Interesting Question

If a negative item gets removed from your credit report does it also get removed from public records?

Answer is NO.  Credit repair companies’ sole focus is to keep creditors and credit bureaus honest.  Something most people don’t realize is that credit bureaus and creditor have to follow the letter of the law when they report something on people’s credit reports.

If a negative item is removed due to a creditor not following the letter of the law that does not mean you are no longer responsible for the debt.  Negative items that belong to you but are removed from your credit report due to negligence still belong to you.  So if there is a judgment or some other legal debt filed in public records you will still be responsible for that debt unless you file for bankruptcy.

This question was recently asked by one of our clients.  I was not entirely surprised by the question but it does remind me of why the credit repair industry has had such negative stigma.  False promises and guarantees are very common in most industries including credit repair.  Questions like this one are a clear indication of the kind of false claims and promises scrupulous companies make to take people’s money.

The professionals at CredTEK Corp. do not make false promises in fact we tell you what most people don’t want to hear.  In a society where instant access to just about anything is right at your fingertips most people want things done right away.  The credit repair industry is a totally different animal.  And even though it takes less than 30 days to ruin your credit, it could take some people years to get it re-established.  Hiring a professional to repair your credit will help cut that time significantly.

Credit Tip Of The Week

Take care of those things besides a credit score that affect how lenders view you.

Lenders will often look at not only your credit score but at other financial indicators, such as your income, employment record, and savings.  Keeping these things in order can complement your credit score and can help you get good overall credit. Some lenders have their own ways of calculating credit scores, so keeping your overall financial system in good shape is one way to ensure that you are in good shape in all lenders’ eyes.

Be aware that when lender ask to see your credit score, the credit bureaus send not only your credit score, but also the top four reasons why your credit score is lowered.  The most common reasons for lowered credit scores are:

1) Serious delinquency in repaying accounts or bills.

2) Public record of bankruptcy, civil judgment, or report to a collection agency

3) Recent unpaid or late paid debts or accounts

4) Short-term credit record

5) Lots of new accounts

6) Many accounts have late payments, defaults, or non-payments

7) Large debts or amounts owed.

Knowing that your lender sees these possible problems can help you see the need to develop the best possible face to present to a lender.  Lenders who look at your entire credit report may get a more positive picture of you than lenders who see only a number and four reasons for a lower score.

Fixing Credit Reports

At times when you need a bit of help in repairing your credit, call the credit professionals and see the difference when someone fights for you.

Restoring your credit picture is a huge task because not only the solution would involve money it also involves a great deal of dedicated thinking. The hardest part is taking the right steps which are usually masked from the sufferer.

If you think your financial dilemma is too much for you don’t hesitate to call the experts. They are there for a reason. They deal with a number of consumers who like you have had certain financial difficulties; some have even experienced a worse state than you. So start dialing their hotline now. It may save you more than you can expect to lose.

Basic credit restoration strategy involves analyzing your credit report. This little method always helps, especially if you spot a dozen errors along the way. Make a list of every detail you consider questionable or negative.  Write a letter disputing the errors and send it to the creditor. It may or may not help however there are times when lenders make mistakes.  In fact nearly 79% of all credit reports in the US contain errors.

CredTEK Corp. was created to provide consumers with affordable and reliable credit restoration services. They are adept at restoring damaged credit profiles. Not only repairing and improving your credit picture but also increasing your credit scores. The professional level of relationship allowed them to develop a kind of service that is tailored for every individual client, with their unique and varied circumstances.

Let the friendly and qualified professionals at CredTEK get you on the way to a new beginning. Just log on their website http://www.credtek.com/ or give them a call toll free at 1-888-789-4442 or FAX at 1-888-768-5151. You could email them at info@credtek.com. So, get relief from the stress and anxiety of a poor credit rating. Contact CredTEK today.

At times when you think you need a bit of help, don’t rely on faith alone. Call the credit professionals and see the difference when someone fights for you.



Credit Tip of The Week

Think like a Lender

If you think like a lender, you can see which habits and traits you need to develop in order to be considered a good credit risk.  Thinking like a lender will help you understand how you must manage your money to be appealing to lenders.  There are few tips that can put you into the right mind set:

Tip:  Know how money works

Reading books about money and understanding how your accounts and loans work can go a long way towards helping you keep your credit in good repair.  For example, if you know that some loans will charge you extra if you pay off your loan faster while others will not, you will be in a better position to make financial decisions. 

Plus, the more you know about money in general, the more comfortable you will feel with it and the better decisions you will be able to make, which will help improve your overall financial state and will help you keep your credit in good shape.

You don’t need to do heavy-duty research to appreciate how money works.  One easy way to consider money is to think of it the way you think of time.  You likely hate to waste time and you want to make the best use of it possible.  Apply the same attitudes to your financial life and watch your finances soar!

If overspending has caused you to have a bad credit score, consider the following sneaky mind set trick: equate your money with your time.  For example, if you make twenty dollars an hour, then a magazine subscription of $20 will represent one hour of your work. 

Imagine an hour of your work and ask yourself whether the subscription is worth the time you put into the twenty dollars.  Once you start seeing money as something that comes from your hard work rather than a general “thing” impulse spending will seem much less attractive, and it will be easier to keep your credit card limits low and you bank account stocked up with cash!

Credit Tip of The Week

Work on your emotional response to debt and money in general.  Most of us carry a lot of emotional baggage with us when it comes to money.  We see money as a measuring stick for success, or we see money as a way of making ourselves feel better, and these attitudes lead us to much of our financial and credit problems. 

If we rely on money to make us feel successful, then we are apt to overspend.  If we fear money - or the lack of it - we are unlikely to save it or make investments with it.  We need to be aware of the ways we respond to money and the ways that those responses shape the ways we deal with money. 

Some financial experts recommend that clients keep money journals, in which they record their money hopes, their money fears, and their responses to spending and money.   A money journal can help you by showing you how you feel about spending and about money.  If you can isolate the emotions that influence how you spend money and how you make your money decisions, you will be well on your way towards fixing your financial problems.     

Meaning Of Credit Score

Representing an estimate of a person’s credit report appraisal value as calculated by a statistical model is referred to as credit score meaning. It attempts to measure the comparison of a potential borrower who fails meeting the deadline in payment or following other satisfactory responsibilities.  In other words this is what lenders and creditors use to determine whether or not you are willing to repay your debts.

The credit score meaning is basically grounded on the information in a person’s statement of account. It is where institutions who allow loans get the factors in denying or approving the application. It's also where they use to manage the risk in their service. In determining a loan, they consider likes of assigning an interest rate, organizing open bills and tasking appraisal limits.

Use of credit score meaning is prior to the authorizing admission or granting appraisal is an execution of a trusted system. In engineering, it is where you are left with no other options but just that. In financing especially in the United States, the most trusted is FICO, acronym for Fair Isaac Corporation which is the brain- child behind such software applied since the 1960’s. There are also others including NextGen and Vantage but the three major reporting agencies, Equifax, TransUnion and Experian, have been adopting it for several years.

FICO credit score meaning ranges from about 350 to 850. It is deemed extremely high risk at 350 and tremendously low hazard at 850.  Having 850 is the top possible but according to Craig Watts, consumer affairs manager of Fair Isaac Corporation, there is no need to aim for such. He added that it is unrealistic for anything better than the middle of 700’s is already fine and it is where the best interest rates will be knocking right into your doorstep. The range between 720 to 725 is where the median score usually falls. It indicates that half are higher than the point and the other half are below.

  

If you are eager to know where you exactly stand, you can visit one of many websites like www.creditreport.com or www.myfico.com and others to get your scores.  The report contains your FICO score with its appropriate explanation of the codes that show your weakness and several advices in improving your status. If you are in the process of purchasing a home or refinancing a mortgage loan, you can always obtain a copy of your credit report from your loan officer.  

For more information on credit repair please visit our website  www.credtek.com.

5 Ways to Manage Your Payment History

Since your payment history affects 35% of your credit score, it is easily the most important part of your credit profile. It is also one that you can control. Clearly, the best way to achieve a high credit score and a positive credit report is to maintain a flawless record of full payments, made on-time, over the course of years.

However, for those people who live in the real world, things happen. It is easy to confuse dates, forget to mail a check, or come up short on funds. The important thing is to know what to do and how to manage those small mistakes, before they sink your credit entirely. Here are a few tips on how to manage your payment history:

1. Don't be late on your payments. EVER. There are plenty of tools you can use, like calendar applications for your computer or iPhone, on-line bill pay, or automatic paycheck deductions that can help you to maintain a spotless payment record. If you are habitually late, or have difficulty remembering to make payments, try setting up an automatic payment through your bank. You can even set up a separate checking account for these static payments, and have the appropriate amount of your paycheck automatically deposited there every month.

If you shy away from automation, or have cash flow issues, companies will often work with you to move your payments around. If you get paid at the end of each month, schedule your phone, cable and credit card bills to come due the first week of the month, when you have the most money in your account. Also, you can work to stay ahead of the payment curve by making your payments as soon as the statement becomes available, usually 30 days prior to the due date. That way, in case an emergency comes up or you miss a payment because you are out of town or short on funds, you have created a 30 day cushion.

2. If you are having a rough financial month and have to miss a payment, make payments on the largest accounts, like your mortgage first. Missing a $50 credit card payment will hurt you less in the long run than a $500 car payment.

3. If you have made the rare late payment on an account in the past, call and ask them to remove the late payment as a courtesy for being a loyal or long-term customer. Point out your history with the company and recent on-time payments, and ask them to consider the late payment as an exception to the rule. If they say no, call back and try to get a different representative on the phone. Lather, rinse and repeat.

4. Check your credit report for any accounts that are marked PAST DUE. These are the accounts that are doing the most damage to your account. When working your way through your financial payments, start here.

5. If you have collection accounts, pay off the most recent accounts first, starting with the largest. Any account older than 4 years can be moved to the bottom of the priority pile, since those creditors can no longer file a lawsuit against you to reclaim their money.