dollars a month. if your wife is a smoker she needs to quit as well and now you are up to $1000 dollars a month savings. Can you imagine what $12000 can do towards paying down your debt.

This was so simple. There are a lot of other things that can be cut down on as well and I will get to that at a later date. At this point I really am trying not to send your body into shock but remember you looked in the mirror and made the commitment to work on credit clean up.

These things may seem tough now but once you start seeing the end results you will be looking for other ways to make things better as well.

When it comes to credit clean up it is all about the decisions you make.

Understanding Credit Report Score

Understanding credit report scores is important when you see your credit report because you need to be able to make some sense of it.

Your credit score is used by anyone loaning you money such as credit card companies, home loan lenders, auto loan lenders and finance companies. They all use your credit score to determine your credit risk. The interest the lender charges you is based on your credit risk. So you can see how understanding credit report scores is information that can save or cost you money.

You need to find out what your credit score is before you talk to any lender in case there is something on your report that you may question. You don't want the lender to find a mistake that you aren't aware of. If you find a mistake, it takes at least 30-60 days before you see corrections in your credit reports and scores.

You have probably heard that checking your credit will bring down your score. But checking your own credit report and score is counted as a "soft inquiry" and doesn't harm your credit score at all. Only "hard inquiries" from a lender or creditor, made when you apply for credit, will bring your credit score down a few points.

Your credit report should have the three main credit services Experian, Trans Union and Equifax and each service will give you a different credit score.

The credit scores will range between 300 and 870 with each credit service giving a different score. The higher your score is the better, because as your credit score increases, your credit risk decreases.

The average high approval score where the best interest rates are offered is 680 or above. The credit score the lender uses comes from the middle score or an average of all three scores is sometimes used.

Don't be surprised if you find an error once you get your credit report. Statistics show that 70 percent of credit reports contain serious errors. Those errors are what you want to clear up because they will affect your credit score.

If you find a mistake, you have the right to dispute the information free of charge. Contact the credit bureau that provided the information and dispute the inaccurate information.

Below are the names, addresses, phone numbers and web sites of the three credit bureaus TransUnion, Experian and Equifax.

Equifax Credit

P.O. Box 740241

Atlanta, GA 30374

Equifax 800-685-1111

http://www.equifax.com

TransUnion

P.O. Box 1000

Chester, PA 19022

Trans Union 800-888-4213

http://www.transunion.com

Experian

P.O. Box 2002

Allen, TX 75013

Experian 800-682-7654

http://www.experian.com

You can also contact the creditor direct and ask that the corrected information be provided to the credit bureaus.

If you suspect any fraud, contact all three credit bureaus immediately and place a fraud alert on your report. Then, contact your credit card companies and bank to protect your accounts.

Understanding credit report scores and checking your credit report at least once a year will keep fraud in check and keep your credit score safer.

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