Free Credit Report

Free Credit Report – No Strings Attached - No Credit Card Required!

By Michelle Black

Did you know that you are legally entitled to receive a free credit report every single year from all 3 of the credit bureaus (Equifax, Trans Union, and Experian)? Simply visit www.annualcreditreport.com to request your free report once every 12 months with zero strings attached!  Trust us, we have checked it out. Now, unfortunately, this free report does not provide you with free credit scores (though you can pay to access your credit scores as well).  However, even though you will not be able to receive your credit scores for free, the free credit file disclosure report will show you 100% of the account currently on your file.

You may wonder why it is important to check your credit report in the first place.  Well, there are actually several important reasons:

1.  Protect yourself from fraud – Checking your credit report once every 6 months will dramatically reduce your chances of identity fraud.  If you check your credit report and discover “fishy” accounts then you can speak with a HOPE Credit Specialist for some expert advice and you may even be advised to file a police report.

2.  Protect yourself from credit bureau mistakes – Let’s face it.  The credit bureaus make mistakes and those mistakes can cost you, big time! Checking your credit report every 6 months will help you to monitor your file for incorrect accounts or incorrect information being reported.

If you do check your credit report and find errors, identity fraud, or other credit issues please know that all hope is not lost. There is still a way to turn your current credit situation around and achieve healthier credit scores! The HOPE Program has been helping people just like you to deal with credit problems for over 10 years. In fact, the average HOPE member graduates our program within 6 months or less!  Call us today at 704-499-9696 to schedule your NO-OBLIGATION credit analysis with a HOPE Credit Specialist. You have nothing to lose and could even gain the financial freedom you deserve!

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Making Your Tax Refund Work for You!

5 Ways to Invest Your Tax Refundby Michelle Black

It’s that time of year when you may be receiving an extra check from Uncle Sam – your tax refund!  Before you let that refund check burn a hole in your pocket, first think about how you can invest those extra funds to improve your quality of life and strengthen your financial health.  Here are a few suggestions we have put together for you to consider:

1.  Pamper Yourself and Have a Little Fun! Being responsible does not mean that you have to deny yourself completely.  Now, we are certainly not suggesting that you go on an all out spending spree, which you will almost certainly regret later, and blow your entire check.  However, spending a predetermined amount of cash (10% of your refund or less) on a weekend getaway, spa treatment, shopping trip, or that new fishing pole you have been eyeballing is a nice way to reward yourself for the discipline you will be using with the other 90% of your refund.

2.  Give to Your Local Church/Favorite Charity. At HOPE we are strong believers in the principle that you will reap what you sow.  It is important to remember your local church or another worthy organization if you are not currently committed to a local church.  If you do not have a local church or other charity in mind, HOPE recommends www.ambassadorstothenations.com for a wonderful organization which funnels 100% of all charitable contributions to those in need.

3.  Pay Down Those Credit Cards! Want to improve your credit scores or shave some money off your monthly financial obligation budget?  If you do then paying down your credit cards is, by far, the best way to achieve both of these goals.  You will save money in interest and, since high credit card balances lower credit scores, you will also most likely see a positive increase in your credit scores.  (Note: Current HOPE members, please contact us to request a free HOPE Snowball Effect debt payoff plan to help you see the biggest “bang for your buck” possible!)

4.  Save Money for Debt Negotiations. Collection accounts can have a big impact upon your credit scores.  So, if you have past debts that are still hanging over your head (i.e. medical bills, student loans, credit cards, etc.) then now is the time to do something about it while you have the extra cash.  However, be careful before you start actually paying off these old debts on your own.  It is highly recommended that you check with a HOPE Negotiations Specialist first to see how you can potentially save up to 50% off your old debt and stretch your dollars as far as possible.  Don’t have any negative debt to pay off? Great! Instead of starting a debt negotiations saving account start (or add to) an emergency fund for your family.  The next time your car breaks down or you have an unexpected doctor’s visit you will be glad you set those funds aside for a rainy day!

5.  Become a Member of the HOPE Program. You may have figured that we would put this suggestion into our article.  However, we can say with 100% certainty that, if you desire to learn how to achieve healthier credit, then a HOPE Program membership is just what you need to get started!  With professional credit analysis appointments available for just $30 and affordable membership options beginning as low as just $99 per month it has never been easier to achieve the clean credit report you desire to have.  Interested in learning more about our membership services?  Give us a call at 704-499-9696.  Our caring staff will be happy to answer any questions you may have.

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The Dangers of Co-Signing

I came across a www.hope4usa.com article from a couple of years ago this afternoon that I thought was worth sharing again.  Many people do not truly understand the dangers and extreme risk associated with co-signing for a friend or family member's loan.  I hope that this article will help to shed a little bit of light onto the subject.

The Dangers of Co-Signing By Michelle Black

We've all been there.  A friend or family member asks you to co-sign for a car loan, a home loan, or some other type of finanancing and you feel obligated to help them out.  You might think that being a co-signer is not really that big of a deal since you are not the primary borrower on the account.  However, the truth is that co-signing for someone else really is a big deal and not only is it a big deal, it can be detrimental to your credit as well.

When you co-sign for someone else's loan you are legally responsible for the account just like you would be if you received the loan for yourself.  Plus, although you are not in control of making the monthly payments, the credit history for the account will affect your credit score.  If the person you have co-signed for makes even 1 late payment on the account, your credit score could potentially drop up to 100 points!

The HOPE Program strongly recommends that our members never co-sign for a friend or family member, not even for a child.  Spouses are the only people you should ever consider co-signing for and then only if 1 of you cannot qualify for the loan without the other's credit.  We know that can be very hard to say "no" to a loved one, but if you make up your mind ahead of time that you will never co-sign it can help to make the situation a little easier.  In fact, often times HOPE members simply tell their loved one, when they have been asked to be a co-signer, that their credit advisor has asked that they do not co-sign.  Period.  This helps the member not have to be the "bad guy" when faced with the request of being a co-signer for someone else's loan.

Remember, you can refer your friend or family member to the HOPE Program if they are facing credit issues.  Our caring staff will be happy to help the people you care about establish the healthy credit they need so that they will be able to achieve healthy, "loan ready" credit of their own.  Please call 704-499-9696 for more information on the amazing services offered by the HOPE Program.

5 Ways to Give Your Credit a Kick in the Pants!

5 Ways to Give Your Credit a Kick in the Pants!By Michelle Black

Earlier this week we discussed The 5 Fastest Ways to Damage Your Credit.  If you have not reviewed this list yet, please take a moment to check out the article.  It may save you from making a detrimental mistake which could set your credit score back as much as 100 points!

However, today we will be focusing on a subject that is always much more enjoyable: Ways to improve your credit.  Since the 3 credit bureaus (Equifax, TransUnion, and Experian) all have a different system they use to determine your credit score, it is impossible to predict specifically how much any one action will change your credit score.  Still, we do know that if you heed the following advice, your credit scores cannot help but to improve with all 3 of the credit bureaus (as long as no new negative actions on your credit counteract the new positive changes):

1.  Make payments on time. I always like to start with this recommendation because payment history is the single most important factor making up all 3 of your credit scores.  A whopping 35% of your credit score is determined by your ability to make your payments on time.  Even if you have had some recent late payments (within the past 24 months) that have damaged your credit score, if you make a plan today to start paying your current bills on time you will start to slowly dig yourself out of the hole. Plus, if you want to dig yourself out of the proverbial credit hole even faster you can check out some of the great services that HOPE has to offer. 2.  Have enough open credit cards. It is important to have open revolving accounts (AKA credit cards) on your credit report.  Your credit score is a snapshot to potential lenders of how you pay your bills.  Therefore,  if you do not have enough open accounts, you may have low scores or even no scores at all. HOPE members, please check with your HOPE credit specialist to see if it is recommended for you to open additional credit card accounts or if you already have enough active accounts appearing on your credit report. 3.  Pay down open credit cards. Yes, it is definitely recommended that you establish some current credit card accounts if you do not currently have enough open.  However, it is not recommended that you establish any new debt by charging up the balances on your credit cards.  If you do have balances on any of your current credit cards, especially if the balance is over 50% of your credit limit, aim to pay off your credit cards ASAP.  You could potentially see a huge increase in your credit scores by following this advice.  (Note: current HOPE members can contact us to request a HOPE Snowball Debt Payoff Worksheet for help making a plan to pay off your current debts.) 4.  Check your credit report for mistakes/erroneous information. All 3 credit bureaus are quite notorious for making mistakes on our credit report.  Even if your credit report is in pristine condition, it is important to check your credit report 1-2 times every single year to make sure that there are no new errors being reported.  The good news is that you are legally entitled to a free credit report (minus your credit scores) every year from www.annualcreditreport.com.  Make sure to check your report with all 3 credit bureaus. 5.  Use old credit cards occasionally. Your length of credit history makes up approximately 15% of your credit score.  This means that those older credit card accounts on your report actually help to boost your credit scores more than new accounts.  Often a creditor will automatically close a credit card account if you do not use it for a prolonged period of time due to inactivity on the account.  Solution?  Use your old credit cards several times per year for a small purchase (which you pay off immediately) in order to keep your older accounts open and active.

Don't forget, if you or someone you know is in need of professional credit advice or assistance, we would LOVE for you to take the time to consider the services offered by the HOPE Program.  We want the opportunity to answer your questions and offer our unique expertise on all situations related to your credit report and credit scores.  There really is no such thing as a HOPEless situation! Please feel free to give us a call with any questions you may have at 704-499-9696.  We hope to hear from you soon!

The 5 Fastest Ways to Damage Your Credit

The 5 Fastest Ways to Damage Your CreditBy Michelle Black

Let's face it, the world of credit can be confusing and overwhelming.  Learning how to achieve and maintain a healthy credit score takes a lot of studying and usually some professional assistance.  With 3 different credit bureaus (all of who work for your creditors, not for you!) having 3 completely different credit scoring systems it is easy to feel like you will never understand how to navigate your way through the credit maze.

However, there is some good news.  There are common factors that will cause your credit scores to increase with all 3 credit bureaus.  There are also common factors or actions which will cause your credit scores to decrease with all 3 credit bureaus.  Today, we will discuss 5 of the common factors which will cause your credit scores to decrease, or 5 of the fastest ways to lower your credit scores.  (Stay tuned later this week for 5 common factors which will cause your credit scores to increase!)

1.  Making late payments on current credit. Did you know that 35% of your credit score is based upon your payment history!? In fact, payment history actually makes up the largest portion of your credit score.  Therefore, making a late payment on a current account (i.e. credit card, student loan, car payment, mortgage payment, etc.) is by far the very quickest way to see a dramatic decrease in your credit score. 2.  New collection accounts. If a new collection account such as a medical bill, unpaid utility bill, cell phone bill, or any other negative account appears on your credit report you are very likely to see a sharp decrease in your credit scores with all 3 bureaus.  Collection accounts all affect your credit report negatively; however, a NEW collection account has more impact upon your credit scores than an old collection account. 3.  Higher credit card balances. This tricky factor often surprises many of our members.  Since 30% of your credit score is determined by the amounts you owe on your credit accounts then having a high credit card balance, especially if it is over 50% of the credit card limit, can significantly lower your credit scores even if you are making your monthly payments on time.  So, if you have a $200 Target charge card and you spend $150 on the account you have likely lowered your credit scores with all 3 of the credit bureaus.  Luckily, this problem has an easy solution.  When you pay off your credit card you should regain the points lost due to the higher balance. 4.  Opening an excessive amount of new credit. 15% of your credit score is determined by the age of your open credit accounts.  While it is important to have enough open credit accounts on your credit report it is also true that opening too many new accounts can lower your credit scores, at least temporarily.  It is recommended that you consult with a credit specialist or professional before opening new accounts, especially if you are planning to make a major purchase such as a home in the near future. 5.  Applying for an excessive amount of credit. Number 5 goes hand in hand with number 4, but there is an important difference to point out.  The simple act of applying for too much credit can lower your credit scores even if you are turned down for the new accounts.  The fact is that every time your credit is pulled for a new credit application you lose an average of 1-3 points (depending upon the credit bureau) and you will  typically not recover these p0ints for 3-6 months.  Now, 1-3 points per credit pull may sound like a small amount to you, but if you apply for 10 new accounts in a month you could be losing up to 30 points from your credit score! So, the next time you are in your favorite department store and someone offers you a 15% discount "just for applying for our credit card today" your best bet is to offer the sales clerk a polite "no thank you."

Don't forget to check back for part 2 of this blog series later this week.  Today we discussed 5 of the most common actions you want to avoid in order to prevent your credit scores from dropping.  Later this week we will discuss some common ways to help achieve healthier credit!

If you or someone you know is in need of professional credit advice or assistance, please take the time to consider the credit specialists at HOPE.  We would love the opportunity to answer your questions and offer our unique expertise on all situations related to your credit report and credit scores.  Remember, there truly is no such thing as a HOPEless situation! Please feel free to give us a call with any questions you may have at 704-499-9696.