Credit Justice Services BLOG

You can help your clients increase their scores before applying for credit. Major purchases generally require financing, and a consumer's credit score directly affects the terms of the loan. Share the tips below to empower your clients to increase their own credit.


1. Shop around when looking for a credit card and choose a card with a low long-term interest rate

2. Review your credit report every six months to ensure that the information is accurate and up-to-date

3. Limit your credit to mortgages, auto loans and only a few major credit cards

4. Consolidate outstanding debt onto one low-interest-rate credit card

5. Pay credit cards and mortgages on time

6. Develop a plan to pay down your debt to less than 40 percent of available credit

7. Call your credit card companies once every six months to check your current interest
rate

8. Stay at your job for longer than one year

9. Systematically pay off your loans starting with the highest interest rate loans

10. Keep telephone and utilities in your name

11. Don't needlessly open new accounts

12. Keep the credit cards you've had the longest to show established credit


What you may not realize is that every time someone inquires about your credit, a deduction is made to your credit score. One point can be removed for every bank inquiry. When applying for a credit card, three points can be taken off immediately. And when a collection agency inquires about your credit, it can cost you five points.


A maximum of 15 points can be deducted each month. Those little point deductions can quickly add up. Keep this in mind when applying for credit and paying off debt. By following the tips above, you can reap the benefits of a better credit score.

Douglas Muir, CEO

One of the biggest mistakes you can make in a loan modification is to ignore the rules. Although the CJS Mortgage Modification Program does the negotiating, it helps a great deal if you do your homework and arm yourself with the right information. After all, you're dealing with lenders-and at the end of the day; you still have to play by their rules. Here's a list of loan modification do's and don'ts to help you avoid common pitfalls.

Don't wait too long.
The foreclosure process is designed so that you have time to get back on your feet and save your home. But that doesn't mean it's safe to put this off. The longer you wait, the harder it gets to get you out of that fix. Your situation will not get better with time or if you ignore it.

Do work with an expert.
Your loan modification doesn't only rest in the hands of your lender, your broker, or your loan modification expert. These people can help, but you have to do your part and cooperate. Make sure to submit your paperwork on time, answer questions honestly, and give a clear picture of your financial situation.

Consider all your options.
There are some options to consider when you find yourself facing the possibility of foreclosure. If you find you're in a situation where you want to stay in the security and comfort of your home, have fallen behind in your monthly mortgage payments due to a hardship and have a steady source of income, then a mortgage modification may be your best option.
Bankruptcy is a possible option, but only a thorough review will tell if that is the best step for you. It may be that a deed in lieu of foreclosure is your best option, but only careful review by an attorney will help you with that decision. Was your broker deceitful, did they place you in a loan you had no hope of paying? If so, you have other options that an attorney can help you with.
A Short sale is another possibility; it involves selling your home for less than its fair market value and giving the proceeds to your lender. If done properly you owe the lender nothing. But this can also be done incorrectly (usually without an attorney), and you may agree to repay the difference. Good for the lender, bad for you. Although you still lose your home, it's not as damaging to your credit as foreclosure, so it's easier to get back on your feet.

Do have a backup plan.
Not all people will qualify for a loan modification. Maybe you've fallen too far behind, your lender may be simply hard to work with, or maybe you don't need it after all. In any case, it's always good to have a Plan B.

If you are a person aged 30-39, you are at the highest risk for Identity Theft. Identity Theft is the fastest growing crime in America and affects 9-10 million people each year. The five major types of identity theft involve:

1. Driver's licenses

2. Social Security Numbers

3. Medical Information

4. Character/Criminal actions

5. Financial transactions

Areas with higher concentrations of people, such as Los Angelos and New York City, tend to have higher occurrences of identity theft. A main reason for this is improper disposal of trash. Be sure to shred all bills and personal information before throwing it away.

An identity thief's dream find:

1. Utility bills

2. Credit card bills

3. Car payment

4. Bank account statements

No one is safe from identity theft. Your information is out there at every doctor's office, hospital and bank you ever dealt with. The question isn't IF, it's WHEN? In order to protect yourself there are steps you can begin to take right now:

1. Shred all your documents before throwing them in the trash.

2. Never give out personal information such as social security number or credit card numbers unless you are sure whom you are doing business with.

3. Never email credit or debit card numbers - if you have to email this information, send 2 separate emails with partial information in both emails. Again, be sure you know and trust the recipient.

4. Never dispose of receipts with your name or that contain any credit card information in a public trash can.

5. Monitor your credit report regularly - the last thing you want to discover is that your identity has been compromised when trying to make a major purchase.

6. Keep all receipts to track your spending against your bank accounts and credit card statements.
Once your identity is stolen, it can take years to rebuild good credit and fix the mess. Creditors and collection agencies can harass you for debt that isn't even legitimately yours. Start protecting yourself today.