factors making up your fico

Payment History – Why It’s So Important?

Of the five categories that make up a FICO score, “payment history” is the one that carries the most weight. Specifically, payment history accounts for 35 percent of your total credit score, while amounts owed (30 percent), length of credit history (15 percent), new credit (10 percent) and types of credit used (10 percent) round out the rest of what goes into your score.

But just why is payment history so important? Here’s a look:

  • The whole point of a credit score is to inform a lender of whether you’re a reliable borrower. And a big part of being a reliable borrower is making on-time payments. That’s the biggest thing that the “payment history” category tells a lender — whether or not on-time payments have been consistently made on things like credit cards, retail accounts and loans.
  • A common query many consumers have is whether a late payment here or there will harm their credit score. And the answer, in most cases, is no if your score is otherwise favorable. However, if you have regular late payments, credit repair is necessary. Luckily, in this case, it’s simple to repair credit — just make on-time payments.
  • What’s in the score? Specifically, when it comes to late payments, a FICO score considers not just how many late payments there are, but how late they were, how much was owed and how recently each one occurred.

Like we already noted, the good news regarding the payment history portion of the credit score is that it’s easy to correct. There’s no debt management involved, just the matter of making on-time payments. So take these credit tips from us as it pertains to your finances. Make sure your credit history is in check. It’s the biggest piece of the FICO pie.


Bad Credit Score – It Hurts!

Bad Credit: It Hurts!Everyone knows that a good credit score is essential to getting approval for everything from car insurance to car loans—and for getting the best possible interest rate that’s currently being offered—but what many people don’t seem to realize is just how much of a toll a poor FICO score can have on you.

So if you have a poor score, it’s important to take it seriously and enact credit repair, whether it means deploying debt management techniques or implementing good bill-paying habits. Here’s a look at how a poor credit score can hurt you and your finances.

  • High credit card interest rates: Credit cards are notorious for the high interest rates they charge. After all, it is how the card companies make their money. However, if you have poor credit, you can anticipate paying 22 percent and upward, should you even be approved. That’s a far cry from the 10 to 19 percent that’s likely with a good score.
  • Loan interest: How much more can you expect to pay on a car loan with a poor credit score? Possibly up to 2 whole percentage points of interest! Mortgage loans, too, can mean you that you will have to pay potentially tens of thousands more over the course of a loan with a poor score. Repair credit, and take it seriously to avoid these preventable expenses.
  • Miscellaneous: Can you imaging trying to sign up for a cell phone plan only to find out at the store that you’re ineligible because your credit score isn’t good enough? It happens. The same goes with car insurance. Presently, 47 states are permitted to check your credit score to determine the rate.

As you can see, a poor credit score can really hurt! So if yours isn’t satisfactory, make sure you’re taking the proper steps to correct it.

More Insurance Tips

Understanding General Insurance coverage: Suggestion For The Smart Consumer

When it comes to dealing with insurance coverage, it may seem like it is you versus the globe in some cases. With the huge quantity of information available online, it can be almost overwhelming at. This article will certainly offer much practical info for you to obtain begun on the appropriate course.

When you make any sort of improvements to your house that price over a specific amount, you should make sure to call your insurance company and allow them find out about it. If requirement be, many insurance carriers make you state renovations to them that cost a lot so that your plan can be readjusted.

Keep your broker or insurance firm updated on anything that may affect your policy or protection. If they do, then they could propose the next program of activity in concerns to your insurance coverage plan.

When you decide on insurance coverage for your auto, certify your insurer. Evaluating protection, it is additionally in your best passion to look for evaluations on their client solution, case responsiveness and also also rate increases. Understanding which you are dealing with ahead of time can aid you set assumptions with your insurance firm.

Commonly, you will want to get in touch with other client testimonials of specific insurance policy business just before spending your cash in their policies. By speaking with sites like Angie’s listing as well as other such customer remarks, you can acquire a sense of the current popular opinion towards an insurance policy business. If the majority of the firm’s patrons are pleased, that may aid you develop a choice, and also vice-versa.

Have your insurance coverage company reconsiders your scores if your credit history rating has gone up. Insurance business do base component of your preliminary premium on your credit report. Without your consent though, they could just inspect it when they initially supply you protection unless you have had a lapse of insurance coverage. If you know your credit has risen, having your credit rating reconsidered could possibly bag you a reduction in your costs.

When comparing insurance business, the wise customer will certainly take their own loyalty right into account. An insurer that has supplied years of reliable, hassle-free and also reputable service need to not be deserted the instant a slightly more affordable different becomes available. It is fairly most likely that an insurance firm that provides rock-bottom prices is cutting corners somewhere in the solution they provide their clients.

An annual review of their insurance plan is a routine every person ought to exercise. Make certain that all details on your plan is correct and also update it with any type of adjustments. See to it you are receiving credit report for such points as automated seat belts on your automobile policy and safety surveillance on your property owner policy.

In summary, you would like to do all that you can to learn concerning insurance policy. There is a lot of information available, yet we have given a few of the most essential pointers. Ideally we have supplied you with sufficient details to not only provide you a strong background, however additionally further spark your passion to come to be a professional in it.

If they do, then they could recommend the following course of action in regards to your insurance policy. Typically, you will certainly want to speak with other consumer assessments of certain insurance coverage companies just before investing your cash in their plans. If your credit history rating has gone up, have your insurance provider company rechecks your ratings. Insurance policy firms do base part of your initial premium on your credit rating rating. An annual testimonial of their insurance policies is a routine every person need to engage in.

786? 623? 596? Just What Constitutes a "Good" Credit Score?

What is a Good Credit Score?

Good Credit Score – It behooves you to have a good credit score. Why? Because a good credit score is key to borrowing money – whether it be for a car loan, home mortgage or some other type of loan – with low interest rates. A poor credit score, on the other hand, may disqualify you from qualifying from a loan or stick you with a high interest rate. Bottom line – the better your credit score, the more favorable borrower you are.
So with that in mind, just what is a good credit score? And when should you repair credit?

To answer that question, let’s take a look at the FICO score, the score that the majority of lenders use to determine borrower risk. Specifically, the FICO score ranges from 301 to 850. Here’s a breakdown of the ranges that most lenders use to assess risk in a nutshell:

  • 750+: Anything at 750 or better is considered excellent credit. A borrower should be able to get approved with the lowest possible interest rates on loans with this score.
  • 700-749: Scores in this range are considered “good” and should lead to approval with low – if not the lowest available – interest rates.
  • 650-699: This range is considered “fair.” And while borrowers can still get approved in this range, they may end up paying a higher interest rate.
  • 600-649: The range between 600 and 649 is considered poor credit. Credit scores in this range may jeopardize loan approval. If approval is granted, borrowers may have to pay significantly higher interest rates from someone with good or excellent credit.
  • 599 and below: This is considered bad credit.

As you can see, the higher the credit score, the better you’re viewed as a borrower. Should your score fall below 700, credit repair measures are often recommended.

What's Up With My Report?

Errors on My Credit Report – How to Fix?

You’re applying for a big loan soon, and before you do, you’re doing due diligence with your credit. You check out your report… and don’t recognize many of the items listed in it. “What’s going on?” you’re thinking. You don’t recall some of this stuff.

Errors on My Credit Report Are you going crazy ?

Likely, no. In fact, errors are more frequent than you may realize when it comes to credit reports and your credit score. According to estimates, about a quarter of all credit reports that have been surveyed by the U.S. PIRG have contained serious errors.

Furthermore, about 80 percent of all credit reports surveyed contained at least one minor error.
If your credit report is revealing some incorrect information, what do you do? This is especially important if the report is impacting your FICO score to the point where credit repair is necessary. Here’s a look:

  • Know whether the information in question is actually incorrect. This may seem like an elementary point, but if you have no way to justify this, you’ll have no case.
  • Dispute it. Once you know something is wrong, contact the party (i.e., lender, collection agency) that is reporting the information. You may also elect to contact the credit agency reporting the information. Start by asking them to fix it. If that doesn’t work, then disputing it is the next step. Typically, you can accomplish this online or via mail. Disputing online is quick, but you’re able to be much more thorough when disputing through the mail, as you can include the relevant documentation to get the issue resolved.

After submitting your dispute, then you play the waiting game. If you don’t hear anything after one month, follow up with the appropriate parties. If your dispute is successful, all three credit reporting bureaus must be informed of the error.

So if something doesn’t look right on your credit report, don’t automatically assume that you need to repair credit. First, look to see if there are any errors. About 80 percent of credit reports are found to have one.

How to improve

How to Fix Your Credit – Credit Repair 101

Credit Repair 101: Practical Credit Score Fixes


That’s your credit score. It’s not horrible, especially considering that the FICO score ranges from 300 to 850. But since it falls into the general “fair” category, it certainly isn’t prestigious as a score of 750, which is considered “excellent.” With this score, it wouldn’t be unusual to have to pay a higher interest rate than you would with a better score. Naturally, you want to repair credit, but how?

Here’s a look at some pointers on how to improve a poor credit score:

  • On-time payment: Pay your bills on time! Even bills that are a day or two late can have a big impact on your credit score. If you need to, set up reminders or automatic payments.
  • Check your report: Be sure to keep an eye on your credit report. Look out for errors – you’d be surprised at how often they occur. In fact, it’s estimated that up to 80 percent of all credit reports contain some type of error. If you find any errors, dispute them to help improve your score.
  • Reduce debts: Come up with a payment plan to pay down the debt on major accounts. Focus on paying off the high-interest accounts first. With credit cards, try to keep the balance within 30 percent of your overall credit limit. This is key to credit repair.
  • Credit cards: Don’t close unused cards and don’t open any new cards as a means of increasing your score or raising your credit limit, respectively.
  • Do not apply for too many credit loans: When you apply for credit loans or get a new credit card, it automatically generates a hard inquiry on the credit report. Typically, these hard inquiries show up on your credit report for 2 years and can create a negative impact, pulling down your credit score. This is because too many hard inquiries can give creditors an impression that you are a risky borrower.

    Questions may arise over your creditworthiness – Why do you need a new credit? Does that a sign of your financial instability? These are some red flags zones for lenders, which you should keep in mind when considering how to fix your credit score.

  • Dispute Inaccuracies on Your Credit Report: Inaccurate information, errors and negative items on your credit report can significantly pull down your credit score. When you worry about “how can I fix my credit score,” it is important to check credit reports from all three major bureaus – TransUnion, Experian and Equifax – and verify that all information listed on your reports is accurate and correct. For any error or discrepancy, dispute the same and get it removed to fix your credit score.

And most importantly of all, use common sense. Don’t move debt around – pay it off. Manage credit cards responsibly and know the basics about your credit score and what can make it go down and up. If you feel like you’re really in over your head, consider consulting with a credit counselor who can help address your challenges for how to fix your credit score.

For more information on how to improve your credit score call our team at 617-265-7900!

Mortgage Process

Mortgage Process – The Dos and Don’ts

Mortgage Process – Additional Buyer Tips

Investing your cash in anything in this market can be a risky business, and also if you’re investing in property, your threat has merely tremendously improved. Just before you decide to put your money in the market as a purchaser, make certain you’re fully notified on how to come close to the real estate market. Review this write-up now!

When acquiring their following residence, pros of the armed forces need to take into consideration taking advantage of a VA finance. VA lendings provide no deposit choices, as well as all shutting prices can paid by the homeowner. There are capped factors on a VA loan also, and also one more pro can presume your financing when it’s time to offer.

When attending an open house or watching a version couch, attempt to continue to be objective. Focus on your property itself as opposed to the decor. Keep in mind, you are buying our home, not its contents. Concentrate on exactly what’s essential: square footage, the layout, wall surface space, home windows, and also doors. This will permit you to establish how well our home can fit YOUR decor and items.

Keep an open thoughts concerning the houses you look at. These were or are somebody’s couch, and while they could not have made the decorating selections you would certainly have, it was their decision.

Don’t permit that cloud your judgement if you are totally in love with a house that is on the market. Before purchasing your home, you need to ensure it is up to code, is really suitable for you, and also is valued right. Don’t miss over these vital checks, if the house is not as good as you wished, there will be other ones that you might like a lot more.

Work with a couch inspector. A residence assessor can tell you what is incorrect with the home, what is right with the property and also sharp you to any kind of instant troubles. Just before employing an inspector though, ensure to do your research and also ensure that the examiner has recommendations and also good qualifications.

When you go into the sector of realty acquiring, watch out for mortgages with balloon settlements. Balloon repayments are incredibly big repayments the home mortgage owner is needed to make at the end of the loan term. They are ethically uncertain, and also they normally suggest that the loan company is unethical. Remain away when you recognize balloon settlements!

When seeking a couch mortgage, you consistently need to analyze your choices thoroughly. There’s a worry that you will not be able to obtain a loan, so this causes some people to take the first lending they could discover.

Now that you have actually read the post, you have actually just understood lots of different suggestions as well as tricks that will all aid you to make the very best choice as a realty purchaser. Being a purchaser could be hard and also challenging. Act upon what you have actually discovered right here and you could be able to streamline the procedure dramatically.

Experts of the armed forces ought to consider taking advantage of a VA lending when purchasing their next residence. Try to stay objective when going to an open house or viewing a version house. These were or are an individual’s home, and also while they could not have made the enhancing options you would have, it was their decision. A couch inspector could tell you what is wrong with the residential property, what is best with the residential property and also alert you to any sort of instant issues. When seeking a residence mortgage, you always require to analyze your alternatives extensively.

Fantastic Pointer For Looking for The Residence Of Your Dreams

The complying with suggestions were written to assist you make the ideal residence buying choices. Review them each meticulously to discover the finest strategies to assist with acquiring actual estate.

When aiming to acquire a couch in a neighborhood, consider the size of your house. Properties differ in size in communities. If resale worth is very important in your purchase, do not buy the biggest home in the neighborhood. When determining fair market value, the residences local to yours will certainly be used. They will bring down the worth of your larger couch if many of the residences are smaller.

To obtain the best rate feasible, ask the proprietor if they would certainly approve a lesser price. Be open and sincere regarding this. Do not firmly insist if they reject this lesser price, but ensure they know the best ways to connect with you if they transform their thoughts.

If coming up with a down payment is the only obstacle holding you back from purchasing a house, see to it you have actually tired all opportunities before you write out one more rental fee check to pay somebody else’s home mortgage. Don’t hesitate to ask family and friends for aid. Turn your needless prized possessions, such as a watercraft or diamond earrings, right into cash money. Borrow from your IRA. Obtain a sideline. Search for fundings from non-profit organizations. Cash in your life insurance provider value. Do whatever you could to turn your desire right into a truth.

If you are interested in purchasing a brand-new residence make certain that you look at a few choices before making a final decision. Being too rash may result in you losing out on seeing a property that might be more of a suit of just what you are trying to find.

If you want getting a couch, you ought to resist on making any kind of significant investments around that time. Acquiring big products could bring down your credit report a bit, which would certainly mean that you could not obtain the very best price when you are wanting to secure a home loan.

Earnings assessment is commonly made use of, because several financiers are looking to make sure that the monthly income covers all regular monthly expenditures, including the home loan as well as tax payments. Another generally made use of method is identifying the replacement value of a specific property.

Since you have located these great suggestions for purchasing real estate, use them to your advantage. You are going to need to deal with the decisions that you make at this point in time for years to come. If you apply the discovered suggestions to your buying strategy, you are certain to do well.

The adhering to suggestions were composed to assist you make the best house acquiring decisions. When looking to buy a house in an area, take right into consideration the size of the property. The houses closest to yours will certainly be made use of when identifying fair market worth. If many of the houses are smaller, they will bring down the value of your bigger couch.

If coming up with a down payment is the only barrier holding you back from buying a couch, make sure you have exhausted all methods prior to you create out another lease check to pay somebody else’s home loan.

For more information on how to repair credit, contact our office at 877.842.5215 or request a free consultation below.

Great Credit Score

Great Credit Score – How it Can Be Achieved?

Leading 7 Practices Of Individuals With Great Credit report

Individuals with wonderful credit report scores have gained them for a reason– they have always borrowed money, and paid it back on time. When someone asks me how to make a great credit rating rating, I inform them to look at the investing practices of those with great credit scores, and also to establish the same practices.

Great Credit Score

1) Never Pay Cash money
People with excellent credit report wish every investment to matter. As well as a purchase does not count unless the 3 agency know about it! The only way to make sure that the bureaus understand just how much cash you’re investing is to put every little thing on your card(s.) Instead of down payment your income and also spend, think of your investing as a monetary cycle: Put your paycheck in the bank, invest with your credit cards, and repay the cards with the funds you’ve currently deposited. It’s one added action that pays off big with the included safety as well as improvement to your score that charge card supply. Bank card aren’t just for larger acquisitions any longer. Using your charge card for products like sodas as well as gum has become so usual that charge card business have provided a name to them: “Micro-purchases.”.

2) Never Make use of a Debit Card.
Debit cards supply you definitely nothing that a credit rating card won’t, as well as credit cards will certainly develop your credit score! Folks with fantastic credit history ratings take every opportunity to build their credit– going to the grocery store, acquiring gas, or renting out flicks!

3) Pay Off Your Equilibrium(s).
People with wonderful credit report ratings don’t typically lug higher credit history card equilibriums. People with terrific credit rating scores make certain to use their cards, however pay the equilibrium off every month.

4) Place Yourself on an Expense Settlement Set up.
In order for the credit report agency to reward your great spending routines, you have to pay your costs on time. While it’s not a great idea to pay your bills a couple of days late because your financial institutions will certainly charge you late penalties, it will not influence your credit history rating adversely unless you pay them additional compared to 30 days late.

5) Continually Demand Higher Credit Card Purviews.
Because people with great credit scores habitually obtain money and also promptly pay it off, the credit history card companies are quite comfortable constantly increasing their investing limitations. People with wonderful credit rating ratings consistently request higher limits since it allows them the freedom to obtain as well as keep a balance, if the demand emerges, without reducing their credit scores. You will have the best credit rating if you keep the balances of your cards here roughly 35 % of the investing limit of each card.

6) Never Shut a Charge card Account.
The credit history agencies take into consideration your credit lines– as well as folks with fantastic credit scores know this, and also manipulate it. Many times, folks with sub-par or reduced scores will certainly pay off a card they have actually violated and close the account due to the fact that they subconsciously believe it was the card’s mistake they permit the equilibrium acquire as high as it did. This is NOT the right point to do in this situation. That card has a fantastic record behind it! You’ve shown the bureaus that you’re willing to borrow a large amount of cash and then pay it down to absolutely no. People with terrific credit history NEVER close charge card accounts considering that they wish to show that they have a long record of appropriately making use of credit history.

7) Never Rent.
Your couch is probably the biggest acquisition you will certainly ever make in your life, as well as is the one purchase that could make the greatest influence on your credit history. When you purchase a house, you’re revealing the agency that you can constantly spending plan yourself to pay a large portion of your earnings to an account on a regular monthly basis. There are a variety of reasons people with fantastic credit history refuse to rent out, and also the impact of paying a mortgage on their ratings is among them. When a first time property buyer lastly shuts on their couch as well as pays the mortgage on time for a couple of months, they will certainly see their credit report jump around 50 points– and also occasionally higher!

Individuals with terrific credit scores have not obtained anything too terribly challenging– they’ve simply embraced some great investing practices. If you want to earn a wonderful credit score, obtain these behaviors and also see your credit score climb. Along with your rating, your monetary health and wellness must profit!

Debit cards give you definitely nothing that a credit card will not, and credit report cards will construct your credit rating score! People with great credit rating ratings don’t commonly bring higher credit history card equilibriums. Due to the fact that individuals with wonderful credit history ratings habitually borrow cash as well as promptly pay it off, the credit history card firms are extremely comfy constantly increasing their spending limits. The credit history agencies take into account the age of your credit history lines– as well as folks with fantastic credit ratings recognize this, and exploit it. Individuals with excellent credit history ratings NEVER close credit rating card accounts since they wish to reveal that they have a long record of correctly making use of credit history.

For more information about how to create a “STRONG” credit profile contact our office today at 877-842-5215 or request a FREE consultation below.

Fix Medical Collections – Key Credit Blog

A medical tragedy is the single cause of bankruptcy in the united states. It can seem very overwhelming to try and repair your credit scores after this occurs. Over 60% of bankruptcies are due to medical debt. It can take time and patience to recover financially, but, it is possible.

How to fix medical collections

Many people wind up paying more for credit or being unable to get at loan because of erroneous medical billing. Many of our client will ask us; “How do I repair credit after medical debt”. There are some very simple and practical steps that can be taken. Have creditors verify all debts that show up on your report. And, check over any medical bills you receive to ensure that you haven’t been charged for services you did not receive. If you have declared bankruptcy, check to see if all debts that were discharged are removed from your report.

Make Payment Arrangements

If you have medical debts that have been sold to collection agencies, you may be able to settle. Collection agencies pay pennies on the dollar, and are often happy with less than the full bill amount. A credit repair company can negotiate on your behalf if you are not comfortable with the process.

Start Building New Credit

To balance any dings on your credit, start adding new, positive entries to your report through both revolving and installment loans. Each helps improve your credit health in different ways.

Apply for a new credit card and keeping a low utilization ratio is the tick! You may need to use a secured card at first. We recommend charging one recurring expense such as a utility bill or a health club membership, and paying it off in full each month. For the highest benefit, only about 10 to 30 percent of your available credit should be used at any time, since low utilization bumps up your score.

A new installment loan, such as a car payment, can also help build credit, as it will show a good record of payment on time. Car loans are a good option because they are short term and easy to refinance as your credit improves. They are also easier to get than other types of credit. Just make sure that you calculate both the cost of the loan and the cost of insurance when figuring out your monthly payments; most lenders will require that you carry a comprehensive insurance policy and coverage until the mortgage is paid off.

It May Soon Be Easier to Recover

The Medical Debt Responsibility Act has been working its way through Congress, and could be passed in the next session. The bill has a few requirements that will help improve the credit scores of people with medical debt. Patients would have 120 days to pay before a delinquent debt was reported. Positive transactions would be included in credit records. And, the bill requires that paid medical debt be removed from credit scores 45 days after payment, no matter how long it took for the bill to be paid. While the bill has not yet passed, VantageScore recently announced that paid medical debts would no longer be included in their scores.

For more information on how to repair credit after a medical debt has wreaked havoc on your report contact our team at 617-265-7900.

Repair Credit: How Do You Repair Credit After a Divorce?

Repair Credit, Divorce

Financial problems are the number one reason that couples seek counseling, and also one of the top causes of divorce. Did the end of your marriage leave you with less than sterling credit? Here are some ways to start to REPAIR CREDIT ratings and rebuild your financial life.

Adjust to Your New Budget

Chances are, you’ll be paying for more house with less money after your divorce. If you are keeping the house, you’ll be paying a mortgage on your own that used to come from two incomes. If you are finding a new apartment, you will probably find that it is more expensive to rent a place on your own than to share one.

To keep yourself financially healthy, add up income versus expenses and figure out where you can cut back. Some people, when income is reduced, rely on credit to make ends meet. But, if you have no immediate prospects to increase your cash flow, this can result in debt that you can’t easily pay. Instead of getting overextended, look at expenses such as health club memberships, cell phone contracts and other bills to cut costs before you wind up over your head.

Divorce Doesn’t End Financial Obligations

After the divorce, you will most likely share responsibility with any joint debt run up during your marriage. This is true even on joint cards where your ex ran up large balances without your knowledge and in violation of your divorce decree. Make sure that you know about all open accounts and standing balances, no matter how amicable your split.

Close as Many Joint Accounts as Possible

Call your creditors and have yourself or your spouse removed as a joint account holder or authorized user. No matter how agreeable you both are with one another during divorce negotiations, you need to legally protect yourself. If the accounts are closed or your ex is removed, you are safe from further debt being added.

As Much as Possible, Work with Your Ex

If one of you bails on an obligation to pay your share of the debt, it hurts you both. It can be awkward to continue to discuss joint finances with someone after a split, but, it will serve you both better in the end if you can tackle debt together.

Some couples find that the most equitable way to deal with old debt is to each keep a card that is only in his or her name and transfer a portion of the balance of shared debts to that card. That way, neither is harmed if the other is unable or unwilling to keep up with financial obligations.

Divorce is not pleasant for anyone. But, it does not need to destroy your financial future. By taking stock of your current financial situation and working to repair credit records, you can start the next phase of your life with a healthy financial outlook.

For more information on how to Repair Credit after divorce please click here to request a free consultation.