The Credit People are the first to offer a free trial for credit repair. This has never been done before. The purpose of this free trial was to allow consumers who need credit repair to test-drive the service, before committing. Too many customers are scared to hire a company to help them with their credit because they do not fully understand the process. Well, this new free trial has cleared away the hesitation, and we couldn't be happier about it.
The second most heavily weighted factor in credit scoring is how much of your available credit you're actually using. The lower your balances compared to your credit limits, the better. Here are a few tips on paying down your debts to best serve your credit score…
What should I do first?
According to the Federal Trade Commission, there is a long list of steps to take after realizing that your identity has been stolen:
1. Contact one of the consumer reporting companies (Equifax, Experian, or TransUnion) immediately. They will place a fraud alert in your credit file and notify the other companies to do the same.
While credit repair will correct the damage to your credit, the process will be more “hands on” for identity theft victims than for others without this circumstance. There will be steps that we will instruct you to do in order to put the brakes on the fraudster who hi-jacked your credit. After we’ve put the brakes on the situation, we’ll then begin to address the accounts on your credit that have been negatively impacted.
Most people don’t think about their credit until they have to use it. Take the example of a newly-wed couple dreaming of owning their first home. Each of them has been working for 5 years now, one or both have recently been given a pay raise, and now they decide that it’s time to buy. They start looking, find the perfect home, and try to get a loan. This is when they learn that their credit score is too low to qualify.
Your credit score is ultimately the main factor when considering you for credit or lending of any kind. In fact, lenders have become so dependent on credit scoring that they now make separate offers available to each credit score “bracket”. In other words, lenders will make unique terms and rates for consumers who fall into a credit score range. For example; if you have a 580-620 score, you qualify for “x” interest rate and “x” terms. If you have a 620-680 score, you qualify for “x” interest rate and “x” terms, and so on.
If you have already gotten your free annual credit reports within the last 12 month period and you don’t qualify for additional free reports, you'll have to pay a fee each time you order a copy of your credit report from a Credit Reporting Agency (CRA). The average cost of a credit report is $10.50 at the time of writing this guide, which totals $31.50 for all three.
A look at how the face of credit repair has changed over the years.
Credit repair has evolved. During the previous decade and earlier, the concept of credit repair held a mysterious and almost shameful association. Thankfully, those years are behind us. The Credit People have been around long enough to see the evolution go from mysterious, to transparent, to shameful, to openly encouraged.
You can save hundreds, if not thousands of dollars a year by actively transferring your credit card balances from high-interest cards to low-interest cards. If you have a decent credit rating, it’s easy to do—just open an account with one of the many banks offering long-term low-interest credit cards, and let them transfer your balances from your old, high-interest card to the new, lower rate card. It's called credit-card surfing. There are four types of credit card surfing that we recommend…
Despite over 1.5 million people filing last year, bankruptcy should be considered only as a last resort. The damages of bankruptcy to your credit reports are like a snow ball effect. After you file bankruptcy, every account on your credit report that you included in your bankruptcy turns into a negative item as indicated by “included in bankruptcy”. But it doesn’t stop there. In addition, you also get two more negative items over time added on your credit; the actual bankruptcy mark, and the bankruptcy discharge.