Interview with: Kamei Caver on Credit

• What do you do exactly and how can it help me?

I am an independent agent with Financial Education Services. Using your personal right under the Fair Credit Reporting Act to your advantage we help you dispute the mistaken negative ratings that may be preventing you from obtaining new credit when you need it most. FES is one of the most experienced credit education companies in business, we've helped clients restore their credit with credit files that included everything you can imagine, including inaccurate, obsolete or erroneous:

Late payments Charge offs Foreclosures Judgments

Repossessions Identity theft Closed accounts Bankruptcies

Negative settlements Liens Collections

• How long does it take for my credit score to improve?

Although everyone’s case is different, most of our clients see an improvement within the first 45 days

• What is a credit score?

A credit score is a number that reflects your risk level, as an individual, to a lender. The higher the number, the lower the risk will be to the lender. As you apply for increased credit or attempt to make a purchase, the lender will check your ability to pay back that loan. The more negative marks you have on your credit report, the less likely you will be granted the loan or purchase you requested.

• What does F.I.C.O means and how does it affect my credit?

A FICO score is a credit score developed by FICO (Fair Isaac Corporation), a company that specializes in what’s known as “predictive analytics,” which means they take information and analyze it to predict what’s likely to happen. The FICO score range is 300 – 850, with the higher number representing less risk to the lender or insurer. Consumers with high FICO scores (usually around 760 or higher, though every lender is different) are likely to get the best rates when they borrow, as well as the best discounts on insurance. There is a popular FICO score chart that describes the main factors that go into these scores:

    Payment History (35%)

•     Debt/Amounts Owed (30%)
•     Age of credit history (15%)
•     New credit/inquiries (10%)
•     Mix of accounts/types of credit (10%)

All of these factors are considered in other credit score models, so it’s safe to say that if you have a strong FICO score you likely have a good score with other models as well.

• Can I get a credit card with bad credit?

With bad credit, your options for credit cards are somewhat limited. Most companies won't provide a credit line without a deposit and virtually all credit cards are going to charge monthly fees. And even if you are approved, you will end up paying significantly higher interest rates. However, if used responsibly, these cards may be the best way to start establishing or rebuilding your credit.

• What steps should I take to rebuild my credit?

Well you would want to start by paying down your debt and paying your bills on time. However, at FES we have programs specifically designed for that such as Debt Zero and Positive Credit Builder. These are educational systems that are designed to guide you on how to more efficiently pay down you debt, as well as educate and provide you with resources to help you take the necessary  steps to enhance your credit score and manage your financial life. That information can be found on my website at www.clearmycredit.org

• What is a good credit score?

A good credit score is generally considered to be 720 or higher

• How long does something stay on your credit report before it goes away?

Negative credit accounts, or trade lines, can remain on your credit report for up to 7 years, and bankruptcies and other public records for up to 10 years. Inquiries on your credit report may remain for 2 years. These are the maximum times that are permitted by federal law for reporting agencies to show negative items; however, these times are not mandatory. At any time, a creditor or credit bureau may remove a derogatory remark from your credit report if the consumer requests an investigation into remarks that they feel are incorrect.

• Will checking my credit report hurt my credit score?

Contrary to popular belief, checking your own credit score doesn’t hurt your credit.

• How many points does an inquiry take off your credit report?

In general, credit inquiries have a small impact on one's FICO Scores. For most people, one additional credit inquiry will take less than five points off their FICO Scores.

• I’m deep in debt and have a terrible credit score. What should I do?
  

Visit my website at www.clearmycredit.org or call (856)389-4303 and we can discuss what steps you need to take to improve credit and change your financial situation.