This is one of those life lessons that is easier said than done. There are not any of us who will not have financial curve balls thrown at us in our lives. We will all handle these problems differently and there is not one of us out there who can take these on flawlessly. We are also not meant to be able to solve our problems instantly, we are also not robots who can face adversity without any kind of emotional reactions. We get mad, hurt, upset, and sad. Your human, just like everyone else. Just like in every aspect of our lives, this is what life is, facing problems and challenges. We learn from them, we adapt to the situations that are thrown at us, we find solutions to the problems at hand, and ultimately we deal with the adversity that is put in front of us.
When a financial hardship hits, the one thing we can control is how we deal with the problem. There will be times in our lives when we just will not be able to make payments on time or meet other financial obligations. And its normal to want to avoid dealing with it, as it may seem hopeless at the time. I have been there, and I know how demoralizing it can be to have creditors calling up and demanding to be paid, and you just do not have the means to do it. I know how easy it can be to just ignore the calls and the letters, and hope the problem will go away. If only it was that easy. They will not go away, and likely the calls and letters will increase, and you will encounter penalty s and interest.
“The best way to escape from a problem is to solve it.”
Brendan Francis
I know what you are thinking, well I would love to solve it, I just can not do that right now.
“When you can’t solve the problem, manage it.”
Robert Schuller
Face your problems head on. Manage them. The best thing you can when you get into a situation that you are sinking financially, is to reach out to your creditors. Make a list of all the debts you have and what the minimum payments are. Then take a hard look at where you are sitting with your finances and make a budget you can stick to. At that point its time to call each and everyone of them and be completely honest of where you sit, and how you plan to deal with the problems. Most if not all your creditors will be thankful you reached out to them, and most will be willing to work with for a period of time until you can get back on your feet and begin to make regular payments on time.
When talking to your creditors ask for a reduced payment and reduced interest rates. You may not be able to do this with the first person you speak to, I know it will be frustrating, but try to stay as calm and polite as you can. If you do not get a response from this level of agent, as to speak with a manager, and do not be afraid to ask to speak to the next persons manager and so and so on.
If you are at the point of receiving collection calls you the same advice as above. Explain to them your situation and that you would like to work with them to be able to bring your accounts into good standing. If these collections people are harassing you, or yelling at you, or doing anything that is not a polite and business like conversation hang up on them! You do not get to be treated like that even if you are behind on your bills, you do not have to take this kind of treatment.
Once you get back on your feet, it will be important to check your credit reports for errors that may have been reported. You could also enroll in our credit monitoring to track your credit scores, and to monitor your credit reports.
Share
I have been in the credit monitoring business for over 10 years now! And there have been many questions that I did not know the answer too, but most of them with a little research I could find out and then give my interpenetration of it. I feel with credit related questions there are the black and white answers, for example “will enrolling in a credit monitoring service hurt my credit score?”. The answer is 100% no, it will not have any effect on your credit score, its a soft inquiry and they will not harm you.
To more of grey area answers where nobody truly knows the answers. An example would be “Holding 30% debt on your credit cards is the fastest way to build credit”. Well 30% is not a magic number, you do not have to pull out your calculator and figure 30% down to the penny. And to be honest I have even advised that 30% is a good number to build up your credit quickly, but there is as much evidence to show that 10% or 20% will build it just as fast. You see, what the credit bureaus are looking for is to show you can make month payments on time, every month for a period of time.
I would say that in my years of doing this, that its about a 50/50 split on where the answers may fall. Like most things in life we are using our best experiences and data available to use to make our answers. With that said here is a seemingly very simple question for which I have no answer to.
I question came in asking what is the average amount of times per year is your credit checked? Well I tossed that question into Google and thought I would be overwhelmed with answers. It turns out I found none! Not even at Wikipedia which usually has a very diverse set of answers. You just have to be sure to take them all with a grain of salt as its human edited, and as such any “experts” can state whatever they want.
So I thought well I guess I can try to gather some data on my own to take a best guess answer at it. Asking people in the office how many times they thought their credit was pulled brought up a huge range of answers. It seems as an average many people get a hard inquiry more times a year than they thought.
An good example of this is a younger person who has only been in the work force for a few years. Over the last year they moved into a new apartment, and with that came around 5 checks to their credit. They then bought a new car, shopping for the best deal they went to 3 different dealerships, and that is 3 new inquiry. After they bought the new car, they need insurance, shopping around again for the best rate racked up 3 more inquiry’s. This seem to be about the average here in our office. We did have many outliers though, some people had no inquiry’s at all over the last year, and others had many more!
So what does this all mean? Well not much, except for the fact that this just shows how many times per year we willing give out our financial information to a 3rd party, and that if you add that up over the years it becomes a pretty scary number of places that our personal data is stored, and could be compromised by a security breach, and shows how having a credit monitoring service in place can really help your protect your credit!
Share
Most of have been there, that feeling of dread knowing that your wallet is gone! Its a terrible feeling! Here are some tips to help you back back on track and to minimize the potential impact this can have on your credit.
First think you will want to do is to start monitoring your credit with our credit monitoring services, you will want to watch for fraudulent activity for at least 90 days. Our credit monitoring will monitor all 3 of your credit reports for you, and it will send you an alert via, text, email, mail, or phone call if we detect any changes on your reports.
Next call your credit and debit card issuers and report that your card was stolen or lost. If you happen to be reading this post before a lost or stolen wallet take the time to right down your account numbers and customer service numbers and put them in a safe place for easy access! Lost and stolen cards are quite common, and your credit card and debit card company will have a team to assist you in closing down your cards, and reissuing new cards.
If you are sure that your wallet was stolen and not lost call the police department. While the police will not be able to help you track down your stolen wallet it is important to have on record a police report in case the thief tries to steal your identity. This will give you a legal record showing that you knew your wallet was stolen, and that you took the steps you needed to take to report the loss.
Try to think if there was anything else in the wallet that had your personal information on it. This could be a note that you wrote to yourself with a password on it, or anything else that could be used against you. If there is any chance that your passwords are compromised change them as soon as you can. Its better to be safe than sorry!
This is possibly the most painful step of all of them! Head tot he DMV to have your drivers licensed cancelled and a new one issued.
Having your wallet stolen is never a fun experience, but with these tips you can minimize any damage that could be done to your credit!
ShareWinter is coming, and with that there is a chance many of us can face seasonal depression. The days are short, its cold, and where our office is located it snows, and its snows a lot! If you are like me I love to be active and I love to spend time outdoors, winter puts a damper on that big time. Don’t get me wrong, I love to ski and snowboard, its just that’s not an easy thing to do for a quick exercise fix. Add on top of the chance of seasonal depression financial issues, and well you can get in over your head.
We are living in a very hard time here in the USA, jobs are hard to come by, jobs we do have are not paying enough to make a living, and everyday expenses seem to be getting more and more expensive. Many Americans are having to declare bankruptcy, which to be completely honest can not only the right decision to make, but a healthy one at that. I am not qualified to tell bankruptcy is the right choice for you, that is something that has to be done between you and a bankruptcy professional. What I can tell you is that yes it will be stressful, but you will get through it, and that in the end you will have a chance to build up your credit once again.
There are hundreds of great articles on the pros and cons of bankruptcy online, just Google them, that’s not what I want to cover. I want to cover the psychological impact that declaring bankruptcy may have on you. I know talking to some very close friends of mine what they have gone through. The first was shame, and honestly there is no reason for this. If you have lost your job, or are underemployed and your finances have falling to a level you are no longer to be able to support the lifestyle you are currently in, well, it happens. And it is nothing to be ashamed about. By nature I am a caretaker, and I know that part of my self worth is tied to the fact that I can provide for my family. And recently when that has been threatened, I know for me I did make me feel ashamed. The important thing is we can not dwell on this, and the best thing we can do as a caretaker is to make a plan, and go for it. And that plan may be to file for bankruptcy.
At this stage bankruptcy can cause depression, its stressful and there will be a lot of things that will happen fast. The most important thing you can do for yourself, and your family is to make sure you are not slipping into depression. Take a look at these warning signs. And if you feel that you are becoming depressed than you should start to seek help immediately. And I know most of our thoughts will be I do not have extra cash to seek help, do not let that become a barrier, there are free resources in every community to get you the help you need. You can even call a depression hotline at anytime of the day or night to talk things out, it will help you. Again the most important thing you can do for yourself and your family in these trying time is to take care of yourself! Once your taken care of, then you can follow through on your plan to get your self back on your feet, and back to earning great credit.
I know this post is a bit out of the blue for a credit monitoring services website. I just feel that we have to keep the human element in touch with all the information that is out on the internet. Depression is a very serious issue, and one that is very treatable, you just have to take the first steps.
Share
It can happen to you. One day you decide to purchase your first home and walk into the bank with full confidence knowing that your credit file is spotless and you qualify for a mortgage. The loan officer takes one look at your credit report and instantly turns you down.
What could possibly have gone wrong? You know that your credit is good and you have always made your payments on time. There is no logical explanation for being turned down for a loan and you are baffled.
We hear these kinds of stories time and time again. Identity theft is real and it can happen to you. In some cases it can take quite some time to figure out that you have become a victim and by then it is too late to easily handle the situation. Your credit report has become damaged and it will take some time to get it repaired.
Identity theft
If your identity has been compromised a thief can use your information to sign up for programs, apply for a loan or even fill out applications for a credit card. Purchases can be made in stores or on the Internet using your personal information.
When the loan officer takes a look at your credit report he may be seeing things that you don’t know even exist. There may be multiple applications for credit cards or payments due to companies that you have never dealt with in the past.
Find out first
Before walking into a financial institution to ask for mortgage you must always check your credit report first. You need to make sure that there are no mistakes or discrepancies showing up on the report. If your report is not in good shape, you don’t want it to be seen until it is repaired. Once the loan officer sees a bad credit report it will be documented and may harm your chances of getting a mortgage later.
Being 100% sure that your credit is good is not enough these days. You need to get a copy of your credit report and inspect it for yourself. To take it one step even further, you absolutely have to monitor it on a regular basis to protect yourself against identity fraud. It is your responsibility and yours alone to ensure that your credit rating is a true reflection of your spending habits.
Enroll in our free trail of credit monitoring, with it you will also get a free credit score.
Share
Most of our customers are between the ages of 35-50, at that age your most likely to have lots of credit, and monitoring it is a priority in your life. What about our younger customers? When should they get credit, and why is it important to start getting credit while your young.
To legally enter a contract you must be 18 years old, so that seems like a good time to start if you ask me. Why is it so important to gain good credit when you are young? One very important factor in your credit score is how long you have had credit. So if you start out when you are young, you will have a huge advantage over those who start out later in life.
Ok so where to start? You have a tough battle to get credit, you have never had it, so there is no credit file on you, and lenders are not sure what to do with you. Do not be surprised if you go for a large ticket item like a car and are turned down, its just to risky for the lender. Do not get discouraged though, it wont take very long to get a good credit score.
I would start with a student credit card. These are marketed to your age group, and will have a lower limit on available credit, and usually a slightly higher interest rate. Read all the fine print and apply for a card that you feel will fit your lifestyle, and that you can afford.
Once you have your card, you will want to use it. I recommend that you try not to use more than around 20% of the balance at anytime. This will show that you are be responsible with your credit, your are not overextending your self, and most importantly pay your bill on time! In a few short months of doing this, you will often get your credit limited increased, and with that your credit score will also usually increase. With this slow but steady approach you will have a great credit score, you will have a long credit history, and you will be on your way to a great credit future.
Share
Any negative information that is showing up on your credit rating can be damaging for many years. Even if you are up-to-date with new loans or credit cards, if you have negative data showing on your credit history from many years ago, you can rest assured that it will be seen by lenders. This will affect how much interest you will have to pay for any major purchases.
Here is some information about how long you can expect certain items to remain on your credit file.
This information remains on your credit file for seven years after the total amount has been repaid. There has been major changes to Tax Liens, read about them in this blog post. Tax Lien Changes Great news for consumers.
If a lawsuit is pursued by one of your creditors it can also remain on file for up to seven years or longer depending on the statute of limitations and when it expires. All of the information about the judgment will be listed on your file.
Government loan defaults
Any defaults on government loans such as a student loan or insured loan may be added onto your record at the credit bureaus for seven years.
A bankruptcy can remain on your credit file for 10 years.
In most cases any negative information about your credit can remain on file for seven years. This includes defaults on loans, late payments and missed payments. The time period begins from the date that the last payment was made or was brought into collections.
It is a lot easier to prevent negative credit information from entering your account than to handle it once it has been reported. If you are having a problem paying an account it is always best to get into communication with the lender to get things sorted out. This way, you may be able to preserve your credit file rating for many years.
Another proactive thing that you can do is monitor your credit report to make sure that everything looks fine and that nothing has been mistakenly reported. Keep in mind that lenders can often make a mistake and report something that shouldn’t be showing up in your file. In this case it is actually your responsibility to get it sorted out so that your report stays clean.
More and more people are staying on top of their credit report and reviewing it on a constant basis. As you can see above, any negative information added to your credit file would have an impact on your financial situation for many years to come. The easiest way to keep on top of your credit is with a credit monitoring service.
Share
We have been getting a lot of questions lately, so I am going to do my best to answer them in a quick Q&A style. Here we go!
“Does being enrolled in your credit monitoring services get you enrolled in credit cards more easily”
No. The credit monitoring keeps you up to date on changes to your credit history, it is made to protect you, and to inform you of where you sit with with your credit and credit score. What it can do is tell you your credit score, and with that information you will know what credit cards you will be more likely to qualify for, and that should make it easier for you to find the right card for you.
“How long does it take for your credit monitoring service to find new accounts that have been opened?”
Within 24 hours. When shopping for a new account, you will be first notified that a inquiry has been placed on your account. After that if the account is opened you will then receive a notice of a new account being created. You can be assured that you are being protected 24/7.
“I have a charge off on my credit reports, how long will it last for?”
It will usually remain on your credit reports for 7 years from the date of first delinquency. You can learn more from the Fair Credit and Reporting Act.
Thanks for your questions, we will be answer as many as we can, stay tuned!
Share
Just like keeping your body healthy, healthy credit takes a bit of time, and some dedication. These five tips will keep your credit strong!
1. Monitor your credit report. Just like starting our any exercise or diet plan you need a check up to see what area’s you need to work on. Credit monitoring will keep you informed as to where you are right now, and what your goals are.
2. Pay your bills on time. Nothing will sink your score fast than a late pay. In the short term you will have fees and penalty’s in the long run it will hurt you even more. After a few late pays your score will be down as much as 100 points costing you thousands of dollars in higher interest rates.
3. Do not max out your available credit. If you do not know what your total available credit is, log into your credit monitoring account and take a look. If you want to build credit it helps to maintain around a 30% balance. That shows that you are using your credit and you are paying on it monthly. Maxing out your available credit shows creditors you are potential struggling to pay down your debts, and it will effect your score.
4. Careful when closing down old accounts. So you may have had a Hello Kitty card from back in the day that you just never use, or have outgrown. That card even though it has not had a balance for 15 years, still is active on your credit report, and counts as available credit. Closing down that account will show a decrease in available credit and bump up the percentage of credit you are using.
5. Be selective. Just because there is a Hello Kitty card does not mean you should apply for it. Credit stays with you for a very long time, so choose wisely. Also when you apply for credit your score will take a short term hit called a hard inquiry. When a company pulls your credit report it will negatively effect you for a short term. You can check your credit monitoring anytime as this is a soft inquiry, and will not harm your score at all.
With these few simple tips you will be on your way to very healthy credit. The most important thing we can stress is to keep your credit report monitoring active, as its link to your credit. Think of it as your personal trainer.
Share
RSS FEED