Rebuilding Your Credit the Right Way

Repairing your credit is the first step in rebuilding credit. To bring up your score, it takes patience, dedication and a willingness to change your ways. Credit scores are based on credit history. This means creditors will look at several years’ worth of your credit history to determine whether you are a good credit risk. You know you need to have a healthy credit score to get the things you want in life. In fact, your credit score affects all aspects of your life.
  • Without a good score you will struggle to get loans or will likely pay high interest rates on car loans, home loans and even personal loans.
  • You will pay higher auto and homeowner’s insurance rates.
  • Paying high interest rates take money directly out of your pocket and affects what you can buy today, including things like groceries.
  • Ability to secure a lease on your dream apartment will be impacted. Low credit scores may keep you from renting an apartment or home without having a co-signer.

When you are short on cash, because you are paying high interest rates on various loans and credit cards, you are tempted to rely on credit cards to buy day-to-day items. This creates a dangerous cycle that can leave you swimming in debt and struggling with the monumental task of rebuilding credit.

Why is rebuilding your credit so important and how does it help your credit score?

  • Establishing credit is one of the ways you can increase your credit score. You need to prove your ability to make payments on time
  • Rebuilding credit is crucial to achieving goals you may have like buying your dream home, owning a new car or even securing a loan to send your child to college.
  • You never know when you may need to take out a line of credit to pay for medical bills or elective procedures like braces for your child.

There are many benefits to rebuilding your credit that will make your life a little easier.

  • Confidence and peace of mind knowing you can buy the things you need in life without worrying about a poor credit score holding you back.
  • Getting lower rates on insurance, car payments and other financed items puts more money in your pocket to put into your savings account.
  • Freedom to choose the best loan with the best rates available instead of taking whatever you can get.

Life is stressful enough without worrying about a low credit score. You need credit from time to time to get the things you want most out of life. Rebuilding credit is something that can be done. With the 10 strategies outlined in rebuilding your credit report, you can achieve that healthy score you have longed for. You won’t have to worry about being denied credit and being forced to do without. It is time to make a change for the better and start doing what you can to take back control of your credit.

Building Credit With Cosigners

cosigners
Building credit without the help of someone can be very difficult. You have to know the ins and outs of the business, and tackling a billion dollar industry on your own can be difficult. One method people use is the help of cosigners. It is important to remember the pros and cons of cosigning, whether someone has cosigned for your, or you have cosigned for someone else. Also, knowing how to cosign effectively for someone is important to build/rebuild your credit.

What are Cosigners?

Cosigning means that due to your lack of credit or poor credit, the bank would like someone with good credit to back you up if you default on the loan. This method is good when you are trying to build or set up credit. Talk with a family member or a friend to have them cosign for you since you don’t have credit. In addition, let them know that you are trying to build your credit.
After a year of on-time payments, your credit should be at a level where you no longer need the cosigner to stay on the loan. Call the lending company and ask them to remove the cosigner. This shows the cosigner that you met your part of the bargain and was responsible with their Now, if you stop paying on the loan, the bank will go after the cosigner for the balance of the loan. If this happens, the relationship will definitely sour, so be cautious about entering into a cosigning agreement with someone.
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If you go down this route, take steps to protect yourself and the cosigner as well. Start with a small loan at the bank and make your payments on time for a year, paying off the balance so that you can release your cosigner. The quicker you can release the cosigner, the faster your credit will increase, and the relationship will improve, as trust in you will increase.
Building credit takes time, but if done correctly, you can reap the benefits greatly. You don’t need to be rich to take your dream vacation or buy your dream home. Budgeting wisely and using credit correctly can help you do these things and more. If you need assistance in achieving these goals and more, feel free to contact me for more information.
Talk to you later….

The Benefits of a Secured Credit Card

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I hope you are doing well as we enter the holiday season. It is almost 2017, and many of you still have not taken the step towards financial freedom. One way you can build or rebuild credit is with a secured credit card.

What is a secured credit card?

Getting a secured credit card and using it responsibly is an excellent way to build creditor’s trust in your ability to use new credit so that eventually you can get an unsecured card. With a secured credit card, the companies need the cardholders to secure their credit purchases by depositing a certain amount of money as collateral. That way, if you don’t pay your secured credit card, the bank can get repaid by withdrawing the money owe from the deposit you provided.

These cards can be used the same way as an unsecured card, except that your money secures them. The good thing about secured cards is that no one knows that the card is secured. The downfall to these cards is that they usually come with high interest rates, over-the-limit fees, late fees, annual fees, cash advance fees and maintenance fees. This is the credit card company’s way of encouraging you to pay to build your credit. Once you have reviewed your credit report, you are ready to sign up for a secured card.

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Ask for the following questions before you sign a contract or send any money:

  • Does your company report to all three credit bureaus?
  • When will I qualify for an unsecured line of credit?
  • What are your credit card fees?
  • Talk with your major local banks and credit unions.

 What is the best way to find secured cards?

  • Creditcards.com
  • E-wisdom.com
  • Lowermybills.com
  • Bankrate.com
  • Cardrating.com

Banks known to issue secured cards with low limits:

  • Capital One
  • Orchard Bank
  • New Millennium Bank
  • First Premier Bank
  • Applied Bank
  • Compass Bank
  • First Progress
  • Open Sky
  • Discover
  • Wells Fargo
I hope you are working on improving your credit and start the new year on the right foot about credit. You might even be able to take your dream vacation once you get your finances in order, regardless of how small your income is. There is always a way to improve your finances and enjoy life without making extra expenditures.
Feel free to contact me with any questions you may have about any of the services we offer.
Talk to you later…
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Aren’t Credit Bureaus Supposed to Protect Us…

I have worked as a paralegal in many aspects of the legal field for over 10 years, and working on various bankruptcy cases I’ve learned many things involving the credit industry. Many people are under the assumption that going to an attorney for their credit issues will protect their rights, but this is wrong. Attorneys are trained in bankruptcy law and collection practices, but very few learn the ins and outs of the rights consumers have and how they can be protected prior to any court intervention.

You should always work on your credit and have errors corrected and/or removed before filing for bankruptcy for two main reasons. First, some attorneys charge by the number of accounts they will be “discharging” for you. Second, once you file for bankruptcy, you have automatically verified all your debts, whether they can be legally collected on or not. Unless you verify your accounts, especially collection accounts, the credit bureaus are not going to correct or delete them all together. Many attorneys are trying to process as many bankruptcies as possible, and will not bother to verify the accounts before filing. They will go by the accounts listed on the credit report and process the case accordingly.

Credit repair does not have to be done by an attorney, but there are several attorneys that will go the extra mile for a client before advising them to go down the bankruptcy route. Using a reputable credit consultant is advisable but finding one with integrity might be difficult. We have been conditioned to believe credit repair is not legal and many engage in shady practices. A reputable credit consultant will give you a contract of services, they will not guarantee results, has a cancellation clause in the contract and does not conduct illegal practices like purchasing trade lines for your report.

Credit bureaus and creditors pay large sums to advertise that credit repair is illegal, but don’t believe the hype. Credit repair is LEGAL and regulated under the 1996 Credit Repair Organizations Act (15 U.S.C. §§ 1679-1679j), and these organizations/companies use the 1970 Fair Credit Reporting Act (15 USC § 1681 et seq) to repair a client’s credit file. These laws have been around for decades, but big bucks are paid to have you think credit repair is illegal and that nothing but time can fix your credit.

If you are interested in saving money by working on your credit file, correcting errors and improving your credit scores, contact me and schedule an appointment today.

What is a Credit Score?


Every where we go, you hear talk about good credit, credit checks, credit scores, and other credit terms that can baffle you. Credit and credit scores are the lifeline of the financial industry. It is very difficult to go through life without applying for some form of credit. Credit is when an individual or business gives you something of which you promise to pay at a later date, usually in installments. Loans, mortgages and credit cards are the well known types of credit there is, but changes in the credit reporting industry can have accounts reported from utility companies, insurance companies and landlords/rental companies.

Credit is granted based on what is in your credit reports and your credit scores. A credit score is a numerical calculation on the likelihood that you will pay your credit obligations. The higher the number, the more trusting a company is to grant credit. The numerical calculation is based on your payment history, types of credit, amounts owed, length of credit and credit inquiries.

Payment history is makes up 35% of your credit score, making it the most important. Always make your payments on time and never skip one. Missing one payment or paying late can drop you scores by 20 points, even more, and recovering from that can take a long time.

How much you in all your credit obligations accounts for 30% of your credit scores. Just because you have a $1,000 credit limit on a credit doesn’t mean you should use it all. The optimal rate is using 30% of your available credit, going over this percentage reduces your credit scores.

Length of credit history is 15% of your credit scores. The longer you have had credit accounts open and active, the better your scores. This shows that you’ve had credit for some time and have kept up your part of the bargain. The longer you have had credit, the better the odds of attaining new credit.

Your credit scores also take into account the kind of credit you have, and it makes up 10% of your scores. An optimal credit report has 1 mortgage loan in good standing, 1 auto loan in good standing and 3-4 credit cards, active and in good standing. Having different types of credit accounts shows all around financial stability and creditworthiness.

Finally, inquiries into your credit reports account for 10% of your scores. Whether credit is granted or not, every time you apply for any typ of credit, a notation is made in your credit reports. Too many inquiries, especially around the same time, can raise a red flag while lowering your scores at the same time. Creditors assume you are applying for credit irresponsibly when you request lots of credit at the same time.

Do you know the health of your credit profile? When was the last time you checked your credit reports? Are you actively taking care of your credit reports, improving them so your credit scores can go up? If you need assistance in this, or have another credit question, feel free to CONTACT ME.

Just Because its Bigger, Doesn’t Mean its Better

big not betterCredit repair companies are looked upon with a skeptical eye as many have been led to believe that credit repair is illegal and only time can repair your credit. This is not true and the Fair Credit Reporting Act gives you the right to challenge incorrect information in your credit reports. Why wouldn’t you challenge information in your credit reports that are reflecting negatively on your credit worthiness. There are many credit repair companies out there, but not all provide the same level of service.

Not too long ago, someone reached out to me with questions about credit repair. I was shocked to find out that he had signed up with a large, and very well-known repair company, over a month had passed yet he had not heard a thing from them. Our turnaround time is less than a week, and we get started immediately on your analysis and disputes. The credit repair process takes time when done legally; hence, the faster you begin the process, the quicker the results.

Also, credit repair is not only disputing negative items in your credit reports, establishing good credit at the same time is essential for the process to work. Knowing when and how to establish new and good credit history is something Martinez Consulting Services teaches, as well as other credit habits that should be implemented in order to achieve financial goals and independence. Learning how to use credit correctly will help raise your scores and credit worthiness in the eyes of creditors and lenders, placing you in a position where you can purchase your dream home, dream car, send your kids to the college of their choice or take that dream vacation without leaving you destitute. The possibilities are endless if you take control of your credit and finances today. To request information or to get started, please send your contact information with preferred method and time of contact to Lmartinez964@optimum.net.

Other Services we Offer:

Notary Services

  • Mobile Notary
  • Apostille Services
  • Signing Agent Services

Business Services

  • Business Formation
  • Licensing/Permit Application
  • Consulting Services
  • Credit Services

Individual Services

  • Document Preparation
  • Typing Services
  • Credit Repair/Analysis
  • Virtual Bankruptcy Assistant (For attorneys only)

The Time is Now – Repair Your Credit Today

FullSizeRenderWelcome to a new year. A time to start over and a time to fix our past errors. One of the biggest mistakes people often make is not taking care of their credit. Whether noticeable or not, credit affects our day to day lives, regardless of using the credit or not. Knowing how to use credit correctly can open many doors, like:

  • Better rates on mortgages and refinances
  • No or low interest rates on credit cards
  • Lower rates on car loans
  • Better insurance rates, whether life, auto, etc.
  • Positive results on job screenings that perform credit checks
  • Better housing options

Having good credit is important and you need to stay on top of it. Under the Fair Credit Reporting Act (FCRA), you have the right to dispute all inaccurate, erroneous and obsolete information. Information being reported that is wrong can be legally removed from your credit reports. This goes for anything and everything, including but not limited to:

  • Foreclosures
  • Student loans
  • Late payments
  • Bankruptcies
  • Repossessions
  • Child support
  • Charge offs
  • Public records
  • Collections
  • Judgements
  • Tax liens

Martinez Consulting Services will help repair your credit and teach you the necessary tools to help you achieve your credit goals, whether it’s to be debt free, buy a house, buy a car or take that dream vacation. The possibilities are endless if you take control of your credit and finances today. To request information or to get started, please send your contact information with preferred method and time of contact to Lmartinez964@optimum.net.


 

Other Services we Offer:

Notary Services

  • Mobile Notary
  • Apostille Services
  • Signing Agent Services

Business Services

  • Business Formation
  • Licensing/Permit Application
  • Consulting Services
  • Credit Services

Individual Services

  • Document Preparation
  • Typing Services
  • Credit Repair/Analysis
  • Translation Services (Spanish/English)
  • Fingerprinting

Lorraine Martinez
Mobile Notary, Business and Certified Credit Consultant
Martinez Consulting Services Corp.
P.O. Box 506
Bronx New York 10459
347-947-0084 Tel/Text
800-957-4405 Fax
Lmartinez964@optimum.net

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