Finances hit hard the past decade? You're not alone. Fix your credit score today.
Written by Credit Fix Team

Your Credit Score Can Kick Off Your Economic Recovery

There’s good news for those of you looking for an economic recovery!

We’re finally seeing a little bit of sunlight after years of economic gloom. The economy is recovering again! According to Experian, the economy is showing signs of recovery since the 2008 financial crisis. Housing prices, mortgage applications and foreclosure rates are returning to pre-financial crisis levels. Plus, the unemployment rate has dropped to its lowest levels in nearly a decade.

Not only are people going back to work, but their credit scores are improving as well. We’re seeing less people with credit scores below 600 points! 21.2% in 2017 as opposed to 22.6% in 2016. While credit scores between 781 to 850 points have risen to about 22.3% of the population. Just a year before it was approximately 16%! That’s a huge difference.

Sure, it means that only a fifth of Americans have good credit. But with America’s economy recovering, we’ll see those numbers rise. Consumer confidence has hit a seventeen-year high, and that means more approved loans. Not only that, but more big purchases will come. More houses and cars sold, more production, more jobs, more money, and the cycle goes on.

But for some, the recovery is just beginning

A near-decade of economic uncertainty results in damage to countless people’s financial liquidity. The most heavily hit are in the sunbelt states and in the mid-west. Especially in states such as Mississippi, where the average has dropped to below 650 points. Other states where people are hit hard by credit woes are Idaho, North Carolina, Maine and Alabama. Traditional industries and manufacturing in particular are hit  by the recession also.

The resulting drop in average credit scores means the people in those states are having a more difficult time getting approved. For loans, credit, etc. Less houses can be sold, less cars bought. Even less demand for consumer or luxury goods, less jobs to provide those goods. Not to mention less money going into the economy to start the cycle anew.

And it’s not good in the larger economic scope either. Home ownership is down to its lowest levels since the 1960’s, according to TIME. There’s a combination of stagnant wages and a transition from a manufacturing to a service economy. Which means there’s less money to go around.

Sure, that sounds like it’s a dire situation. Perhaps sometimes it feels like you might miss out on taking advantage of a recovering economy. But, you don’t have the credit to secure a loan. Or, you need to handle problems like chronic underemployment or your previous debts racked up. It could affect your ability to get a new home or get utilities. Even retrain yourself for the new economy by applying for a student loan.

Does that mean you should lose hope? Of course not!

More people are looking into mortgages than ever before! Especially among millennial’s. The millennial generation is reaping the benefits of the economic recovery. Even maturing to the point where housing and mortgages are important. You may not know how to freeze your credit and deal with Equifax collections agencies. But it doesn’t mean you can’t kick off your own version of an economic recovery. So you can start taking advantage of a hot economy.

First of all, did you know there are more than one credit score out there? That’s because there’s more than one credit reporting agency. Plus, different companies may report to different credit agencies. From your utility bills to your landlord, your cable and your smartphone, your service providers. All may report to one or all of these agencies, and that in turn gives you different credit scores. Equifax, TransUnion and Experian all keep your credit report and, for a fee, can give you access to your credit score.

These credit scores can also affect your relationships, where you live, where you work, even if you can secure a loan. Or get something as basic as TV and internet. Service providers and sellers don’t just want a customer; they want a customer they can depend on to pay their bills on time. And what do they use to ensure whether a new customer will pay on time? A credit report! Because the consumer credit report has the metrics they need to find out if their future customer is going to pay their bills on time. They see whether or not they pay on time with other creditors in the past.

You can’t blame a company for watching out for their interests any more than a company can blame a person for bad circumstances leading to poor credit. Such as personal emergencies, or (dare I say it) economic factors outside your control, such as a decade-long recession.

But what you can do is kick off a bad credit score recovery of your own

First, start with getting your credit report from each of the agencies. From there, you can tell what credit reporting agency has in terms of credit score for you. It will also give you an idea which credit reporting agency your creditors also report to. Not only that, you can also find out if there’s any outstanding debts or past collections. If they are still being reported on your credit report, you’ll need to handle those with some credit repair.

Once you figure out what you owe to who, then you can take care of it!

One of the best suggestions for beating back the debt monster is not to tackle the hardest one first, but the easiest. Try the snowball method of eliminating your debts. Make minimum payments to the debts you already have except for your smallest debt, which you then pay off as much of it as you possibly can each month. When the smaller debt disappears, you then move onto the next one.

Not only do you save on interest by eliminating the small debt, but with less debts nibbling away at your money, you’ll have more cash to deal with them. Also, by tackling the small debts first, you can get the quickest boost to your credit score in the shortest amount of time. Not only that, you have the added psychological bonus seeing some early progress, and success begets success.

Whatever you do, you do not want to be late on your payments ever again, or those late payments get reported to your credit bureau and lower your credit score.

Once your debts are under control and show a consistent pattern of on-time payments to your creditors, you’ll be on your way to your own economic recovery. Then you can consider applying for a student loan to make yourself more employable, a mortgage for a house for you and your family, a car, furniture, all the essentials that not only make your life better but keep our economy rolling.

Get started on your personal economic recovery now.

America Credit Fix will help with your finances
Written by Credit Fix Team

AMERICA’S CREDIT SECRETS (what you really need to know)

The recession in 2008 hit the United States hard, no doubt about that. But the beauty of rock bottom is only one direction to go: up!

Right?

Well, let us share a few things first. Recent reports claim America’s finances are finally on the best upturn since the recession begun in 2008. Though many contradicting sources (read below) argue the full current financial picture is not as great as suggested.

An article from CNN only last year shows that the country suffered and hurt their credit scores after the recession. But, that America recently hit a new average high of 700 for their scores. Plus, more Americans are on the high end of the credit score average, where people want to be, than the other.

“‘We believe consumers are more aware of their credit reports and FICO scores than they used to be.’ And that can only help your score,” it states.


Looks good, right? Maybe not.

According to CNBC, credit scores across the country are “very strong.” But then shows the numbers showing that only a fifth of the country hold “very good” scores.

Earlier this year, Experian also releases good news for the country’s finances, stating, “… the economy seems to have mostly recovered from the 2008 financial crisis. Housing prices and foreclosure rates are back to normal, and the unemployment rate is at a historic low.” 

But then the article shows how credit card debt has increased in the past year. Likewise, total debt for America hit an all-time high since the Great Recession, and other “worrisome signs.”

So how is the current state of credit in America really?

Come up with a plan for your credit score no matter your wealth.

To be more particular on the all-time high America hit, the article, “2018’s Most & Least Financially Literate States,” puts it bluntly. It states, “For the first time ever, total American credit card debt has passed $1 trillion, so it’s clear that better financial education is necessary to try to turn this trend around.”

Furthermore, “We ended 2017 with $92.2 billion in new credit-card debt, the highest increase since 2007. That’s unsurprising, considering that only two in five adults actually have a budget.”


That does not sound great.

It was only in April of this year that Forbes released the article, “4 Stats That Reveal How Badly America Is Failing At Financial Literacy.”

A major issue the article points out is how most adults in the country fail when taking a financial literacy test. Original article from Fortune, shown here).

The other issues express how more than a third of the country has no money saved for retirement. Though more than a third of households have debt. Plus, almost half of those with debt from student loans have trouble with repayment. About half of the country also could not afford an emergency costing not even $500.

“The median out-of-pocket cost for an unexpected medical expense is $1,000. Which means nearly half of our country is just one accident away from being hit with a bill they can’t afford to pay,” Forbes shows.

Another article released this month points out how recent news for the finances of the country appear reassuring but is deceiving. The writing goes into great detail and statistics of credit card debt in the country. Beyond that, how it is a large indicator of financial stability for the country.

“So, it’s not a question of whether consumers are weakening financially. It’s a matter of how long this trend will last and just how bad it will get.”

Is it really that bad?


Credit score knowledge is definitely not where it should be.

Multiple reports show how many millennial’s do not understand what a credit score is. If they do, are not sure how to build the score.

LendEDU shares the details of the millennial indicators and came to the result that their credit knowledge and health is “average at best.”

From a poll conducted by the company (link above), a quarter of millennial’s do not know what a credit score is. Additionally, “10 percent believe it’s a number assigned at birth by financial institutions. Another 10 percent think it comes from the government as a way to track banks and a final five percent believe it’s a waiting list for credit cards.”

Get your credit score where it should be and don't be puzzled anymore.

Forbes shared in another article last month that not only are American millennial’s in a “retirement planning crisis.” But so are Baby Boomers and Generation X.

According to Schwab’s 2018 Modern Wealth Index, most the country live paycheck to paycheck, does not have a financial plan, and expect their finances don’t merit one. 

Joe Vietri, senior vice president of Charles Schwab Corp. shares that is it a huge misconception that only the wealthy should get a financial plan.

“‘Simply put, we believe every American deserves a financial plan, regardless of how much money they have today.'”

So, more financial literacy would be positive for the country. It is never too late to make a change.

We are not saying it is all bad though! We are not saying finances have not gone up since 2008 and it dooms the whole country. Or that America does not know how to handle money or how to not be in debt. We bounced back from a devastating recession across the whole country, after all!

What we are stating is financial stability isn’t a final goal, it’s a constant journey. And this country still has an abundance of work to do and proves to not be as financially steady as reported.


What can you do as an individual?

Check your credit report as often as possible. Equifax, TransUnion and Experian PLC are the big three credit reporting agencies in the United States, and an individual can get a free credit report from each of them every year.

Make sure no errors exist on your report, and you protect your credit. While we may expect it could never happen to us, errors and credit fraud happen!

Pay off your debts! Your credit score will build the most this way. Start with the smallest ones and work up to the big, frightful ones. But remember, it will not be an overnight change on your score or report. It will take time, patience and guidance.

While doing so, make sure the payments are on time every single month! Late payments appear terrible to lenders and can affect your financial future for a long time. Put a reminder on your phone, or even get your bank send you a reminder through online banking.

TIME shows the most important factors that affect your score, 65% to be exact, are, “… on-time payment history and ‘credit utilization’—that is, how much you’re using of the total credit you have available.” Which means having a high credit limit is good but keeping the number down and not spending much on it will make you look good.

These steps will raise your credit score to be in the “very good” zone. Do your best to keep it there.  

Not sure where to start? That’s what we’re here for! Visit americacreditfix.com to begin your journey to better credit.

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