Is It Better To Fix My Credit Myself?

Is It Best to Fix My Credit Myself?

Let's face it, the credit repair industry has a bad reputation.  There is a lot of scam and deception associated with credit repair.  Because of this fact, many people believe the best option available is to fix their credit reports themselves.

Now, I agree that it would be better to try to fix your own credit than to be ripped off by a dishonest company and you absolutely have the right to try to navigate the tedious and complicated process of repairing your credit on your own. However, there are some reputable and trustworthy options out there you may want to consider first. 

Here are a few reasons why it can be better to have professionals, like the credit experts from HOPE4USA, to assist you rather than trying to make sense of the credit maze all alone:

1.  Speed - Those who try to tackle their credit problems alone often give up after unsuccessfully trying for years and still never achieving the results they want to see.

2. Aggravation - HOPE4USA clients do not have to spend their own precious time on the tedious process of trying to deal with the credit bureaus, creditors, and collection agencies all alone.  Our team is here to take most of the leg work out of the process for you. You do not have to spend hours upon hours on the phone trying to resolve and track down old, potentially inaccurate accounts when you can have a professional work to try to accomplish these goals on your behalf.

Remember, it is your legal right to work on your own credit reports. If a company tries to tell you otherwise, run away because it is definitely a scam.  However, it is also your legal right to file your own taxes or to represent yourself in a court of law.  Most of us hire an accountant to file our taxes and most of us would hire an attorney to help us with legal matters. Why, because of the experience of these experts which can often help us to achieve a more favorable outcome than we would have on  our own. The same principle rings true when trying to work on your credit problems. 

What Makes Up A Credit Score?

I am often asked: "What makes up my credit scores?"

Credit Score Factors

Although we don't know 100% about how a credit score is determined, FICO considers the following factors (the weight it assigns to each category is in parentheses):

Length of your credit history (15 percent).
The longer your accounts have been open, the better.

Payment History (35 percent).
Your score is negatively affected if you have paid bills late, had an account sent to collection, or declared bankruptcy. The more recent the problem, the lower your score -- a 30-day late payment today (currently past due) might even hurt more than a bankruptcy five years ago.

Outstanding Debt (30 percent).
If the amount you owe is close to your credit limit, that is likely to have a negative impact upon your scores. A lower balance on two cards is generally better than a high balance on one card. Your best bet is to pay your credit card balances off in full monthly.

Recent inquiries on your report (10 percent).
If you have recently applied for many new accounts, that will likely negatively affect your score. Promotional inquiries or checking your own credit does not count against you.

Types of credit in use (10 percent).
FICO likes to see that you have a history of managing a variety of account types. 
 

10 Tips For Keeping Your Credit Card(s) Safe and Sound

10 tips for keeping your credit card(s) safe and sound:

1. Don’t give your account number over the phone unless you’ve initiated the call. If you’ve dialed a wrong number, don’t give it out at all.

2. Consider a card that has added security features, like a photo ID.

3. Never write your account number or PIN on the outside of an envelope or postcard.

4. Draw a line through blank spaces on charge slips above the total to prevent any changes. You want to tip well, but you do not want to leave room for a dishonest person to take advantage of you either. 

5. Don’t sign a blank charge slip unless absolutely necessary, and only if it’s in an actual store.

6. Save receipts.

7. Always check receipts against your monthly statements. If anything looks fishy, report it within 60 days of the statement’s mailing date.

8. Make a list of card numbers, expiration dates, and the toll-free numbers of your credit card companies. Keep this record in a safe place, separate from where you keep your cards. Use this information if you ever have to report your cards lost or stolen.

9. Carry only the cards you need, especially when traveling. To clarify: you may need 1 or 2 cards. You probably will not need 6.

10. Do not leave cards or receipts lying around your room, no matter where you live.  

What Is A Good Credit Score?

I am often asked, "What is a good credit score?"  Here is a chart that will help you.

• 760 – 850 – Excellent – the best financing terms and represents the best score range

• 700 – 759 – Very Good – qualifies to receive favorable financing

• 675 - 699 - Average – will qualify for most loans

• 620 - 674 - Sub-prime – may qualify but will likely pay higher interest rates

• Below 620 - Risky – might have trouble getting a loan
  
  

What personal information will I find on my credit file?

What personal information will I find on my credit reports?

The data on your credit reports may include:

-Your Name

-Present and Past Address

-Present and Past Employment

-Your Social Security Number

-Your Date of Birth

Typically, this is the personal information you supply when you apply for credit.

What is considered a public record?

Concerning credit bankruptcies, court judgments, and tax liens are most commonly [items] found in the public records section of your credit reports. Public records are available to anyone who requests to see them.  

How long can information stay on my credit file?

Generally, information can remain in your credit file for around 7 years from the date of default.