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Top 10 Signs You Need Credit Repair



Contrary to popular belief, credit scores are not actually fixed in stone. They can be brought up with some time and the proper techniques. Some people don’t even realize that they should try to repair their credit. If you have one or more of these 1 signs, you should look into credit repair.

1. Recent credit card denial

If you’ve recently applied for credit in the form of a loan, credit card, etc., and you were denied, there is a good chance that you could use some credit repair work. There are other explanations, such as no sufficient source of income or too many recent accounts, but in general, bad credit is the number one reason for denials.

2. Your bills are under someone else’s name

If your electric or gas company has someone else’s name on the bill because your credit history is less than optimal, you definitely need to look into credit repair. You shouldn’t have to worry about whose name is on your bills because it should be yours. The sooner that you can fix your credit and get your name back on your bills, the better. That way, you won’t have to worry about it and the other person whose name is on your bill won’t have to worry about being held accountable.

3. Debt collectors are blowing up your phone

While there are many scams that involve people alleging to be with debt collection agencies if you are receiving calls about a debt that shows up on your credit report with any of the major bureaus, you should look into your options about fixing it. Depending on the situation, not only will it probably save you money, but it can also get rid of so many annoying phone calls.

4. No one will cosign your loans

If your friends and family aren’t willing to cosign your loans, it is a very strong sign that you need to get your credit fixed. Having to rely on a cosigner is usually a good enough indication that you should look into repairing your credit, but certainly not being able to get a cosigner is a clear signal.

5. Potential employers are denying you after credit checks

Surprisingly, not many people know that their employers often run credit checks before hiring someone. If you have been struggling to get a job recently, your poor credit history may have been a factor. Check your credit report and work to repair your credit score and hopefully, you will have more success when getting a job in the future.

6. Landlords deny your applications

Like employers, lots of landlords will look at your past credit as a part of your application. This makes sense because if someone has a lot of debt that they haven’t paid, they are usually less likely to make their rent payments on time, if at all. Having poor credit can restrict the places you live, which can cost more money, take extra time, and cause additional stress in your life.

7. You don’t check your credit report out of fear

When was the last time you checked your credit report? If it has been a while, why is that? Many people who are worried about their poor credit will go quite some time without checking their reports. Unfortunately, even though you don’t look at it frequently, the problem does not go away. Instead, you should fix your credit and feel proud when you check your score often.

8. Your credit score doesn’t start with a 7 or 8

Scores under 720 are usually considered subprime, which is where a lot of American’s scores are at. If this is you and it is caused by defaults, unpaid debts, or any other negative marks on your credit report, you should look into repairing your credit right away. Good credit can make a huge difference in where you live, how much money you make, and the interest rates on the debt that you have.

9. Your interest rates are skyrocketing

Have you received letters from your credit card companies recently about your interest rates changing? If so, it is likely due to your credit score. Most credit card interest rates are set based on your credit score. The lower the score, the more risk the company assumes by lending you money, therefore, they charge you more on any balance that you carry. The difference can be huge, because people with good credit may be able to get cards with rates as low as 8% APY, but people with bad credit may have to pay almost 30% APY.

10. Your credit cards are getting closed right after you pay them off

A technique often used by credit card companies when they determine that you pose some sort of risk is to lower your credit limit as you pay off your debt to them. When your debt is completely paid off, they’ll either leave you with a low limit, such as $300, or close the card completely. If this has happened to you, it means that the company believes you pose a high default risk due to your credit history.

If you found yourself on this list, especially if several points describe you, you should start by examining your credit report. If there’s anything that is hurting you, consider contacting a credit repair agency to help dig yourself out of the whole and hopefully help you avoid being on this list ever again.

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Are Sallie Mae Student Loans Federal or Private?



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



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



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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