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fix credit Archives | Ovation Credit Repair Services

Credit Repair: Tips to Help Maintain a Good Credit Score.

By | Credit Cards, Credit Repair, Credit Reports, Credit Scores, Loan, Payment, Personal Finance, Revolving Debt

Accurate negative information generally remains listed on your credit report for up to seven years, while bankruptcies remain for 7-10 years.   However, there are things you can do to gradually improve and maintain a good credit score, such as the following:

  • Fix any inaccurate information.  This is one of the most important things you can do to maximize your credit score.  Up to 79% of credit reports contain errors.
  • Update old accounts.
  • Request that old inquiries be removed (older than 2 years).
  • Pay your bills on time. Delinquent payments, even if only a few days late, and collections can have a major negative impact on your score.
  • If you have missed payments, get current and stay current. The longer you pay your bills on time, the better your credit score. Older credit problems count for less, so poor credit performance won’t haunt you forever. The impact of past credit problems on your score fades as time passes and as recent good payment patterns show up on your credit report.
  • Be aware that paying off an accurate collection account will not remove it from your credit report. It will stay on your report for seven years.
  • Keep balances low on credit cards and other “revolving credit”.  High outstanding debt can affect a credit score.
  • Pay off debt.  The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.
  • Don’t close unused credit cards as a short-term strategy to raise your score. Maintain your accounts for a long time.  The longer your credit history, the more it helps increase your credit score.  Closing older accounts can actually lower your score.
  • Don’t open a number of new credit cards that you don’t need, just to increase your available credit. Apply for and open new credit accounts only as needed. Don’t open accounts for the purpose of providing a better credit picture – it probably won’t raise your score and, in some instances, may even lower your score.
  • If you have been managing credit for a short time, don’t open a lot of new accounts too rapidly. New accounts will lower your average account age, which will have a larger effect on your score if you don’t have a lot of other credit information. Also, rapid account buildup can look risky if you are a new credit user.
  • Do your rate shopping for a loan within a focused period of time. FICO scores distinguish between a search for a mortgage or auto loan, where it is customary to shop for the best rate, and a search for many new credit cards.

 

Rates Are Low, But Can You Get a Mortgage?

By | Credit Repair, Credit Reports, Credit Scores, Debt, Fannie Mae, Home Buying, Homeowner, Loan, Mortgage, Real Estate, Your Credit

Mortgage rates are bouncing off of 40 year lows.  Seems like the best time to buy a house or refinance.  Not so fast – there is a catch.  You have to qualify first!

Before the recession, qualifying for a mortgage was not much of an issue.  The overall standards were pretty low.  If you had a low credit score, you could still qualify for financing.  Your credit score did not necessarily determine if you qualified more so than the rate that you qualified for.   People with higher credit scores received lower rates and people with lower credit scores received higher rates.  But just about everyone qualified for something. 

The lending environment today is vastly different.  Only those that meet the highest qualification standards can get financing.  According to the Federal Reserve, about seventy five percent of those that apply for financing are qualifying.  Of course, the number of those applying for loans has decreased significantly. 

According to Fannie Mae and Freddie Mac, the average credit score for loans that they finance has risen to 760.  It was 720 just a few years ago.  For FHA loans, the average score has increased to 700 from 660.

The subprime market has just about disappeared altogether.  Before the recession, subprime lenders routinely made loans to borrowers with credit scores below 620.  Today, it is very difficult to find lenders willing to make these loans. 

If you are thinking about financing, you should check your credit score.  If your score is below some of the qualifying averages, take proactive steps to improve your credit scores.  Remember, about eighty percent of the credit reports contain errors.  With a little bit of effort, you might find that you do qualify for a loan at the current rates after all.

Information on Credit Reports

By | Consumer Rights, Credit Laws, Credit Repair, Credit Reports, Credit Scores, Fair Credit Reporting Act

Credit Reports generally contain five types of information:

Identification Information: Information such as the name of the individual, current and previous residential addresses, and Social Security number.

Trade Line Information: Detailed information reported by creditors and other furnishers on each current and past loan, lease, or other debt (such as utility and medical debts).

Public Record Information: Information derived from financial-related public records, such as records of bankruptcies, foreclosures, tax liens, garnishments, and other civil judgments.

Collection Account Information: Information reported by collection agencies regarding credit accounts and other debts.

Inquiry Information: Identities of individuals or companies that have requested information from an individual’s credit file; the date of inquiry; and an indication of whether the inquiry was by the consumer, for the review of an existing account, or to help the inquirer decide on a potential future account or relationship.

Unfortunately, an alarming number of these files (credit reports) contain serious errors and could cause the denial of credit, a loan, or a job, so monitor your credit report and minimize or eliminate future credit problems.  A recent study of consumer credit found that 3 out of every 4 credit reports contain errors, some large enough to cause credit denials.

  • Twenty-five percent (25%) of the credit reports contained errors serious enough to result in the denial of credit;
  • Seventy-nine percent (79%) of the credit reports contained mistakes of some kind;
  • Fifty-four percent (54%) of the credit reports contained personal demographic identifying information that was misspelled, long-outdated, belonged to a stranger, or was otherwise incorrect;
  • Thirty percent (30%) of the credit reports contained credit accounts that had been closed by the consumer but incorrectly remained listed as open.

Credit Repair: How Can You Tell The Good From the Bad?

By | Consumer Rights, Credit Repair, Fraud Protection

It’s a jungle out there! The following list identifies a few things you should consider when selecting a credit repair company:

1: Does the company identify their owners/attorneys, or addresses?
Unfortunately, the internet allows many scammers to appear as legitimate companies through legitimate looking websites. Before you give your hard earned money and personal information to anyone, make sure you can verify the company’s information and credentials. You can verify Ovation’s information from a number of independent sources including the Florida Bar, the Florida Department of State, and the Better Business Bureau.

2: Does the company have significant Better Business Bureau Complaints (or are not even affiliated with the Better Business Bureau)?
While any company can accrue a few random BBB complaints, significant number of complaints may be an indication that the company does not operate fairly towards its customers. Check BBB reports frequently and avoid companies that manage to accrue hundreds of complaints. To check for complaints, visit www.bbb.org and click on “Go to Local BBBs”. Question any company that chooses not to be affiliated with the Better Business Bureau; they may be trying to hide the truth about their organization. Our history with the Better Business Bureau dates back to 1976.

3: Does the company request fees in advance?
The Credit Repair Organizations Act (CROA) requires that credit repair company charge for services only after they are  rendered. Requirements for large upfront payments are tell-tale warning signs of unethical companies. We only charge for work that has been completed in full. Learn more about the CROA in our Learning Center.

4: Does the company disclose your rights?
Consumers have the right to conduct their own credit report repair. You don’t have to hire someone to do if for you. For those that do, Ovation offers its services to individuals seeking legal professionals to manage their credit report repair. Ovation discloses your rights to you on every page of our website as well as in your signup package. We want you to be informed and you should steer clear of any company that doesn’t want you to know your rights.

5: Does the company advocate illegal tactics such as creating “new” identities?
Creating a new identity by applying for a Employer Identification Number to merge or replace a social security number is a serious crime and can lead to significant personal liability. To learn more about this type of illegal credit tactic, visit our Learning Center.

6: Does the company advocate fraudulent reporting of credit lines?
Purchasing a listing on someone else’s credit lines for the purpose of reporting a positive account is unethical at best. Trying to con the credit bureaus and your future and current creditors is a significant issue that can lead to personal liability. To learn more about this type of illegal credit tactic, visit our Learning Center.

7: Does the company simply dispute all your negative items without requiring any input for the client?
Regardless of how they market themselves, this is a key indicator that the company is a “rookie”. Not only are these types of companies violating federal law by disputing on your behalf in bad faith (which could lead to personal liability), these companies are making it more difficult for you to achieve sustainable results. To learn more about this type of illegal credit tactic, visit our Learning Center.

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