Jack,

 

Is it better for my wife and I  to get combined accounts or should we rather maintain separate credit card accounts with a secured card from Orchard Bank? Which will help build our credit faster?

 

R-

 

 

Hello R-

 

I hope everything is going well for you. I recommend opening two separate accounts. Once the accounts gain 8-12 months of seasoning, you can add each other to the accounts as an authorized user and further supplement your credit. At that point you will have two accounts that, although still new, will contribute in a positive way towards your credit score.

 

If you were to open two new accounts individually, you will see a greater initial decrease in credit scores because each new account will actually hurt your score. The scores will be reduced until the account attains a credit rating 6 months down the line. If you add two new accounts at once, the scores will decrease even more.

 

If you open an account, the scores will drop a bit for a while, then will increase when the accounts get rated. At that point, you can share your accounts with each other and thus, share your credit score increase.

 

 

Warm Regards,

 

Jack B. Olson

Jack B. Olson

Account Executive

 P - (866) 979-1099 ext. 205

jolson@myezcreditrepair.com

www.creditrepairwholesale.com

 

 

Is the collection (reporting currently) keeping his scores down?  He needs two more points.

 

Mahalo! ~T

 

 

 

Hi T,

 

 

Yes, there are a few collection that are keeping his credit score down. I would worry about the collections too much. If you only need a couple of points, I recommend addressing some of the revolving balances. Balances influence 30% of the FICO scores. That's 255 points!!

 

If you look at this credit scores, you will see a list of the top factors reducing each one of his scores.  You will see that the number two reason listed with all three credit agencies is, "proportion of balances to credit limits is too high on bank revolving or other revolving accounts." If we address that factor, we can increase his credit score well beyond a couple of points.

 

I notice that he has only one open and active revolving account with a balance that exceeds 50% of the credit limit. That is his account with FCU. That account has a limit of $1000 and a balance of $849. I recommend paying that balance down below 50% of the limit which would be $499 or less.

 

Since his scores all state that high balances on his revolving account are affecting his score, we can pretty much determine that they are talking about his HCFCU account since it's the only account with a derogatory balance. Adjusting this balance should have a huge impact on the score.

 

 

Warm Regards,

 

Jack B. Olson

Jack B. Olson

Account Executive

P - (866) 979-1099 ext. 205

jolson@myezcreditrepair.com

www.creditrepairwholesale.com

 

 

http://www.creditrepairwholesale.com/Credit_Score_Education.html

 

 

 

 

 

 

Do you need to improve your credit or credit score? Do you need to find out if you have collections, charge offs, late payments, public records etc? The first step in improving your credit is to obtain a credit report for yourself to review.  There are many websites that offer credit reports and credit monitoring. Since I see dozens of credit reports every day, I thought I'd give you a list of the best and the worst credit monitoring websites available today.

 

 

There are several websites that offer good credit reports free of charge. Of course there is a catch, they will sign you up for a membership and if you don't cancel within the "trial membership" they will charge you. If you cancel they charge you nothing.

There are many sites that offer this service. I recommend two of them.

 

1. www.truecredit.com

These guys give you a 30 day trial membership and then cost $15 per month. They provide you with a very accurate and detailed tri-merge credit report (a report from all three credit bureaus). They allow you to fully update your credit report with all three bureaus every 30 days. They allow you to update your Trans Union report every 24 hours. The credit scores available on this site are called Vantage scores and they are way off. Don't pay attention to the scores on this site.

 

2. www.creditchecktotal.com

This site gives you only a 7 day trial membership and then costs $20 per month. They provide you with a tri-merge credit report which is also pretty accurate and somewhat detailed. Unfortunately they do not provide a 7 year payment history on your accounts like truecredit does. They only let you see a 2 year history. They let you fully update your credit report every 24 hours. The credit scores are much closer to the FICO scoring model but are still not accurate.

 

 

I do not recommend the following websites:

 

1. www.Freecreditreport.com

They only give you an Experian credit report. They also charge something like $30 per month for their one bureau credit monitoring program. It's expensive and only a third of what you need. Plus their advertisements and jingles are annoying.

 

2. www.Equifax.com

My Dad got his credit report from this website. It was 40 pages and the most confusing information ever. He tried for hours to figure out how to read that report. He called me very angry and ready to give up (maybe they confuse and frustrate on purpose). I got him a truecredit account and his credit report  with them was only 5 pages long and very straight forward, very easy to read. He was soooo relieved. I could tell he was very stressed out by the equifax credit report. They are a confusing mess of duplicated information and a huge waste of paper. What more can you expect from a company that directly inspired congress to pass the Fair Credit Reporting Act?

 

3. www.identityguard.com

I used to like this site but they have changed. If you want identity theft insurance, this is the site for you. They've changed their format and now resemble Equifax.com due to their duplicated information. They only allow you to update every 90 days. Not convenient.

 

 

There are many other websites out there and new ones popping every week. I just got a report from www.mycredithealth.com It seems to be a good report. They are $30 per month. They let you update every 30 days I think. I'm not too sure because I like $15 per month at truecredit that I like $30 with someone else.

 

For more information on the credit scores, click this link below

 

http://www.creditrepairwholesale.com/Credit_Score_Education.html

 

Warm Regards,

 

Jack B. Olson

Jack B. Olson

Account Executive

P - (866) 979-1099 ext. 205

F – (866) 979-1097

jolson@myezcreditrepair.com

www.creditrepairwholesale.com

 

 

 

 

Once you learn how the credit scoring system works, you can evaluate your own credit report. Here is an e-mail response to a loan officer who had asked me to review his clients credit report.

 

 

There are a few things that can be done to increase this clients credit score.

 

Since the balances on our accounts influence 30% of the credit score, I'll always look for account balance adjustments that are easy and will increase the credit score.

 

HFC FED CU

Balance: $435

Limit: $500

Pay down below 30% of the credit limit: $149.00

 

 

Also, I noticed that the balance on the other account with HFC is above 50% of the limit. This balance need to be reduced by $1261 in order to get it below 50% of the credit limit. I noticed that she has an account with AMGEN that has a huge amount of open credit. The limit is $4000 and the balance is only $465. She can take $1261 from this account and have both accounts below 50% of the credit limit.

 

 

Since the FICO scoring system only rates your "open and active" accounts, her 5 1/2 year old account with Macys is not being evaluated. The last time that she used her account with Macys was back in 12/08. I recommend that she uses the account to show activity. The limit is only $100 so ask her not to spend more than $20 or so.

 

 

Making these adjustments might allow her score to increase anywhere from 20-35 points. Removing some of her late payments will allow her score to increase much more than that. If we have even an average amount of success removing some of her late payments and she was to make the adjustments recommended above, I could see her score increasing by 50-70 points within about 30 days.  

 

 

Warm Regards,

 

Jack B. Olson

Jack B. Olson

Account Executive

P - (866) 979-1099 ext. 205

F – (866) 979-1097

jolson@myezcreditrepair.com

www.creditrepairwholesale.com

 

To learn more about FICO scores, read my article here: http://www.creditrepairwholesale.com/Credit_Score_Education.html

 

INCREASING CREDIT SCORES / PAYING OFF INSTALLMENT ACCOUNTS VS PAYING DOWN REVOLVING ACCOUNTS

 

Here is an e-mail that I just sent out. It is very educational. For more credit score education, read the following article: http://www.creditrepairwholesale.com/Credit_Score_Education.html

 

Congratulations on paying off your installment account with Reliable Credit. Once we get that updated on your credit report your credit score will go down. I know that I have talked to you about this before. If you remember, when FICO scores only give you points based on OPEN and ACTIVE accounts. Once you pay off an installment loan the account closes and you lose the points that you earned while paying the account on time.

 

If you want to refinance your bike and you want to walk in to the finance office with the best possible FICO scores, there's what you need to do.

 

Pay the following account balances below 50% of the credit limit:

 

1st Tech Credit Union

Current Balance: $607

Limit: $700

Please pay down below: $349

 

1st Tech Credit Union

Current Balance: $383

Limit: $500

Please pay down below: $249

 

1st Tech Credit Union

Current Balance: $373

Limit: $500

Please pay down below: $249

 

The balances on your accounts influence 30% of your credit score. That's 255 points. FICO doesn't care what the balances are on your installment loans (your loan with reliable credit is an installment loan) unless that balance is past due or upside down. They grade you heavily based on the balances on your revolving accounts (1st Tech Credit Union). If your balance is above 50% of the credit limit, your score will drop about 7-15 points for each account. By reducing the balances on the three accounts listed above, you may see your credit score increase by about 20-30 points.

 

On another note, there was a collection deleted from Equifax on the latest round. Your scores went up as well.

 

EQ from 729 to 735

XP from 723 to 780

TU from 738 to 786

 

 

Warm Regards,

 

Jack B. Olson

Jack B. Olson

Account Executive

P - (866) 979-1099 ext. 205

F – (866) 979-1097

jolson@myezcreditrepair.com

www.creditrepairwholesale.com

 

 

WHEN TO RAPID RESCORE

Typically people rapid re-score information on their accounts when they are getting ready to use their credit to apply, purchase or refinance. It is during this time that you need to have the most current information updated on your credit report especially if you have just paid down some balances on credit cards.

Before you use your credit, it's a good idea to pull a copy of your credit report. Review each one of your accounts and ask the following questions:

1. Are my account balances reporting accurately and are they up to date?

2. Are any of my accounts past due or upside down?

3. Can I reduce the balances on any one of my revolving accounts below 50% or 30% of the credit limit? Or better yet, a zero balance?

4. Are my accounts active?

 
If you see that any of your accounts are past due or upside down you will definitely want to fix those accounts up. Being upside down or past due can severely reduce your credit score. It's really almost as bad for your credit scores as a new 30 late payment. 

If you review your credit and find that you need to make adjustments or updates, it it highly advisable that you do so. The balances on your accounts influence 30% of your credit score which is 255 points. Just by reducing the balance on one of your accounts to an amount that is below 50% of the limit can increase your credit score by 7-15 points. If you reduce two or three, then you will see an even greater increase.

One of the best things you can do for your credit scores is to pay your revolving balances down to $0.00. This will maximize your credit scores.

If you see that the date of last activity on one of your revolving accounts is over 12 months or you see that there has been no new information contributed by that account in some time, the account has gone inactive and needs to be utilized. I always looks for old department store cards or jewelry accounts. If you see an account that hasn't been used in a long time, go out and make a purchase on that account, then get me a letter from that creditor reflecting the most current balance. In this case, I will rapid re-score the account to actually show a balance since this will prove that the account is active again. This can contribute a large amount of points to your credit score if you have a lack of credit. It's all very subjective of course. If you have a few open revolving accounts but they lack seasoning and you end up re-activating a jewelry account you opened 8 years ago then your credit scores are going to increase in a huge way because you are adding some serious seasoned accounts to your FICO score evaluations. I'm sure many people have low credit scores due to inactivity, maybe they have no scores at all. They might not be aware that all they have to do is spend a few bucks on their accounts to have their credit scores sky rocket.

If you make an adjustment to your account balances or you see that your credit report doesn't accurately reflect the most current balance information, you may want to process a rapid re-score to make sure that the balances information gets updated. If you pay down your credit card today, it can take anywhere from a couple of days or a couple of months for that account balance to get updated on your credit report. That's why we process rapid re-scores. To make sure that stuff gets updated in time. There's no sense in walking into your dealership or bank and getting into some type of financing with outdated credit information on your report. That 10, 15 or 25 points that you're not getting because your credit report is outdated could cost your thousands, sometimes millions of dollars in interest and finance charges.

 

Warm Regards,

 

Jack B. Olson

Jack B. Olson

Account Executive

 

P - (866) 979-1099 ext. 205

F – (866) 979-1097

jolson@myezcreditrepair.com

www.creditrepairwholesale.com

 

 

 

The Fastest Way to Increase your Credit Scores

RAPID RESCORE

WHAT IS RAPID RESCORE?

RAPID RESCORE- This is the process of updating specific information on a credit report quickly and having the credit score re-evaluated based on this updated information. Typically, the ability to rapid re-score is available only to loan officers and brokers. Only EZ Credit Repair offers rapid re-scoring services directly to consumers. The rapid re-scoring process that brokers and loan officers have access to works by utilizing a third party verification process. The loan officer can use the third party creditor provider that prepared his clients credit report to process the rapid re-score. This process takes anywhere from 24-72 hours. What happens is someone from that third party credit provider takes the documentation provided by the consumer and verifies it by calling the bank and speaking with a representative. They will then issue a "credit supplement" or addendum to the original report, reflecting the changes made. It is important to note that they do not actually get the information updated with the credit bureaus so this addendum or supplement is only good for this loan officer. It will not be updated if you have someone else pull your credit.

Our rapid rescore process works by actually updating the information with the three credit bureaus. When the information is updated, the credit report can be pulled and the credit scores will change according to what information has been changed. The process takes 5-7 business days.

In order to process a rapid rescore, you must furnish us with documentation from the creditor clearly reflecting the information that needs to be updated. Online documentation will NOT work 97% of the time.

Rapid re-scoring is the fastest way to manipulate your credit scores. If done properly, rapid re-score can increase your credit score anywhere from a couple of points to 100 points or more. I will post more information about rapid re-score in the future. Call now and speak with a credit expert and we can show you all of the rapid re-score opportunities that are available to you. Call now for a free consultation at no cost or obligation.

Direct: 702-487-3398

Toll Free: 866-979-1099-205

www.creditrepairwholesale.com

Warm Regards,

Jack B. Olson

Jack B. Olson

Account Executive

P - (866) 979-1099 ext. 205

F – (866) 979-1097

jolson@myezcreditrepair.com

www.creditrepairwholesale.com