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What can a Credit Repair Company do for me?

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If it is low, you may fail to get the best conditions on loans or even qualify for them. Meanwhile, your chances of getting a dream job diminish, and even the best apartments become impossible to rent. Credit scores are universal indicators of trustworthiness. However, they are not always fair. The mission of credit repair is to help you restore your status through the removal of reporting errors. 

What Makes These Services Possible

Under the Fair Credit Reporting Act, all nationwide bureaus in the United States have an obligation to provide accurate information. They have to remove any unverifiable or outdated entries. Unfortunately, it is the consumers who need to prove the inconsistencies. You can do it on your own for free or hire a company to accelerate the process — for example, here are a few tips for credit repair in Houston.

The longer your borrowing history — the more mistakes you may accumulate. Sadly, many citizens remain blissfully unaware of the problem until their loan applications get rejected. Even student loans may cause reporting issues. 

The more often you check your reports and correct them — the easier it is. The most complex cases of repair take between six months and a year, while the simplest ones may be resolved in a couple of months.

Suppose your score has fallen inexplicably, so you collect your reports to find the cause. You discover that all three bureaus have inconsistent records. This is possible, as every lender may communicate with just one bureau.

In this case, you need to open three different disputes, contacting each bureau independently. This requires a lot of work and formal communication. In cases like this, the benefits of delegated fixing are apparent.

Can I Do Everything Myself?

Yes, this is legal and feasible. The law protects your rights, allowing you to dispute any questionable information free of charge. Consumers can see their scores and collect the reports for free. 

To see where you stand, go to www.annualcreditreport.com and download the copies from all three bureaus. The score may be checked on websites like My FICO, or in dedicated apps like Credit Karma. Afterward, you will need to follow the standard steps of repair, just without the assistance and additional services rendered by the score fixers. Here is how this works.

1. Analyze the Information

Compare and scrutinize all three official reports. Find any questionable entries. Mistakes may arrange from misspellings to late payments that never happened or even false events like bankruptcies or evictions. In addition, most negative entries (aka derogatories) have a lifetime of seven years. Sometimes, the information remains after expiry, which may also be disputed. 

2. Prioritize the Errors

To understand where to start, you need to know how the scores are calculated. Every element in the FICO and VantageScore assessment has a certain weight. For example, the history of payments is the most influential factor. It determines 35% and 40% of your totals, respectively.

3. Gather Evidence

Before writing to the bureaus, you need proof — bank statements and any other documents from your lending organizations. Remember that reporting agencies will only delete data if it is unverifiable, unsubstantiated, or outdated. Build your case.

4. Dispute the Inconsistencies

Finally, it is time to draft and send your dispute letters. Depending on the severity of your case, you may need to contact one, two, or all three bureaus. Any formal correspondence should be sent by certified mail with a return receipt requested. This way, you will know exactly when your letters were received, and when a response should be expected. 

In 30 days, every recipient should provide the results of its internal investigations. If you are lucky, the errors will be removed, the score will jump, and you will get a free copy of your corrected report. Otherwise, additional proof or a redispute will be required. 

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Why Pay for Credit Restoration

As you can see, this is a complex process and a challenge to the average consumer. Not only should you gather and analyze three separate histories but you also need to communicate with financial institutions and bureaus, collect sufficient evidence, etc. These tasks require time and knowledge of credit consumer laws at the very least. 

If your proof is inconclusive, the bureau will reject your claim or ask for more data. This makes fixing even longer. In the most basic case, with the assistance of a repair company, you may see the first results in over a month. Millions of consumers in the United States would rather pay a fee than deal with all the paperwork. A team of professionals can remove:

  • any accounts that do not belong to you,
  • false information about late or missed payments,
  • false legal events like evictions, repossessions, bankruptcies, etc.,
  • outdated derogatories,
  • any unverifiable debts, etc.

To sum up, these services are well worth the money when your score falls due to reporting errors, but you do not have enough time to deal with complex disputes. In addition, you may receive a wide range of extra services, such as score monitoring, fraud alerts, protection against identity theft, tools for personal budgeting, etc.

Published August 7th, 2021

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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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