Congratulations to Mrs. Smith, another HOPE client who is very close to her dream of homeownership!  In a mere 7 weeks of membership in the HOPE Program Mrs. Smith has already seen tremendous results!  Here are just a few of the successes she has already experienced as a member of the HOPE Program:

*Middle credit score increased from 542 to 619! (That’s 77 points in 7 weeks – wow!!)
*Over ¾ of the negative items on her credit report have been erased!

With only 21 points to go before achieving a “loan ready” credit score, we cannot wait to see Mrs. Smith successfully complete the HOPE Program with a healthy credit report that she can be proud of.  Wouldn’t it be nice to never be turned down for a loan again due to credit issues?  This will soon be a reality for Mrs. Smith and it can be your reality too!  Stop letting bad credit control your life! You can begin to take control of your credit situation today.  Check out our recent blog, 5 Ways to Give Your Credit a Kick in the Pants!, containing tips on how to improve your credit scores and you could find yourself with a success story like Mrs. Smith before you know it!

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Why Are Credit Scores Important?
By Michelle Black

So, you likely already know the basic principle about what a credit score is used for and, therefore, why it is important to have a good one.  Whenever you apply for a loan (car loan, mortgage loan, credit card loan, personal loan, etc.) a lender is going to look at your credit score and decide whether or not you qualify.  If your credit score is high enough, you can likely expect to be approved for the loan (provided you earn enough income to qualify). However, a low credit score could result in you being declined for the loan you want or, if you are approved, it could mean a higher interest rate and a bigger down payment.

To put it simply, credit scores (and your credit report) are a type of report card which future lenders get to look at when you apply for a loan.  The “report card” shows lenders a picture of how you pay your bills – on time, late, or not at all.  If your credit report shows that you have a history of paying your bills on time then future lenders will want to loan you money as well since, chances are, you will pay the payments on time and they will be able to earn a profit from you in the form of interest.  However, if your credit report shows that you have a history of paying your bills late or not at all then future lenders will be scared to loan you any more money.  The reason they will be hesitant to loan you more money is because chances are higher that they may not get paid back for their investment, much less make any kind of profit through interest fees.

In our current culture, credit scores impact our lives in many ways.  I already mentioned how you will need a good credit score to qualify for any type of loan.  However, did you also know that your credit score may be used to determine you auto insurance rate and whether or not you have to put down a deposit when opening a new utility or cell phone account?  Plus, it is now a common practice for employers to pull your credit score when you are applying for a new job.  Depending upon the industry in which you work, your current employer may even access your credit report to determine whether or not you are “credit worthy” to remain employed with the company.

Since credit affects so many different aspects of our lives, it is more important than ever to have a healthy credit score.  However, if you find yourself in the uncomfortable situation of having a subprime credit score (a consumer score of 649 or lower) then HOPE would like to encourage you to give our credit experts a call.  Remember, you do not have to feel embarrassed or defeated due to a subprime credit score!  Bad credit scores happen to good people all the time. In fact, over 60 million American currently have a subprime credit score so, if you are in the same boat, you certainly are not alone! You still deserve to be treated with dignity and respect. Don’t ever let anyone make you feel otherwise.

You can make a plan today to start improving your credit scores.  Please contact us via email or phone at 704-499-9696 to learn more about how the HOPE Program can help you to achieve the healthier credit you desire!  Over 85 graduates have completed our program in the last 4 and ½ months with credit scores healthy enough to purchase a home! We would love the opportunity to help you achieve your success story as well.

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We are happy to announce another HOPE graduate this week and would like to share a little bit of her success story with you! Ana joined the HOPE Program after she had tried and failed to get some incorrect information removed from her credit report.  She had 6 tax liens reporting on her credit when she first became a member of our program for a grand total of $25,771!  Unfortunately, even though these tax liens were reported to the credit bureaus in error (Ana did not actually owe any money on back tax liens) she still was not able to get them removed from her report.  She had even hired a tax attorney to help her with the situation, but no results were made after over 6 months!  Ouch!

Don’t worry though, this story has a happy ending. Ana’s situation began to change once HOPE Credit Experts got involved!  As of this week Ana has achieved a completely clean credit report with the help of our HOPE staff! All 6 incorrect tax liens have been erased from her credit report and all $25,771 in erroneous debt is gone as well!  Ana has now been pre-approved for a mortgage, is currently in the process of picking out her dream home (how fun!!), and is planning to close on her new home next month.  We would like to issue a great, big “congratulations” to both Ana and our hard working HOPE staff for refusing to give up and therefore making this wonderful success story a reality!

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Recently we have spent a lot of time discussing identity theft and ways that you can protect yourself from this growing crime.  If you have not done so already, we would love to invite you to check out our June blog archives for HOPE’s 10 part series entitled Protecting Yourself from Identity Theft.  Remember, ID theft education is the single most effective way to prevent yourself from being victimized.

Since we have been spending so much time on the subject of ID theft lately, we wanted to share a recent, real life success story with you about a HOPE member overcoming the detrimental effects of ID fraud.  In the interest of privacy we will call this HOPE member Jane Doe.  Jane Doe had one of the worst cases of ID fraud you can imagine. While out of the country for a few years a trusted friend stole the identity of Jane Doe and her husband. (Remember, over 43% of ID theft victims know the person who stole their identity!  http://hope4usa.com/idtheft9/) This so-called “friend” used Jane Doe’s personal information to rack up over 40 fraudulent accounts in Jane’s name. The total debt was just under $120,000 which, of course, he never paid. Ouch! Talk about a nightmare.

When Jane Doe and her husband returned to the country and attempted to apply for a home loan they were in for quite a shock.  In fact, Jane’s once pristine credit scores had dropped to the low 500 range. Of course they were not able to be approved for a mortgage or any other type of financing as a result of the ID theft. Not knowing what else to do, Jane Doe and her husband began trying to fix the credit problems caused by the ID theft themselves. They filed police reports, talked to creditors, but just kept running into dead end after dead end. Finally, they met a caring loan officer who referred them to the professionals at HOPE for help.

Thankfully, there is a happy ending to the story! We are thrilled to report that HOPE has been able to help Jane Doe turn this nightmare situation around. Since joining the HOPE Program around 6 months ago Jane’s credit report has been transformed:

Credit Scores have increased an average of 120 points per credit bureau!
Over 30 of the original fraudulent accounts have been completely erased!
Nearly $114,000 in negative, fraudulent accounts has been removed from her credit!
Jane’s credit scores are now more than adequate to be approved for a home loan!
Jane’s highest credit score is now a whopping 706!

We are so happy to report this fantastic success story to you, and so is our member, “Jane Doe!” With a little more work we are confident that HOPE can help Jane to deal with the final few remaining fraudulent accounts in order to achieve a 100% clean and healthy credit report again – the credit report she truly deserves.

If you or a loved one has experienced identity theft or any other credit issues, please feel free to give our credit experts at HOPE a call at 704-499-9696. Our caring staff is standing by to answer any questions you may have. We would love the opportunity to show you how the HOPE Program can help you to achieve the healthier credit you desire to have!

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Protecting Yourself from Identity Theft
Part 8
by Michelle Black

Did you know that 1 in 10 US consumers has already been victimized by identity fraud?   In fact, studies have shown that those households with incomes higher than $70,000 were twice as likely to experience identity theft as those with salaries under $50,000 (U.S. DOJ, 2005). Those are some disturbing statistics. However, the good news is that there are many ways you can protect yourself from becoming another victim to this rapidly growing crime. Check out today’s tip for avoiding identity theft:

#8:  Don’t Carry Unnecessary Personal Documents in Your Wallet or Purse.

Empty your wallet of all extra credit cards and social security numbers. Do not carry any unnecessary forms of identification. It is also very important NOT to carry your birth certificate, social security card, marriage license, military ID, or passport, unless necessary.  Not having these items in your purse or wallet will make it harder for identity thieves to steal sensitive personal information from you.  You definitely do not want to make it any easier for thieves to target you!

There are still a few more great tips to come on how to protect yourself and your family from identity theft! Please check back in with us next week.  Remember, if you find today’s tip to be helpful, please be sure to share it with your online friends with our easy to use “share” buttons below.  The #1 way we can reduce identity theft is by increasing awareness.  Thanks for your help spreading the word!

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