Tag

loans Archives | Ovation Credit Repair Services

Why We Love Improving Credit (And Why You Should, Too!)

By | Credit Repair

Improving credit can give people such a great feeling. It comes as a relief because it lets you put money-related setbacks or mistakes in your past. At the same time, it offers an exciting new start for your financial life.

Love Improving Credit

In particular, improving credit can positively affect the following areas.

1. Credit Cards

With a more impressive credit, it’s easier to get credit card applications approved. Plus, your interest rates will be lower.

Also, in some cases, credit card companies will automatically raise your borrowing limits as your credit score goes up. And, if they don’t, you could always apply for higher limits. Even if you don’t spend any more money with your credit cards than you have in the past, a higher credit card limit will help you. That’s because it will lower your credit utilization ratio. That ratio measures how much you spend versus how much you could spend. A lower credit utilization number will mean an even higher credit score.

In addition, there are various credit card bonuses that people with good credit may be eligible for, including programs that provide rewards points or cash-back offers.

2. Loans

Reputable lenders are much more likely to authorize loans to people with solid credit reports. Therefore, you’ll surely be capable of securing larger loans and more favorable terms ― such as lower interest rates ― with a better credit score.

Equipped with that higher score, you could also try to renegotiate and refinance loans that you’ve already taken out, especially a mortgage if you have one. Maybe you’ll be able to eliminate certain fees or extend the length of a loan, which obviously would mean making smaller payments each time.

3. Rental Homes

Nowadays, it can be difficult to find a landlord who’ll let you rent an apartment or other type of housing if your credit is poor. Many landlords feel, rightly or wrongly, that tenants with bad credit are less likely to pay their rent on time.

This fact holds true for rented vacation homes as well. Whether you’re renting such a place for one time only or on a recurring basis, you very well might obtain lower rates and fees if the owner knows that you have good credit.

4. Security Deposits

When your credit report is healthy, you may not have to pay security deposits when you sign up with a new utilities company or buy a new smartphone. And, by not having to pay such deposits, you could save hundreds of dollars over time.

5. Getting a Job

If you’re applying for a new job, your prospective employer might ask to look at your credit report. You’d need to give your consent in writing before anyone could do so. And, if you have an excellent report to show off, it might make you look especially responsible and mature.

At this time, most employers don’t look at credit reports, but that situation could change. Moreover, if you’re applying to a company that does check out these reports, having better credit might give you an extra surge of confidence when you go in for your job interview.

6. Auto Insurance

Car insurance companies often calculate that people with higher credit scores file fewer claims. As a result, they frequently charge higher premiums to those with lower scores. Therefore, improving your credit can be a major advantage when you’re looking for an auto insurance policy.

 



We have a Credit Analyst Ready to Take Your Call Now.

  Free Credit Consultation

Take Advantage of this FREE offer.

 


Repairing or Improving Credit

With all of these benefits in mind, you might be wondering how to begin repairing or improving your credit. Well, a reputable credit repair company is a good place to start. The professionals will work with you to comb through your credit report and find errors that are negatively affecting your credit. For example, perhaps your record states that you forgot or were late with a certain debt payment, but you’re sure that you paid it on time. Your credit repair company will dispute on your behalf to hopefully get that removed. Not to mention, in the process of advocating for you, your credit repair representatives could offer you a wealth of financial advice on how to live a better credit life.

It’s all too easy to spiral downwards financially. As you’ve read, when you have bad credit, it’s harder to obtain favorable conditions from lenders, landlords, credit card companies and others, which means it becomes harder to pay back the money you already owe. Then, if you fail to make some of those payments, your credit score will drop even further, which can put extra monetary strains on you. The cycle is vicious.

Fortunately, the opposite is also true. When you boost your credit, you’ll accrue an array of benefits that will make it much simpler to live within your means and save for the future. As time passes, your economic outlook should look brighter and brighter. With an outstanding credit repair service at your side, you can finally break free from harmful spending patterns and take charge of your financial life. That sense of personal empowerment may be the best reward of improving credit.

Sources:

http://www.huffingtonpost.com/nextadvisorcom/6-surprising-ways-having-_b_6000364.html

http://finance.yahoo.com/news/6-biggest-ways-bad-credit-110012930.html

http://money.usnews.com/money/blogs/my-money/2012/02/21/6-benefits-and-rewards-of-having-awesome-credit

http://www.msn.com/en-gb/money/moneymatters/reap-the-benefits-of-an-excellent-credit-score/ar-AAdgJjH

https://www.thebalance.com/having-good-credit-score-960528

Credit Score – 4 Reasons It Matters During Retirement

By | Credit Scores, Your Credit

Retirement and Your Credit Score

You’ve reached your retirement years. Congratulations are in order. What’s more, you might have enough money to live on thanks to some combination of savings, investments, a pension and Social Security payments. On top of that, you might not be planning to make any major investment, such as a new home, in the future. So who cares about your credit score, right?

Well, this idea is a common misconception among seniors. In fact, your credit report will matter a great deal to you for the rest of your life. Without one that’s above average, you won’t have access to the following financial benefits.

1. Loans

For one thing, your car could stop suddenly working due to age, an accident or another problem. If you want a decent chance of securing an adequate car loan, you must have good credit.

Likewise, the need for an emergency loan might arise. It’s certainly horrible to think about, but household accidents, abrupt illnesses and other crises can happen at any time. To avoid paying an exorbitant interest rate on such a loan, a high credit score is again essential.

2. Refinancing

The Consumer Financial Protection Bureau reports that 30 percent of Americans who are at least 65 years old make mortgage payments. In addition, the research company Strategic Business Insights has found that about 40 percent of Americans who are between the ages of 60 and 64 have mortgage obligations.

If you’re in one of those groups, you might want to ease your burden at some point by refinancing your mortgage, especially in a time of low interest rates. However ― and you may be noticing a pattern here ― you won’t be eligible for those low rates if you lack an acceptable credit score.

Not to mention, if you ever find yourself in trouble financially, you might wish to negotiate a cash-out refinancing. Doing so should be a last resort, but if you’d like access to such funds, you’ll probably obtain better terms with a strong credit report.

3. Rewards Cards

You might have a longtime aversion to using credit cards. And it’s true that a person who has trouble paying off credit cards would be wise to avoid them altogether.

On the other hand, if you’re diligent about paying your debts, your plastic can actually provide financial relief. That’s because it can give you so many rewards.

For instance, a cash back card will essentially supply you with free money as you make purchases, and those bonuses can really add up over time. Plus, credit card companies often give people small sums of cash just for signing up.

Frequent travelers can especially benefit from credit card usage ― by using platinum rewards cards in particular. That’s because those cards can help you earn free nights in hotels as well as discounts on airfare, rental car insurance, luggage fees and more.

However, if your credit score is poor, it’s unlikely that you’d be eligible for any cash back cards, let alone one at the platinum level.

4. Insurance Rates

It’s wise to keep looking for the best insurance rates you can, even if that means switching companies from time to time. Why spend money on your insurance unnecessarily?

It might not seem fair, but home and car insurance providers might take your credit score into account when they’re determining your monthly rates. Yes, a low score can mean higher costs.

The thinking behind this strategy is that people with good credit scores are responsible individuals and less likely to cause car accidents, leave their homes unsecured, start fires by accident and so on.

So How is Your Credit Score?

At this point, you might realize that you’ve been neglecting your credit score for a while; you might even be starting to worry. Fear not. There are plenty of ways to boost it. To give you just a few examples:

  • Always pay all your bills on time.
  • Remember that not using your credit cards won’t help your credit score. If a credit card company ends its relationship with you because you’re not taking advantage of its card, it could hurt your credit score. For the same reason, try not to close your credit cards.
  • Use your credit cards for small, regular purchases, and make a habit of paying them off on the same day every month.
  • Keep searching your credit history for errors. If you have a friend or a relative who’s a financial expert, she might be able to help you find a mistake. Then contact the credit reporting agency that made the error to argue your case.
  • Obtain outstanding credit repair services, and watch happily as your score rises.

Finally, you’ll find that good credit brings an additional benefit, one that’s intangible yet invaluable: peace of mind. If your children or grandchildren need monetary help or if life throws an expensive curveball your way, you’ll have the means to improve the situation. After all, you’ve worked hard all your life. You deserve to enjoy your golden years without fearing financial hardships.

Sources:

http://www.aarp.org/money/credit-loans-debt/info-2015/credit-score-changes-for-consumers.html

http://abcnews.go.com/Business/credit-retirement-important/story?id=29789894

http://www.fool.com/investing/general/2016/01/29/why-your-credit-score-matters-during-retirement.aspx

http://www.foxbusiness.com/features/2016/03/18/keep-your-credit-score-in-good-standing-it-never-retires.html

http://www.forbes.com/sites/moneybuilder/2014/05/02/11-ways-to-raise-your-credit-score-fast/#3d14483c1716

http://money.usnews.com/money/blogs/on-retirement/2013/05/28/5-reasons-your-credit-score-matters-during-retirement

Avoid the Student Loan Abyss

By | Debt, Personal Finance

Learn How to Manage Your Loans Now

Perhaps the best piece of advice anyone could give to their former-self is to manage student debt better from the start. Student loans are hard to avoid all together, but there are plenty of ways to reduce the amount of debt you’ll eventually owe.

Whether you’re planning for yourself or your child, here are just a few ways to manage student debt better:

Before Debt

Before taking out a student loan try applying for any (and all) scholarships you qualify for. The application process isn’t easy, and often requires writing on your part, but they can help save you thousands in debt.

Get Organized

Multiple loans are often required to cover the cost of a four year university. It helps to get organized. To help reduce the time paying loans, create a “favorites” folder in your browser. By bookmarking your loan payment pages you can access them quickly and easily. Create an excel sheet to help keep track of usernames, login IDs, passwords and more. By keeping track of account numbers, logins and passwords you’ll never have to worry about forgetting your account details. Just make sure to password protect the excel sheet in case your device should end up in the hands of someone other than yourself.

Create a Budget

As a new member of the workforce you may not have the funds to pay your student loans. There are plenty of options for new graduates including forbearance and deferment of payments. The issue becomes mounting interest. It’s okay if you can’t make payments right away, but it’s important to figure out your finances and begin making payments as quickly as possible to reduce the amount you’ll pay overall. By creating a budget for yourself you can make timely payments, and reduce the amount you’ll owe and even rid yourself of debt sooner than the term of your loan.

Refinancing

Refinancing during the recession was near impossible, but start-up companies like SoFi now make it possible to refinance your student debt. By bundling multiple loans together you can reduce the amount you pay in interest, and even reduce what you owe each month. If you built up good credit in the years since graduating, refinancing could be a way to save on student debt.

Avoid Schemes

Don’t be swindled by would-be scammers. There are a number of fake websites dedicated to student loan “forgiveness” and student debt “settlement” that charge an upfront fee and monthly payments to help you rid yourself of student debt. Don’t fall for these scams. Do your research before taking any action against your student debt.

Automatic Payments

Many student loan lenders provide discounts to customers who set up auto-payments. You can decrease your interest rates by .25% by allowing the lender to remove funds on your due date automatically. It’s also an easy way to make sure your payments go out on time and you don’t acquire late fees. Just make sure you always have funds in your account so that you don’t overdraft.

Student debt isn’t abnormal, and it doesn’t mean the end of the world. If you manage your finances responsibly, and create a repayment plan for yourself you’ll be out of debt without financial burden.

Was this article helpful? How do you manage your student debt? Let us know in the comment section below.

4 Types of Credit and How They Impact Your Credit Score

By | Ask a Credit Expert, Personal Finance, Your Credit

We’ve all been there: butterflies in our stomachs, sitting at that desk, waiting for the fast-talking guy to come back and tell us whether or not we’re approved for a loan.

Having good credit is important in today’s society, as our homes, the vehicles we drive and many other aspects of daily life are dependent on having and maintaining a positive credit score. There are several things that lenders are looking for that can impact your score, including your payment history, outstanding debts, length of credit history, whether or not you have new credit and the types of credit you use.

Loans are the kind of credit used when either cash or goods are advanced to a person, with the understanding that the loan will be repaid. The lender often makes the ultimate decision based on the factors above, and this type of credit can be very risky, depending on the terms they set up, in particular the interest rate. Typically, you need to have good credit or a down payment equal to 20 percent of the total loan or both to qualify.

Utilities, such as electric, water, garbage and sewer, are called service credit. This kind of credit is almost always established when you move to a new place, as utility companies often require a deposit of some sort, which is typically credited to the account within 6 months to a year. This type of credit almost always has set due dates, as well as late fees if not paid on time.

When financing is set up on a purchase, installment credit gives you a chance to actually keep and use the item, with your promise to make payments on it until it is paid off. If there is a lapse in payments, the lender can repossess the item.

Credit cards, often the most used and most accepted form of credit, provide upfront monies that the user is billed for monthly. Banks, retail stores, businesses and credit card companies provide a wide variety of credit cards to apply for, but examine the terms and conditions closely, because creditors do charge interest that can rapidly increase your credit card balance if not kept under control.

These types of credit are often distinguished by two factors: 1) whether it is secured or unsecured credit and 2) whether it is revolving or non-revolving credit. Secured credit, such as a secured credit card, is a safer option for lenders, because you provide the funds up front, and it allows you to both establish and build credit without preapproval. All secured credit lines charge an annual fee, so watch for it and make sure you understand the terms and conditions.

No collateral is required for unsecured credit, but lenders will approve your application based on your credit score, length of employment and annual income. Examples of revolving credit include credit cards and department store cards. Non-revolving credit, however, demands a specific payment on a specific date, until the loan has been fully satisfied. Also called installment agreements, examples of these types of credit include student loans, home loans and car loans.

Before you apply for that loan, educate yourself about these different types of credit and how they can affect your credit score. With this knowledge, you may be able to avoid those butterflies in your stomach.

Call Now for a FREE Credit Consultation

CALL US NOW