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Using Credit Wisely April 14, 2011

Posted by CredZoo - Tame Your Credit in About CredZoo, Tips For Good Credit.
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Part IV in our “How to Manage Debt & Credit” posts: Using Credit Wisely

To use credit intelligently, start by examining the terms of the card(s) you are currently using. Keeping track of your cards, their rates, and your current balances will help you to be aware of how you use credit cards. Increased competition in recent years has led some credit card companies to offer enticing features to attract new cardholders, including no annual fees and low interest rates for an introductory period. (And credit card companies sometimes will give their introductory rates to existing cardholders so that they won’t transfer their balances to another credit card company.)

CredZoo has written a lot on this subject, and has much to offer about credit, using credit wisely and – of course – repairing credit!

The Basics For Getting A Car Loan March 30, 2011

Posted by CredZoo - Tame Your Credit in Tips For Good Credit.
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Borrowing money to buy a car isn’t hard if you have two things – sufficient income and a good credit rating.  As we showed you last time, if you qualify for a car loan with subprime credit, you are most likely, paying between $4,000 and $10,000 more over the course of the loan just for having credit score issues! So, this makes the first step for getting a car loan getting your credit repaired with CredZoo!

Things you’ll need:

  • Kelley Blue Book
  • Consumer Reports
  • Consumer Reports
  • Internet Access
  • Car Insurance
  • Car Loans
  • Kelley Blue Book
  • Consumer Reports



The Basic Steps For A Loan:

    • 1
      Choose your new set of wheels and negotiate a price with the seller
    • 2
      Research interest rates. Several Web sites, such as Bankrate.com, publish surveys of loan rates across the United States. Compare the rates with those offered by your local bank, credit union or car dealer.
    • 3
      Find out what your current car is worth as a trade-in. Research values in the Kelley Blue Book Used Car Guide, available at the library, your bank or on the Internet.
    • 4
      Determine how much of a down payment you can make. Use your trade-in value and cash – or just cash – to come up with the standard 20 percent usually required. Talk with the car dealer that has the new car you want.
    • 5
      Apply where you find the best rates, and the length of the loan and monthly payment fit your budget.
    • 6
      Consider saving more for a down payment or choosing a less expensive car if you don’t qualify.
    • 7
      Build a better credit rating if that’s what causes you to be turned down. Try again after six months of paying your bills on time.

(Thanks To EHow.Com)

How Much Does Bad Credit Cost? March 22, 2011

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The cost of credit repair is small compared to the cost of living with bad credit. Below are a few examples from CredZoo.org of the cost of bad credit:

Auto Loan

If you are making vehicle payments, you are, most likely, paying between $4,000 and $10,000 more over the course of the loan just for having credit score issues. This added interest shows up every month in a higher payment.

Example: Car Loan $23,000 Vehicle Financed for 5 Years

Credit Status Rate Payment Interest Paid
High Credit Score 3% $413 $1,796
Slightly Damaged 9% $477 $5,646
Damaged 18% $584 $12,042

Home Loan

Damaged credit on a vehicle is nothing compared to the effect of damaged credit on a home loan. A typical home can cost between $180,000 and $300,000 more in interest of the 30 year loan, if you are buying the home with damaged credit.

Example: $120,000 home paid over 30 years:

Credit Status Rate Payment Interest Paid
High Credit Score 7% $798 $167,410
Slightly Damaged 9% $966 $227,596
Damaged 13% $1,327 $357,878

$190,000 home paid over 30 years:

Credit Status Rate Payment Interest Paid
High Credit Score 7% $1,264 $265,066
Slightly Damaged 9% $1,529 $360,361
Damaged 13% $2,1202 $566,640

The Top 5 Tips For Good Credit March 15, 2011

Posted by CredZoo - Tame Your Credit in About CredZoo, Tips For Good Credit.
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Blogger Todd Ossenfort has been known as “The Credit Guy” for the past three years. Now he’s hanging up his mouse and keyboard and leaving his readers with his top 5 tips for good credit. We’d like to share them with you here!

1. Saving is essential to avoid unwanted and often problem debt. If you don’t have an emergency savings account of six to 12 months of income saved, start today. Save whatever amount you can regularly (each pay period) even if it is only $25. As you get in the habit of saving, increase the amount as you can afford to do so. Save something every month, even if you are struggling to pay down debt.

2. Never co-sign, especially for a family member. Generally speaking, if a lender is not willing to loan money to someone, you shouldn’t either. Co-signing for a loan or credit card for another person is a great way to ruin a valuable relationship — and your own credit. If the person can’t or won’t make payments, your credit will suffer and you will be held responsible for paying.

3. Check your credit report annually. Place a reminder on your calendar and get your free credit report each year.  Reviewing your credit report at least annually will help detect identity theft early. It’ll also help insure there aren’t any inaccurate entries on your report. When you work with CredZoo, this is done for you. One less item to worry about! CredZoo has a free credit report analysis. We can look at your reports and see if we can help you before you sign up.

4. Avoid using credit to extend your income. Living within your means is key to avoiding large credit card debt. If you are using credit each month to pay for essentials, you need to take a hard look at your monthly spending and make cuts to bring your spending in line with your income. Simple budgeting 101.

5. Know your rights when dealing with collectors and use bankruptcy protection when it is needed — and only if it is needed. Learn your rights under the Fair Debt Collection Practices Act and keep collectors from intimidating you into promises you can’t afford to keep.

One of the rights you are given under the Fair Credit Reporting Act (FCRA) is to challenge inaccurate, misleading and obsolete items appearing on your credit report. CredZoo uses every venue available under the law to help you assert these rights. Disputing items on your credit report is your legal right. When you use CredZoo to help repair your credit, we are abiding by and using all federal and regional laws regulating third party credit repair assistance.

Contacts us today for more information on any of these 5 tips or to learn more about CredZoo’s services and the FCRA: 1-888-881-5333

What Is The National Association of Credit Services Organizations? March 9, 2011

Posted by CredZoo - Tame Your Credit in New Credit Information.
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First, you can call it NACSO for short. You may have heard of this organization recently in the news as NACSO officials recently met with members of the US House Financial Services Committee. It was reported that at the meeting representatives on both sides discussed the importance of accurate credit reports and how it relates to access to affordable consumer credit.  “Removing inaccuracies on credit reports and improving scores is critical to consumers often achieving the American Dream,” said NACSO Board Member Doug Parker and CEO of RMCN. “It was refreshing to hear from Congressmen and Senators who appreciate the role of the industry and how we benefit consumers.”

On it’s website, NACSO explains that the “National Association of Credit Services Organizations advocates industry standards and ethical business practices for the credit repair industry. Founded in 2007, NACSO services to streamline the industry through our Standards of Excellence seal. NACSO members promote compliance throughout the industry on national levels.

National Association of Credit Services Organizations’ members go through a certification enrollment process to aid in the prevention of fraudulent activity throughout the credit services industry. NACSO’s Standards of Excellence goes further than the Credit Repair Organizations Act and touches on items essential to the honest growth of this industry.”

CredZoo is proud to be a member of the National Association of Credit Services Organizations!

The NACSO Standards of Excellence is an honor – and not every company is eligible.  To read more about the Standards of Excellence requirements, click here. To learn more about how CredZoo applies these standards to helping our clients, click here.

What is Subprime? March 1, 2011

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Subprime loans. Subprime lending. Subprime mortgage crisis. Subprime credit category.

We hear it all the time. But what exactly is subprime? Technically, it is a classification of borrowers with a tarnished or limited credit history. Lenders will use a credit scoring system to determine which loans a borrower may qualify for. Subprime loans carry more credit risk, and as such, will carry higher interest rates as well. Approximately 25% of mortgage originations are classified as subprime.

If you have a FICO score below 660, you’re typically considered to be in the subprime category.

When you have a subprime credit score, you can probably still find an unsecured credit card. But the average “bad credit” APR is around 24.5 percent. That’s a pretty scary APR. Most experts agree the best way to reduce your APR, and help boost your credit score out of the subprime category is to check & repair your credit. You could try to go it alone, but as we discussed in our Responsibility Of Credit blog there is no manual, no help file and no teacher to show you how to take on the task of correcting or repairing your credit! Without knowing of the resources available to them, most Americans just live with whatever is on their credit report.

CredZoo can help you put an end to your subprime woes!  We are so confident in our ability to help you, that we challenge you to put us to work for you. Nothing is more important to CredZoo Inc than your credit goals. We are all about results! We offer an easy way to get the credit repair process started – Click here to get started today!

The Responsibility Of Credit February 9, 2011

Posted by Chance Daily in About CredZoo, New Credit Information.
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It’s a fact that many of the things we want to buy must be financed or purchased on credit: cars, homes and electronics are just a few examples! To earn the ability to finance these items at a reasonable rate it is essential to maintain a good credit rating in America today.

Unfortunately, once you have had a bad credit rating it feels almost impossible to reverse or repair the damage.

Our country’s highly networked society of financial institutions record and store every bit of information about us and our money. They share that information with the credit reporting agencies who keep track of every person who buys on credit, making it impossible to “hide” or avoid a bad credit rating! Each time someone applies for credit, the financial lender will check their credit with at least one of these agencies.

To make matters worse, now, both Employers and Insurance Companies are making determinations about us based on our credit. That means that you could be paying higher insurance rates, or be passed over for that job or promotion because your credit is unfavorable.

It’s estimated that the average person with below prime credit is penalized $12,000.00 or more each year for their low credit score. It just doesn’t seem fair, does it?

It’s easy to see why it’s important to stay on top of your credit rating; especially when the Fair Credit Reporting Act places the responsibility squarely on you to make sure your credit report is accurate. The only problem with this responsibility is that there is no manual, no help file and no teacher to show you how to take on the task of correcting or repairing your credit! Without knowing of the resources available to them, most Americans just live with whatever is on their credit report.

If you are one of the millions of Americans who have had credit problems, do not give up! You have the ability – and the responsibility – to correct and repair your credit. Even if you have negative items in your report, such as late payments, liens, or bankruptcies, there are things that you can do to rebuild your credit!

CredZoo works with people every day to help them address, repair and restore their credit. Speak to one of the CredZoo advisors to learn how to get started. Your CredZoo advisor will work closely with you and help you get the credit you deserve.

Chance Daily

Credit Report Errors January 27, 2011

Posted by CredZoo - Tame Your Credit in About CredZoo, New Credit Information.
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Do you know how many credit reports contain errors? No? Well, apparently, you’re not alone. Over 7 years ago, Congress directed the FTC to conduct a study of credit report accuracy. The study began with legislation passed in 2003 and continues through 2012, with a final report to be issued in 2014. Interim reports are due every two years. The 2010 interim report was issued on January 12, 2011 and you can read it by clicking here: Overview of Design of National Study of Credit Report Accuracy.

A very small study spurned this FTC investigation into credit report accuracy. The US Public Research Group surveyed just 200 consumers and found that 80% of reports contained some kind of mistake, while 25% contained “serious” errors.

According to Gerri Detweiler of Credit.com, the FTC investigation is being conducted in the following manner:

“-          Invitations have been sent by mail to a large number of consumers, with the goal of getting 1000 consumers to participate. The FTC is sending more invitations to consumers with below-average credit scores in an attempt to make sure those consumers are adequately represented in the study.

–          Consumers review their reports with the help of experts, and get their initial FICO scores. Possible mistakes are identified and the reports are sent to FICO for rescoring to determine how those mistakes may impact the consumer’s credit scores (first rescoring).

–          Consumers dispute mistakes with the CRAs.

–          If the reports are corrected, the corrected files are sent to FICO for a second rescoring.”

The results of this study will be very meaningful and will hopefully help consumers and creditors alike put an accurate amount of emphasis on credit reports. But what can you do in the meantime? Did you know that even if you’re not part of the FTC’s sample of consumers you can still get assistance in reviewing and disputing items in your credit report? The Fair Credit Reporting Act gives you the right to dispute any credit listing on your credit reports that you feel may be inaccurate, untimely, misleading or unverifiable. If a credit bureau cannot verify the accuracy of a disputed listing, it must be removed from your credit report.

To find out more, and to learn how CredZoo can help you clean up your credit report contact us for a FREE credit consultation: www.CredZoo.org or 888-881-5333