Today there is not much that is more frustrating and damaging to a consumer’s credit or financial positions than Identity Theft. Clearing this up can be a lengthy process with many people never fully recovering from it.

We have employees that personally use these services simply because they were victims of fraud once. And you can hardly turn on the news anymore without seeing a story of a new way scamsters are defrauding people. It’s simply for the peace of mind that many people pay the few dollars a month to keep these services looking out for them.

There are many credit monitoring service providers that do about the same thing. If you are looking for a reputable company that we see many of our clients use, its IdentityIQ. You’re free to use which ever company you want, this is just one that we know works well.

If you do decide to use one of these services, let your case manager know. They can get some of your information and use it to pull credit reports regularly and give you more detailed updates on your progress with us. So that is another benefit of signing up for one of these services.

Sign up HERE today

The post Benefits of Credit Monitoring appeared first on National Credit Federation.

National Credit Federation is no different from any other business looking to grow:

We need good people!

Good people are the hottest commodities in the business market place, and finding them can be a draining process.

Ever put an ad out on Ziprecuiter or Monster only to get inundated with resumes?!

Who can look through all those? Much less look through them without pulling your hair out? Then you have to weed through the list of people applying for a sales job whose only sales experience is working behind the counter at a fast food restaurant.

Yeah, not helpful…

I set out to make a substantial difference in our hiring process and in return, hopefully retain and attract the type people I want in my office.

See that’s another thing, I want winners working for me.

I’m looking for drivers.

I’m looking for people who want to be the best.

I’m looking for the guy or gal who just bought a new BMW, and needs to crush it this week to make the new car payment.

It seemed to me (before I implemented this process) that finding those people was harder than finding a needle in a haystack in the middle of a field full of haystacks…

Until I changed the way I looked at what I was actually trying to accomplish.

See the old way of hiring was putting out an ad or contacting a recruiter and bringing people into the office, interviewing, wasting time, bringing them back for second interviews, and wasting more time. All this only to accomplish absolutely nothing except throwing something at the wall (the new hire) and seeing what sticks.

I couldn’t handle it any more so here’s what I did…

I broke our hiring process into 8 distinct steps and I didn’t look at a single resume.

The outcome: I hired 5 new high level sales people for only $1,000 and 8 hours of my time.

Step 1

The ad. 

The ad is the first critical step in this process. Look at NCF’s ad:

______________________________________________________________________________________________________________________________________
NCF is Looking for Problem Solvers! Highly Compensated!

***PLEASE READ THIS ENTIRE AD BEFORE YOU APPLY***
National Credit Federation is one of the nation’s oldest and largest credit repair companies. We give people a second chance by helping them accomplish their financial dreams.

We believe that strong people are the backbone of a business and we are currently looking for 2 salespeople with problem solving abilities.

This job requires our salespeople to be critical thinkers and make decisions quickly based on the information the consumer provides.

We’re looking for savvy individuals that are hard workers, money-motivated, and career-driven. If you think working a 9-5 is an ideal setting, this is probably not the job for you.

Serious inquiries only!! If you have a great attitude, are willing to learn, want to make great money, and always strive to be the best at what you do, we may be a good fit for you.

You should:

– Love to make money
– Desire to be a top salesperson
– Be willing and able to learn quickly
– Be goal-oriented
– Have proven success in past sales positions
– Be proficient with a computer
– CRM knowledge preferred
– Not be afraid to pick up the phone 50 times a day and call
– Have a strong work ethic
– Be able to compassionately speak with people about sensitive financial topics
– Be team-oriented (We are a very close group and do a lot of things together outside of work)
– Adapt to and accept change
– Like to work in a fun and exciting work environment (We work hard but we also play hard too!)

IF YOU DON’T MEET ALL THE REQUIREMENTS ABOVE, PLEASE DON’T APPLY.

We can offer you:

– Competitive base salary
– Great commission structure
– W2 employment (not a contract position)
– Full benefits, including 401k
– World class sales and product training
– ALL LEADS PROVIDED by warm referral source, no cold calling
– Plenty of room for growth within the company

We conduct a lengthy interview process to be sure each candidate is a good fit for our team. If you follow the steps below and meet the requirements above, you can expect the process to include an initial phone interview, two in-person interviews, and a 1/2 day job preview in our office.

If you think you have what it takes to work with us, please follow the instructions below:

Please go to www.discoverncf.com

There is a questionnaire you need to fill out. After the questionnaire you will be asked to select a time slot to schedule your own interview. The time slots are on first-come, first-served basis.

We look forward to meeting with you.

**NOTE**

Do not respond via our contact form. All applicants who want to be considered need to go to www.discoverncf.com and fill out the questionnaire. No phone calls, please.

Thanks for your time – we really look forward to meeting you!

______________________________________________________________________________________________________________________________________

Three Things To Notice

1. The ad says a lot about who they would be coming to work for. Notice the title: “NCF is seeking problem solvers” This conveys we need people with high cognitive ability (we’ll talk about this more later) and the ability to think on their feet.
2. In addition the “highly compensated” was strategically place to attract top talent.
3. The final statement : “Do not respond to this. All applicants who want to be considered need to go to www.discoverncf.com and fill out the questionnaire.”

This particular one was an excellent weed out for who actually read the article and who didn’t. We had well over 200 resumes come in and I didn’t open a single one. I wanted them to opt in.

So that’s enough about the ad. Go ahead and use it. It got me 5 rock stars.

Plug your info in and play.

Where did I place the ad?

Zipcrecruiter
Monster
Craigslist
Indeed
Linkedin

Like I said, I spent $1,000 on ads and that was it.

Step 2

The lander

There’s a few things to notice here:

1. I gave them a short video to watch that auto plays. They get to put a face with a name and its not just another boring application to fill out.
2. I made this page in 10 minutes including shooting the video
3. “Join a team with a purpose and a vision” – My experience has been people want to be part of something bigger than themselves.

Step 3

Question time

I ask them to dig deep and complete a questionnaire.

What I can tell you about the questionnaire is there were a lot of personality questions but there were also industry specific questions.

So you can take your own industry specific questions and see if they’re even in the ballpark

**Truthfully, I scanned the answers. I really just wanted to see if they would do the questionnaire.**

Here are the results:  Out of 253 opt-ins, 83 people filled out the questionnaire.

Right there I eliminated 66% of the “potential employees” by just seeing if they can follow directions.

A sample of the questions asked were

• Why do you think you will be a good fit for this position?
• What interests you most about National Credit Federation?
• What are the 3 Things that will separate you from all the other applicants?
• How long are you willing to fail at this job before you succeed?
• Is it better to be perfect and late, or good and on time?
• What parts of work drive you nuts?
• Would You Call Yourself A People Person? (Why?)

Then lastly I tell them I am only going to hire the best and request they send me a video resume. I want to see how interested they are in the position and to what lengths they will go to get the job.

Step 4

The Thank You page & calendar

At the end of the questionnaire they are redirected to a Thank you lander page with another auto play video they thanks them for their info and directs them to go check out some other cool stuff on our website. There is also this a scheduleonce calendar below the video, where they can schedule their phone interview. This is also another test, can they follow instructions again and can they keep an appointment and follow up appropriately. As you can see they are to call me a the requested time!

Scheduleonce is an appointment scheduling system. Which is linked to my google calendar only letting them schedule during times I was available .

I made the employee prospects schedule the time that worked best for them. We allotted 2 days, broken into 30 minute blocks, over 8 hours, for a total of 32 bookings.

This was done on a first come, first served basis.

So when I came into the office the day after the ads posted I had 32 scheduled calls between myself and one other person.

Our show up rate: 94%!

Can you believe that? We actually had only 2 people not show up for their phone call.

What a breath of fresh air.

Like I said, I did all this over the course of 5 days.

Step 5

The initial phone call

Here’s our initial phone script:

Hi {firstname} My name is Da Fulk and I’m the President here at National Credit Federation. First, I want to thank you for taking the time for this phone call.

So our hiring process may be a little bit different than something you’ve gone through in the past. First, I want to tell you a little bit about our company and then I have 3 questions for you. Sound fair?

Our goal is to help 100,000 families reach their financial goals in the next 5 years by helping them take back control of the credit and finances.

So here are my three questions for you:

1. Tell me about your sales experience
2. When can you start?
3. What’s the most amount of money you’ve ever made and what amount of money do you think you need to live the life you want?

Man, I’ll tell you what. I could find out nearly everything I wanted to about my applicants with those three questions.

Here are the goals of that phone call:

1. I had to keep it short. I only had a 30 minute block of time.
2. I wanted them to know who we are and what our BHAG (Big hairy audacious goal) is
3. I needed to hear the way they explained their sales experience. This was for a phone position so ability to explain clearly and thoughtfully on the phone was marked.
4. The money question was simply to see motivation. How much money motivates you. This is a sales job and typically sales people are motivated but all people have a difference meaning of the word “success.” I needed to know what success meant to these applicants.

If I liked the outcome of the call I directed them to a customer portal with a video.

Step 6

The video.

I directed all people who passed the initial phone call to a 45 minute video!

The video was an explanation of basic credit 101 things.

At the end of the video there was a test. They simply needed to complete it.

What did I accomplish here?

I got some free training for potential sales people.   hehehe

I also made sure they could follow instructions, complete an easy task and retain knowledge by passing a test at the end out the credit course.

ALL of this before they ever step foot in my office for an in person interview.

Step 7.

The initial interview

If they passed the test, we called them and scheduled the interview for Tuesday and Wednesday. We booked 12 interviews. Each was 30 minutes long and they all went the same (except some applicants stood out much more than others)

All we did was role play.

Based on the video they watched, they knew what we were going to test them on, and we role played as if I was a client and they were the loan officer.

6 severely outperformed the others.

Yes, I know. You’re probably saying, “But Dave, I don’t have time to do that!”

And I would respond, you don’t have time for this? But you do have time for turnover, lost time, lost money, more turnover, and more headaches though right?.

While this was tedious, I got to see how each applicant would interact with our clients.

We brought 6 people back

Step 8

RJP and cognitive test

So I’m a big believer in culture and having fun at the office. One bad bird in the bunch can cause everyone to be miserable.

With that thought in mind, I have always been a big believer of having someone do the job before they are hired for the job. I call this an RJP or Realistic Job Preview.

This is where I bring the candidate back for 2-3 hours and they sit and shadow someone in the roll they are applying for. This way they can actually see what they will be doing on a daily basis. Then I give them a 5 min crash course on our script hand them a copy and faux leads and say call them. The candidates however don’t know the leads are fake. Prior to their arrival I contact 3 of my employees that are off site and not here at the home office and tell them to expect some calls between X – X time and to play along as a client.

I do this for a few reasons, I am looking to see if they are scared of calling the leads or if there is any phone reluctance.  After they get shut down by the first person how fast will they pick up the phone and call the second.  I give them some quick feedback after the first call and I look to see if they take it and implement it in their second call. Are they coachable? Can they take a no without destroying their ability to move on, are they resilient?

After the RJP I ask everyone on the team what they thought. Every sales person, processor, manager, and my assistant, “will they fit in the group” kinda thing.

Based on the RJP and feedback from the group I give them a cognitive test using Revelian just to make sure I didn’t miss anything.

It took 20 minutes and I had my best closer and my Sales Team Lead take the test just to have a base as a scoring module for the applicants.

We hired 5 at the end of the day.

Conclusion

I implemented this in my business and it’s surely been one of the best things I’ve ever done. I didn’t look at a single resume, I didn’t pay headhunters a ridiculous rate, and I ended up changing my thoughts on what talent pool was available in Tampa, FL.

Before I was just hiring wrong. Now I know that, and I’ll never make the same mistake again.

I hope you’re able to implement, or use, some of these strategies in your hiring process and you only hire winners for your organization moving forward!

The post How To Hire Winners appeared first on National Credit Federation.

The most important thing to know about credit freezes is that they are intended for the victims of identity theft.

Have any of the following happened to you in the past year?

• Your identity has been stolen
• You’ve lost your wallet, purse, computer, or personal files
• Your Social Security Number has been compromised

If so, the answer is clear: a credit freeze may be your best option.

Why is this?

When you know for certain that your personal information or identity has been compromised, a credit freeze is the most effective way to stop criminal activity before it starts. That’s because it prevents nearly everybody from accessing your credit information. And when lenders can’t see your credit information, they will not open a new line of credit in your name—whether it’s you who has initiated the transaction, or a criminal using your name.

But there are certain other reasons why you still may want to freeze your credit, even if you haven’t been the victim of theft. Some people—especially former victims of identity theft— may want to implement the strongest-possible protections against fraud. Or, if you’re ill, overseas, or otherwise unable to tend your accounts, a credit freeze is an effective “set it and forget it” credit protection method until you’re back on your feet. And, some people just don’t like the idea of others having access to their credit history without permission.

But for everybody else, a credit freeze might be overkill. Why?

• Credit freezes prevent you from monitoring your own credit
• Lifting and reinstating the freeze may cost a fee each time
• There are dozens of legitimate reasons why people or institutions need to access your credit, which creates more hassle for you if your credit is frozen
• Credit freezes do nothing to prevent criminals from accessing your bank accounts—savings, checking, and credit card lines

Credit Freezes vs. Fraud Alert

The good news? You don’t have to choose between extremes if you want to take an extra step to protect your credit. Fraud alerts are an excellent option to keep a close eye on your credit score without having to lock it up and throw away the proverbial key. With a fraud alert, there is an extra, identity-verifying step creditors must take before they are allowed to see your credit history. This means that if somebody wants to open an account in your name, the creditor must go the extra mile to make sure it’s really you who’s initiating the inquiry.

If you’re looking to improve your credit score, remember that neither a freeze nor a fraud alert will count against you. Want to speak to somebody in person about whether or not you should freeze your credit? Give us a call! We’d love to talk you through it![/fusion_text]

The post Should You Initiate A Credit Freeze? Here’s How To Tell appeared first on National Credit Federation.

1. Check the SSL Certificate of the Website

It’s simple and easy to make sure you’re browsing on a secure site — just look at the web address. Secure payment sites always begin with “https,” in which the “s” stands for “secure.” Most internet browsers also feature a closed lock symbol in the search bar (not on the webpage) that shows you when you’re browsing on a secure website.

If you want to go further, you can also read the website’s SSL certificate. The certificate shows that the website is able to encrypt information, and acts as a secondary verification that the owners of the website are who they say they are. Simply click the lock symbol in your search bar to see the certificate for yourself.

2. Don’t Forget to Sign Out

If you share or use a public computer, always be certain to use a private browsing session and sign out of any website you’ve signed into. Certain websites and even internet browsers will keep your information on file until you sign out for your convenience  — but this is asking for trouble if anyone but you uses the computer, even if you’ve closed the browser or turned the computer off.

3. Pay With Credit Cards, Not Debit Cards

The bulk of credit cards provide protection against fraud, but most debit cards don’t. Think of it this way: when you use your debit card, you’re paying with cash. And when the cash is gone, there’s no getting it back. Credit cards and established companies like PayPal offer good protection for anyone making online purchases.

4. Update Your Internet Browser

Internet security changes all the time, so you’ll want to be certain you’re using the newest — and safest — version of your internet browser. It can be a hassle in the moment, but think of how much more secure you’ll be knowing you are up-to-date with the latest security standards.

5. Beware of Phishing Scams

You’ve heard it before, but it bears repeating: Never, ever give out your personal financial information via email, even if you receive a legitimate-seeming email from your financial institution, or another company you’ve done business with. Scam artists can create very convincing-looking emails (“phishing”) to prey on those who are not in-the-know. Look up the official phone number for the company and call them directly to discuss any sensitive information.

More than anything, be aware of what’s going on with your credit statement and your credit score so you can fix any issues before they get out of hand. Maintain good sense, strong passwords, and a vigilant eye on your spending, and you’ll be in a far better position to spend safely, online and off.

The post How to Play It Safe With Online Financial Transactions appeared first on National Credit Federation.

The short answer is yes.

Rewards cards are exactly what they sound like — they “reward” you for using them with any number of appealing options. Have you ever gotten paid to shop? How about a free vacation? Or maybe a deep discount on something you were planning on buying anyway? Rewards cards might not be as magical in reality as they sound on paper, but the truth is that smart spenders can reap many financial benefits from them.

Here’s a fact that will knock your socks off: Billions of dollars in rewards go unused each and every year — real money that could provide you with real benefits.

Whenever you sign up for a new credit card with rewards, you’ll want to read the fine print and make sure you know exactly what you’re getting into. Here are the three main types of reward credit cards you’ll find:

Cash-Back/Fixed-Value

These cards give you cold, hard cash back for all of your purchases. The trick is that it’s not a dollar-for-dollar system, of course — each dollar is usually worth one “point,” whose value is redeemed in much smaller increments, such as pennies or discounts.

Co-Branded

Instead of cash back, co-branded cards focus on building points toward a particular company’s goods or services, often airlines and hotels. The benefit here is that the points you earn per dollar are often worth more in real-world value than the penny-per-point you’d get in cash.

Transferrable Points

A combination of both previous types of cards, transferrable-point cards let you choose how you redeem your points, whether it’s in cash, miles, or nights at a hotel. Keep a close eye on these cards though — they often come with an annual fee, which might not be worth it depending on your spending habits.

Using a credit card can be a great way to improve your credit score and get rewarded in the process. When you’re ready to sign up for a rewards program, here are a few important things to keep in mind:

Get Rewards You’ll Actually Use

Remember those billions of rewards dollars that go untouched each year? Don’t contribute to them! Be realistic about what you’ll use your rewards on, and if you don’t know, choose cash-back. Be smart about your rewards and use them to pay down debts and save money on items you’d be purchasing anyway.

Read the Fine Print

Not all rewards cards are created equally. Make sure you know what you’re getting into — many cards use complex systems to calculate their rewards, so if it seems too good to be true, it probably is.

Be Wary of Fees

Be realistic if you sign up for a card that charges an annual fee. If you’re not going to come out in the black, don’t do it. You’d be better off earning no rewards than paying for them out of your own pocket.

Take Full Advantage

Many cards offer signing bonuses, extra points, or other incentives to spend at particular locations or during specific times. Keep on top of where you’ll get your most points for your buck — but remember not to make unnecessary purchases just for the rewards.

Don’t Overspend

It’s easy to believe “the more you spend, the more you earn” — but it’s never true. Reaping free rewards is great, but better than that is managing your finances responsibly, getting out of debt, and maintaining a great credit score.

The post Are Rewards Cards Really Worth It? appeared first on National Credit Federation.

You may be getting spring fever right about now, but with the April 15th tax deadline approaching, there’s no better time to settle in and think seriously about your finances. It’s for this reason that since 2004, April has been declared “National Financial Capability Month.” But just how important is this, and why does it matter?

National Financial Capability Month is a presidential proclamation. While this sounds awfully serious, the proclamation in this case has to due with raising awareness during a certain month, much like Women’s History Month (March) or National Preparedness Month (September). April, when most of us are thinking about our taxes anyway, is now the country’s official time to encourage citizens to empower themselves financially.

The proclamations over the past several years have focused on these key items:

Strengthening our economy post-recession

Although our economy has grown since the 2008 recession, there’s still a missing link between hard work and fair opportunities — but the smarter financial decisions Americans make, the better off our economy will be as a whole.

Encouraging financial literacy

The government recognizes that, between lack of education and misleading techniques employed by certain financial institutions, Americans don’t always possess the financial literacy they need for success. Campaigns such as “Know Before You Owe” and the new simplified mortgage forms were introduced as a response to the need for fiscal transparency.

Guiding citizens through major financial decisions

The financial “big three” — college, a home, and retirement — aren’t a reality for all Americans. This is why the government has been working to make saving and borrowing safer and easier for more people with programs like myRA.

Why National Financial Capability Month Matters

Since 2008, our country — and our fellow citizens — have had to reevaluate our relationship to money. A complex network of events, practices, and behaviors robbed many people of the financial futures they had been working toward. This is why both the government and the people of the United States come together each April to take a fresh look at the state of our affairs so we can build stronger futures together.

Each of us is responsible for our own financial literacy, but not all of us have had the same opportunity to become truly financially capable. That’s why National Financial Capability Month matters — it’s a time to seek out resources offered by the government and other institutions that will empower us to make smart money decisions.

Here are a few good places to start:

MyMoney.gov

For basic, easy-to-understand information on spending, saving, borrowing, investing, and earning, see MyMoney.gov.

ConsumerFinance.gov

The consumer finance bureau offers a lot of good information on how to safely and securely engage with finance institutions, whether you’re opening up a credit card or taking out a loan.

MyRA.treasury.gov

Find out about the government’s new type of retirement account that’s safe, affordable, and completely free of start-up or maintenance fees.

One of the best things you can do for your finances — and your credit score — is to learn as much as you can. The more you know, the more power you have, and the better off you are likely to be when it comes to money.

The post Understanding National Financial Capability Month appeared first on National Credit Federation.

What can you do to lessen the blow if an unfortunate situation like this happens to you?

One possibility is initiating a credit freeze.

A credit freeze, also called a “security freeze,” essentially puts all of your credit information on extreme lockdown. For that reason, this isn’t the best option for everybody; it depends on your unique situation. A credit freeze is more powerful than fraud alert and credit monitoring because it actually stops your information from circulating without your permission. Because creditors need to see your credit report before opening new lines of credit, a credit freeze will stop identity thieves in their tracks because creditors won’t have access to your reports.

If you’re interviewing for a new job or looking to make a major purchase, consider instead initiating a fraud alert until authorized parties have had an opportunity to view your credit reports. A fraud alert will use secondary identification, such as a phone call or an email, before issuing your credit report. And you don’t have to wait until you’re a victim of identity theft to initiate one; anyone can set up a fraud alert that lasts 90 days.

For those who want extra protection, here is how you can initiate a total credit freeze:

Contact each of the three credit bureaus.

To begin a credit freeze, you must contact each of the credit bureaus —Transunion, Experian, and Equifax — individually. There’s no way to do it all at once. Give the organizations a call and let them know you’d like to set up a credit freeze.

Share your information with them.

As vulnerable as it feels to share your personal data, especially if you’ve become a victim of a security breach, it’s necessary so the companies can pull up your correct account information. They will ask you for your name, social security number, address, and birthday — but remember, no organization should ever ask you for private passwords or bank account numbers.

Set up your account.

You’ll set up an account that lets you have control over who sees your credit report so that you can release it when necessary. This will involve a username and password that let you have access to an account management system.

A credit freeze will not prevent lenders you’re already involved with from seeing your credit information.

Remember, per Equifax, a credit freeze

“…may delay, interfere with or prohibit the timely approval of any subsequent request or application you make regarding a new loan, credit, mortgage, insurance, government services or payments, rental housing, employment, investment, license, cellular telephone, utilities, digital signature, Internet credit card transaction or other services, including an extension of credit at point of sale.”

Is a total credit freeze right for you? Give us a call, and we’d be happy to help you weigh the pros and cons for your specific situation.

The post How To Initiate a Credit Freeze appeared first on National Credit Federation.

Is Your Credit Up to Snuff?

The truth is, the better your credit score, the better your interest rate tends to be —but this doesn’t mean you’re out of luck if you don’t have perfect credit. Most experts agree that the minimum credit score for a reasonable loan starts between 620 and 660. If your credit is midway through the 700s, you’ll qualify for even better rates.

Why Your Interest Rate Matters

It pays to have the best credit score possible when you apply for your loan because it is an important factor in determining how much interest you pay. While a fraction of a percent might not seem like much to you now, remember that mortgages often extend over several decades. The difference of even half a percentage point can add up to tens of thousands of dollars over the course of many years.

Even if you’ve found the perfect home at a great price, it often makes far more financial sense to wait until your credit and other finances are in order than to jump at the first good opportunity. Remember: You’ll be living with your decision for the next 5+ years, and you absolutely want to set your future self up for financial success, not failure.

Other Financial Factors

Your credit score is perhaps the most important piece of the puzzle when lenders are judging your application, but it’s not the only factor. Being in great financial shape starts with good credit, but it also means being able to maintain good credit in the future. Do you have a savings account or other liquid capital? Are you employed steadily? Have you ever declared bankruptcy? Do you carry significant amount of debt? Having a well-rounded financial life dramatically increases your ability to maintain a good credit score, and to be able to negotiate the lowest-interest mortgage for your dream home.

How to Improve Your Credit Score to Buy a Home

If you make smart choices when buying your home, you can reap the financial rewards of your investment — and it all starts with your credit score.

Improve your credit score to improve your mortgage interest rate and save yourself lots of money down the road. Here’s how to start:

• Always pay your bills on time
• Never max out your credit cards
• Stay out of debt
• Don’t open multiple new lines of credit at the same time
• Swiftly correct errors on your credit report
• Seek the help of credit repair specialists

Owning your own home can be one of the most emotionally and financially rewarding purchases of your life. Go about it the right way by waiting until you have your best-possible credit score. Need more help figuring out how to get there? We’d love to talk to you about how you can start improving your credit score so you can purchase a new home!

The post What Kind of Credit Do You Need to Buy a House? appeared first on National Credit Federation.

We’re here to tell you that not only do you need to read your credit report every year, but that it’s also much simpler to understand than you might think.

Let’s start with the basics:

Where Can You Get a Free Credit Report?

You can download your free report from annualcreditreport.com, which will include all three major credit bureaus: Experian, TransUnion, and Equifax.

What Is the Purpose of a Credit Report?

Credit reports represent your creditworthiness as an individual. The credit bureaus boil down several factors into a single number. Personal credit scores typically range from 300-850, with 850 representing the best possible credit, and below 620 representing poor to bad credit.

How Do Credit Scores Affect Real Life?

Good credit scores translate not only into better rates on loans — think purchasing a house or car — but they can also have an effect on employment and renting homes. If you have a bad credit score, you are more likely to pay a higher interest rate, which will effectively take money you could have otherwise saved out of your pocket.

Understanding Your Credit Report

Credit reports are divided into these main sections:

• Personal Information (name, birthday, social security number, etc.)
• Public Record Information (any unresolved legal issues, like bankruptcies)
• Creditor Information (all of your lines of credit and current information about them)
• Adverse accounts, potentially negative items (items that lower your credit score)
• Accounts in good standing, satisfactory accounts (accounts that have no issues)
• Credit Inquiries (information about people who’ve researched your credit)

You may see certain credit-specific terminology on your report. Here are a few key items to look out for:

“Collection Agencies” are 3^rd party companies that attempt to collect on past due debt that has been charged off or severely delinquent.

“Charged Off” refers to revolving or installment accounts being written off to profit and loss, this does not mean that money is not owed — it simply changes the creditor’s accounting status of the account. Accounts are classified as “charged off” when payments have not been reported for up to 180 days.

“Foreclosure” is reported on a credit report if a bank has repossessed real property (real estate) due to reporting lack of payments.

“·         Foreclosure: A foreclosure is reported on a credit report if a bank has repossessed real property (real estate) due to reporting lack of payments.

“Public Record”: The PUBLIC RECORD INFORMATION section lists publicly available information about legal matters affecting credit. These public records may include judgments in civil actions, state federal or local tax liens, and/or bankruptcies. You can identify Judgments in their own section located on a credit report.

“Inquiries”: This section represents organizations such as a bank, retail stores, potential creditors, insurance company, or employer’s requests for a copy of the report.

“Installment accounts” refers to loans you’ve taken out that are of a set borrowed amount and are to be repaid over time with a set number of scheduled payments; normally at least two payments are made towards the loan. The term of loan may be as little as a few months and as long as 30 years.

“Revolving accounts” are a type of credit that does not have a fixed number of payments, in contrast to installment credit. Credit cards are an example of revolving credit used by consumers. It is basically an arrangement that allows for the loan amount to be withdrawn, repaid, and redrawn again in any manner and any number of times, until the arrangement expires.

Perhaps the most significant portion of credit reports is the numeric credit score. Here’s the breakdown:

760+ Excellent credit score

700 – 760: Good credit score

640 – 700: Average

600 – 640: Fair

599 and below: Bad

What To Do If You Have Concerns About Your Credit Report

If you see inaccuracies on your credit report, it’s imperative to resolve them as quickly as possible. Letting mistakes stay on your credit report can make a big negative impact on your credit score, which in turn cost you money. The best way to dispute items on your credit report? Mail the credit bureau a letter the old-fashioned way. Need help knowing what to write in your letter? We can help.

Set aside a little time to get familiar with your credit report if you’re new to reviewing it every year. If you have questions or concerns that you can’t answer by yourself, give us a call. As experts in credit, we can help clarify your report for you and set you on the right path for improving your credit score.

Have you downloaded your free annual report yet? We hope that you do it today so you can take charge of your financial well-being starting now.

The post Deciphering Your Credit Report appeared first on National Credit Federation.

1. Pay Down Debt

There’s nothing that feels quite as good as being debt-free. Give yourself the gift of paying down your debt steadily starting today to make a big difference in your finances — and your life — that you’ll be proud of in 2016.

2. Save For Emergencies

Just because credit cards are available in emergencies does not mean you should use them. Avoid the pitfalls of emergency-induced debt by saving a portion of your paycheck each month, just in case.

3. Pay Bills On Time

Do whatever it takes, whether it’s setting reminders on your calendar or putting a note on the fridge, to pay your bills early or on time. Save yourself — and your credit — from the aggravation caused by late payments.

4. Understand Your Spending

This year, make an effort to know precisely what you’re spending on. Add up superfluous monthly expenses and multiply by 12 — what else could you be doing with that money?

5. Ask For A Lower Interest Rate

One short phone call could lower the interest rates on your credit cards. It never hurts to ask — and if they say no, see about transferring your debt to a lower-interest card.

6. Use Autopayments

Simplify your life and banish late payments in one fell swoop by setting up autopayments. Be sure to leave a safety buffer in your checking account just in case.

7. Make Smart Investments

Got a little extra cash on hand? Put it aside into safe investments like CDs or high-yield savings accounts to make that money work for you.

8. Never Max Out Your Credit

If you’re hitting the limit on your credit cards regularly, you’re damaging your credit score. Try switching off between your credit and debit cards so your balance never gets too high, or pay off a portion of your card early in the month.

9. Hang On To Old Accounts

Having long-term credit accounts actually helps your credit history. If you’ve moved to a different creditor, consider keeping the old account — just be sure to monitor it to ensure there are never any outstanding charges.

10. Dispute Any Errors

Read your credit card bills and annual free credit report closely to check for errors. Clear up any mistakes as soon as you see them to keep your credit line and credit history clean and accurate.

If you know you can make one or more of these resolutions, but need help figuring out how, give us a call. We’d be more than happy to help you find a way to make —and keep — positive financial resolutions this year.

The post 10 New Year's Credit Resolutions appeared first on National Credit Federation.