The question that you are faced with when deciding to work towards a healthier credit report is, “should I try to fix my credit report on my own or should I get some professional help?”  First of all, please allow us to give you a big congratulations! The first step towards achieving clean credit is the decision to try.  You have already made the most important step!  Now, it’s time to figure out the logistics.

You should know that it is 100% legal for you to work on your credit report alone, with no professional assistance.  If you come across a “credit repair” company that does not inform you of this fact, be sure to run the other way as fast as you can!  ”Credit repair” has a very bad name, for a good reason.  There is a ton of scam within the “credit repair” industry.

However, just because you can work on your credit report alone does not necessarily mean that you should.   Remember, it is your legal right to represent yourself in a court of law but most people would rather have an attorney in their corner, especially if faced with a serious charge.  Another example that comes to mind, in light of the recent series of storms in the southeast, is that you legally have the right to replace your own roof if it was damaged by the elements.  Unfortunately, if you are not professionally trained and do not have experience in the roofing business then you will probably just make a bigger mess of things if you try to work on the project alone.  The same is true of credit restoration.  Do-it-yourself credit repair is often a disaster.  In the 10+ years since HOPE has been in business we have seen many people actually make their credit scores worse rather than better by trying to clean up their credit alone, without an experienced professional to guide them.

HOPE has designed a unique, one of a kind, credit education program to help our members achieve healthier credit and to learn how to maintain that healthy credit for a lifetime!  Active HOPE members receive the following benefits for no additional fees:  personalized budgeting assistance, negotiations with creditors, individual credit report analysis, and much, much more! Over 80 HOPE members have graduated our program with credit scores healthy enough to buy a home in the last 4 months alone!

We would love to invite you to schedule a personal credit analysis appointment with us (in person or over the phone) today to see what it will take for you to achieve the healthy credit you desire to have.  Analysis appointments are completely pressure-free and there is NO obligation to join the HOPE Program after speaking with a HOPE Credit Specialist.  Please give us a call today at 704-499-9696 to reserve a time for your one on one credit analysis.  We would love to hear from you!

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5 Ways to Give Your Credit a Kick in the Pants!
By Michelle Black

Earlier this week we discussed The 5 Fastest Ways to Damage Your Credit.  If you have not reviewed this list yet, please take a moment to check out the article.  It may save you from making a detrimental mistake which could set your credit score back as much as 100 points!

However, today we will be focusing on a subject that is always much more enjoyable: Ways to improve your credit.  Since the 3 credit bureaus (Equifax, TransUnion, and Experian) all have a different system they use to determine your credit score, it is impossible to predict specifically how much any one action will change your credit score.  Still, we do know that if you heed the following advice, your credit scores cannot help but to improve with all 3 of the credit bureaus (as long as no new negative actions on your credit counteract the new positive changes):

1.  Make payments on time.
I always like to start with this recommendation because payment history is the single most important factor making up all 3 of your credit scores.  A whopping 35% of your credit score is determined by your ability to make your payments on time.  Even if you have had some recent late payments (within the past 24 months) that have damaged your credit score, if you make a plan today to start paying your current bills on time you will start to slowly dig yourself out of the hole. Plus, if you want to dig yourself out of the proverbial credit hole even faster you can check out some of the great services that HOPE has to offer.
2.  Have enough open credit cards.
It is important to have open revolving accounts (AKA credit cards) on your credit report.  Your credit score is a snapshot to potential lenders of how you pay your bills.  Therefore,  if you do not have enough open accounts, you may have low scores or even no scores at all. HOPE members, please check with your HOPE credit specialist to see if it is recommended for you to open additional credit card accounts or if you already have enough active accounts appearing on your credit report.
3.  Pay down open credit cards.
Yes, it is definitely recommended that you establish some current credit card accounts if you do not currently have enough open.  However, it is not recommended that you establish any new debt by charging up the balances on your credit cards.  If you do have balances on any of your current credit cards, especially if the balance is over 50% of your credit limit, aim to pay off your credit cards ASAP.  You could potentially see a huge increase in your credit scores by following this advice.  (Note: current HOPE members can contact us to request a HOPE Snowball Debt Payoff Worksheet for help making a plan to pay off your current debts.)
4.  Check your credit report for mistakes/erroneous information.
All 3 credit bureaus are quite notorious for making mistakes on our credit report.  Even if your credit report is in pristine condition, it is important to check your credit report 1-2 times every single year to make sure that there are no new errors being reported.  The good news is that you are legally entitled to a free credit report (minus your credit scores) every year from www.annualcreditreport.com.  Make sure to check your report with all 3 credit bureaus.
5.  Use old credit cards occasionally.
Your length of credit history makes up approximately 15% of your credit score.  This means that those older credit card accounts on your report actually help to boost your credit scores more than new accounts.  Often a creditor will automatically close a credit card account if you do not use it for a prolonged period of time due to inactivity on the account.  Solution?  Use your old credit cards several times per year for a small purchase (which you pay off immediately) in order to keep your older accounts open and active.

Don’t forget, if you or someone you know is in need of professional credit advice or assistance, we would LOVE for you to take the time to consider the services offered by the HOPE Program.  We want the opportunity to answer your questions and offer our unique expertise on all situations related to your credit report and credit scores.  There really is no such thing as a HOPEless situation! Please feel free to give us a call with any questions you may have at 704-499-9696.  We hope to hear from you soon!

What is your New Year’s Resolution for 2011? Do you want to have clean credit or pay off your credit cards? Do you want to finally put an end to those pesky collection calls?  Maybe you want to become a homeowner and stop throwing away money on rent every month. Whatever your goal, HOPE wants to know!

HOPE is sponsoring a fun contest for you to share your New Year’s resolutions and maybe even win a fabulous prize! Simply click here to tell us your resolutions for the upcoming year. One lucky person will win a FREE, personalized credit analysis with a HOPE credit specialist who will help show you how achieving healthier credit can become a reality for you in 2011!  We can’t wait to hear about your goals for the new year!

Check out our article in the December issue of At Home Magazine! You can pick up a copy of At Home Magazine at your local Harris Teeter, BP gas station, or Lowes Food Store as well.

Credit Myths Exposed!
Part 2
By Michelle Black

Last month we discussed 3 very common credit myths and the impact they can have upon your credit report.  Since there are so many credit myths, and since this is such an important subject, we will continue our article this month on the same theme.  Misconceptions about credit and following bad advice can damage your credit score and could even cost you thousands of dollars.  We encourage you to educate yourself regarding credit, take control of your financial future, and don’t let yourself fall victim to any the common credit myths listed below.

Credit Myth #1:  I shouldn’t check my credit too often because too many inquiries can lower my credit score.

The Truth:  You can personally check your credit report with no negative impact.  You are even entitled to a free credit report every year at www.annualcreditreport.com.  This is called a “soft” credit pull.  A “hard” credit pull happens when a lender pulls your credit to see if you qualify for a loan.  “Soft” pulls do not affect your credit score; however, “hard” pulls typically cost you 1-5 points and affect your credit score for approximately 6 months.  So, while it is fine to check your own credit report often (HOPE recommends checking your credit 1-2 times per year), it can damage your score if your credit is pulled by a lender too often.

Credit Myth #2:  One late payment won’t hurt my credit score.

The Truth:  Payment history is actually the #1 factor used by the credit bureaus to determine your credit scores.  Late payments can have a huge impact upon your credit scores.  To give you an example, several years ago we had a HOPE client whom we had helped to clean up his credit report to the point where he could qualify for a great interest rate on his home loan.  He was moving to North Carolina at the time.  During the busyness of moving he forgot to make a $15 credit card payment.  When his credit report was pulled later that month for his mortgage application his scores had dropped over 100 points!  Thankfully, we were able to walk him through talking to his credit card company in order to request that the late payment date be removed due to the circumstances.  Once the late was removed his scores recovered and he was still able to purchase his home.

Credit Myth #3:  Once a collection account is paid the account will be erased from my credit report.

The Truth:  Paying a collection account won’t automatically make the red mark on your credit report go away.  In fact, a paid collection account can remain on your credit report for up to 7 years.  Often times the creditor never bothers to update your credit report to reflect a $0 balance after receiving payment for a collection account.  It is always best to use a professional debt negotiator, like HOPE, to make sure that your paid collection accounts are updated on your credit report properly and promptly.

Credit Myth #4:  It’s best to work on cleaning my own credit report because all credit repair companies are scams.

The Truth:  “Credit repair” has a bad name, for a good reason.  Most credit repair programs are incomplete and, while they may help improve your credit report somewhat, they almost never help you to achieve a completely healthy credit status.  It’s always best to work with a credit education program like HOPE which provides negotiations and personal credit advice in addition to the dispute services provided by your average “credit repair” company.

Also, everyone has the legal right to work on their own credit report.  If you encounter a company that tries to misinform you regarding your rights, you should run the other way!  Still, please keep in mind that while you are legally able to work on your own credit report it is usually best to have a professional to assist you when cleaning up past credit issues.  You are legally allowed to represent yourself in a court of law as well; however, most of us would prefer to have an attorney represent us in order to ensure we receive the best result possible.  Repairing your credit follows the same principle.

If you have credit issues or low credit scores which are keeping you from achieving your goals of homeownership or financial freedom please give us a call!  HOPE can proudly announce that we have had over 70 graduates in the past 4 months alone to complete our program with credit scores healthy enough to qualify for a home loan!  You can overcome the credit problems you are facing too and we would love to help you achieve a wonderful success story of your own!  Please visit us online at www.HOPE4USA.com or call 704-499-9696 today for more information or to schedule your personal credit analysis with a HOPE Credit Specialist. We can’t wait to hear from you!

This year you can give your friends and family a Christmas gift that can dramatically improve their quality of life – the gift of clean credit! At HOPE we recommend checking your credit report at least once per year.  For only $30 you or your loved one can have a full, detailed, professional credit analysis with a HOPE Credit Specialist including personalized tips on how to improve his/her credit report.  Call or email today to order your gift certificates for this Christmas season! We ho-ho-hope to hear from you soon!

*Special Offer: Buy $100 worth of gift certificates during December and receive a $25 gift certificate for free!