POINTGAIN - professional credit consulting and restoration company. credit repair, credit restoration

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Maintaining an accurate credit report is absolutely imperative to every facet of your life. From financial freedom to obtaining the best possible insurance rates, one can NOT afford no to be uncertain about what the bureaus have to say. In able to do so, one must also be fully educated. Below we have provided some valuable information, which we are confident you will find indispensable. If you have any questions or we can be of any further assistance please do not hesitate to call us at 1-877-441-8902.

You Need to Know Your Credit Score

BAD credit can disrupt your life. That’s why, in addition to paying your bills on time, it’s important to check the accuracy of your credit reports several months before applying for a mortgage or car loan. And these days, you also can find out your credit scores - the numbers lenders use to decide how likely you are to repay a loan.

WHY do you need to know you scores? Because the lower your scores, the higher risk you are to a lender and the less likely you are to get the best rates on loans. Checking your score with Equifax, Experian or Transunion (the 3 major credit reporting companies) before you apply for a loan can save you money if you catch a mistake and correct it. When you are buying a home, the difference between good scores and poor ones can translate into well over $100,000 over the life of a mortgage according to Howard S. Dvorkin, president of Consolidated Credit Counseling Services, a nonprofit debt-counseling service.

MOST lenders initially use the Experian score system known as FICO, developed by Fair, Isaac and Co. Several factors go into your score, including bankruptcies, how many years you’ve had credit and the number of new credit applications you’ve made. Most consumers’ FICO scores fall between 300 and 850. Sixty percent score above 700; 27% score between 600 and 699, and 12% score between 500 and 599. The way lenders view scores varies from one institution to the next. But generally speaking, this is a rough guide to how your score may be perceived by a mortgage lender:

700 and above - EXCELLENT –

680-699 - GOOD - lenders will be favorable, but you should make moves to improve your score further. Expect to qualify for rates ½ to 1% above Excellent ratings.

620-679 - AVERAGE - the lower your score in this bracket, the more collateral lenders will require and the higher rates you may get. Expect to qualify for rates 1-2% higher than Excellent. Commercial lenders will not accept your loan request below 680.

580-619 - SUBPRIME - scores in this range are often referred to as “A- credit”. You will have to put more down and pay far higher rates than most borrowers. If you score 590, for example, and want to but a car, any loan you get will carry a high interest rate. If the average rate on a 5-year car loan is 8% at the time you apply, expect to get a car loan for 11-13%.

BELOW 580 - Often referred to as “B/C-credit,” you can expect to only qualify for adjustable rate mortgages (ARMs). Consumers in this range will pay above 11% for mortgages and will need down payments of at least 20% to purchase homes.

MOVES to make a mediocre credit score or even a bad one better are not difficult. You can take steps to improve any credit score. The 1st step is to make sure that your credit history is accurate. Your scores are only as good as the information reported by your creditors to the credit bureaus. Each credit bureau may not have the same information. The 2nd step is to use the information on your credit history to improve your scores. Each credit bureau will list the top 4 reasons for why your credit score is where it is. You may find the biggest reason your scores are low is that the outstanding balances on your credit cards are too high compared to the total credit limits. Any credit score will improve if you pay off balances and pay on time.

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Avoiding Identity Theft

Following are a few ways to save yourself a lot of headache and to protect your identity:

1. The next time you order checks have only your initials (instead of first name) and last name put on them. If someone takes your checkbook, they will not know if you sign your checks with just your initials or your first name, but your bank will know how you sign your checks.

2. Do not sign the back of your credit cards. Instead, put "PHOTO ID REQUIRED".

3. When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the "For" line. Instead, just put the last four numbers. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check processing channels won't have access to it.

4. Put your work phone # on your checks instead of your home phone. If you have a PO Box use that instead of your home address. If you do not have a PO Box, use your work address. Never have your SS# printed on your checks. You can add it if it is necessary. But if you have it printed, anyone can get it.

5. Place the contents of your wallet on a photocopy machine. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel. Keep the photocopy in a safe place. I also carry a photocopy of my passport when I travel either here or abroad. We've all heard horror stories about fraud that's committed on us in stealing a name, address, Social Security number, and credit cards.

If your wallet were stolen today… within a week, the thieve(s) could order an expensive monthly cell phone package, applied for a VISA credit card, have a credit line approved to buy a computer, received a PIN number from DMV to change your driving record information online, and more. But here's some critical information to limit the damage in case this happens to you or someone you know:

1. We have been told we should cancel our credit cards immediately. But the key is having the toll free numbers and your card numbers handy so you know whom to call. Keep those where you can find them.

2. File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an investigation (if there ever is one).

But here's what is perhaps most important of all : (Most never even thought to do this.)

3. Call the 3 national credit reporting organizations immediately to place a fraud alert on your name and Social Security number. I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the Internet in my name. The alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to authorize new credit.

If you do not contact the bureaus right away after the theft, all the damage has been done. There are records of all the credit checks initiated by the thieves' purchases, none of which I knew about before placing the alert. Once the bureaus have established an alert, no additional damage can be done, and the thieves will throw your wallet away (someone may even turn it in). It could stop them dead in their tracks.

Now, here are the numbers you always need to contact about if your wallet, etc., has been stolen:
          1.) Equifax: 1-800-525-6285
          2.) Experian (formerly TRW): 1-888-397-3742
          3.) Trans Union: 1-800-680-7289
          4.) Social Security Administration (fraud line): 1-800-269-0271

For more information about identity theft, contact PointGain LLC at 214-227-6801 or 1-877-441-8902.

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Preparing For a Mortgage While Your Credit is Being Repaired

Do not let ANYONE pull your credit.
Do not purchase anything on credit. If a credit purchase is unavoidable, contact your credit consultant for assistance in determining the best way of doing the purchase.
If you need to establish additional credit, then carefully follow the instructions of the PointGain credit consultant.
Make sure that your checking account includes deposits for ALL income for the next months and that you have no overdrafts.
Budget so that, as much as possible, the bills received on all revolving credit (VISA, MC, etc) show balances at 30% or less of what is available.
Make sure all bills are paid when due. No 30 day lates.
Do not cosign for anyone on any type of loan.
Do not pursue any new credit cards that come saying that you are “pre-approved”.
If you are living with friends or family, pay them a check each month for reasonable rent even if they return the money to you immediately. You need to show a track record of rental payments.
Try to build a savings of two to three times the amount of the monthly mortgage payment that you are planning.
If you will be receiving gift money to help in your home purchase, go ahead and get it into an account at least three months prior to your contemplated closing date.
If you are self employed – follow the specific suggestions of your BankSource mortgage consultant in banking practices for your personal and business accounts.
If you are married and both incomes will be needed to qualify for the home you want, make sure that you are both enrolled in credit repair.
If it becomes necessary to move before you are able to effect your home purchase, make sure that you contact PointGain and provide proper identification so that the credit repair process is not interrupted.

Do not contract too early for a home. Work with your PointGain credit consultant to determine timing. If you contract and your credit scores are not ready, you will put yourself under unnecessary stress and may end up in frustration and disappointment because you moved too quickly. If you look too soon, realtors will find you a “Once in a lifetime deal” and will lead you to believe that the world will end if you don’t sign now. Take your time, let the process work for you, and the result will be much better.

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Call or email us for a free consultation.
1-877-441-8902
FICObooster@point-gain.com