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How Do the Best Credit Repair Companies Work to Clean Up Your Credit Score?

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 Credit repair companies promised to eliminate negative items in your individual credit standing report which can improve your credit score. A good credit score is the goal of many people especially if they are planning to venture into something which requires funding. On the other hand, if you are struggling with a bad credit standing, you can seek assistance from credit repair companies to help you rebuild your credit report. These companies are like auditors who review your credit report and check for matters that can be improved or removed. 

 

There are many credit repair companies out there and all of them are promising to do the work. These companies are trying to persuade people to seek them out if you are having a hard time rebuilding their credit score or simply if you want an expert to lay eyes on your credit report for assessment and improvement. A review at Observer.com has a list of the best credit repair companies wherein you can check out the top-rated credit repair companies that have been proven and tested through times that they can do what they are talking about. These companies have their own strategies on how they deliver exceptional results to their customers. 

So, How Does a Credit Repair Company Clean Up Your Credit Score? 

Credit Reports

First things first, credit repair companies communicate with credit bureaus, debt collectors, financial institutions on your behalf. You don’t have to show yourself to these organizations to have a negotiation, you just have to let it be done in the hands of credit repair companies. Credit Repair companies have their own strategy to convince a credit bureau on how to remove negative credit report entries, by doing this, those credit bureaus will certify that you are a responsible debtor. There are many ways credit repair companies do to help you level up your credit score. They can send emails through the internet but physical mail will do the math also, these companies adapt to the “jamming” method. In this method, credit repair companies will send out a large volume of mails, when credit bureaus know about this, they would eventually delete any negative information. 

Dispute Negative Entries

In this manner, your credit repair company will be able to let you breathe in. They will be notifying financial institutions about the items that need to be disputed. Some of the items that can be disputed are incorrect late payments. The importance of prompt payments will be reflected in your credit standing report, thus making it a ticket to a good credit report. Humans as we are, we are bound to making mistakes, and it can happen anytime. Payment history does not only show the figures, but it is a window to your personality. So, they are mainly communicating with financial institutions that you are connected to and evaluate your credit performance too, in order for them to come up with the best solution for you. 

Recommend Other Ways to Improve Credit Score

Some companies do credit counseling to their customers. This is to help you create a well-planned credit plan in the future. Some companies monitor your credit activities and identify certain areas to improve on. Aside from rebuilding your credit profile, credit repair companies teach also financial literacy to customers and even educate customers with better credit habits. This is to promote well-being to customers financially. The goal of a credit repair company is that their customers will be able to maximize their credit capabilities.

Credit repair companies do not guarantee fast results, but they’ll surely help you improve and rebuild your credit profiles. It’s all up to you to do your research and read reviews. As have been mentioned earlier, this is how credit repair companies can help you clean up your credit score. Solutions must be tailored-fit to a person’s needs. You’ll know their genuine care to help you in the consultation process. Consultation is where you talk your pain points to the credit repair company that you are working with, from there, the company will then be able to see a sneak peek of how does your profile look.

Now that you already know what a credit repair company can do to help you. You already have an idea how are they going to help you clean up your credit profile. So, before planning out to take a new loan or mortgage, have the time to have it check in a reputable credit repair company that you trusted. Sometimes hiring experts to evaluate your credit standing is more efficient than doing it on your own.

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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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