Part 4 Copyright Fix My Credit University WWW.FIXMYCREDITU.COM

Q & A / Tips & Tricks FAQ

Will an eviction affect my credit score? *** It could, BUT you should know: *** 4 Types of Evictions: 1) Failure to pay rent. 2) Breaking the terms of a rental agreement. 3) For creating waste or nuisance 4) For no cause. (The property manager must obtain an eviction notice from small claims or civil court.)

How does asking for a credit limit increase affect my score? The more available credit to you, the higher your credit score will be. This is looked at favorably amongst lenders as it shows trust in you as a borrower and that you are responsible with your debts.

Will not paying my taxes or paying them late affect my credit score? *** YES *** - Set aside a fund out of each pay check to designate towards paying taxes. - If self employed, use a tool to identify how much you will owe come tax time and set said amount aside.

How long do derogatory marks stay on my credit report? Generic response: 7 years. Tax liens: 10 years if unpaid, 7 years from date of payment. Bankruptcy: 10 years from the date of filing. Perkins Student Loans: Until paid in full. Direct and FFEL loans: 7 years from default or rehabilitation date. Judgments: 7 years or the debtors state statute of limitations on judgments.

How will bankruptcy affect my credit score? It depends! - Someone with a spotless credit will see a major drop in their credit score. - Someone with a poor credit rating will see a minor/moderate decrease.

Can I get derogatory marks removed in less than 7 years? *** NO *** - Accurate marks will remain on your credit report. - Only inaccurate marks can be removed.

Will paying off a debt collector increase my credit score? Unfortunately, NO, all accurate past due accounts will remain on your account for 7 years.

Can new U.S. citizens and immigrants get credit/loans? As long as you have a social security number! - Credit history is tracked by your SSN, so as long as youve taken the steps to obtain your SSN, you can start building your credit.

Should I close my unused credit cards? *** NO *** - As mentioned previously, this will decrease your average age of credit lines.

What information does a consumer credit report contain? Identifying information: Your name, address, SSN, DOB, employer, etc. Account history: Specific information about each line of credit / loan. Public records: Bankruptcy information, tax liens, child support, etc. Inquiries: Who has viewed your credit history. (you, employers, etc.)

How long do hard credit inquiries stay on my credit report? *** 2 years ***

Can a credit repair agency fix my poor credit? *** NO *** - There is nothing a credit repair agency can legally do about accurate marks on your credit history.

Does it cost anything to dispute a credit error? *** NO *** - The process is free and pretty painless as well.

What do I do if I find an error on my credit report? - Write the credit reporting agency of the report you are viewing and have them investigate the mistake with the credit company. - Addresses and an example letter can be found at www.fixmycreditu.com

Does divorce affect my credit? *** YES/NO*** - Just because you get a divorce, it does not negatively impact your credit. - However, when you get married, you share each others debts, and this does not end after a divorce. You still are required to pay off any debts owed.

How often should I be checking my credit report? - Bare minimum: Once a year. - Best practice: Monthly

Q & A / Tips & Tricks Credit Monitoring

Credit Monitoring, what am I looking for? Fraud - Regularly check for lines of credit and loans you did not open. - Also check for derogatory marks that do not pertain to an account you are aware of.

Credit Monitoring, what am I looking for? Mistakes - Look for these monthly and address them immediately. - Verify the credit limit showing up on your credit report is correct. If it is reflecting a lower limit than you actually have, have this corrected.

Credit Monitoring, what am I looking for? Total Balance - Your total debt. - This is broken down for you into Credit Cards, Home Loans, Auto Loans, Student Loans, and Other.

Credit Monitoring, what am I looking for? Derogatory Marks - If a mistake is found, contact the lender/credit bureau immediately and address said mistake. - If the mark is legit, you can still contact the lender and politely ask them to remove it based on your relationship with them.

Credit Monitoring, what am I looking for? Credit Score -Take note of fluctuations and identify the why behind the up or the down movement. - Plan your financial decisions around this number.

Q & A / Tips & Tricks Tips & tricks

Decrease Your Debt - Use tax money, holiday bonus, company profit sharing, any extra unaccounted for money to decrease credit card debt, student loans, auto loans, or your mortgage.

Student Loans *** do not *** use credit cards to pay off student loans as the interest rates are typically much higher. This is not decreasing your debt, it is shifting it around.

Auto Loans - When making extra payments on car loans, contact your lender and ensure that you are paying down the principal, not just paying a month or so in advance. This will decrease the total amount owed.

Dont Be Late - Setup payment reminders on your smart phone or calendar. - Set up automatic payments on all accounts. (cell phone, television, auto loan, student loan, gas, electric, etc.)

Make It Worth It - If the time is right to open a new credit card, choose a credit card with a reward system that works for you. (cash back, airline miles, free hotel rooms, etc.)

Closing Time! If you want a guide to hold your hand through the process of fixing your credit score, check out Fix My Credit, Build My Credit. Save money on expensive credit repair services and do it yourself! WWW.FIXMYCREDITU.COM