Your source for the truth about credit in a world full of misinformation.
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Credit Reports and Scores
Signs You May Need a HOPE Credit “Tune Up”
-You want higher credit scores
–You have been turned down for a loan
–You have collection accounts
–You have made late payments within the last 2 years
–You have major credit issues (bankruptcy, repossession, foreclosure, charged off accounts, etc.)
–If your answer is yes to any of the above we will be glad to schedule an appointment for you. Call today us at 704-499-9696
When it comes to finances, it's important to know where you stand -- especially with something as important as your credit score. Are you clear on how to boost your score? "You have to be careful who you listen to," says Dan Beck, president of Credit Management Specialists, a credit-restoration company in Greeley, Colorado. "Following the wrong advice can impact your score in a negative way." Here, we present the 10 most common (and most costly) falsehoods about credit.
Fact: The three credit reporting agencies -- Equifax, Experian, and Trans-Union -- operate independently and do not share data. "The information each reports is very different," says Kate Lister, author of Finding Money. Accordingly, your credit reports and scores will differ from one agency to another, which is why Lister recommends getting a copy of each report every time you check your credit. And because your score is constantly changing (it's recalculated whenever your credit report is pulled), "Review your credit report at least every six months to look for inaccuracies," says Ann-Marie Murphy, co-founder of Quizzle, a credit-management site for consumers.
Fact: "You can check your credit report through a credit bureau as often as you like with no negative impact," says Lynnette Khalfani Cox, a personal-finance expert. Checking your own credit is considered a "soft inquiry," which has no bearing on your credit score. Other soft inquiries are those made by existing lenders reviewing your account and lenders trying to offer you pre-approved credit.
Fact: Not so. While it feels fiscally responsible to close out an account that's at zero, it's actually a big zero for your score. "Credit utilization is how much credit you use compared to how much credit is available to you," Murphy says. By closing accounts, you're decreasing the amount of credit available to you, so your proportion of credit used will be higher -- and that makes you a higher risk in the eyes of lenders, she says. And closing old accounts also removes your history, one of the biggest things that factor into credit score, Lister says. "If you cancel a credit card that has a lot of history, you may hurt your score," Lister says.
Fact: "Having no credit history or never using credit has a negative impact on your credit score," says Cox. "FICO reports that people with no credit cards tend to be higher risk than those who use credit cards responsibly." The longer you have an account and pay on time, the greater the benefit to your score.
Fact: Various types of credit will impact your score differently, and 10 percent of your score refers to your mix of credit. "If you are heavy in one area of credit, your score may be lower," says Hallie Hawkins, co-founder the Certified Credit Report Reviewer Certification Program with the Institute of Consumer Financial Education. But the credit-scoring systems are chiefly concerned with credit-card debt. Though your mortgage or student loans are important, "Focus on lowering your credit card utilization in order to get a big boost in your scores," Cox says. "Having a big credit-card debt will hurt you."
Fact: Not necessarily. "When you pay off your credit-card bill, the bank doesn't notify the credit bureaus," says Wayne Sanford, author of The Credit Reality Today. And if your credit is pulled mid-month, before you pay your bill, your score will reflect that balance. "The only way to be sure your balance shows as zero is to cease using the card for a month or more," says John Rackley, a certified mortgage-planning specialist. "Unfortunately, this is an example of how someone who handles their credit responsibly can be penalized by the credit-scoring system."
Fact: Paying a collection account in full is the fiscally responsible thing to do, but it won't make the collection red mark on your report go away. The account may be marked as paid in full, which is important, but it will remain on your credit report for seven years, says Hawkins.
Fact: Think again before you flake out on that one payment. "The single biggest determinant of your credit score is how well you've paid your bills in the past," says Cox. Credit-scoring formulas take into account your late payments, how late they were, and how long ago the late payments occurred.
"Ignorance is not bliss when it comes to your credit score," says Murphy. Now that you're free of falsehoods and armed with facts, you can take complete control of your credit score.
Learn the secrets that the credit bureaus don't want you to know!
Join us for an informative and educational evening you simply will NOT want to miss. Credit expert, Ron Lambright, will be sharing some closely guarded trade secrets that will help you make sense of the "credit maze." The first step to achieving and, ultimately, maintaining a healthy credit report is to understand the factors that make up your credit report and, more importantly, your credit scores. Even if you are facing serious credit problems it is never too late. Already have a good credit score, but looking to improve upon that score even more? This seminar is for you too! Regardless of where your credit scores are right now, this enlightening seminar will benefit you tremendously.
Don't forget, space is limited! We don't want you to miss out on this opportunity. Please visit the following link to reserve your seat(s) today: http://hope4usa.com/credit-seminar-rsvp/. We hope to see you soon.
When: Tuesday, November 3, 2009 at 7:00pm Where: HOPE Operations Center, 3578 Centre Circle, Fort Mill, SC 29715 Cost: Free for yourself and up to 3 guests (as long as space remains)
Need directions? Please visit the following link: http://hope4usa.com/fort-mill-operations-center/.
We are excited to announce the opening of our new Fort Mill Operations Center at 3578 Centre Circle, Fort Mill, SC 29715. We are conveniently located right off Interstate 77 in the Carowinds area.
Please continue to mail all correspondence to 10800 Sikes Place, Suite 110, Charlotte, NC 28277.
We are always seeking ways to serve you better. Please feel free to email us if there is anything we can do to assist you. You may reach us via telephone at 704-499-9696 or email us at by clicking here: http://hope4usa.com/contact-us-2/
Directions:
From Charlotte:
Take I 77 South to Exit 90 (Carowinds Blvd.) Turn Left at the end of the ramp At the first light turn left onto Springhill Farm Rd. Drive 0.4 miles and turn left onto Centre Circle (Carolinas Point) Drive 0.2 miles and 3578 will be on your right
From Rock Hill:
Take I 77 South to Exit 90 (Carowinds Blvd.) At the end of the ramp go straight across to Springhill Farm rd. Drive 0.4 miles and turn left onto Centre Circle (Carolinas Point) Drive 0.2 miles and 3578 will be on your right
If you get lost call 704-499-9696
Retroactive Interest Rate Hikes Will Be a Thing of the Past
Credit card changes are coming. Many people are finding themselves with the dilemma of credit card companies changing there existing interest rates on their existing balances. This placing many who have been consistently on time in a very difficult situation. The new minimum payments jump drastically in many cases.
Help is on the way. Come next February, card issuers will no longer be able to retroactively raise rates on your existing balances unless you’re more than 60 days late on your account. Instead, they will only be able to raise your rate on new purchases going forward.
Say you have $10,000 in debt on a card with a 10% annual percentage yield. Once the new rules take effect, even if the rate jumps to 15%, you’ll still pay the old rate on that balance. The difference in rate means you can eliminate the balance four months faster and save $1,276 in interest. And even if you do miss your payments by more than 60 days and see the rate on that old balance jump higher, issuers must revert to the original, lower rate after you make six months of on-time payments, says Duncan Douglass, a partner with Alston & Bird, a law office in Atlanta.
To Prepare: Issuers have been jacking up interest rates across the board. If you carry a balance, make sure it’s on a card with a low rate come 2010.
At HOPE we help our clients stay updated about existing law changes so they can make wise credit decisions. If you would like to know more please call our staff at 704-503-3669. We are waiting on your call.
