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Negative Factors on a Credit Report

December 2007 Newsletter

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If you are just joining my newsletter group...Welcome.

This issue will cover the following: negative factors on your credit report, winter checks to be sure and do and lastly automatic payments being available.

Here is the customary short review of the information that we have covered in the past regarding credit scores.

The 5 most important factors that are considered in the credit score formulas are:

1. Your payment history
2. The amount of money that you owe
3. The length of time you have had credit
4. The type of credit that you have
5. How many credit Inquires

From the three credit bureaus they include negative reason codes or factors. There are the specific reasons why your FICO scores are not as high as they should be.

When you get your credit scores from a mortgage lender, or you request your credit report from myfico.com you will notice there are “negative factors” or “negative reason codes”.
Most of you should have been in contact with your mortgage person (already assigned to you call if you need clarification); they will pull credit reports called a tri- merge and it will include negative factors. If you are already working with Fresh Start Credit LLC and you will see the negative reason codes.
These negative factors are the #1 reason why your scores are not as high as they should be. This is like the cheat sheet of what things are your biggest obstacles that are keeping your credit scores down.

For example:
Let’s say that on your credit report the first negative factor may be that “Your credit card balances are too high for your credit limits”. This tells you that the bureaus have records showing that you have greater than 30% of your credit in use and likely higher than that. Therefore, you know that this is something that needs to be worked on first. You could either get your credit limits increased by calling the credit card company and requesting a higher limit. (The key then is not to spend the higher limit! The goal is to get the ratios correct and bring your scores up!) Then you should also take aggressive action to pay down your credit card debt and keep it down.

With Christmas coming, it is difficult to say no. But you must remember that every time you use your credit card and you are spending 30% or more of what available will hurt your scores. Then, you always, always must pay it back and pay on time every time and that will bring your scores up as well.

Back to these negative factors; each credit reporting agency (Equifax, TransUnion and Experian) may have a different negative factor rated at the top because rating your credit is an ever changing calculation. This allows you to start by focusing on the top 3 negative factors.

Remember to ask your finance/mortgage specialist or Larry what these are, or look for yourself if you have your credit report.

The list of negative codes is from 01-97. These will show up in the order of importance and will indicate to you your habits that will need to change in order to bring your scores up.

If you are enrolled with credit restoration already-Please remember to use Larry as much as you need. That means calling him and having him review these with you. Remember he is often not in the office and he will not have answer for you immediately but he can look at your report and call you or meet to discuss what you can do to improve your credit.

Larry’s company Fresh Start Credit, LLC is writing letters to clean up your past , This means that they are disputing inaccurate, incomplete, misleading , unverifiable and outdated information that are on your credit report. In addition you need to be doing things to put good things on your credit. This means paying on time, looking at what your negative factors are and changing the way you do your finances.

If you are enrolled in credit restoration with Fresh Start all you have to do is call their office or Larry and ask for them to review your reports with you. You can request an informal meeting where Larry can review in depth your credit report and he will give you direction on what to do to improve your credit. What negative factors are priorities for you? Your mortgage/finance specialist is also very good at this. You can ask Stewart, Luke or Bill to help you with this as well. Be willing to change your poor habits in exchange for establishing good habits and you will see your scores increase.

Many of you have said you want to do the automatic payments to help you organize yourself and have timely payments reported to the credit bureau. Please find enclosed another “ClearNow” form. If you are currently doing auto payments by direct pay or allotment you do not have to switch, but everyone that sends a check or money order each month would benefit from this easy payment option.

Please fill out the form and send it back with a voided check. You can also fax them back to me.

Lastly, a few winter reminders:
1. Be sure your sprinklers have been drained and off and blown out. If you water through these winter months use a hose and ALWAYS disconnect when you are done!
2. Change your furnace filters MONTHLY. This will improve furnace life and efficiency.
3. Always take good care of your home. Up keeping your home will ensure you get the best home for the best price.

I hope your fall is going well and you are enjoying your home. Keep warm as the cool winds blow through.

Remember to enroll in Fresh Start Credit LLC if you need credit restoration 720-254-5656.

If you are in credit restoration with Fresh Start Credit LLC already call the office to schedule an appointment with Larry at 303-674-6968 or leave a message so he can give specifics on changing habits or giving you ideas of dealing with how and what to pay off first.

If you need the phone number to your financial specialist/mortgage person just email or call us for their contact information.

Dedicated to improving your credit and making you a home owner,

Lori
Swiftcurrent Investment Group, LLC
EZQualDreamHomes.com
719-648-5223

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