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5 Steps to Have a 700+ Credit Score

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Your credit score is more consequential than you may think. Aside from banks, it is checked by institutions beyond the lending sector. Companies that need to evaluate your creditworthiness, including insurance firms, landlords, and recruiters, may all draw conclusions from this indicator. A score of 700 puts you in the “good credit” category. It unlocks better conditions on loans, and the probability of rejection falls substantially. So, how can you achieve it?

If your current status is lower, you may be in the “poor” or “fair” category in the FICO system. The “good” segment includes totals between 670 and 739. According to Experian, consumers in this range are unlikely to become seriously delinquent — this happens to 8% of them. Just over a fifth (21%) of Americans fit this category.

Why Is Your Score Inferior?

The total is calculated automatically using the contents of reports compiled by three nationwide agencies. However, Experian, Equifax, and TransUnion can be wrong. You may end up lower on the scale due to different types of errors, from misspellings to mix-ups. This happens with around 20% of US citizens, according to the Federal Trade Commission. Mistakes justify credit repair — score increase through disputes. Check the Credit Saint review to see how this works.

You may also fail to get a good credit score due to irresponsible borrowing. Consumers who neglect their obligations under credit agreements see their status plunge. In this case, nothing can be repaired. Unless you rethink your financial habits, you cannot compensate for past mistakes. Gradually, their influence will fade, and they will eventually expire. Most negative data vanishes in 7 years.

Different scoring systems consider different aspects of your experience, but some universal rules exist. To have a positive reputation as a borrower, you should make all payments by the due date, use up to 10% of credit limits across all cards, apply for new services sparingly, and gain experience with different borrowing systems (mortgages, car loans, credit cards, etc.). Here are five tips for anyone who wants to get to 700.

If your score is unfair, you should begin by fixing erroneous reporting. Go to www.annualcreditreport.com to download copies of all three documents. Until April 20, 2022, you can do it for free every week. This is an emergency measure, as the service used to be available once a year. To obtain the files, you need to share basic information, including your Social Security number. This website is the only authorized source.

Next, scrutinize each document paying attention to every line. You may find accounts that do not belong to you, incorrect amounts, false information, expired details, etc. You may even suspect your score has fallen due to credit fraud. Any inconsistencies should be disputed.

Negative events in your history are known as derogatories. They reflect the failure to fulfill the terms of your agreements. For instance, you may find:

  • late/missed payments;
  • defaults;
  • collections;
  • bankruptcies;
  • evictions, etc.

If such details are false, your score will jump automatically once they are deleted. Before initiating the procedure, find supporting evidence and draft a dispute letter. No single format exists, but you may consider the template provided by the Consumer Financial Protection Bureau. If you have multiple mistakes to remove, consider hiring a credit repair firm to avoid delays.

  • Never Miss Another Payment

The timeliness of payments is the single most influential factor. It affects 35% of FICO and 40% of VantageScore. Avoid being late at all costs. Set up reminders or auto transfers to prevent delays. Lenders report skipped payments once they are 30 days overdue, so act fast if you are a few days late. Make the payment and contact the institution — they may agree not to share that slip-up with the bureaus.

If you find yourself in a difficult financial situation, negotiate. Do not wait for your payments to go into default. Communicate with the lender to work out a new payment plan. The institution may agree to provide restructuring or refinancing. Ignoring their demands is the worst choice.

According to some experts, 10% is the ideal utilization ratio. Someone with several credit cards giving $5,000 in total must have a balance of $500 across the accounts.

If you cannot afford to pay off the balances, extend the limits. Alternatively, get a new card from another issuer, or become an authorized user on someone else’s account. If you have a friend or family member with an excellent financial history, ask them for a favor. Their limit will be included in your utilization, so it will also push your score up.

Finally, consider this free online service from the bureau. It allows you to gain some points by adding more information to the records. Phone bills, utility payments and even an HBO subscription may all work in your favor. On average, consumers see their totals rise by 12 points. This is not a lot, but it may still close the gap between your current score and 700+.

To Conclude

These tips should help you get a higher score. How soon you achieve 700 depends on the starting point and the strategy. Repair takes months (between 3 and 6 on average). The time required for rebuilding also varies, as lenders communicate with bureaus based on their billing cycles. Sooner or later, you will be able to neutralize the damage caused by your past mistakes. Good luck!

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Are Sallie Mae Student Loans Federal or Private?

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When you hear the name Sallie Mae, you probably think of student loans. There’s a good reason for that; Sallie Mae has a long history, during which time it has provided both federal and private student loans.

However, as of 2014, all of Sallie Mae’s student loans are private, and its federal loans have been sold to another servicer. Here’s what to know if you have a Sallie Mae loan or are considering taking one out.

What is Sallie Mae?

Sallie Mae is a company that currently offers private student loans. But it has taken a few forms over the years.

In 1972, Congress first created the Student Loan Marketing Association (SLMA) as a private, for-profit corporation. Congress gave SLMA, commonly called “Sallie Mae,” the status of a government-sponsored enterprise (GSE) to support the company in its mission to provide stability and liquidity to the student loan market as a warehouse for student loans.

However, in 2004, the structure and purpose of the company began to change. SLMA dissolved in late December of that year, and the SLM Corporation, or “Sallie Mae,” was formed in its place as a fully private-sector company without GSE status.

In 2014, the company underwent another big adjustment when Sallie Mae split to form Navient and Sallie Mae. Navient is a federal student loan servicer that manages existing student loan accounts. Meanwhile, Sallie Mae continues to offer private student loans and other financial products to consumers. If you took out a student loan with Sallie Mae prior to 2014, there’s a chance that it was a federal student loan under the now-defunct Federal Family Education Loan Program (FFELP).

At present, Sallie Mae owns 1.4 percent of student loans in the United States. In addition to private student loans, the bank also offers credit cards, personal loans and savings accounts to its customers, many of whom are college students.

What is the difference between private and federal student loans?

When you’re seeking financing to pay for college, you’ll have a big choice to make: federal versus private student loans. Both types of loans offer some benefits and drawbacks.

Federal student loans are educational loans that come from the U.S. government. Under the William D. Ford Federal Direct Loan Program, there are four types of federal student loans available to qualified borrowers.

With federal student loans, you typically do not need a co-signer or even a credit check. The loans also come with numerous benefits, such as the ability to adjust your repayment plan based on your income. You may also be able to pause payments with a forbearance or deferment and perhaps even qualify for some level of student loan forgiveness.

On the negative side, most federal student loans feature borrowing limits, so you might need to find supplemental funding or scholarships if your educational costs exceed federal loan maximums.

Private student loans are educational loans you can access from private lenders, such as banks, credit unions and online lenders. On the plus side, private student loans often feature higher loan amounts than you can access through federal funding. And if you or your co-signer has excellent credit, you may be able to secure a competitive interest rate as well.

As for drawbacks, private student loans don’t offer the valuable benefits that federal student borrowers can enjoy. You may also face higher interest rates or have a harder time qualifying for financing if you have bad credit.

Are Sallie Mae loans better than federal student loans?

In general, federal loans are the best first choice for student borrowers. Federal student loans offer numerous benefits that private loans do not. You’ll generally want to complete the Free Application for Federal Student Aid (FAFSA) and review federal funding options before applying for any type of private student loan — Sallie Mae loans included.

However, private student loans, like those offered by Sallie Mae, do have their place. In some cases, federal student aid, grants, scholarships, work-study programs and savings might not be enough to cover educational expenses. In these situations, private student loans may provide you with another way to pay for college.

If you do need to take out private student loans, Sallie Mae is a lender worth considering. It offers loans for a variety of needs, including undergrad, MBA school, medical school, dental school and law school. Its loans also feature 100 percent coverage, so you can find funding for all of your certified school expenses.

With that said, it’s always best to compare a few lenders before committing. All lenders evaluate income and credit score differently, so it’s possible that another lender could give you lower interest rates or more favorable terms.

The bottom line

Sallie Mae may be a good choice if you’re in the market for private student loans and other financial products. Just be sure to do your research upfront, as you should before you take out any form of financing. Comparing multiple offers always gives you the best chance of saving money.

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Tips to do some fall cleaning on your finances

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Wealth manager, Harry Abrahamsen, has five simple ways to stay on top of the big financial picture.

PORTLAND, Maine — Keeping track of our financial stability is something we can all do, whether we have IRAs or 401ks or just a checking account. Harry J. Abrahamsen is the Founder of Abrahamsen Financial Group. He works with clients to create and grow their own wealth. Abrahamsen shares five financial tips, starting with knowing what you have. 

1. Analyze Your Finances Quarterly or Biannually

You want to make sure that your long-term strategy is congruent with your short-term strategy. If the short-term is not working out, you may need to adjust what you are doing to make sure your outcome produces the desired results you are looking to accomplish. It is just like setting sail on a voyage across the Atlantic Ocean. You know where you want to go and plot your course, but there are many factors that need to be considered to actually get you across and across safely. Your finances behave the exact same way. Check your current situation and make sure you are taking into consideration all of the various wealth-eroding factors that can take you completely off course.

With interest rates very low, now might be a good time to consider refinancing student loans or mortgages, or consolidating credit card debt. However, do so only if you need to or if you can create a positive cash flow. To ensure that you are saving the most by doing so, you must look at current payments, excluding taxes and insurance costs. This way you can do an apples-to-apples comparison.

The most important things to look for when reviewing your credit report is accuracy. Make sure the reporting agencies are reporting things actuary. If it doesn’t appear to be reporting correct and accurate information, you should consult with a reputable credit repair company to help you fix the incorrect information.

4. Savings and Retirement Accounts

The most important thing to consider when reviewing your savings and retirement accounts is to make sure the strategies match your short-term and long-term investment objectives. All too often people end up making decisions one at a time, at different times in their lives, with different people, under different circumstances. Having a sound strategy in place will allow you to view your finances with a macro-economic lens vs a micro-economic view. Stay the course and adjust accordingly from a risk and tax standpoint.

RELATED: Financial lessons learned through the pandemic

A great tip for lowering utility bills or car insurance premiums: Simply ask! There may be things you are not aware of that could save you hundreds of dollars every month. You just need to call all of the companies that you do business with to find out about cost-cutting strategies. 

RELATED: Overcome your fear of finances

To learn more about Abrahamsen Financial, click here

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How to Get a Loan Even with Bad Credit

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Sana pwedeng mabura ang bad credit history as quickly and easily as paying off your utility bills, ‘no? Unfortunately, it takes time. And bago mo pa maayos ang bad credit mo, more often than not, kailangan mo na namang mag-avail ng panibagong loan. 

Good thing you can still get a loan even with bad credit, kahit na medyo limited ang options. How do you get a loan if you have bad credit? Alamin sa short guide na ito. 

For more finance tips, visit Moneymax.

 

 

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