Build Better Credit!

 

While a man could live on cash alone, having good credit makes life much much easier.

 

 

A high credit score makes it easier for anyone to qualify for and get lower interest rates on loans and credit cards. Good credit even makes it easier to rent an apartment, hook up utilities or set up cellphone service.

 

Fortunately for you, you can build better credit if you follow some simple steps and avoid the bad advice that is being distributed within this marketplace.

 

In this website, we will be sharing several articles distributed by reputable individuals and companies that will help you learn more about credit, credit scores and how to improve your credit scores.

 

If you have any questions, please feel free to contact our offices @ (702) 613-7985.  We will be more than happy to answer all of your questions. 

 

We are here to help!

 

Action Marketing

The Best Credit Repair Company

(702) 613-7985

 

Services Provided & Costs

 

The Fair Credit Reporting Act, states that we, as consumers have the right to review our credit reports and, if we find there are inaccurate line items on our report, we can dispute these inaccurate items to each of the 3 credit reporting agencies (Equifax, Experian and Trans Union).

 

The Fair Credit Reporting Act goes on to state that the credit reporting agencies have 30 days to verify that the items we are disputing are correct, and if they cannot prove that these items are correct, they must delete them from our report.

 

If you provide a current tri-merge credit report to Action Marketing along with the agree first payment,  Action Marketing will perform a complete review of your credit report with you finding each of the inaccurate accounts, and will write letters on your behalf to each of the credit reporting agencies in an attempt to get each of these agencies to remove these inaccurate line items.

 

You will receive a letter back within 60 days from each of the credit reporting agencies with their findings.

 

There are normally 3 things that happen with each line item dispute:

        1.    The Item is Deleted (which we like)

        2.    The item is Updated (which we like – this normally happens when we dispute a late pay.  We don’t ask for this line item to be removed, we only ask for the late pay to be removed.  If they remove this late pay, the bad line item is then turned into a good line item).

        3.    The Item is Proven to be Accurate (which we do not like.  So, it is very important that you get each of the letters that you receive back from each of the credit reporting agencies to Action Marketing so we can see what response was made to each of the line items we have disputed.  If the credit  reporting agency says that they have gathered information that proves that this line item is accurate and will continue to stay on your report, then, we will write another letter on your behalf to try to get this inaccurate information off of your report for you.

 

    Again….. It is very important that you get all of the correspondence that you receive from each of the credit reporting agencies back to Action Marketing quickly so we can evaluate the documentation and take the proper steps for you.

 

This process will take time. 

 

Initially, you will receive a letter from each of the credit reporting agencies approximately 30 days after we send them the first request. 

 

In this letter from the credit reporting agencies, they will simply say that they understand you are making an inquiry about what you feel is inaccurate  information on your credit report and that according to the law; they have 30 days to respond.  So, after the first 30 days, nothing really happens.  You simply know that they are working on this issue for you.

 

Then, approximately 30 days later, you will receive letters from each of the credit reporting agencies telling you the outcome of the items that we have disputed for you. 

 

        Again….. It is very important that you get all of the correspondence that you receive from each of the credit reporting agencies back to Action Marketing quickly so we can evaluate the documentation and take the proper steps for you.

   

Please be patient! 

 

It took you awhile to get your credit into the position it is in today…… and, it will take us time to do our work.

________________________________________

 

Cost

 

Action Marketing makes it easy for you to obtain these valuable services. 

 

The Total Cost to you is $1,200.

 

Action Marketing will start working on your credit file when you send us your tri-merge credit report and your $1,200 payment.

 

 

You can pay with Cash, Money Order, Credit or Debit Card or Paypal.  If you are going to pay with a Credit or Debit Card or by Paypal, we can send you an invoice to make it very simple for you to pay.

 

Again, if you have any questions, feel free to call us at (702) 613-7985.

 

We are here to Help!

 

Action Marketing

The Best Credit Repair Company

(702) 613-7985

 

What is a credit score?

By Leslie McFadden

 

We have found another great article from Bankrate.com by Leslie McFadden.  You will definitely want to read this article for the valuable information that Leslie shares with us.

 

Your credit score can mean the difference between being denied or approved for credit, and a low or high interest rate.

 

A good score can help you qualify for an apartment rental and even help you get utilities connected without a deposit.

 

What is a credit score?

 

Your credit score is a three-digit number generated by a mathematical algorithm using information in your credit report. It's designed to predict risk, specifically, the likelihood that you will become seriously delinquent on your credit obligations in the 24 months after scoring.

 

There are a multitude of credit-scoring models in existence, but there's one that dominates the market is the FICO credit score.

 

According to myFICO.com, the consumer website for the FICO score developer, "90 percent of all financial institutions in the U.S. use FICO scores in their decision-making process."

 

FICO scores range from 300 to 850, where a higher number indicates lower risk.

 

What's a good score?

 

A consumer has three FICO scores, one for each credit report provided by the three major credit bureaus: Equifax, Experian and TransUnion.

 

What goes into a credit score?

 

Data from your credit report goes into five major categories that make up a FICO score. The scoring model weighs some factors more heavily, such as payment history and debt owed.

 

Payment history: (35 percent) - Your account payment information, including any delinquencies and public records.

 

Amounts owed: (30 percent) - How much you owe on your accounts. The amount of available credit you're using on revolving accounts is heavily weighted.

 

Length of credit history: (15 percent) - How long ago you opened accounts and time since account activity.

 

Types of credit used: (10 percent) - The mix of accounts you have, such as revolving and installment.

 

New credit: (10 percent) - Your pursuit of new credit, including credit inquiries and number of recently opened accounts.

 

Personal or demographic information such as age, race, address, marital status, income and employment does not affect the score.

 

Again, if you have any questions, feel free to call us at (702) 613-7985.

 

We are here to Help!

 

Action Marketing

The Best Credit Repair Company

(702) 613-7985

 

 

5 Ways to Raise Your Credit Score!

                                                                                                                            by Dana Dratch

 

 

We thought you might enjoy this article by Dan Dratch from Banknote.com.  Please take time to read this entire article.  You will be glad that you did.

 

When it comes to cultivating a credit score, you've probably got the good citizen routine down cold.

 

You pay on time, try to wipe out the entire balance every month and never close too many accounts at once.

 

Beyond the basics, though, many consumers are still in the dark about what makes their credit scores go up and down.

 

"We have had so many people over the years who don't understand what goes into a credit score," says Dave Jones, president of the Association of Independent Consumer Credit Counseling Agencies. "They just live with the old wives' tales."

 

Consumers understand that the credit utilization ratio -- the total amount of revolving credit someone uses in a month, compared to the amount of available credit they have -- is a major factor in calculating a score.

 

But, did you know that it's often calculated from the total on the statement date, not the due date?

 

So, even if you pay balances in full every month, a card issuer may report a balance. And that can hurt your credit score.

 

Here are five ways you can use that bit of knowledge, along with some other expert know-how, to boost your credit rating.

 

 

* Pay bills before the statement date

 

Typically, the balance as of your last statement date is the balance that will report to the bureaus, says Barry Paperno, consumer operations manager with myFICO.com, the consumer division of FICO, the company that created the FICO score. So, if you pay most of the bill before the statement date, you can lower your utilization rate. And, that can equal a higher credit score.

 

"How much you owe is 30 percent of your score -- and the utilization ratio is a large part of that," says Paperno.

 

If you're one of those folks who charges a balance every month but pays it off and can't understand why your score isn't higher, it could be that your utilization ratio is what's depressing your score, he says.

 

This might not work with every card.

 

Some lenders don't use the balance on your statement date when they report to the bureaus. Instead, they select another day and report the card balance on that date instead.

 

Paperno's advice: Call your lender to ask when the balance gets reported.

 

 

* Make multiple payments

 

Another way to lower the balance on your statement date is to make periodic payments throughout the month.

 

If you use your card throughout the week for everyday expenses and pay it off every Friday, you'll cut the amount of credit you're using at any one time. Check with your card issuer to learn how they handle multiple monthly payments.

 

"Basically, the lower the balance on your credit report, the better," says Paperno.

 

What you need to know: Your card could place a limit on the number of times you can pay in a month, he says. While all will take two or three payments, if you are paying weekly or more, you want to call and make sure they are set up to handle that many multiple payments.

 

 

* Ask for a 'good-will deletion'

 

If you only have one or two bad marks on your credit record, you may be able to get them expunged, says John Ulzheimer, president of consumer education for SmartCredit.com, based in Costa Mesa, Calif.

 

Say you've paid late, but have an otherwise spotless credit history. You can ask your lender for a "good-will deletion," he says. "It doesn't mean it is wrong or was reported incorrectly. Essentially, what you're doing is asking the creditor to cut you some slack."

 

The good news: "You'll be surprised how many times they will," says Ulzheimer.

 

The bad news: "If you're habitually late, it won't work," he says. This is strictly for folks who err rarely.

 

As for whom to ask, start with customer service. But you may have to go up the ladder. And make your request as soon after the error as you can.

 

"The sooner, the better," he says.

 

But it can make a difference in your credit score.

 

"If you have two or three bad things on (your) credit report, and you get one or two removed through good-will deletion, you will be surprised how quickly your score will go up," Ulzheimer says.

 

 

* Pay for removal

 

If you have an account that's gone into collection, sometimes collectors will agree to remove the debt from your credit report if you agree to pay if off.

 

"You'd be surprised how many collection agencies will stop credit reporting in exchange for payment," Ulzheimer says.

 

But before you agree to or pay anything, you want the arrangement in writing. Get a letter on company letterhead that spells out they will remove the debt from all three major credit-reporting agencies.

 

This process is sometimes called "pay for deletion," Ulzheimer says. And "while credit bureaus frown on those arrangements, it's not their data that's being reported."

 

 

* Protect yourself in a short sale

 

After a short sale, the mortgage lender often will report to credit bureaus that the home loan was settled for less than the full amount.

 

In addition, it can also note the amount of the deficit as "balance owed" on the credit report, even though the obligation has been finalized and no additional money is owed.

 

In other words, if you have a $300,000 mortgage and sell your house for $250,000, the bank could report a balanced owed of $50,000.

 

While the short sale will damage your credit score dramatically (as much as a foreclosure, according to examples recently released by FICO), you can mitigate the damage slightly by arranging with the lender not to report a balance owed.

 

The best time to negotiate this with the lender is before or during the short sale process, says Ulzheimer.

 

While you can attempt it after the fact, that's not as practical.  "After it's been paid, the lender starts to lose interest in speaking with a former customer."

 

Again, if you have any questions, feel free to call us at (702) 613-7985.

 

We are here to Help!

 

Action Marketing

The Best Credit Repair Company

(702) 613-7985

 

 

Myths about How to Build Better Credit

                                                    By Janna Herron from Bankrate.com

 

 

We ran across a great article from Janna Herron on Bankrate.com, and thought that you would enjoy this informative piece.  Please take time to read the complete article below.  You will pick up some great tips.

 

Like child-rearing and curing ailments, credit building is chock-full of old wives' tales that don't pan out.

 

Smart financial moves such as closing accounts or paying off loans early may not be the credit boosters you think they are.

 

Sadly, there are no real quick fixes despite what some commercials or online credit repair ads might proclaim.

 

The key to increasing your credit score is good payment behavior along with time and a healthy mix of credit types.

 

To help you sort the fact from the fiction, Bankrate tackles some long-held, but bogus beliefs that won't help you build better credit.

 

 

* Opting out of credit card offers will help

 

Many consumers assume if they opt out of credit card offers, there will be fewer credit inquiries on their credit reports, says John Ulzheimer, president of consumer education at SmartCredit.com. However, those inquiries are considered "soft" inquiries and don't affect your credit score, Ulzheimer says. You can keep the offers coming if you'd like, but doing so won't help you build better credit.

 

If you want to opt out of offers to reduce your junk mail, call toll free (888) 5-OPT-OUT / (888) 567-8688), or visit OptOutPrescreen.com to remove your name from the credit reporting agency lists for unsolicited credit and insurance offers.

 

That will remove your name for five years.

 

To keep your name off the list, mail in the permanent opt-out election form available on the website. Consumers can also opt in on the website if they've already opted out.

 

 

* You can bump hard inquiries off your credit report

 

A "hard" inquiry is generated when creditors pull your report or score after you apply for a loan or line of credit. Your score falls because it shows you're interested in taking on more credit and therefore, more risk.

 

Other inquiries are considered "soft," such as those triggered by you, your employer or companies sending credit card offers in the mail.

 

Some consumers believe if they pull their credit report every day to load up on "soft" inquiries, they will bump off the hard ones that weigh on their credit score.

 

"It's speculative.

 

There's no indication there's a finite amount of space for inquiries," says Ulzheimer. And, it's only a small part of the score. "There's better bang for your buck if you do more legitimate things.

 

 

* Closing old accounts will boost your score

 

This is a hard-to-kill-off myth.

 

Closing accounts typically won't help your score and could possibly dent it, says Trey Loughran, president of personal information solutions at Equifax.

 

The results can shorten your credit history eventually and leave you with a smaller amount of available credit, both of which can harm your efforts to build better credit.

 

The length of credit history shows how seasoned of a borrower you are, so the more positive experience you have, the better.

 

Having more available credit helps to keep your utilization rate low. The utilization rate is how much available credit a borrower uses; the lower the percentage, the better.

 

"Say you have $100 in debt with $1,000 in allowable credit across multiple accounts and you close a credit card with a limit of $500, then you doubled your utilization rate from 10 percent to 20 percent," Loughran says.

 

 

* Opening many accounts will improve my credit score

 

Some consumers with credit problems believe opening many accounts will be proof that they can handle credit. Actually, it has the opposite effect.

"That makes lenders scratch their heads and wonder why you need all that credit," says Rod Griffin, director of public education at Experian. "It's a sign of risk."

 

Your credit score can suffer as a result.

 

What lenders will see is a boatload of new, hard inquiries on your credit report. Those inquiries will deduct from your credit score, while lenders will worry that you're in dire financial straits and desperately need access to credit to make ends meet.

 

 

* Paying off delinquencies will restore your credit score

 

Nope. It will help, but don't expect a supersized boost, says Ulzheimer.

 

That's because the delinquency will stay on your report, even if it has a zero balance.

 

Most derogatory information such as late payments, collection accounts, charged-off accounts, tax liens and judgments live on your credit report for seven years before dropping off.

 

A Chapter 13 bankruptcy can linger on your report from seven to 10 years, while Chapter 7 bankruptcies remain on your credit report for 10 years.

 

"Don't expect your score to recover to what it was before the incident, because it ain't going to happen," Ulzheimer says.

 

"The more important part is the incident."

 

 

* Paying off loans early is better than making payment's

 

"It's a Catch-22," says Sarah Davies, senior vice president of analytics, product management and research for VantageScore Solutions, because while it may be good for your personal finances to pay off a loan, it doesn't do much for your credit score.

 

Indeed, a closed, paid-off account adds to your score, but an open credit account in good standing boosts it more.

 

That's because an open account shows you're consistently handling credit wisely.

 

A closed account only shows good payment behavior in the past and becomes less and less predictive of future habits.

 

 

* Paying before the due date helps your credit score

 

Your credit score takes into account how much available credit you're using.

 

Paying a credit card balance in full 10 days or one day ahead of the due date won't help your utilization ratio and thereby improve your score. That strategy doesn't work because the balance of the account has already been reported to the credit agency, says Ulzheimer.

 

However, if you pay the balance in full before the statement closing date, which appears on your statement, then your report will post a zero balance for that account.

 

That will help your utilization rate, or how much credit you are using, along with your credit score, says Ulzheimer.

 

To get started, you will have to pay one credit card bill earlier than usual and then consider your statement date as your due date, says Ulzheimer.

 

Also, you will need to check your balance online or over the phone to make sure you pay the correct amount.

 

 

* All delinquencies are created equal

 

If you're in the unenviable position of having to miss a payment, choose carefully.

 

Missing a mortgage or auto loan payment will ding your credit more than skipping a credit card payment will. "Those are more substantive debts, so they carry more weight in the credit score," Davies says.

 

Of course, missing a payment is a last resort.

 

Pay the minimum payment to keep accounts current.

 

To head off a catastrophe, contact a nonprofit credit counseling service that can help you work with your lenders to come up with a more affordable, temporary payment plan or another solution.

 

 

* I can't have any negatives on my report

 

"I'm here to tell you that you can have anything from a 30-day missed payment to a bankruptcy on your report and still have a really good score," says Paperno.

 

The most recent information on credit reports is weighted more heavily than older data, Paperno says.

 

So, if you have a bankruptcy from five years ago, but have had good credit performance since, it's possible to have a 700 FICO score.

 

To build better credit, Paperno preaches consistent good payment behavior instead of a quick fix.

 

The advice is simple: Pay the minimum payment every month at least, if not the full balance. Diversify your account types and keep balances low.

 

The result will be a higher credit score.

 

Again, if you have any questions, feel free to call us at (702) 613-7985.

 

We are here to Help!

 

Action Marketing

The Best Credit Repair Company

(702) 613-7985

 

 

 

Aim High!

How to get your credit score above the 700 mark:

If you have a history of late payments and a poor credit score, the good news is you can turn your credit around.

A credit score is simply a snapshot of your credit at a particular point in time. Your credit score changes continually based on your spending, saving and bill-paying. Here’s what you need to know.

Credit score basics:

Credit scores are calculated based on information in your credit report. FICO, the credit scoring company, provides credit scores to 90 percent of all lenders. FICO scores range from 300 to 850.

There is no score that specifies whether your credit is good or bad. Lenders have their own standards that determine whether you’re creditworthy and what type of interest rate you qualify for.

However, a FICO score of 700 or above is generally considered good. A FICO score of 740 to 799 is very good and 800 to 850 is exceptional.

If your credit score falls below 700, your first goal should be to get your credit score above that number.

Check your credit report:

If you haven’t already checked your credit report, request a copy from one of the credit reporting agencies — Experian, Equifax and Trans Union. By law, you’re entitled to one free credit report per year from each agency. You also have a right to a free copy of your credit report if you have been denied credit within the past 60 days.

If you find inaccurate or missing information on your report, file a dispute with the credit reporting agency and the creditor.

Make sure to clearly communicate what you’re disputing and provide supporting documents, such as payment statements or processed checks. The credit reporting agency must investigate your dispute, usually within 30 days. For the creditor, it may take 30 to 90 days to communicate with you as well as the credit bureau.

Make payments on time:

Consistently making your payments on time is the best way to improve your credit score. Your payment history determines 35 percent of your FICO score. According to Experian, payments that are a few days late rarely appear on your credit report. Payments that are late by 30 days or more will likely appear on your credit report.

If you’re having problems making payments, contact your creditor to find what your options are. Your creditor may be able to establish a payment plan that doesn’t hurt your credit score.

As you consistently make on-time payments, your credit score will improve. While late payments stay on your credit report for seven years, the late payments will have less impact on your credit score as time passes.

Reduce your debt:

Your credit utilization ratio is the amount of debt you have compared to your amount of available credit. It’s calculated by dividing your total debt by your available credit.

For example, if you have $10,000 in debt and $20,000 of available credit, your credit utilization ratio is 50 percent. An ideal credit utilization ratio is 35 percent or lower. Your credit utilization ratio determines 30 percent of your credit score.

The best way to improve your credit utilization ratio is to lower your debt, thereby increasing the amount of credit you have available. Experts recommend paying as much as you can on your account with the highest interest. When the high-interest account is paid off, apply the money to the next high-interest account, and so on.

FICO does not recommend opening new credit accounts to improve your credit utilization ratio. This is because hard inquiries made on your credit report can negatively impact your credit score.

To be sure, there’s no quick way to fix your credit score. But as you consistently make on-time payments and reduce your debt, you’ll see your score increase over time.

The Elusive 850 - How to get the Best Credit Score!

Having an exceptional credit score allows you to get low interest rates on mortgages and auto loans as well as lower financing rates on car leases and credit cards.

So what is the best credit score?

While there are several companies that provide credit scores, Fair Isaac Corp., or FICO, provides credit scores to 90 percent of lenders.

FICO credit scores range between 300 and 850. The best credit score is 850. Here’s a breakdown of FICO scores and what they mean:

300 to 579 — Very poor credit.

580 to 669 — Fair credit.

670 to 739 — Good credit.

740 to 799 — Very good credit.

800 to 850 — Exceptional credit.

How to achieve the best credit score

Is achieving the elusive 850 credit score even possible? FICO provides some basics to help consumers understand the factors that affect scores.

FICO calculates your score based on five factors: payment history, amount owed, length of credit history, new credit and credit mix.

Payment history

Your payment history makes the biggest impact on your credit score. It accounts for 35 percent of your score. Your payment history includes all credit payments and certain public records, such as liens and bankruptcies.

Your payment history stays on your credit report for seven years. Bankruptcies stay on your credit report for seven to 10 years, depending on the type of bankruptcy.

Assuming you haven’t declared bankruptcy in the past 10 years, and you’ve consistently paid your bills on time for the past seven years, you’ve probably optimized this part of your report.

Amount of debt owed

Your credit utilization ratio compares the amount of debt you have to the amount of credit you have available. Your ratio accounts for 30 percent of your FICO score.

To determine your score, divide the amount of your debt into the amount of your available credit. For example, if you have $4,000 in debt and $25,000 in available credit, your credit utilization ratio is 16 percent.

FICO doesn’t give a specific credit utilization ratio to achieve a perfect credit score, but it does provide some statistics. Lenders prefer a credit utilization ratio of 35 percent or less.

Length of your credit history

After your credit utilization ratio, the length of your credit history impacts your credit rating the most. It accounts for 15 percent of your FICO score.

When calculating this factor, FICO considers:

How long your credit accounts have been established, including the age of your oldest account.
The average age of your accounts.
How long specific accounts, such as revolving credit, auto loans, etc., have been active, and how long it has been since certain accounts have been used.

The effect of new credit

Applying for new credit accounts has a lesser impact on your credit, but it’s still something to keep track of. It accounts for 10 percent of your FICO score.

From FICO’s viewpoint, applying for several accounts in a short time period increases credit risk and negatively impacts your credit.

However, sometimes consumers apply for multiple loans when shopping for the best rate. FICO recognizes this. For this reason, FICO calculates multiple applications for mortgages, auto loans or student loans made within 45 days of each other as one application.

Your credit mix

Your credit mix includes the type of accounts you have open, such as credit cards, auto loans and mortgages. It accounts for 10 percent of your credit score.

If you have a variety of credit on your credit report, it can have a positive effect on your credit score.

Is achieving the best credit score realistic?

Is an 850 credit score possible? Yes.

However, only 0.5 percent of consumers ever reach the 850 score. That’s OK, because a credit score of 740 is usually what you need to qualify for the best interest rates.

Experts recommend that consumers with a credit score of 800 focus on maintaining their score, rather than raising it.