improving your credit score Archives

Steps to Remove Judgments and Collections from your Credit Report

Posted on September 20, 2019by Admin

Every consumer should review his or her credit report at least once a year to confirm that there are no inaccuracies. Lenders look to a person’s credit score to determine whether he or she is a lending risk. The lower the score, the harder it will be for that person to obtain financing. It can also affect the interest rate on the loan.

Certain actions, such as a judgment against the consumer or a collections action, can negatively impact a person’s credit score. However, if a consumer does have judgments or collections actions on his or her report, it is possible to have this information removed.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How to Improve Your Credit After Bankruptcy

Posted on May 28, 2019by Admin

The decision to file for bankruptcy is a tough one to make, but it is often the first step in gaining control of your financial future. A common concern people have when filing for bankruptcy is the effect it will leave on their credit score and their ability to access credit, again. While bankruptcy does affect your credit score, it is sometimes the last resort to rebuild your credit and your life.

In fact, it is oftentimes easier to reestablish your credit after filing for bankruptcy, because you are essentially given a “fresh start.” Here are some quick tips to help rebuild your credit after filing for bankruptcy.

Pay Your Bills on Time. Take full advantage of your financial fresh start. Make consistent and timely payments on all of your bills and any remaining debts moving forward, like your mortgage and car payment. These consistent payments over time will help improve your credit score and re-establish your credit.
Monitor your Credit Report. Make sure and check your reports every few months for errors. Confirm that any negative marks (i.e. – your discharged debts) have been removed.
Use a Secured Credit Card. With a secured credit card, you deposit with the lender an amount equal or nearly equal to the maximum credit line on the card. Unlike with a debit card, your payment history for a secured card is reported to the credit reporting agencies.
Budget. Create a realistic budget for yourself. Review your finances several times per week to ensure you are sticking to your budget.
Set up Auto-pay. Set up automatic payments for your cable, Internet and phone bills, so you do not miss your payment due date. Again, watch your finances closely so that you know when money will be coming out of your account.

There are proven ways to rebuild your credit score after bankruptcy, and our clients are proof!

My credit score said on all three reports 775, I couldn’t believe that I had such a great score before 10 years. Tim for me was the best move I have made for my situation. I have no regrets; I am glad the past is the past. – Bill T.

Hi Tim- I just wanted to send a quick note and thank you and your team for handling my bankruptcy case. It is only a month or two after discharge, and my credit scores are already in the upper 600’s. – C.S.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Source:

https://www.thebalance.com/how-to-improve-your-credit-score-after-bankruptcy-316108

Credit

Qualifying for a Home Mortgage with Bad Credit

Posted on February 18, 2019by Admin

A low credit score does not have to keep you from buying a home. Reviewing your credit score is a part of the mortgage approval process. What is considered “bad credit” when it comes to a mortgage or home loan? Ultimately, that designation can depend on the lender. Not all lenders have the same guidelines when it comes to determining what is bad credit. Many lenders specialize in working with clients who have a less than perfect credit rating.

For the most part, the base credit score to be approved for a regular home mortgage is 620. Some lenders will require the score to be higher, while others may permit a lower score. It helps to check your credit score before you contact a lender so that you are aware of where you stand on the credit spectrum. Most lenders will use FICO credit scores for determining whether to approve a home mortgage. Scores can range anywhere between 300 and 850.

A poor credit score may not prevent you from obtaining a mortgage, but it can certainly affect the interest rate offered with the loan. The better the credit score, the lower the interest rate will often be.

If you have a score of 620 or below, you may consider applying for a government-backed Federal Housing Administration (FHA) loan if you are not eligible for a Veterans Affairs (VA) loan. However, some FHA lenders may require a score of 620 to 640 for approval.

You can still get a conventional mortgage not through a federal government-backed lender, although it is easier to qualify with government lenders with less-than-stellar credit. Lenders will look at a number of factors when determining whether to offer you a home loan, including the down payment amount, the types of property desired, the maximum debt-to-income ration allowed, the minimum income allowed for the loan, and lender fees. It is always a good idea to shop around when looking for a home mortgage, and never take the first offer. Review the different options available to you before making a selection.

If you have a bad credit score and still would like to be approved for a home mortgage, you can improve your chances by getting a co-signer. A co-signer is someone whose credit score is better than yours and whose financial situation can help you be approved for the loan. That person will sign on the mortgage documents with you and will be equally responsible for the obligation. It is a big decision to make since your inability to pay the loan will negatively affect the co-signer’s finances, as well. Before you contact a relative to see if he or she will co-sign, review your financial situation to make sure you can make the payments regularly. If you cannot, it may be advisable to find another alternative.

It can also be helpful for the borrower to make a larger down payment when purchasing the home in lieu of finding a co-signer. Making a larger payment upfront will decrease the risk of default, making the lender more likely to issue the loan.

If you have time and can hold off on purchasing a home now, it may be advisable to work on your credit score to improve it so that you will be approved for the best loan possible.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Rebuilding Your Credit After Bankruptcy

Posted on August 3, 2017by Admin

Chapter 7 bankruptcy allows you to get a fresh start financially and erase past debts, but a legitimate concern consumers have is the effects it will have on their credit score and their ability to take out credit again.

One of the biggest misconceptions about filing for bankruptcy is that it will ruin your credit score and your financial future. To the contrary, after filing for bankruptcy you can begin restoring your credit right away.

Here are some steps you can take to begin rebuilding your credit after filing for bankruptcy:

Create a budget. This will help you stay on top of your finances and is something you should have gone over in the “pre-discharge” credit counseling.

Build an emergency fund. Research shows that having as little as $250 saved up for an unexpected expense can protect families from having to resort to pay day loans and credit cards.

Plan your post-bankruptcy credit strategy. Assess your situation by first checking your credit score. Dispute any inaccurate information on your credit report and have this corrected immediately. Remember, a Chapter 7 filing will wipe out your debts, but it does not wipe your credit reports clean. Make sure and double check all three reports.

Here are some ways to access to new credit while rebuilding your score.

Secured loans are typically offered by credit unions or community banks. One type of secured loan involves borrowing against money you already have on deposit. The other type can be made without upfront cash. Instead, this money is loaned to you and is placed in a savings account and released to you only after you have made the necessary payments. In return, the financial institution agrees to send a report to the credit bureaus.

A secured credit card is backed by the deposit you make and the credit limit is typically the amount you have on deposit. This can help repair your credit while you wait to become eligible for an unsecured card.

A co-signed credit card can improve your score, but it is definitely a big ask. Essentially, this individual (the co-signer) is risking his or her own credit history for you and will be on the hook if the full amount is not paid on the card.

If asking to co-sign is too much, an authorized user status will work. Basically, you are an authorized user on that person’s credit card. Just make sure the credit card will report the payment activity by authorized users to the credit bureaus, otherwise it will have no effect on your score.

A lighter debt burden automatically makes you more desirable to lenders, so be vigilant about paying on time. Keep your credit card balances relatively low compared to the card’s limit. For example, less than 30% is typically advised while using just 10% of the available credit is even better.

Still not convinced? A testimonial from one of our clients in regards to their credit score after filing for bankruptcy.

If you have any questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:

https://www.nerdwallet.com/blog/finance/rebuild-credit-after-bankruptcy/