Wishing You a Happy New Year

Hey it’s Erik, 

I wanted to take a moment to wish you all a Happy & Healthy 2017!  

I am fortunate to work with wonderful people and appreciate your business, referrals and friendships.

This past year, THD Credit helped more then 1,100 people with their personal finance. 

  • We raised credit scores so you could purchase or refinance your homes and cars
  • We settled collection accounts for 20-50% of the owed amount
  • We cleared your paid medical collections from credit reports
  • We removed your late payments on auto loan/leases and credit cards
  • We settled your home equity lines of credit for 20-35% of the owed amount

It was a year of many challenges and even more successes. I look forward to a great year to come. 

Until next month,

Erik

Credit Tips to Make it Through the Holiday Season

With Thanksgiving, black friday and cyber monday just days away, the holiday shopping season is officially moving full speed ahead.

Setting limits for yourself will help you avoid a spending spree this season and your credit score from plummeting in 2017.

Here are tips to keep your holiday shopping from hurting your credit score:

Limit Credit Card Usage

To avoid regret when January credit card statements arrive, do not max out your credit cards.  Always keep your credit utilization rate below 30%.  A higher ratio is a potential red flag to potential lenders and can lead to your credit scores taking a hit.

Avoid Store Credit Cards 

Your favorite retailers will offer additional discounts if you sign up for a store’s credit card.  DON’T DO IT!  While it might sound like a good deal at the time, these cards typically come with low limits, high interest rates and will just run you further into debt.

In addition, every time you sign up for a new credit card, another line of inquiry to your credit score is made and can negatively impact your credit score.

Make A Holiday Game Plan

In other words…BUDGET.  While everyone understand the concept, most people don’t actually put pen to paper and create a budget for holiday gifts, parties, travel, etc.  Go on, give it a go this year. You will save money AND will cut down on the amount of wrapping you have to do! 

Even if your budget feels small, focus on what you can do – not on what you can’t.  If you have questions about how you can get through the holiday season, call or email me today.

Coming Soon!

What you should know about TransUnion and your FICO score

While we hope to answer all your questions, this month we are focusing on two we are frequently asked.  

Q:  Why is my score always lower with TransUnion?

THD Expert:  TransUnion uses a different scoring model than Experian and Equifax.  Your credit score depends on if all your creditors are reporting to TU or not. Each creditor has the right to decide (a) if they are going to report data (b) who they report to (c) the date each month they send their reports. Since each bureau charges creditors for the right to report to them, not all creditors use all three.  

Q: How do I begin to bring my fico scores up?

THD Expert:  While this is a complex question and we typically have different strategies for each customer, this is the foundation for good credit.

  • Pay your bills on time.  Timely payments have the most significant impact on your credit scores.
  • Keep your credit utilization low. Use no more then 30% of your available credit at any given time.
  • Take it easy on applying for new credit. New inquiries can knock points off your score.
  • Use credit responsibly. Aim for a mix of revolving credit lines and installment loans.
  • Be careful about closing old accounts. The longer your credit history, the more your score benefits.

Do you have questions you would like to submit to the THD Credit Experts?

THD Credit Consulting is here to help clean up your credit report, rebuild your credit and educate you to maintain it for the rest of your life.  

Be sure to sign up to receive our monthly newsletter for tips, practical information & lessons on credit repair delivered to your inbox.

Dudatez (pronounced do͞o-dāts) is a mobile app
created to ensure you never have to worry about missing a payment again.  

Visit www.dudatez.com to learn more!

Ask the THD Experts

Do you have personal questions related to your credit score, debt settlement or credit reports that you would like addressed by an expert?  

Ask the THD Experts is your opportunity to submit your questions to our certified credit consultants. 

Here is how it works…

Send an email to asktheexpert@thdcreditconsulting.com and submit your questions. We will select questions and feature the answers, helpful tips and solutions in our upcoming monthly newsletters and on our social media networks. 

Don’t leave the health of your credit up to chance or guesswork – get the answers you need right here! Our team of experts are here to answer your questions for free so you can make the right choices to overcome your credit and debt challenges and reach your goals.

Coming Soon!

A Residential Mortgage Credit Report vs. a Consumer Credit Report.

When it comes to your credit, applying for a home loan is different than applying for just about any other type of consumer loan.   

Since a mortgage loan is for a substantially larger amount and for a longer time frame there is more risk for the lender.  Therefore, to qualify for a mortgage more information is required in the underwriting process than for a credit card or auto loan.

For example, when applying for a credit card or auto loan, your lender will most likely request a copy of your credit report from one of the nation’s three credit reporting agencies, and either approve or decline your loan request.  

When you apply for a mortgage loan, it is a whole different ball game.   

What is a Residential Mortgage Credit Report?

Also referred to as a RMCR and tri-merge, this report is a composite of merged information from the three major reporting agencies – Experian, Equifax and TransUnion.  It basically puts a ton of information in an easy to read format for a lender.  All scores in one place, all negative accounts in another, all positive accounts in yet another, etc.

Can pulling a RMCR lower your credit score?

 Since this type of report is a hard pull, you may see a small dip in your credit score.  

If you are contemplating buying a home the first step is to figure out where you are at RIGHT NOW!

Here are a few things you need to do:

  • Get a copy of your credit report and make yourself comfortable with the information on your reports.
  • Check for errors that could be dragging your score down. 
  • Do NOT make any major changes, like closing an account. It could send your score down.   

If you need help improving your credit in order to buy a home, give me a call or email me today.  I help clients with this type of repair work everyday, and know how to make good things happen!

-Erik Kaplan

Coming Soon!

What you should do if you get a collection account on your credit.

Here’s the first thing you should know about debt collection: The people calling you are not the people you borrowed from. In actuality you are talking to someone who purchased that debt for pennies on the dollar and is trying to make a profit on it.

If you have a collections account on your credit report it is important to know how this will affect your credit score and what you can do about it. 

Let’s start with the basics… What does it mean for your credit?

If you have a collection account, your credit score may drop by a substantial amount. It typically is correlated with how high your credit score is.  Therefore, the higher your score the more points you can lose.

As you know, having your credit score drop from having an account in collections can impact your financial future.  You could be denied for credit cards and loans.

Realities of overdue debts…

The truth is a creditor could sue you and win a judgment, allowing them to garnish your wages or hire a sheriff to come get your property. However, the chances of this are slim.

Many consumers feel overwhelmed by their debts and file for bankruptcy because they think it is their only option. DON’T DO THIS!  This should only be considered once all other options are exhausted.

What should you do?

Call or email me, asap! Through a careful analysis of your situation, I can determine the necessary steps to settle your debt and move toward rebuilding your credit.

-Erik Kaplan

Coming Soon!