24 Feb
Uncategorized

Why Does My Credit Score Keeps Dropping & How to Fix it?

When you want to qualify for a mortgage, better loan terms, or a credit card, you’ll need to have a very good credit score. There are plenty of ways to raise it, but if you dig deeper, you might find that you actually need to fix it. And if you need to repair your credit score, there’s no other time to start than now!

 

Here are four reasons why your credit score keeps dropping, and how you can fix it.

Reason 1: You have an inaccurate credit report.

One reason you may have a low credit score is that your credit report is full of inaccuracies or worse, it contains various indicators that you are engaging in fraudulent activities!

 

But don’t worry, the fix is pretty easy. All you have to do is request your credit report from the Annnual Credit Report Request Service. It’s free, in case you were wondering – the three major credit bureaus are required by law to give you one free credit report per year.

 

Your credit report will contain your credit history, from credit cards and loans to accounts that were reported to collection agencies, and even legal actions like foreclosures and bankruptcies.

 

Once you receive your report, make sure to check it for any errors such as the following:

 

  • Incorrect personal information like misspellings or wrong addresses
  • Accounts that aren’t yours
  • Wrong public records like bankruptcies, foreclosures)
  • Accounts that are listed as open when they’re actually closed 
  • Doubled or duplicate accounts
  • Payments that are marked as delinquent when they’re not

 

Sadly, plenty of credit reports can contain errors. Any of these can greatly impact your credit. And if you do find an error in one report, check to see if all the other reports contain the same. 

How to fix

Report the errors to the bureau where you found the errors. If it’s only in one report, report to that bureau. If you got it in all three, then report to all three. You just need to provide documentation (like an identification card), the wrong information, and proof that what you are reporting is indeed an error. Thankfully, the bureaus are obligated by the law to resolve these mistakes. This process is also free.

 

Aside from the bureaus, you should also talk to the lender or creditor that is related to the wrong information and let them know of their error. Once the lender or creditor corrects that information on their side, that action updates all the bureaus.

Reason 2: You are late in paying your balances.

This is pretty simple: your credit score is down because you have plenty of overdue balances and you’re not paying them. Take note that payments aren’t considered late by credit bureaus until they’re past 30 days, so if you’re late, you’re really late!

 

The longer you don’t pay, the worse your credit score gets. You see, late payments stay on your credit report for as long as seven years, so it’s better to pay them as soon as possible. And when you have an account that’s way past due, your creditor may turn your account over to a collection agency to collect your debt. When that happens, that additional action is placed on your credit report, leading to an even worse score for you.

 

Plus, if your credit card payments are way too late (think six months), you will no longer have the option to make regular minimum payments. Your creditor will mark your non-payments as a loss in their records and will cancel your account. That means you’ll have to pay the balance in full, plus you’ll be charged a late fee for each month that passes!

How to fix

While paying off your debt is obviously the only way to fix this, payment won’t get the fact that you haven’t been paying on time off your record… unless you make a pay-for-delete agreement with the collection agency.

 

A pay-for-delete means the collection agency will remove the collection account from your report, as long as you make the full payment or a lesser agreed-upon amount. Remember, banks would rather get paid than anything else, so they’ll most likely be open to this arrangement. Send your creditor a pay-for-delete letter, and as long as they agree, your debt will be removed from your credit score.

 

And if you manage to pay off your old debts and get new credit, make it a habit to start paying on time. By doing so, you’re showing current creditors and possible lenders that you are a new person: you are now a borrower who is responsible. Whether it’s a credit card again or even a simple utility bill, pay on time. In fact, it’s best to set up automatic monthly payments so you can be consistent.

Reason 3: You have low credit limits.

Credit card companies will give each person a credit limit, which is the maximum amount that one can spend before some of the balance will be required to be paid off. That credit limit will depend on what kind of credit card you have and your creditworthiness. If you have a low credit card limit, that’s not exactly a good sign for other creditors – they might take it that you’re not to be trusted with money or with using credit.

How to fix

Simply ask your creditor to increase your credit limit. If they grant it, it can improve your credit score.

 

Another way to have an increased limit is to get a new credit card. Getting a new card increases your total available credit. Of course, do remember that you don’t want to get more debt, so pay this off on time also in case you use it. And check if the new card has an affordable annual fee. If you can’t afford to pay it, or if you think it’s too expensive, don’t get the new card.

Reason 4: You’re opening too many new accounts.

If for some reason, you’ve been opening plenty of new bank accounts, such as having the need to buy a car at the same time you’re applying for a credit card, well, guess what? That’s actually a negative sign to creditors. They might feel like you’re riskier, and might not lend you money at all. Generally, they’d feel much better if they knew you have accounts that have been open for a long time already.

How to fix

Check out which bank accounts you have that have been open for a long time already, and keep them. It also helps if they have a good payment history. If you plan to close any account, close the newer ones. Older accounts that are kept open help build your credit age. The older it is, the better your credit score typically is.

 

Get professional help in fixing your credit score.

The repair of your credit can be very time-consuming and can drain your patience. If you need professional help, hire us at Next Level Credit Score. We help you manage your credit score and make it so that you can qualify for better opportunities. 

 

Contact us today and book your free consultation. 

23 Dec
Credit Repair

Clean Up Your Credit Report in 7 Easy Steps

Have you checked your credit report lately?

If you plan to make a big purchase, like a new house or car, you should! Not checking your credit regularly is a big mistake, especially if it means that your score is down. 

And you know what’s worse? That’s if you find out that your credit score is down, but there are plenty of inaccuracies and outdated information in your report. It’s very frustrating but sadly, that actually happens plenty of times. It’s a big hassle but it’s something you have to fix for your benefit.

Why do I need a clean credit report, exactly?

If you don’t have a clean credit report, you will have problems getting financing, insurance, jobs, and more.

Plus, if you don’t take the necessary steps to fix it now, it can lower your credit score for years to come. And even if you do get approved for a loan or a credit card, you might find that your interest rates and payment terms aren’t that nice.

Can I clean up my credit history quickly? 

Sorry to burst your bubble, but there’s no fast way. The federal law gives credit bureaus between thirty to forty-five days to investigate when you dispute your credit history. And sadly, the negative information on your credit history will stay there up to at least seven years.

That means you should find out if your credit history needs fixing as soon as possible. The more you delay, the longer the negative reports will stay in your history.

How to clean my credit score: the steps to take

Are you now wondering, “How to clean my credit score?” Well, read our easy guide on what you should do to get a clean credit score.

1. Get a copy of all your credit reports.

The first thing you need to do is to get a copy of all your credit reports. The main way to repair your credit is to challenge wrong or unfair information in your reports. That’s why you need a copy of all of them.

Of course, not all negative information you will find in your report is wrong. But in case you do find some, you can start challenging them right away. Plus, you have a right to see the reports – the FCRA (Fair Credit Report Act) gives you the right to a yearly credit report for free from Equifax, TransUnion, and Experian, the three major credit bureaus.

It’s vital to get the reports from all three since the agencies do not necessarily share information with one another.

2. Review your credit reports and look for any errors.

When you review your credit reports, you will be able to see the things that affect your credit negatively. Make sure to be as meticulous as possible when going through your reports. Simple mistakes such as extra zeroes and other clerical errors can drastically change your credit score. 

Pay close attention to things such as the status of your loans, your recorded account balances, and even your personal information. Make sure everything you see is correct.

3. Challenge all errors that you find in the reports.

If ever you find any information that is not correct, take it up right away with the credit bureaus. Dispute it and request to have the wrong information removed. 

An example of wrong information? One item on your report says you haven’t paid a certain loan for twelve months but you have proof that you have actually been paying on time. 

Don’t be afraid. You have the right to dispute anything negative on your reports that you feel are false, incomplete, or based on hearsay or creative speculation.  It will strengthen your case if you have proof that the report is wrong, so make sure to keep proof of and copies of payments.

4. Reduce your use of credit.

Credit is great because you’re able to use the bank’s money before using your own when buying stuff. However, if you use too much credit, it doesn’t really look good on your report. Keep your credit use to below thirty percent of what is available to you. Try also to limit your spending as much as possible.

5. Try to remove records of late payments.

Try asking your creditor to remove late payments from your report, especially if you are on good terms with them. Try writing a goodwill letter, which is a written request to remove the late payment based on your history of paying on time and explaining why you made late payments. 

The creditor you write to is not obligated to reply in any way. But as mentioned, if you are on good terms with them, they might.

Another option you can try is to write a letter requesting for them to remove that negative fact from your record in exchange for you paying the full amount of any outstanding debt. That might get their attention more.

6. Pay off current bills.

Speaking of paying for debts, you should aim to do that for all current loans or credit cards. Your payment history will affect your credit report greatly. 

If you have no money to pay off current debts in full, try asking your creditor if a payment plan is an option, or negotiate terms. 

When it comes to credit cards, you can try to do the same – call your bank. If you’ve accumulated cashback vouchers, miles, or points, try redeeming them to help pay off your credit card. 

Of course, if you don’t have credit card debt, just keep paying full balances on time each month. That would do wonders for your report.

7. Don’t let it happen again.

Congratulations, you’ve successfully started cleaning up your credit report. Cleaning your credit will take plenty of time, but it will be all worth it.

But just because you completed steps one to six doesn’t mean you should be complacent. One wrong move, or if you relax too much, you might end up having to repeat steps one to six. So make sure your balances are updated as much as possible. And don’t borrow more than what you can pay for. 

Again, cleaning your credit will take plenty of time – do you really want the hassle of going through all this again?

We didn’t think so.

What if I have no time to clean up my credit report?

If you think that you will have no time to make your credit history spotless, don’t despair. That’s why you have professionals like us at Next Level Credit Score. 

Sign up with us and get a free consultation and credit analysis. You can relax the whole time because we will do our best to challenge all negative items on your report by working with credit bureaus and your creditors. You don’t have to do the work!

Plus, you can always log in to see real-time progress and live stats updates. And we guarantee that we’ll maximize your score. You’ll be able to achieve your goals as well as learn how to maintain your amazing credit way after our work is done.

Contact us today and let’s get started!

21 Oct
Credit Repair

When To Use A Credit Repair Company

Do you have bad credit? Do you want to stop paying exorbitant interest rates on your various loans and credit cards because of your bad credit? It’s hard to do it by yourself, as you possibly have no idea how credit scores are calculated, or if your credit score can be improved. 

If you can relate to the above, you most likely should get the services of a credit repair company, like us at Next Level Credit. But is it really worthwhile to hire us or other credit repair companies?

Well, our primary task is to improve your credit history to raise your credit score. We examine your credit report for unfavorable issues such as charge-offs, judgments, and tax liens. We then devise a strategy to help you out. You pretty much leave everything to us so you can go on with your daily life. Sounds convenient, right?

If you’re ready to fix your credit, we are more than happy to assist you. But of course, you might be wondering why you can’t just do it yourself. In no particular order, here are a few reasons when to use a credit repair company.

 

We have the expertise you need.

Unless your work involves money and credit, you probably have no idea where to start with your repairs. A professional credit repair firm knows all of the rules that control the credit industry, including the FCRA, FACTA, FDCPA, and even HIPPA laws. This means that when you hire a credit repair company, you will have an expert on your side who is well-versed in the credit restoration process. If you are not confident in the process but still try to do it yourself, you may mistakenly do something that may harm your credit rating and further lower your credit scores. That’s something you want to avoid at all costs.

 

Credit repair is a time-consuming process.

Here’s a sad fact: creditors, collection agencies, and credit bureaus will exploit every opportunity available to ensure that repairing your credit will take a long time. They understand that when confronted with a long, tiresome process and some strongly worded legal letters, most customers become disheartened and will give up. By hiring a professional to assist you with credit repair, you will get the help and support you need to stay the course.

Among the basic credit restoration tasks that credit repair companies handle are:

  • Identifying the best consumer protection legislation for your specific circumstances
  • Notifying the proper creditor or credit bureau of the problem
  • Carry out follow-up steps depending on the responses received
  • Keeping track of correspondence and papers

Imagine doing all this by yourself, while you still have to work, take care of your family, and so on. When will you find the time to even study anything related to credit restoration? During your free time? Studying means you won’t have any! Hiring a credit repair company will most likely get you faster results.

Also, keep in mind that generally, credit rebuilding takes about three to six months. If credit repair is the only thing you need to do with your life, that won’t be a problem. However, that’s not usually the case.

 

There is no emotional connection.

Are you a highly emotional person? Even if not, even the calmest person can become slightly panicked when dealing with financial or legal concerns. Emotion is not your friend when it comes to these things. We understand, but at the same time, getting emotional will be very disadvantageous for you. Frustration can rapidly turn into rage, which creditors and collection agencies use to trick people into unknowingly verifying their debt. That in turn can be harmful in the long run. And it’s not going to help your reputation if you end up shouting expletives at various offices. 

If you want to avoid any emotional outbursts, it is best to hire a credit repair company. We can fix damaged credit with no emotional attachment to your case. Therefore, we can guarantee that we can deal with your situation in a cool, collected manner. We’ll be able to talk to those you owe money to with clear heads and without allowing emotions to interfere. We’ll be able to help you get a solution to your credit score problems.

 

You want to save money.

We know what you’re thinking. How can hiring a credit repair company help you save money? The fee of a credit restoration company is typically around $19 to $149 per month! If you don’t hire anyone, you’re going to save more money, right? 

Well, not exactly. It might seem to be more expensive at first to hire us or other credit repair companies, but listen to us: it will save you money. You see, if you choose to handle the entire process by yourself, you will need to get the services of a lawyer. And lawyers are actually a lot more expensive than hiring us. Also, the longer the process it takes to repair your credit, the higher your debts will rise as long as they’re not resolved.

 

Credit repair companies have all the resources needed to repair your credit.

Do you know what credit repair companies have that you don’t? They have a lot of resources that are needed to repair your credit. They have the lawyers they know can do what is needed. They have knowledge of different policies. They know the right people to call when they need to get things done. If you plan to do credit repair yourself, you may have to do your own research first, which will take up time. You’ll also have to do plenty of trial and error, which you can’t really afford.

 

Hire a credit repair company today!

Those are some of the reasons for getting the services of a credit repair company. Convinced yet? If you’re struggling with a low credit score and need professional credit repair services, Next Level Credit is the best credit repair firm in Anderson. We care about your situation and we’re here to help you earn your best credit yet. 

We assist all of our customers in reaching their credit score goals. We can help you repair your credit by addressing and deleting incorrect negative items. This allows you to regain control of your housing loans, vehicle loans, credit cards, and other financial obligations.

Get proven results quickly! We’ve assisted thousands of clients around the country in removing erroneous, unjust, and unverifiable negative things from their credit reports. The outcomes of our clients speak for themselves. You can check out our Testimonials section regarding this.

Wondering how we can help you? Well, inquiries, derogatory and delinquent items, collections, charge-offs, late payments, repossessions, bankruptcies, evictions, student loans, and even child support can all be removed by our professionally trained staff.

So what are you waiting for? Take action right now! Repair your credit to obtain the homes, automobiles, apartments, jobs, and even credit cards you genuinely deserve. Level up your credit, and you’ll be able to level up your life! Contact us today for quick and straightforward credit repair in south carolina. Your consultation with us is free!

21 Oct
Credit Repair

How To Rebuild Your Credit

Here’s something that holds true for everyone: a solid credit score is required to qualify for loans, credit cards, and more. Sadly, it takes just a few things to ruin your credit score. A late payment here, a missed payment there, and your credit score can immediately slip below the acceptable number. And the worse your credit becomes, the more difficult it becomes to get approved for things you may need, like loans for home construction. Even your insurance rates may be affected by your bad credit score.

It takes many years to restore your credit score fully. But don’t worry – it’s not impossible. While you won’t be able to instantly remove the negative items from your credit report, the earlier you take steps to rebuild your credit, the earlier there will be improvements. Here are some things you can do to rebuild your credit.

 

Stop buying things with your credit card.

One major source of low credit scores is credit card debt because it’s easy to just use your credit card at the spur of the moment. Remove your cards from your wallet and put them somewhere secure. Furthermore, erase all saved credit card info from sites you used to buy from so your cards don’t get any additional debt. Consider utilizing the old-school cash envelope budgeting approach. Paying cash for everything makes you feel it more, resulting in you doing less of it. If you really have to buy something online, use a debit card rather than a credit card, so you’re just limited to the funds in your account.

 

Look over your credit report.

Equifax, Experian, and Transunion, the three major credit agencies, all allow you to see your credit report once a year without impacting your credit score. Once you have the credit report, examine every account that appears on your credit record, whether open or closed. Here are some things you should watch out for:

  • If there are incorrect account numbers, names, or addresses on your records
  • You have accounts that have been closed but are still advertised as active
  • Credit card accounts are credited to you but are not in your name, such as debts belonging to an ex-spouse
  • There are multiple appearances of a single account
  • There is a balance or credit limit on an open account that is incorrect
  • Payment information is inaccurate, such as an on-time payment listed as late

Take steps to correct any errors so that your credit score will not be impacted negatively.

 

Examine your budget and make the necessary cuts

Do you know what you’re spending on? Check out everything that is costing you money and see what are the things you can cut back on. Start again with a new budget to maximize your savings rate. Utilize four weeks’ income as your monthly revenue for accounting purposes. It’s a good idea to start with your target savings rate as the first “expense” in your budget. After that, add other costs so that your budget is built around your savings rate. Remember, savings should not be a last-minute decision based on what’s leftover at the end of the month.

 

Get a secured credit card.

If you have poor or no credit, you’ll need a credit account to show that you’ve made on-time payments in the past. Secured credit cards are a low-cost and convenient way to accomplish this. How does a secured credit card work?

The secured credit card functions similarly to a regular credit card and reports to the credit bureaus as usual. Your cash is held in trust by your credit card provider as collateral. Therefore, the card company is protected against default, which is needed due to your shaky credit history. The good news is that these training wheels do not have to be used indefinitely. You can then move on to a regular credit card once your credit history has improved.

 

Take out a credit-building loan.

Credit-builder loans, a relatively new addition to the realm of personal finance, report to credit agencies in the same way that traditional installment loans do. Instead of borrowing from a lender, you effectively lend money to yourself, which the “lender” holds in an escrow account for you. You select a loan period and amount when you open an account with the lender. You then agree to make regular monthly payments to the lender for the loan duration, which the lender will hold in an escrow account for you. You get your money back after the loan term, minus a modest fee that the lender gets for setting up your escrow account and reporting your on-time payments each month. Some credit-builder lenders allow you to set up automatic monthly payments to make it even easier to build credit by establishing a solid payment history.

 

Pay off any unsecured debts you have.

Most unsecured debts have high interest rates. So, if you have any loans, whether school loans or other debts that aren’t secured by a home or car, pay them off as soon as possible. Paying off these debts improves your credit by lowering your balance ratios. It also helps to improve your overall financial situation by eliminating high-interest loans. 

Try asking companies you owe money to for conditions or terms if you find that you can’t pay for your loans immediately. Many companies have set up programs to help you cut your payments or postpone them, especially now because of the COVID-19 pandemic.

 

Make all of your payments on time.

Yes, it’s easier said than done, but don’t be fooled; timely payments are essential. Late payments are recorded on your account for seven years. Their impact on your credit score fades with time, but remember that your payment history accounts for 35% of your credit score!

Set up automatic payments if you’re able to pay on time but have been late because you have a lot of other things on your to-do list, or you’re simply forgetful.

 

Get help from a credit repair service.

If you’re having a hard time doing things by yourself, maybe it’s time to employ the services of a credit repair service in Anderson, SC. Look no further than us at Next Level Credit. We offer personalized options that we will fit to your exact repair needs. While repair is happening, we will have a case analyst and case advisor working personally with you throughout the entire process. You will get 24/7 access to your case status and will always have updated information.

We offer free consultations – contact us now and let us help you repair your credit.

 

Above all else, don’t stray from your goal.

Don’t sabotage your stability once you’ve regained it. It may take a few months for your credit score to improve and a few years to get back on your feet, depending on how bad your credit mistakes are, but don’t feel bad. Just start with the basics and go slowly and gradually.  Avoid overspending, don’t abuse your credit, and save aside money to cover any future shortfalls. 

As long as you’re taking steps, there will be improvements. And by all means, guard against developing further negative financial habits.