Instant Christian Credit Repair
Instant Christian credit repair promises are plastered all over the Internet offering miracles to those who have bedraggled and tattered borrowing histories. Claims like immediate two hundred point rises on a FICO score are hard to brush aside, but what is the real story behind these promises? The three giant reporting bureaus, Equifax, Experian and Trans Union have the market of credit reporting covered like a giant rug with few other competitors even making an impact. The buzzword for the credit record among those who lend money is FICO which stands for the Fair Isaac Company. This company has put together the formula by which all borrowing history numbers are figured and though each company tries to market itself as having a little different interpretation of the numbers, the formula does not waver. Actually, the term describing this formula is non-negotiable and those claiming instant credit repair are like politicians offering big changes that cannot be delivered in most cases. Five factors make up all FICO reports, all of them untouchable by the instant credit fixer-uppers.
Factor one is on-time payment compliance so any company offering to erase genuine failures to pay on time from a FICO report is barking down an empty hole. Every late payment is tagged and noted on a FICO report and each of those is weighted by how long they were overdue. An instant credit repair company cannot erase any of these late payments that have occurred in the past seven years unless those late payments can be documented to be in error, and there are often lots of errors on a FICO account! The good news about late payments is that a couple of thirty days late payments over the span of a couple of years won't hurt, but a ninety day is the kiss of death, akin to a lien, repossession or even a bankruptcy. Even better good news is that the borrower himself can remove any errors regarding late payments without the help of an instant credit repair company. But the very best news is when Jesus said, "The Spirit of the Lord is upon me, because he hath anointed me to preach the gospel to the poor; he hath sent me to heal the brokenhearted, to preach deliverance to the captives and recovering sight to the blind, to set at liberty them that are bruised." (Luke 4:18)
Factor two is actual debt so in the same vein, any instant credit repair company that promises to fix a bad actual debt to ceiling allowance ratio is singing in an empty opera house. This ratio is the percentage of used debt on an account compared to how much debt is actually allowed. Since every charge card has a ceiling, creditors are going to make the assumption, fair or not, that a consumer is going to use every bit of the allowance. The logic then follows that more of the account's use moves the consumer closer to not being able to pay for it, and the FICO score begins to fall. There is a gimmicky way of dealing with this and that is to ask the charge card companies to up the ceiling on each card a user holds. This can raise a FICO score perhaps as much as hundred points and the fixer-uppers can do that for anybody who has some fresh green in their wallets. The good news for the cardholder is that he can do that himself!
Now how about that pesky third factor in crafting a FICO score? What can those instant credit repair people do for that? Zilch, nada, zippo. This factor gets a weight of about 15 out of a hundred possible weighting points and it is the length of time a person has been using their borrowing power. The first chair violinist is there because she has played a long time and proven herself worthy of the honor and the same goes for loaning money. The longer in the tooth the consumer is, the more chances there are of a lengthy history of borrowing and the better the look at how credit worthy he is. Let's not forget that there are plenty of older credit challenged people running around out there and it may seem a little unfair to those just starting out but it is how the credit game is played.
Not far behind the third part of the equation is the fourth factor and that is the types of loans that are on a FICO report. The Fair Isaac company and the big three reporting giants think that at least ten percent of a FICO score ought to be figured by what kinds of lending experiences a consumer has had. Charge cards are always big because most people have them and use them, but how about installment loans? Creditors want to see a history of paying a fixed monthly amount for a period of time. Remember that awful plaid living suite at eighty four dollars a month for four years? Yep, that kind of loan. Even one or two finance company loans are ok on a report and the instant credit repair people cannot erase those.
Finally, the last part of the equation is the number of times a consumer has applied or inquired about credit in the past twenty four months is weighted in the formula. Perhaps someone did use a person's social security number and did try to get some loans. If there is proof that it wasn't done by the one whose identity was stolen our instant credit repair people can fix that, but so can the consumer. The bottom line of all this is that the vault to the important things is locked and no one can really get in, but the contents can be opened for examination by the consumer or his representative, but why pay someone else to mow the law when there is a big riding mower in the garage?
Christian Credit Repair BookCredit repair books are available for people who are looking for a do-it-yourself method to improving their financial position. Because so much of society judges a person's financial position based on a credit score, it is important for people to learn how to improve scores, especially for purchases such as renting a car, buying a home, or getting good rates on loans for other large purchases. Therefore, if someone's finances indicated that they are a high risk borrower in the eyes of lenders, they may want to read a credit repair book to learn better financial management.
While there may be many different ways to improve someone's finances, people will need to take into account how much they want to do on their own, as well as whether or not they want to pay someone else to assist them. Some people find that using a credit repair book is an adequate method for getting them back on track with their money. These resources will teach how to organize a budget, how to get a clear picture of spending habits and how to analyze spending to find ways to reduce expenses. Credit repair books will also explain reports and what a lender sees when they purchase an individual's report, including how they evaluate a score.
Furthermore, people also can learn the ins and outs regarding being proactive in improving finances. For example, a credit repair book will explain how to cancel open but inactive cards and accounts. These look like viable credit sources to a lender and may need to be closed before the lender is willing to loan money. These resources also can show ways to mend a poor financial history.
Going to a lender expecting a loan and being denied because of a poor financial state can be an embarrassing situation that most people want to avoid. Therefore, if someone knows their situation might affect their being able to get a loan, they can begin the mending process on their own by reading and putting into practice the methods outlined in credit repair books. Anyone can find these resources at local or online bookstores, and even at a local library. When a person is unsure of what a good resource would be, there are many financial advisors that can offer suggestions for an appropriate resource.
The important thing is to get started! If a person is aware that he or she has bad credit, the should make it a goal to take the first steps to improving their credit. As representatives of Jesus Christ, we want to make sure our word is our bond and that we take seriously the promise we have made to pay back our debts. "If a man vow a vow unto the LORD, or swear an oath to bind his soul with a bond; he shall not break his word, he shall do according to all that proceedeth out of his mouth." (Numbers 30:2)
Help with bad credit can be found from a number of resources offering consumers a plan for debt reduction and guidance to get their debt issues under financial control. Excessive debt can put a strain on an entire family and lead to financial ruin if not managed correctly and expediently. Advise to help bad credit can offer families an idea of how to repair credit reports and get their scores higher. Some agencies offer assistance to people in this area and extend their services for no or little costs. Those that are advertised online, are not always totally cost free, but there are non-profit organizations that will offer help to consumers. People looking for assistance with their financial situation will want to take the time to investigate all options, in order to find an agency that offers the most service for the least amount of money.
Americans are accumulating excessive debt at alarming speeds. Money balances on reports excel the debt to income ratio that is a guideline for lenders. To combat the growing problem of debt, many different agencies, including government agencies, are taking action and offering help with bad credit. Bankruptcy is now harder to qualify for, according to new enforced federal laws, and credit card providers are considering making the minimum payments higher, to help bad credit consumers pay off debt more quickly. Professional financial counseling is also a growing business and there are many agencies that will offer assistance as a service to consumers for a fee.
There are many ways that can help people reduce or negate debt. Some help bad credit services will negotiate with lenders on their client's behalf. Negotiations can result in removal of all late fees, reductions of interest rates, and or cash settlements for lower balances. Agencies also offer services to the consumers that teach how to manage money better in the future. Formulating budgets and re-establishing credit are services that a good help bad credit agency will offer.
Christian people looking for assistance with their financial situation should investigate the company under consideration, and choose an agency that is reputable and offers these services with the client's best interest in mind. There are some agencies who provide help with bad credit that are strictly in the industry for financial profit. It is advised to thoroughly investigate a company before committing to any fees. Also, consumers looking for assistance may want to work with non-profit 501C3 agencies only. The most important step a person can take to repair their finances is to seek wise counsel: "Only by pride cometh contention: but with the well advised is wisdom" (Proverbs 13:10).