We have all been there – trying to be diligent about cleaning up our credit report of errors, paying the bills on time and even keeping the credit card balances in order. The benefit for that diligence is great – a high credit score, which is the bridge to many low-interest loans and offers in the future. A clean credit report can save you a lot of money in interest charges over time and can give you additional power when negotiating a purchase.
Need to fix your credit and boost your credit score?
Well, you’re not alone…
If your piggy bank feels empty and you need to save up a bit, you are not the only one. There are a lot of people on the same mission - going over their household expenses but without luck in spotting the right items to cut from the list.
In case you didn't know, identity theft can happen in a lot of ways. It is a serious crime where your personal information suffers the most. From your name to your driver's license or even Social Security Number, identity theft happens when someone hijacks or steals your information and intends to commit fraud in your name.
Unless you are living under a rock, there is no way you missed the birth of credit repair services and companies that promise they are able to 'fix' your credit, repair your credit or in a nutshell, improve your credit health over time.
John Oliver in his "Last Minute Tonight" segment on credit reports:
A recent report indicates the number of people who have been able to get a home loan has dropped drastically since the implementation of new regulations over the past several years.
What is kind of regulations?
The new regulations that were put in place to take into account an applicant’s combined debt, which includes other loans such as car loans, personal loans, and unsecured lines of credit, which in most cases means credit cards.
This means you have less leniency on how much existing debt you can have when seeking approval for a home loan.
The increasing rate of default occurring with home loans in America that was the spark of the financial crisis several years back. It was the delinquencies, although not enormous, that became impossible for some investment banks to bear due to their already existing debt. As it spread throughout the financial sector in 2008, nervous or cash-strapped banks and other creditors simply stopped lending out money, taking the rest of the economy with it. Deep recessions and big financial rescues then led to a surge in government debt.
A new government study finds up to 40 million Americans have mistakes on their credit reports. "60 Minutes" correspondent Steve Kroft reports on why little is being done to fix the errors. The Credit People are hired every day to save you the headaches of dealing with the credit reporting agencies. Watch the video to learn more.
The second most heavily weighted factor in credit scoring is how much of your available credit you're actually using. The lower your balances compared to your credit limits, the better. Here are a few tips on paying down your debts to best serve your credit score…