We’ll explain each of the four pillars of credit repair in detail below. Just remember, each step on its own will not be enough to completely fix your credit. Credit repair, after all, is like peeling an onion: You have to peel away a few layers before you get to the good stuff. But we’ll try our best to make sure your credit recovery doesn’t bring you to tears.
If so, you've come to the right place. We know how challenging it is to resolve today's credit issues, therefore our goal is to ensure satisfaction of every client by being superior in the field of credit repair. Easy Solutions has a proven track record, with a strong portfolio of satisfied clients, and was voted Best Credit Repair Services in Brownsville and McAllen, Texas. Become our next success story. Sign up today!
If you use your credit card at an ATM, it will be treated as a cash advance. Most credit cards charge an upfront cash advance fee, which is typically about 5%. There is usually a much higher “cash advance” interest rate, which is typically above 20%. And there is no grace period, so interest starts to accrue right away. A cash advance is expensive, so beware.
Traditional debt consolidation companies review your debts, income and credit score. If you qualify for a debt consolidation loan, they will discuss terms with you which will include the repayment period, the interest rate and the monthly payment. After you are issued a check, you will pay off all of your individual credit cards and owe one monthly payment to the credit consolidation company. One of the downsides of working with a traditional debt consolidator is that your credit card accounts are open and available for use. You may be tempted to continue using your cards and could wind up doubling your debt. Consider the following tips if you decide to work with a traditional debt consolidation company and take out a brand new loan:
A good credit repair company will first pull your credit reports from each of the three major credit reporting agencies to pinpoint your credit issues. Why all three? Because each credit reporting agency has its own “data furnishers” (aka lenders, credit card companies, debt collectors, etc.), who report your credit information to them. And there may be errors that appear on one of your credit reports, but don’t appear on the others
What to look out for: If you decide to take out this card and become a member of the SDFCU by joining the American Consumer Council, make sure you do not go to the ACC’s website and submit a $5 donation. That fee is waived by the SDFCU when you fill out your credit application. Simply select “I do not qualify to join through any of these other methods:” and select the ACC from the menu to avoid the $5 fee.
One of the sneaky-quick ways to increase your score is to add yourself as an authorized user on someone else’s. According to FICO, 35% of your score is based on your history of on-time payments, so when you become an authorized user on a friend or family member’s credit card, car loan, or installment loan, etc. you automatically “assume” the same positive history of payments on your credit report. Viola! Your score will go up as well. You do need to make sure the lender registers your social security number and will start reporting the change, and it can take 30 days to reflect on your own credit report (unless you do a Rapid Rescore—see below). But becoming an authorized user is a fantastic way to benefit from a great payment history that’s not even yours.
You could misuse loan funds: A home equity loan can be used for just about anything, and that may be problematic for borrowers with poor spending habits. You may, for instance, want to pay for an upcoming vacation or wedding, but that will only result in more future debt without any return on your investment. Home repairs or renovations are a better use of funds, as they can increase your property value.
Your credit score (often referred to as your FICO score) provides a snapshot of your credit status. It's determined by a variety of factors, and obviously, you need to understand the components that affect your credit score before you can start to repair it. Although the exact formula used by the Fair Isaac Corporation, which compiles the score, is proprietary and not publicly disclosed, here's basically what it looks at, and how each factor is weighed:
Taking out a loan should be a relatively seamless process. There are a lot of lenders to choose from, so conducting research to see which financial institutions provide the best — and worst — user experience can save you a lot of headaches. Browse each bank’s website to review customer service contact options, read reviews and search social media to see what people are saying about your top choices.
You might think it's a wise idea to use leftover cash, like a holiday bonus, to pay down your debt. But you also want to make sure you're setting aside extra money for things like an emergency savings account. "Don't put all extra funds toward debt. Doing so just leaves you in a place where you do not have any cash to cover an emergency. Having no cash for an emergency, say a car repair, means taking on more debt, perpetuating the problem," says Krista Cavalieri, a certified financial planner and owner of Evolve Capital, based in the Columbus, Ohio, area. Keep in mind, that additional money could be better spent on essential big-ticket items.
Life is a search according to many philosophers and poets, but it has become a web-search today. Fast credit repair companies are raking in millions by providing non-refundable fees that contradict the legitimacy of the process. Effective credit repair is a process involving time and expertise. Countless consumers either fell victim to “great credit in a minute” schemes or purchased a “kit” with the wrong blueprints for success and are now feeling the pain and suffering from the fallout. Many customers who expected to be a lender’s dream in just a matter of days are now faced with the nightmare of a damaged credit file and a score sometimes lower than when they signed up for that magic cure. Newsflash – the man behind the curtain, is almost always up to no good.
If you already have a good-to-excellent credit score and a low debt-to-income ratio, you may want to consider refinancing your student loans. When you refinance your loans, you take out a new credit-based private student loan and use the money to pay off some or all of your current loans. (The lender will generally send the money directly to your loan servicers.)
UPDATE: The Alternative Loan Machine is actually fixing the issue for me now. Apparently the problem was during the period when they were switching from beta testing to going live. Their communications were down while they were transferring everything over to their new system. They’ve since contacted me and are assisting in getting my refund back from the vendor I hired through them, so everything’s getting taken care now. They are at this time doing everything they advertise themselves doing.