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Military Self-help Credit Repair: Square Away Credit Issues Now to Reap Savings Over Time
By: Tom Kline
If you’re gung ho to start acquiring major purchases, such as a POV (personally owned vehicle), a home, furniture, etc. you’ll probably need to apply for at least one loan. The biggest factor that determines whether or not you’ll get a loan, and what interest rate you’ll pay, is your FICO credit score.
Your score is compiled by each of the three leading credit bureaus, and it tells lenders if you will be able to repay the loan on a timely basis. (For more on this, see What is a FICO credit score? from Virginia Chevrolet Dealer RK Auto Group.) But what happens if you’re denied credit, or don’t get the terms you want?
Your FICO credit score impacts your ability to get a loan—find out the specifics.
The Equal Credit Opportunity Act (ECOA) states that creditors must provide specific reasons for credit rejections, if requested within 60 days. Acceptable reasons include: "Your income was too low" or "You haven’t been employed long enough." Vague answers, for example numbers or codes, most likely are unacceptable.
If your loan is rejected due to information from a credit report, the creditor is required to provide the name, address and phone number of the consumer reporting company that supplied the information. Contact that company to get the details—they’ll tell you what’s in your report, but only the creditor can tell you why your application was denied.
If your FICO credit score is low, engage in self help credit repair to obtain loans at better interest rates.
If your application was rejected because you are too close to your credit card limits or have too many credit cards, consider waiting to reapply until you’ve reduced your balances or closed some accounts. This is a wise self help credit repair move, as the improvements will be noted by the credit bureaus, and thereby raise your FICO credit score. Learn more about self help credit repair.
Don’t let fraud dampen your FICO credit score—get help ASAP.
If you believe you are a victim of credit fraud, immediately contact the Federal Trade Commission (FTC). Visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357). Become a savvy consumer with these additional tips:
• Guard your personal credit information by sharing it only when buying from a company you know and trust.
• Pay attention to the fine print, and make sure all details of the arrangement are written into the contract.
Following these tips will get you on the road to a great FICO credit score and save you thousands in the long run.
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