3 Big questions you may have about your credit score right now.

Posted by:

These days, the financial future remains muddied for tens of millions of Americans, with the fallout of the pandemic causing economic devastation for years to come. So, if you’ve experienced some sort of blemish on your credit due to a missed payment, collection, or eviction, you’re not alone.

But for those who are looking to rebuild and start their lives anew, including their credit scores, there is plenty of hope – and help – with Blue Water Credit.

Today, we’re covering three of the top questions you may have about getting back on your feet when it comes to fixing your credit.

  1. Why did my credit score go down during the pandemic?

In good times and in bad, during pandemics or normal days, everyone’s credit score is based on the same factors. In fact, FICO lets us know that our credit scores are based on:

  • 35% Payment history
  • 30% Amounts owed (credit utilization ratio)
  • 15% Length of credit history
  • 10% Credit mix
  • 10% New credit

So, if you’ve missed payments, submitted payments late, defaulted on a mortgage that led to a foreclosure or short sale, went through a bankruptcy, or even maxed out or misused your credit cards, your credit score will have suffered the consequences.

But there could be other reasons for your credit score tanking during the pandemic. Such is the case when consumers are in some sort of payment relief period or forbearance, but the bank or lending institution mismanages their file, reporting it as a late payment to the bureaus.

Additionally, identity theft, data hacks, and financial scams are more prevalent than ever these days, and your credit score may be compromised by someone who’s assuming your identity or opening accounts in your name!

  1. Are there laws in place to protect my credit score?

Yes, luckily, we have laws and regulations around credit reporting and credit scoring to protect us.

In particular, the Fair Credit Reporting Act shields consumers by holding credit bureaus and lenders accountable for the information that’s posted on someone’s credit report.

Since it’s passing in 1970, the Fair Credit Reporting Act (FCRA) monitors the use of the financial and debt information that third parties can collect, including the credit bureaus, banks, creditors, and other public record holders.

The FCRA outlines what these parties can and can’t do, and what recourse consumers have to protect their credit scores. For instance, the FCRA grants a consumer the right to know why their application for credit was denied, you have the right to address incomplete, duplicate, or outdated information, or you have the right to dispute negative accounts or information that are showing up in error.

That last one is the crux of credit repair and why it works!

There is much more to the FCRA and other laws that protect consumers, so you can refer to those agencies online or contact Blue Water Credit for more information.

  1. Can you pay to have your credit rehabilitated and your score fixed?

You have several options when looking to repair your credit and improve your score. Of course, you can attempt to do it yourself, and all of the tools and information you’ll need are readily available to you. There also may be free credit counseling agencies and non-profits in your area that may help.

That being said, when it’s time for some serious help with credit repair, it may be in your best interest to hire a professional firm who repairs credit for a living. However, all credit repair companies are created equal; and that’s why Blue Water Credit is proud to be the industry’s leading source for legal and ethical credit rehabilitation.

Blue Water will help repair your credit quickly by managing existing accounts correctly and adding new credit accounts as needed, all helping you achieve a better score. They get results by leveraging existing credit reporting laws and statutes, like the Credit Repair Organizations Act, which is enforced by the Federal Trade Commission. Understanding those laws and your rights as a consumer allows us to file disputes with the credit bureaus, holding them accountable to either verify your data or expunge it from your report if items are duplicates, incorrect, inaccurate, or, just negative items that should “fall off” your report.

By following this process – often multiple times – Blue Water Credit is able to “clean” your credit of negative and harmful accounts and items, helping your score rise significantly.

Be very careful when you hire anyone to repair your credit, and for that reason, we welcome all of your questions, inquiries, and are happy to offer a complimentary consultation to get started.

We look forward to earning your trust and business and helping become your credit restoration solution!

***

 

 

 

0

About the Author:

  Related Posts

You must be logged in to post a comment.