.
• Banks
• Mortgage lenders
• Credit card issuers
• Auto insurance companies
• Homeowners insurance companies
• Landlords
Individuals should assume that anyone who asks for a social security number may be checking their credit score. And a superior score equals better terms on mortgages, credit card interest rates and insurance fees. A credit score can also affect whether or not an individual is able to rent an apartment.
A few points can be the difference between a good rating and an excellent rating. Knowing where a person stands on the credit score guidelines will help him figure out how to get where he wants to be.
The higher the score the better rating an individual will receive. That translates into smaller monthly payments with better long-term interest rates.
Savings Example
For example, on a $300,000, 30-year, fixed-rate mortgage:
If your FICO score is Your interest rate is ...and your monthly payment is
Actual National Interest Rates - Updated as of July 29, 2008
760 - 850 6.223% $1,842
700 - 759 6.445% $1,885
660 – 699 6.729% $1,942
620 – 659 7.539% $2,106
580 – 619 9.451% $2,512
500 – 579 10.310% $2,702
As seen in this example, a person with a FICO score of 760 or better will pay $264 less per month for a $300,000, 30-year, fixed-rate mortgage than a person with a FICO score of 620 – that’s a savings of $3,168 per year. (www.fico.org)
It is essential to improve a person’s credit score if it’s low, and just as important to keep it high when it’s good. An individual should know his or her score and have a plan to protect and increase it. Using CJS can make that process simple and effective.
Douglas Muir, CEO
Some clients attempt to fix their credit on their own by visiting the credit bureaus’ web sites and disputing online. This is incredibly tempting because the consumer can dispute trade lines from the comfort of his own home. But this convenience can have a very uncomfortable outcome.
While proceeding through the dispute process, the consumer is asked to check a box before moving forward. This is the Terms of Service box, and most people click it without thinking. A lot of sites have these terms, and generally people don’t bother to read this section. But on the credit bureaus’ sites, this section asks consumers to relinquish their legal rights under The Fair Credit Reporting Act (FCRA).
One of the biggest and scariest parts of this section is the following condition: “Once an item has been verified by the credit grantor, you may not dispute the same item again without providing additional relevant information.”
This is in complete opposition to the FCRA, which says that consumers can dispute the accuracy of their credit reports as many times as they would like, and that the bureaus must reinvestigate each time. The FCRA is there to protect consumers’ rights, and the credit bureaus are trying to get around the law by forcing consumers to agree with these Terms of Service.
Not only do the Terms of Service remove the consumer’s right to multiple disputes, but they also don’t specify an end date. That means the consumer is banned from ever disputing the same trade line in the future. If the credit bureaus verify the original disputes, then the consumer is left with that negative trade line affecting his credit score. And he is left without any means to fight against that harmful information.
Make sure that all your friends, family and clients know that the credit bureaus’ Terms of Service require consumers to surrender their rights under the FCRA. Even if someone is trying to dispute something minor, by simply checking a box, he abandons his chance to achieve a positive resolution.
Douglas Muir, CEO
Kaihan interviewed me for the blog and asked some great questions about my business philosophy and CJS. Most of you operate businesses or work at companies outside of the CJS family, and Kaihan’s insight into CJS’ success can offer you new ideas and innovations that might propel your future projects and businesses.
I suggest that you take a moment and ask yourself the three questions posed in Kaihan’s blog:
1. How can you do good and whom can you help?
I’ve mentioned before my strong belief in community service, but helping others doesn’t have to be outside the work environment. Try to create a situation in which your company or business can benefit from helping others, such as having educational workshops or offering extended hours to be more available to your clients.
2. What would happen if you “opened your gates” and were transparent about how you do things?
We are in the business of people helping people, and by being completely open and honest about fees, process and results, people will flock to your business. Your competitors will be taken by surprise and your customers will share their positive experiences with other potential clients.
3. Who could you coordinate? Are there populations out there that could do more if they coordinated their activities and how could you play a role in coordinating them?
In the work place, make sure your employees are working together and utilizing each other’s strengths to provide better products and services to your customers. Conduct brainstorming sessions and have people share business leads to work more efficiently.
This question doesn’t just have to apply to business but is also a great suggestion for community service. Try to identify a group of people with common goals, organize them and make a difference by working together to implement new ideas and structures to accomplish the objectives.
Douglas Muir, CEO
view all blog entries...
Sep 2009
Who looks at your credit scores
Most consumers know they need a good credit score to get competitive financing. But many people aren’t aware of all the companies that look at their credit scores. So who looks at them?
by valeria on Tue Sep 08, 2009 5:25 pm
• Banks
• Mortgage lenders
• Credit card issuers
• Auto insurance companies
• Homeowners insurance companies
• Landlords
Individuals should assume that anyone who asks for a social security number may be checking their credit score. And a superior score equals better terms on mortgages, credit card interest rates and insurance fees. A credit score can also affect whether or not an individual is able to rent an apartment.
A few points can be the difference between a good rating and an excellent rating. Knowing where a person stands on the credit score guidelines will help him figure out how to get where he wants to be.
The higher the score the better rating an individual will receive. That translates into smaller monthly payments with better long-term interest rates.
Savings Example
For example, on a $300,000, 30-year, fixed-rate mortgage:
If your FICO score is Your interest rate is ...and your monthly payment is
Actual National Interest Rates - Updated as of July 29, 2008
760 - 850 6.223% $1,842
700 - 759 6.445% $1,885
660 – 699 6.729% $1,942
620 – 659 7.539% $2,106
580 – 619 9.451% $2,512
500 – 579 10.310% $2,702
As seen in this example, a person with a FICO score of 760 or better will pay $264 less per month for a $300,000, 30-year, fixed-rate mortgage than a person with a FICO score of 620 – that’s a savings of $3,168 per year. (www.fico.org)
It is essential to improve a person’s credit score if it’s low, and just as important to keep it high when it’s good. An individual should know his or her score and have a plan to protect and increase it. Using CJS can make that process simple and effective.
Douglas Muir, CEO
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Never make disputes online
What your clients need to know
by valeria on Wed Sep 16, 2009 12:08 am
Some clients attempt to fix their credit on their own by visiting the credit bureaus’ web sites and disputing online. This is incredibly tempting because the consumer can dispute trade lines from the comfort of his own home. But this convenience can have a very uncomfortable outcome.
While proceeding through the dispute process, the consumer is asked to check a box before moving forward. This is the Terms of Service box, and most people click it without thinking. A lot of sites have these terms, and generally people don’t bother to read this section. But on the credit bureaus’ sites, this section asks consumers to relinquish their legal rights under The Fair Credit Reporting Act (FCRA).
One of the biggest and scariest parts of this section is the following condition: “Once an item has been verified by the credit grantor, you may not dispute the same item again without providing additional relevant information.”
This is in complete opposition to the FCRA, which says that consumers can dispute the accuracy of their credit reports as many times as they would like, and that the bureaus must reinvestigate each time. The FCRA is there to protect consumers’ rights, and the credit bureaus are trying to get around the law by forcing consumers to agree with these Terms of Service.
Not only do the Terms of Service remove the consumer’s right to multiple disputes, but they also don’t specify an end date. That means the consumer is banned from ever disputing the same trade line in the future. If the credit bureaus verify the original disputes, then the consumer is left with that negative trade line affecting his credit score. And he is left without any means to fight against that harmful information.
Make sure that all your friends, family and clients know that the credit bureaus’ Terms of Service require consumers to surrender their rights under the FCRA. Even if someone is trying to dispute something minor, by simply checking a box, he abandons his chance to achieve a positive resolution.
Douglas Muir, CEO
Be an innovator
Credit Justice Services continues to receive great media coverage and was recently profiled in the business resource and magazine, FastCompany.com. In his blog, The Outthinker, innovation expert Kaihan Krippendorff examined why CJS has been so successful over the last four years.
by valeria on Wed Sep 23, 2009 1:51 pm
Kaihan interviewed me for the blog and asked some great questions about my business philosophy and CJS. Most of you operate businesses or work at companies outside of the CJS family, and Kaihan’s insight into CJS’ success can offer you new ideas and innovations that might propel your future projects and businesses.
I suggest that you take a moment and ask yourself the three questions posed in Kaihan’s blog:
1. How can you do good and whom can you help?
I’ve mentioned before my strong belief in community service, but helping others doesn’t have to be outside the work environment. Try to create a situation in which your company or business can benefit from helping others, such as having educational workshops or offering extended hours to be more available to your clients.
2. What would happen if you “opened your gates” and were transparent about how you do things?
We are in the business of people helping people, and by being completely open and honest about fees, process and results, people will flock to your business. Your competitors will be taken by surprise and your customers will share their positive experiences with other potential clients.
3. Who could you coordinate? Are there populations out there that could do more if they coordinated their activities and how could you play a role in coordinating them?
In the work place, make sure your employees are working together and utilizing each other’s strengths to provide better products and services to your customers. Conduct brainstorming sessions and have people share business leads to work more efficiently.
This question doesn’t just have to apply to business but is also a great suggestion for community service. Try to identify a group of people with common goals, organize them and make a difference by working together to implement new ideas and structures to accomplish the objectives.
Douglas Muir, CEO
