In recent news, yet another store has had a data breach. Kmart is the most recent store to have issues with customers identities and it may leave you thinking “Is there anything I can do to protect myself?" In today’s credit driven world, most people are not going to just stop using credit cards and go to cash.

However, there are some steps you can take to protect your identity and your credit:

1. Stop using your debit card as a debit card – Sounds silly but it’s one of the easiest ways for thieves to steal your information and money. Your PIN is your personal identification number and no one else is supposed to have it. That means that getting your money back is more difficult when using a debit card because it’s harder to prove theft.

2. It’s not identity theft without a police report – Customers tell us that they have had identity theft all the time. However, it’s not identity theft without a police report because the bureaus want to validate that a crime took place. If your spouse’s sister stole your social security number and opened up credit cards, defaulted, and you will not file a police report, expect to pay that debt off one way or another.

3. Read your statements carefully – That includes your credit card bills and bank statements. Thieves are using small charges to test your credit card. If it goes through, they keep making charges. Checking your statements thoroughly will help to detect these charges so you can notify your credit card company as soon as possible. Since the holiday season is fast approaching, you will want to start doing this more frequently now. To read more about this kind of identity theft, click on the link below.

http://business.time.com/2012/04/30/mysterious-credit-card-charges-why-you-need-to-check-your-bills/

If you have any questions or feel this might have happened to you message or email me at michael@risingpointsolutions.com. Better yet, you can contact me directly at 727-835-8416.

How Long Will Negative Information Stay On My Credit Report?

NEGATIVE INFORMATION AND HOW LONG IT STAYS ON MY CREDIT REPORT:

Late payments,charge-offs, judgments, short sale, foreclosure – Up to 7 years

Chapter 13 bankruptcy – Up to 7 years from filing date

Chapter 7 bankruptcy – Up to 10 years from filing date

Tax Liens – Until lien is paid in full, plus 7 years (may remain indefinitely)

Inquiries- Hard credit inquiries can only affect your FICO score for a maximum of 12 months. Usually, if they have an impact, it will be primarily in the first 6 months. They will drop off your credit report after 2 years.

If you have any questions about credit or credit reports message or email me at michael@risingpointsolutions.com. Better yet, you can contact me directly at 727-835-8416. 

Credit DO's and DON'Ts

1. Definition of Credit- Predictive analysis of future default rate.

2. Online free reporting systems use a range of 500-990

3. Actual reporting agencies use range of 300-850

4. Two most important factors in your FICO:

35% Payment History

30% Amounts Owed

15% Length of the account

10% New Credit

10% Types of Credit

5. Amount and types of recommended debt you should carry:

2-3 credit cards

Auto Loan

Mortgage

6. Best advice to pay down accounts that are near limit is to go in 20% increments.

7. It’s best to pay it down to 19% of the limit. That way you are carrying some debt but in the lowest bracket. 5%-7% to fully maximize your credit score.

8. Paying off a debt completely or closing an old debt that you have had for a long time can hurt your score. Try and use that old car you’ve had every 6 months or so. OLD ACCOUNTS ARE GOOD!!

9. If you can’t afford to pay a card down, try calling them and ask about raising the limit on it. That can increase your score, as you will no longer be maxed out. That doesn’t mean you can go spend more though!

10. Most Creditors will update/upload information to the bureaus between the 5th and 10th of the month. Which is why, if you make a change, it can sometime take 30-45 days to report.

11. Do not pay the 3rd party collection companies the amount owed for the collection, pay the original creditor and ask for a “pay for delete” that will remove it. 

12. Never dispute online; it’s a waste of time. It will show back up in couple months. It’s a quick fix, not a long term solution.

If you have any questions about credit or credit reports or if you would like a free credit consultation, message or email me at michael@risingpointsolutions.com. Better yet, you can contact me directly at 727-835-8416.

“You don’t have to have debt to have good credit, but you do have to have credit to have credit!”

http://www.risingpointsolutions.com/blog/credit-dos-and-donts

Why Paying Collections Doesn't Raise Credit Scores

The FICO credit scoring models currently in use by lenders do not reward consumers for paying off collection accounts. Current versions of FICO are much more concerned with the fact that a collection occurred in the first place than they are with the balance of the account. In fact, a collection account will have virtually the same negative impact upon a consumer's credit scores whether the balance is $4,000 or $0. Paying a collection will also update the date of last activity, making it a newer negative account.

The purpose of a FICO credit score, is to predict the likelihood that a consumer will become delinquent on any of his/her credit obligations within the next 2 years. Current FICO credit scoring models are built with the assumption that a consumer who had collection accounts in the past is still likely to be delinquent on an account in the future. Therefore, the presence of a collection account regardless of the balance is going to have a negative credit score impact.

It is important not to become overwhelmed when you make the decision to begin trying to fix past credit issues. The best place to start is to get a copy of all 3 of your credit reports. You can access a free credit report from each of the 3 major credit bureaus every year at www.annualcreditreport.com. If you would like a copy of all 3 of your credit reports as well as your credit scores Please click here for a link to pull your credit.

Once you have your reports, review them thoroughly for mistakes. Credit mistakes happen more commonly than many consumers realize. In fact, the FTC estimates that over 40 million (or 79% of) consumers may have errors on their credit reports.

If you have any questions about credit or credit reports message or email me at michael@risingpointsolutions.com . Better yet, you can contact me directly at 727-835-8416.

Millions of Consumers to Gain Access to Credit Scores

Millions of consumers are about to gain access to their credit scores.

Citigroup, the fourth-largest credit-card lender by purchase volume in the U.S., is partnering with Fair Isaac Co., the provider of the credit score most widely used by lenders, to provide its customers with their FICO score beginning in January.

Here is a link to view the rest of the article:

http://blogs.wsj.com/totalreturn/2014/10/17/millions-of-consumers-to-gain-access-to-credit-scores/

If you have any questions about credit or credit reports message or email me at michael@risingpointsolutions.com. Better yet, you can contact me directly at 727-835-8416.

Credit Problems and Divorce

Financial problems, divorce, and trashed credit reports  often go hand in hand. In fact, some studies suggest that up to 80% of divorces cite financial problems as the primary factor leading to the dissolution of the marriage. It is no secret that divorce tends to cause major credit issues after the fact as well - credit issues that can take as long as a decade to fully resolve. Protecting your credit from divorce is an unpleasant reality that many people face.

However, is it possible to protect your marriage from credit problems? If so many divorces stem from financial problems and disagreements does it not stand to reason that making a solid plan to address these issues before they get out of hand could be beneficial to your marriage itself? The answer to both of these questions is "Yes!" It is absolutely possible to protect your marriage from credit problems but it will take hard work, a solid plan, and a commitment to follow the plan. Follow the link below for 5 steps to help you get started.

If you have any questions about credit or credit reports message or email me at michael@risingpointsolutions.com. Better yet you can contact me directly at 727-835-8416. 

http://www.hope4usa.com/credit-repair-news-charlotte-north-carolina/protecting-your-marriage-from-credit-problems

How Many Points Will An Inquiry Lower My Credit Scores?

The idea that inquiries lower your credit scores a particular number of points is a complete myth. There is nothing on a consumer's credit report that raises or lowers your scores a fixed number of points. For example, an inquiry does not always lower your score 4 points (or 3, 5, or 6 points for that matter). An on-time payment does not raise your credit score 5 points. A late payment does not lower your scores 30 points. That is simply not the way that credit scores work.

If you have any questions about credit or credit reports message or email me at michael@risingpointsolutions.com. Better yet, you can contact me directly at 727-835-8416

http://www.hope4usa.com/credit-repair-news-charlotte-north-carolina/how-many-points-will-an-inquiry-lower-my-credit-scores

WHY MY CREDIT SCORE IS IMPORTANT WHEN GETTING A MORTGAGE?

THE BASICS:

Why is my credit score important? What minimum credit score do lenders require?

Your credit score affects your interest rates when applying for a home or auto loan, your insurance rates, and even some job prospects. Depending on the type of mortgage loan you want, most lenders require a minimum credit score of 620; if your score is below 620, you may still qualify for a loan if there are mitigating factors.

What is a credit score, and how is it calculated?
A credit score is a number that indicates to lenders and other businesses how much of a credit risk you pose if they lend money to you. More generally, a credit score may indicate to a future employer your reliability in meeting your obligations. Your score is based on several factors 

HOW IS MY CREDIT SCORE CALCULATED?
35% -- Payment History
30% -- Amounts Owed
15% -- Credit History
10% -- Inquiries, New Credit Lines
10% -- Types of Credit in Use

Who calculates my credit score?
Four companies calculate your score: FICO, Experian, Equifax, and TransUnion. The FICO score is the standard that most lenders use when they pull your score; FICO scores range from 300 (low) to 850 (high).

If you have any questions about credit or credit reports message or email me at michael@risingpointsolutions.com. Better yet you can contact me directly at 727-835-8416.