“What Will It Do To My Score ?”

HELP buttonAs a credit risk assessment planner, I still find clients who don’t know they have to review all the 3 major credit bureaus; Trans-Union, Equifax, Experian to get the full picture of what is being recorded in their credit reports.

Due to identity theft, now every consumer should review their credit reports a minimum of once a year. Back in 2004 a study by the Massachusetts Public Interest Research Group or MASSPIRG of the 3 major credit bureaus, and found the following findings: 79% of American credit reports contain incorrect information — 8 out of 10 people.  Also 1 in 4 credit reports are so inaccurate that the borrower is turned down for financing.

    Spectrum Resources has found through our resources a client gains between 50 and 100 points when they dispute items with the help of a paralegal and one of our certified credit counselors in a 75 Day Credit Makeover program .

    You lose 5 to 10 points every month you keep negative trade lines on your credit report.  So you can see how important it is to know what is in your credit report and then taking action to dispute and remove all negative inaccurate info.

    You  can increase you credit score by changing your debt to credit ratio. For example if you debt is 60% of your credit limit you will lose 30 points.  Debt is 50% of your credit limit you will lose 20 points, and is your debt is 40% of your credit limit you will lose 10 points.  HOWEVER,  if your debt is less that 40% of your credit limit you will   lose zero points !

    Based on our resources there is a 96 chance of the trade line being removed if the disputed lines follow these guidelines based upon the very important Date Of Last Activity (DLA).  All laws and chances of removal are based on this date.  For example: Trade Line must be remove after 7 years from DLA. If less than 1 year from DLA – 30% chance of being removed , greater than 1 year from DLA- 50% chance,     greater than 2 years from DLA – 70% chance.  If Collection, Judgment, Tax lien is Paid off – 80% to 85% chance of it being removed.

   Another popular question is  how many points a negative trade line cut the credit score and the  following shows the damage, for example:  Tax lien (pr) -100 points, Judgment (pr) -50 points,  Profit + Lose write off (tl) -30 points ,  Collections (cl) -20 points , Late (tl) – 30,60,90 days -10 points                                                                

 Please contact Spectrum Resources, trained certified counselors in debt, credit and home ownership issue to help you align your debt to credit issues, raise your credit score and save you money.  (863) 967-0660 or email: SpectrumResources@tampabay.rr.com   And please visit our other blogs: http://MoneySavingTips.PolkVoice.com  and http://FinancialEducationAndOptions.blogspot.com and of course return to this one, http://SpectrumResources.wordpress.com  to learn more.

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