How to Spot a Fraudulent Credit Repair Service – Education

If you are working toward a home purchase, it’s important to get your credit into the best possible shape. Credit repair companies can help, but, you need to pick one that will do the work that you want. There are, unfortunately, many unscrupulous agencies making promises that make oversized promises or ones that charge far more than they should. Here are some warning signs to look for when looking for a company to help you fix your credit:
  • They promise they can erase a bankruptcy. No company can erase a legitimate negative issue with your credit. If you encounter a company that promises that they can make a bankruptcy go away, they are not telling you the truth. Only time and responsible credit management can remove a bankruptcy from your credit history.
  • They say they can eliminate debt. No company can erase a debt that you legitimately owe. It is legal and possible to get erroneous accounts removed and to negotiate settlements. However, there is no magic wand that will simply make legitimate debts disappear.
  • They promise a new credit identity. If someone promises you a clean, new credit identity, they are breaking the law. When a company promises this, what they give you is a number that looks like a Social Security number. However, it is in reality an Employer Identification Number that has specific legal uses. It cannot be legally substituted for a personal Social Security number, and anyone who says that it can is putting you in danger of breaking the law.
  • They tell you to lie on credit applications. This is something that can leave you with expensive fines or worse and no honest company would do that. If you encounter a company that encourages you to be dishonest when applying for a home loan, do not do business with them.
  • They fail to explain your legal rights. When dealing with credit repair agencies, you have a few specific rights under the Credit Repair Organization Act (CROA). For instance, you have the right to cancel the service within three days without being charged. You have the right to know, in detail, what services they are offering. You are entitled to know how long the process will take. Any company that refuses to supply this sort of information is in violation of federal law.
  • They try to charge you before they’ve done anything to help. The CROA also forbids charging for credit repair before services have been rendered. If a company is looking for money in advance, this is a good sign that their service is a scam.

If you encounter any of the red flags above, walk the other way. These are clear signs of an expensive and ineffective credit repair scam. When it comes time to fix your credit so that you can move forward with home ownership dreams, entrust your financial future to a company that is reliable, trustworthy and has your best interests at heart.

For more information on legitimate credit repair services click here to request a free consultation.

Why Your Credit Score Matters – Tips

Prior credit mishaps make many people gun shy; it’s understandable to want to live plastic-free if you have had trouble managing credit in the past. There are those who espouse the merits of a cash-only existence, and they have a lot of arguments that are sound. But, there are also many things that they miss. You may be surprised to learn that, even though you may never need or want a credit card, your credit score still has a huge impact on your life. A few ways a bad credit score can hurt you:

Why Your Credit Score Matters

While you definitely can get insurance with bad credit, it will cost you more. According to, bad credit can cost you up to 10% extra in car insurance premiums. Over a period of years, this can add up to thousands of dollars. When you raise your credit score, this frees up cash every month while providing you with the same level of coverage you had before.

Higher Deposits

Having bad or no credit means having a lot more of your cash tied up in deposits for services. Without good credit and a history of paying utility bills on time, getting electricity or water turned on at your place can cost you the equivalent of two months worth of bills. When you rent a car with a debit card instead of a credit card, you could be required to tie up hundreds of dollars of your own money during your trip. You may even be required to put down a deposit for a cell phone with some providers.

Losing Out on Job Opportunities

In these unstable financial times, more and more employers are checking applicants credit scores when making hiring decisions. Many believe that a good credit score is a sign of a more stable and conscientious worker. Whether that holds true or not, the belief itself can keep you from getting the job you want.

Escaping from Renting

A home purchase is generally seen as one of the best ways to build stability. When you rent, your cash disappears down a hole every month; when you own your own home, part of what you spend each month goes back in your own pocket in the form of home equity. And, owning a home can make retirement much easier since you’ll either have a paid-off place or saved up cash to build your lifestyle.

But, buying a home is almost impossible without a good credit score. Those with poor credit usually have to come up with much larger down payments if they are approved for a loan at all. And, the interest rates that are available to someone with less than sterling credit are higher, meaning tens of thousands of dollars down the drain over the years.

Having a good credit score is about much more than access to credit cards. It can affect your opportunities and your quality of life in dozens of different ways. If your score has taken a hit because of mistakes in the past, credit repair can help you fix it and improve your chances in life.

For more information on our company and services feel free to contact our office by dialing 617.265.7900 or requesting a free consultation.

Fico Scores Vs. Fako Scores – The real story

This is a very common subject we cover.

Client: “I pulled my credit report online and the score my loan officer pulled up was completely different?”

Yes, there are multiple credit scoring formulas. The industry standard remains FICO but consumers are no longer given access to all 3 FICO scores (experian, equifax & transunion).

Remember, if you are in the market for a mortgage or any other loan product you can always review the details of your report by going to but remember, only your lender can access all 3 fico scores. Start the process early so if you find that your FICO scores are too low you can quickly work on getting things up to par.

The best ways to Review and Elevate Your Credit history

Why do some individuals obtain deals for pre-approved charge card as well as others don’t? What do automobile dealers find out about your monetary health and wellness that you don’t know? The response is your credit score.

Your credit report is a number produced by a mathematical formula to determine how most likely you are to pay your expenses. Based upon the info in your credit report guides from the three credit report agencies, Equifax, Experian, as well as TransUnion, your credit history has actually been a consider your capability to apply for lending and also good rates of interest for greater than twenty years. Lenders compare your credit rating guide with millions of others to determine your credit score.

While there are a selection of credit history approaches readily available to loan providers, the most extensively utilized is the FICO credit score. Based on a racking up system developed by Fair, Isaac & Co., FICO credit scores vary from about 300 to 800 points and also are offered to lending institutions by the 3 credit report bureaus. You additionally have access to your FICO scores but will be charged a fee by each credit report agency supplying your record.

Based on on Fair Isaac, the credit scores of the American public are broken down as follows:

-> ¢ 499 as well as listed below 1 percent
-> ¢ 500-549 5 percent
-> ¢ 550-599 7 percent
-> ¢ 600-649 11 percent
-> ¢ 650-699 16 percent
-> ¢ 700-749 20 percent
-> ¢ 749-799 29 percent
-> ¢ 800 and above 11 percent

A score of 720 or higher will probably get you the very best interest rates on a house mortgage. Your credit card company takes a look at your credit score to make a decision whether to raise your credit line or cost you a higher rate of interest. The higher your credit report, the better you look to lenders and also the lesser your rates of interest.

A number of factors affect your credit history including your repayment past, the length of your credit rating past, any sort of outstanding financial obligation, how long as well as exactly how typically you have actually had derogatory credit history information, such as charge-offs, personal bankruptcies, or collections, as well as the amount of credit report you are utilizing as compared to the amount of credit report offered to you.

Exactly how do you increase your credit rating? Well, the first factor to do is to purchase a copy of your credit rating report with the credit score consisted of from each of the three credit history agencies.

Next off, remember to pay your bills on time. It may seem like a little factor at the time you’re creating that month-to-month check, but an accumulation of timely payments states a whole lot to a possible lending institution searching for a trusted customer. Motivate repayments in the last few months could actually make a large distinction in your credit history.

While collections, personal bankruptcies, and also late payments have the biggest adverse result on your credit rating, your debt is an aspect. For this factor, settling your credit rating card financial obligation can really reduce your credit rating, as it increases the ratio of your financial obligation to your available credit history.

Extreme questions over a brief time period likewise damage your score. When lending institutions, banks, or charge card business examine your credit history report, the questions are videotaped. Several of these “difficult inquiries” in the same period could indicate to various other lending institutions that you are opening several accounts because of financial trouble.

If you discover that you have accounts on your guide that you really did not open, or your community documents such as tax liens or judgments that are not your own, you could be a victim of identity scams. Since of this criminal activity, it is up to you to deal with the damage that can take place to your credit rating. Understanding is your first step, yet when the choices end up on your guide, you have no alternative but to cleanse it up.

Generally, give yourself time to construct a great credit report as well as more time to fix major issues. The length of your credit rating past is an additional establishing consider a good credit score. Lenders would like to know that you are able to keep prompt repayments as well as good standing for a time frame. So inspect your records yearly, do your due persistance, and your rating could boost.

Based on the info in your credit records from the three credit bureaus, Equifax, Experian, and TransUnion, your credit score has actually been an aspect in your capacity to qualify for financings as well as great passion prices for more than twenty years. Your credit card firm looks at your credit report score to determine whether or not to increase your credit history limitation or fee you a greater passion rate. Well, the initial point to do is to order a duplicate of your credit history report with the credit score consisted of from each of the 3 credit report agencies. For this reason, settling your credit report card financial obligation can really decrease your credit rating, as it increases the ratio of your debt to your available credit report. When lending institutions, banking, or credit rating card companies inspect your credit record, the inquiries are tape-recorded.

Who We Are – Welcome to Key Credit Repair

Who We Are: Bad credit is not a permanent situation. With the help of our certified consultants we will show you the proper steps needed to improve your scores, remove in-accuracies and reduce your debt load.

At Key Credit, we offer professional services custom tailored to your specific situation. Call our credit consultants today for your free, no-obligation consultation. The consultation is completely FREE of charge. If you don’t have a credit report we can order one for you.

Click here to request a free credit repair consultation today.