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True client story:

Marissa (not her real name, and the first name that popped into my head) called our offices several weeks ago via a Google search. Now, we all know that this is the coldest lead in the world. We much prefer referrals from past clients and from our referral partners. Via Google search, we get emails, calls, inquiries from our Contact Us page, and even texts reaching out to us about our credit repair and debt consulting services every day. The majority of the time, folks who end up becoming a client through Google search go through several “touch points” from first contact to becoming a client. I won’t bore you with marketing and sales stats, but suffice to say, Marisa was no exception. Here is the activity from A -Z:

1. Marisa calls us via a Google search where she found our webpage
2. We talk and explain our services and offer a free credit report evaluation, with no obligation.
3. She goes to (link) and orders her credit reports, and we set up a 20 min. consult in the near future.
4. After going over her reports with her – showing her how we can help, how long it may take, and giving her some tips – she decided to hire us. but…
5. She could not afford it at that moment.
6. We stayed in touch with her for several weeks, and finally on October 1 she was ready.

“I’ll be honest, I’m both excited and nervous”

She was all signed up and ready to go and an hour later I received the above text.

We have all been there!

We have all been there! Buying a car, or airline tickets for a vacation in the future, a deposit on our first apartment or escrow on a new home purchase, even buying a new iphone (that we probably don’t need, but want), the list goes on. Anytime we are launching on a new endeavor that is going to cost us something, those proverbial butterflies in out stomach often show up. Did I make the right decision? Is this going to really be what I think or hope. What if it doesn’t turn out as envisioned? Will I regret this?

Time and money are valuable!

I remember one time when a friend of mine was selling his car. He needed to sell it fast and was willing to sell it 50% below book value. After deliberation, I decided to buy it from him with the intent of flipping it – turning right around and sell it at full price for a profit. What went through my mind as I wrote that check? What if I can’t sell it? What if it takes forever to sell? What if a major issues pops up in the meantime? What if? The “what if’s” invaded my mind. To make a long story short, it turned out ok, but to be honest, I was “both excited and nervous”at the same time.

Back to Marissa. As soon as she sent me the above text I knew exactly how she felt. At my next available time I picked up the phone and gave her a chance to expound and “let it all out”, so to speak. I already knew why she was excited from our earlier conversations. She has a one year plan of buying a house for herself and her daughter, and knew it had to start with repairing and building up her credit profiles and scores which she thought was near impossible. She also mentioned how she was tired of apartment life and that her lease would be up next August, and did not want to sign another year lease. She was/is excited because she thought for years that she could never buy a home, and now it is in her sights. She can envision it. Almost taste it. She is taking the first step toward a goal that is very important to her.

First steps toward a goal are very exciting but scary at the same time.

When I asked her why she was nervous (I could guess, but I wanted to hear her express it), she answered thus:

(Paraphrased, but pretty close)
“Well, Blair, I am nervous that this won’t all turn out like I need it to. This is important to me as a single-mother taking care of my child. My money is limited and I can’t waste a dollar if I wanna reach my goals. What if this doesn’t work out? I mean, can you guarantee my scores will go up? Without good credit scores I can’t improve my situation, my life. This is very important to me!”

I could hear it in her voice. That slightly high-pitched, increasingly rapid speaking with excited, yet reticent tone when you are “making sure” you made the right decision. Say out loud “are you sure?” with a little healthy skepticism, and you can probably hear her talking now.

I told her I completely get it, and that she is not alone. While I can’t legally guarantee a certain point increase as in “your score will go up x amount in x amount of months”, and I wouldn’t even if I could because there are so many factors involved, I assured her that with her credit report situation, and all other things considered, my experience tells me a year is more than enough time. In fact, I did promise her her score would go up, just not a certain amount, and that she would be in a position to buy a house credit-wise next year if she does everything I guide her to do, combined with our efforts. I also told her I would help her with budgeting and not to do anything on credit or make any large purchase without talking with me or one of my assistants, first.

She was mostly relieved, but to be honest, I could still hear a little hesitancy. “Ok, I am trusting you.”

It has only been 3 weeks, but all is going well as we put into action personalized, strategic first steps. Marissa is a great client.

Thank you for putting your trust in us, Marissa!

Best,

Here are a few changes in credit score models in recent years:

1. Data sources such as rent, utility and cellphone bill payments are being added.
2. The new models also treat medical collection debt more fairly by ignoring settled delinquencies.
3. Many ignore paid collections accounts entirely.

Additionally, from a recent American Banker article:

“Credit file data is also changing for the better (in July, 2017). In March, the Consumer Data Industry Association, a trade organization representing the three national credit bureaus and companies that collect and sell consumer information, announced stricter standards on including information from civil judgments and tax lien data, which will result in the removal of much of this information from consumers’ credit reports. Under the standards, consumers will have a 180-day grace period to settle insurance claims for medical bills.”

Obviously, these changes are positive, but there is a small problem: lenders and banks are slow to implement the new models, and the benefits will only be received by consumers when lenders put these scoring risk models into use. So far, lenders are continuing to rely on older credit models that are less predictive.

Why? Go here to read the complete article on American Banker.

There is hope on the horizon, though, as more and more lenders test the waters. In the meantime, until the new score models are more widely accepted, it is important for consumers to understand their credit reports and the many factors that go into calculating their score so they can qualify for the credit they need.

Check out these past articles for help:

Here are three of the biggest mistakes to avoid if you want to keep your score high— and your interest rates down:

1. Most importantly, make sure you pay every bill on time each month. Missing only one payment can cost you dearly. Missing a payment is defined as being 30-days late, or, said another way, missing a payment and not making it until the next month when you make two at once, called “catching up”. If you have excellent credit and become 30 days or more late on one account, you can expect to lose 90 or more points. For some people, the easiest way to avoid a mistake is to set up auto-pay with all of your creditors.

Most people are not surprised that a late payment can hurt their credit score, but they are often shocked by how many points you can lose for a single late payment.


Tweet this: If you become 30 days or more late on ONE account, you can expect to lose up to 90 pts on your credit score.

2. Second, watch those medical bills closely. Unpaid medical bills are often quickly referred to collection agency and become a collection item on your credit report. Although many of these bills end up with agencies because of confusion during the billing process, the collection item reported to the credit bureau looks like a default. Take control, and aggressively follow up with your medical providers and insurance company. It is a good practice that if you think you owe the doctor or hospital money, do not wait for them to initiate calling you.

A collection item like this can take 70 points or more from your score. The balance does not have to be big. Even if the balance is relatively small it has essentially the same effect as a large balance.


Tweet this: Unpaid medical bills are often quickly referred to a collection agency and become a collection item on your credit report.

3. Third, pay close attention to your utilization ratio. You may not be familiar with this technical term used throughout the lending and credit industries. To calculate utilization, divide the statement balance on your credit cards by your total available credit. For example, if you have a $1,000 balance on a $10,000 credit card, your utilization is 10%. People with the highest credit scores have a utilization across all of their accounts below 10%. It is recommended to be below 30% utilization ratio at minimum. Higher than that you begin to reap the biggest damage to your credit score. Have you heard of “maxing out your credit cards”? That is basically 100% utilization ratio. If you have only one credit card and use the full limit every month, your 100% utilization ratio could be costing you 90 points.

Pay down your balances and keep old credit cards open to ensure your utilization stays low. It is worth repeating: Keep your revolving (credit card, etc.) utilization ratio lower than 30%, and preferably 10%.


Tweet this: Pay close attention to your utilization ratio on your credit report. Go here to learn how to avoid a high ratio.

Hope this has helped. Here are some more articles you might be interested in:

By Blair Warner, Sr. Credit Consultant, Chief Editor

This short, but concise article will show you how to get your free credit reports.

How do I get my free credit reports?

As mentioned above, under federal law, the three major credit reporting agencies – Equifax, Experian and TransUnion – are each required to provide consumers with one free copy of their credit report each year. The official website is AnnualCreditReport.com.

you can request your report from each of the big 3 credit reporting agencies, by either ordering and viewing each report online, or requesting that a copy be mailed to you. You’ll have to provide personal information to verify your identity and current residence when you order.

It’s a good idea to print a copy of your report if you find you need to dispute information on your report, or at least save it as a .pdf file for later review.

You may prefer not to order your report online, or have trouble answering the security questions. You can order your reports by phone by calling 1-877-322-8228. You can also request your file by mail, which will require you to print the order form you’ll find online and mail it to each agency with the required identifying information.

Note: Getting your free annual credit report does not hurt your credit rating.

Some experts recommend staggering your requests for your reports so that you get one from each agency every four months. For example, January you order your Transunion report, May your Experian report, and September your Equifax Report. This approach is fine if you are one who stays on top of their debt payments well, with pretty good scores, and you are not planning on applying for any new credit in the near future.

One of the problems with this approach is that these agencies don’t share information with each other, not to mention that not all data furnishers report to all three agencies. This means your reports will more than likely vary significantly, not giving you a complete picture of the credit profile lenders see. Furthermore, if there are errors on your reports, or if you become a victim of identity theft, you won’t discover it for several months.

Finally, please note that the free credit reports at AnnualCreditReport.com do no supply you with your credit scores.

Related Article: 3 Good Reasons To Question What’s On Your Credit Report

Credit Monitoring Services

If you’d like to have regular access to your credit reports as they are updated, you will most likely have to subscribe to a credit monitoring service, for which there will probably be a recurring monthly fee. Be careful. There are some credit monitoring sites not as good as others. Our favorite paid site that we have been using for years in our credit consulting business is Privacyguard.com and instructions for pulling your credit so that we can give you a free credit report evaluation can be found here. You get all three full reports, and all three VantageScore credit scores. Privacyguard.com gives you a 14-day trial for $1, and then only costs $19.95 per month for monitoring. Monthly monitoring is not necessary all the time, but we do recommend it if you are in credit repair and re-building phases, or looking to do something requiring credit in the near future. If you only want your credit reports for one month, you can order them for the $1 and make sure and cancel before your 14-day trial is up by calling the 800-number. (We are NOT affiliated with privacyguard.com)

Has this been helpful? Please feel free to comment or share on social media. We like helping people.

Tweetable Takeaways Include:

• There is only one place where your credit report is 100% free, with no bait and switch, or small print (Click to tweet)
• The Fair Credit Reporting Act (FCRA) requires the three major credit bureaus to provide one free credit report per year. (Click to tweet)
• Most lenders use FICO (credit scores), especially mortgage lenders. (click to tweet)

When it comes to securing financing for a new house or an existing property, getting a great mortgage rate is at the top of all of our lists. This is probably because even a small difference in your mortgage rate can make a BIG difference to the total interest you’ll pay over the lifetime of your mortgage and overall amortization.

The truth is that getting a great mortgage rate often comes down to having great credit.

But did you know that having no credit can be just as damaging as having bad credit?

Did you know that credit reporting agencies don’t verify the information that is given to them? Or did you know that your credit can affect more than just your ability to qualify for loans? In fact, it can affect many of your everyday purchases, from cell phones to insurance to public utilities!

So if you’re looking for tips to improve or repair your credit, read on for valuable advice and recommendations to manage your credit and improve your financial situation you can start today!

First, always make at least your minimum payment on time on every loan, credit card or other debt you owe.

You may think that you can miss a month and then pay extra the following month—but that’s not how the credit card companies operate (or calculate interest). Instead, your required payment will be considered late or delinquent. Most companies will report even one missed payment to the credit reporting agencies – and this can damage your credit score. So make at least the minimum payment on every loan, no matter what, to keep your credit healthy and in good standing with any debtors you have, as well as have the best chance of a high FICO credit score.

Related Article: How Are FICO Scores Determined

Second, set up pre-authorized payments so your bills are paid automatically.

As I mentioned above, missing even one payment can affect your credit. Debtors don’t care if you intentionally or accidentally forgot to make a payment. They only care if you make your payments on time, every time.

Maybe you simply forgot to pay a bill because all of your bills are due on different days and you don’t have an organized system to keep track of them. In that case, setting up pre-authorized payments can be a lifesaver.

If you prefer not to use preauthorized payments, setting a reminder on your cell phone or computer can be another great way to make sure your bills are always paid on time. Paying your bills becomes effortless so you never miss a due date. You’ll also save money by avoiding unnecessary interest charges.

Lastly, request a copy of your credit report at least once a year and review it thoroughly.

In Canada, you can contact one of two credit bureaus (Equifax or TransUnion) directly to request a free copy of your credit report. In the U.S. you can go to http://annualcreditreport.com to get all 3 credit reports from Equifax, Transunion and Experian.  Verify the accuracy of ALL information, including your personal information, loans, credit cards, etc.

Take note: Credit bureaus don’t verify the information they get from your creditors so it’s up to you to make sure all the information is accurate! Otherwise, you could get a nasty surprise since inaccurate information or information about a loan you don’t recognize could signal that someone may have opened an account in your name, or even possible identify theft.

Address any inaccurate information as soon as possible so that you can be on your way to improving your credit.

For more tips on managing and repairing your credit you are in the right place. Upgrade My Credit is here to help. To get straight forward advice and tips so you can qualify for the best Barrie mortgage rates, visit my website or give me a call.

By Darren Robinson, Mortgage Broker

There are many reasons, but here are a few:

• Convenience. debit cards fit nicely in my wallet.
• No more “No checks allowed” signs to get in the way. Debit cards are accepted everywhere.
• You get the convenience of a credit card without the debt.
• You get a record of all your expenditures for budgeting and reconciling purposes.
• You can use it for online purchases like a credit card.
• If it gets lost or stolen it is easy to freeze it, or cancel it and get a new one.
• My favorite, many banks offer rewards for using them.

Most, if not all, banks now offer debit cards to use with your current account at that bank. It is, basically, an extension of your account, like checks. However, not all debit cards are created equal, and, like many of my clients in credit repair and debt reduction plans, not everyone can open a standard checking account at their local bank down the street due to low credit scores. (banks do check credit before opening a new account). Problem solved! The debit card I use myself and recommend to everyone is Perk Street Financial Debit Card.

I recommend all my clients in Upgrade My Credit’s credit repair and transformation program to use Perk Street Financial Debit Card, especially if they don’t already use one. There is no credit check, for one thing. And zero fees – not even checking account maintenance fees. Nada! (click here for FAQ on fees).

To see all the wonderful benefits of using their card Click for Perk Street Debit Card >>

By far, the best part of PerkStreet Awards Debit Card is the rewards and perks. They pay you to use it.


Image from their website

Check it out and let me know what you think. Do you already use their debt card? Please share in comments below.


By Blair Warner – Credit Transformation Coach