Credit Guy Blog

/ blog / Archive by category "Credit Guy Blog"

Brexit: What’s Happened Since the Vote

Article by Sean Williams
You can view this article on the Motley Foll website here:

8 Stunning Figures That Sum Up What’s Happened Since the Brexit Vote

From plunges to pops, here’s a statistical summation of what the Brexit has meant for investors.


It may be too early to tell, but Britain’s vote to leave the European Union, which is more affably known as the “Brexit,” may go down in history as the straw that broke the EU’s back.

Last week, 72.2% of Britain’s 46.5 million eligible voters cast their ballots. In a shocking outcome, 51.9% of them voted in favor of leaving the EU. Financial pundits had been expecting a tight race, but few, if any, had openly expected Britain’s voters to choose to exit the EU. With the Brexit now happening, there’s a real possibility that other countries could follow suit.

With no precedent to what the entire world is now witnessing, global markets haven’t taken things well. In fact, the post-Brexit investing environment has been downright ugly for some. Here are eight stunning figures that sum up what’s happened in the days that have passed since the Brexit.

  1. The big 3 U.K. banks have lost $46.4 billion

In the two business days following the Brexit vote (Friday, June 24, and Monday, June 27), the three biggest U.K. banks — Barclays (NYSE:BCS), Royal Banks of Scotland (NYSE:RBS), and Lloyds Banking Group (NYSE:LYG) — shed a third of their value, or about $46.4 billion total. With little clarity as to how long a Brexit might take, or if the Brexit could indeed push the U.K. into recession as some pundits fear, banks are expected to feel the brunt of the uncertainty. Not to mention the Brexit essentially takes any chance of interest-rate hikes firmly off the table, thus eliminating any chance of net interest margin expansion.

  1. PIGS were slaughtered

The referendum vote isn’t just a potential blow for Britain; it could be even more trouble for some EU nations. With the EU now perceived as financially weaker without Britain, member nations with more precarious debt loads, such as Portugal, Italy, Greece, and Spain — a.k.a. the PIGS — could be in even worse shape. During the two-day period following the Brexit, the stock indexes in Portugal, Italy, Greece, and Spain lost 9.2%, 15.9%, 12.4% and 14%, respectively.

  1. $3 trillion in global market value was lost

Once more, the Brexit isn’t just going to be confined to Britain and even the EU. The possibility of lost growth in Britain and the EU, and the need to rework trade deals, could result in economic instability throughout the developed world. In the two-day period following the Brexit, $3 trillion (with a “T”) in market value was wiped out globally. This includes $2.1 trillion in total market losses registered on Friday, eclipsing the previous single-day record of $1.9 trillion in lost market value that occurred on Sept. 29, 2008, when the U.S. Congress voted against a Wall Street bailout. Friday’s 610-point plummet from the Dow Jones represented its eighth-largest point drop in history, albeit just 3.4% in percentage terms.

  1. We saw the biggest single-day move for the British pound, ever

Currency markets may make large moves over substantial periods of time, but it’s often rare to see currencies move more than, say, 1% or 2% on a daily basis. In a matter of hours following the Brexit vote, the British pound versus the U.S. dollar fell from just north of $1.50 to as low as $1.33, marking the biggest single-day move for the pound, ever. Currencies tend to move in step with economic expectations; thus, the plunge in the pound would portend U.K. economic weakness on the horizon.

  1. We got a promise of up to $335 billion in U.K. capital infusions

Understanding the unprecedented nature of the Brexit, and the uncertainty it caused in global markets, the Bank of England announced on Friday that it would stand at the ready to pump approximately $335 billion (250 billion pounds) into “normal facilities” to stabilize U.K. markets and financial institutions, if need be. A similar message was heard from the European Central Bank, which added that it was on stand-by to provide additional liquidity, although it didn’t list a specific figure.

  1. Gold hit a two-year high

While the markets were tanking, flight-to-safety defensive plays were mostly soaring. There’s perhaps no more sought-after investment during times of market instability than gold. Having already logged its best quarter in 30 years during Q1, gold wound up bouncing off of its lows of $1,252 an ounce to trade, just hours later, as high as $1,364 an ounce. The move put gold at a two-year high and signaled a discernible shift in investor sentiment. Spot prices have since eased a bit, but gold is still trading near $1,320 an ounce and may have further room to run.

  1. U.S. Treasuries came dangerously close to record-low yields

With gold prices rising, domestic investors’ appetite for risk has been falling — fast! U.S. Treasury bonds are often viewed as another safe-haven to park your money because of their essentially guaranteed returns, since they’re backed by the full faith of the U.S. government. However, bond prices and bond yields have an inverse relationship. As investors have flocked to buy bonds, yields on those bonds have fallen to near record lows. The yield on the 10-year U.S. Treasury has dipped to just 1.46% and could wind up pushing into record-low yield territory. This would be great for those with debt or a mortgage, but terrible for seniors looking for interest-based income in retirement.

  1. More than 3.9 million signatures have been collected requesting a do-over

Finally, in the wake of Thursday’s referendum vote, some 3.9 million British citizens have now signed a petition requesting a do-over vote. Keep in mind that this petition was begun back in late May. The British Parliament is required to debate petitions that gather more than 100,000 signatures, but a second vote appears unlikely at the moment, unless anti-Brexit sentiment swells and global financial markets take a beating.

It’s certainly been a rough go out there for investors, but the only statistic you need to keep in mind is that out of 35 stock market corrections since 1950, every single one has been wiped out by a rally of some sort within a matter of weeks, months, or, in some cases, years. Buying with regularity when we’re off our highs has worked out well for long-term investors for decades, and I don’t see that pattern changing anytime soon.

The $15,834 Social Security bonus most retirees completely overlook
If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $15,834 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.

Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

© 1995 – 2016 The Motley Fool. All rights reserved.

Again, you can view this article on the Motley Foll website here:

Need help raising your scores and getting the best credit consulting there is to offer? Look no further. Check out what National Credit Solutions can do for you. See Our Services.

Credit Card Habits Millennials Should Cultivate

Article by Erin El Issa
You can view this article on the US News website here:

5 Credit Card Habits Every Millennial Should Cultivate in 2016

Credit-Card-Habits-Millennials-Should-Cultivate Credit card-wielding millennials have some work to do, a recent NerdWallet survey suggests. Americans ages 18 to 34 are more likely than others to be surprised by a big balance, make only the minimum payment and forget to pay their credit card bills. But never fear millennials: We’ve got you covered with five habits that will save you cash, improve your credit and step up your credit card game in 2016.

  1. Track Your Spending

In NerdWallet’s survey, one-third of millennials with credit cards say they are surprised by their bill at least some of the time. The percentage decreases with each subsequent age group. Responsible credit card use dictates that you pay off your balance in full each month, which may be difficult if you’re spending more than you realize.

To avoid this unpleasant shock, create a budget and track your spending. This can be as specific as a line-item amount for each budget category – for example, $200 for entertainment, $300 for groceries, $150 for utilities and so on. Or it can be a set figure that you don’t exceed, such as keeping your monthly credit card spending below $1,000, or some other amount you know you can pay off each month. And while we’re on the subject …

  1. Pay More Than the Minimum


Ideally, you should pay off your entire balance monthly to avoid interest and keep your credit utilization low. However, less than half of millennials pay their credit card balance in full each month. About 1 in 5 makes only the minimum payment each month. Doing so can add years to the time you spend paying down your debt and can cost you hundreds, if not thousands, of dollars in interest.

Credit card interest accrues on your average daily balance, so the more you can pay down, the less interest you’ll incur. Even if you aren’t able to pay off your balance in full just yet, aim to pay off as much as reasonably possible each month. You’ll lower the total amount you pay in interest, you’ll eliminate your debt faster, and you’ll reduce your credit utilization, which can boost your credit score.

  1. Put Credit Card Bills on Autopay

Paying your bill on time is important both to avoid late fees and to build or maintain a good credit score. But 1 in 4 millennials forgets to pay the bill at least sometimes. If this sounds like you, it’s a good idea to set up autopay for credit cards. That way, your balance will be paid on the due date each month without fail.

Of course, you don’t want to remove yourself from the process completely. Even if the payment is already taken care of, you’ll still want to review your bill each month for fraudulent charges or erroneous fees. This is especially true if you’re among those who occasionally are surprised by how much they’ve spent.

  1. Avoid Judging Others for Having Credit Card Debt

Debt is an unfortunate reality for many, with the average indebted household carrying $15,355 in credit card debt. Still, more than a quarter of millennials say they would judge friends or family members for having credit card debt, more than any other age group. But judgment tends to be alienating rather than motivating. Encourage your loved ones as they work to pay off their balances.

  1. Cut Yourself Some Slack

In addition to being the age group most likely to judge others for carrying credit card debt, millennials are also most likely to be ashamed of their own balances. More than half of millennials with credit card debt, 53 percent, say they are ashamed of it, compared with 18 percent of Americans 65 and older.

Like judging others, judging yourself for your credit card balance is unproductive. Instead, face the problem and make a plan to pay off your debt. Slash your spending elsewhere and direct any windfalls toward your balance to get it paid off. And in the meantime, be kind to yourself and others – getting out of debt is a process, and it should be applauded, not mocked.

Bottom line: Millennials should aim to track their spending, pay more than the minimum, set up autopay and avoid judging themselves and others for having credit card debt. By adopting these simple credit card habits, they can reduce interest owed, increase their credit scores and cross “get my finances figured out” off their list of resolutions.

Article by Erin El Issa

You can view this article on the US News website here:

Need help raising your scores and getting the best credit consulting there is to offer? Look no further. Check out what National Credit Solutions can do for you. See Our Services.

Bad Credit Can Hurt You

Article from Daily Finance

15 Surprising Ways That Bad Credit Can Hurt You

bad-credit-can-hurt-youEveryone knows that bad credit can prevent you from getting a mortgage, credit card, or other loan. But did you know that in addition to hurting you financially, bad debt can damage you emotionally and even romantically? If you have a low credit score, it’s important to improve your number in order to avoid these problematic issues.

1. Damage to Your Relationships

Often when people cannot borrow money from a traditional lender due to bad credit, they turn to friends and family to bail them out. Being late on a credit card payment will damage your credit rating. But being late on a promise to pay back a friend can destroy your relationship.

Bad credit has a terrible impact on marriages. Jeffrey Dow, a Faculty Fellow at the National Marriage Project, has extensively studied the impact of consumer debt on marital satisfaction. Dow’s research uncovered that, in addition to being cited as the leading cause of divorce in America, financial disagreements were a much better predictor of future divorce than even sexual disagreements.

“Compared with disagreements over other topics, financial disagreements last longer, are more salient to couples, and generate more negative conflict tactics, such as yelling or hitting, especially among husbands,” Dow says. “Perhaps because they are socialized to be providers, men seem to take financial conflict particularly hard. Not surprisingly, new research that I have done indicates that conflict over money matters predicts divorce better than other types of disagreement.”

And, talk about kicking you when you are down. During a divorce, a credit score can be used as leverage when dividing up assets.

2. Lack of Access to Emergency Money

One of my friends nearly lost her dog to cancer last year. Because of her low credit score, she was unable to get an emergency loan to cover her beloved pet’s medical bills. Luckily, she was able to raise the money for treatment by crowd sourcing. Unfortunately, this kind of happy ending is uncommon. Outspending your means could leave you vulnerable to a medical catastrophe.

3. Limited Mobility

Hurricane Katrina was devastating to just about everyone in New Orleans, but many people were put in harm’s way due to financial obstacles. Katrina struck on August 29, two days short of payday for some of the city’s poorest residents. With no cash on hand and no credit, people literally lost their lives because they couldn’t afford to pay for a bus ticket or gasoline to evacuate the area.

Airline tickets cannot be purchased with cash. While this seems like a First World problem, homesickness and the desire to go home is a universal feeling. In addition to keeping you away from loved ones, having a low credit rating can keep you from getting the best credit card for travel. With the right rewards card, travelers can save thousands of dollars by using mileage points to purchase tickets and accommodations, and avoiding foreign service fees for cash advances and purchases. Poor credit can also keep you from owning a car or getting affordable insurance, which in turn can keep you from taking jobs that require a car.

4. Costlier Car Insurance

Although this is illegal in some states, some car insurers have decided that there’s a connection between on-time payments and reckless driving — and jack up the rates or deny auto coverage accordingly. Not having car insurance can obviously negatively impact the quality of life of anyone who is dependent on a car for work.

5. Increased Property Insurance Costs

Some insurance companies see a correlation between low credit scores and high insurance claims, and inflict punitive rate increases on customers with poor credit. Although California, Massachusetts, and Maryland prohibit this practice, people with poor credit pay a least twice as much as people with excellent credit in most states. For example, if you live in West Virginia and have poor credit, you will pay up to 208 percent more than your neighbor with a high credit score!

6. A Struggle to Refinance a Mortgage

Following the epidemic of foreclosures, new banking rules have been applied that make borrower’s creditworthiness even more critical to negotiating a reasonable interest rate for home loans. Getting a loan allowed me to turn my rundown house into a beautiful rental property that pays for itself every month. The ability to get a loan for home improvement revolutionized my life by putting me on the fast track to financial independence.

7. Difficulty Renting

As a landlord, I check the credit score of potential tenants for late payments. I won’t rent to people with too many late payments because the eviction process costs me too much time and money. It doesn’t matter how much I like the prospective renter; I’ve learned the hard way that any goodwill I might have will be quickly turned into hate by tardy renters who have to be nagged into paying. Most landlords I know only look at the credit score and don’t allow potential renters to put their low score into context (i.e. “I was hit by a drunk driver and my medical bills bankrupted me!”).

8. Grim Job Prospects

Most people I know don’t have a poor credit rating because they are shopaholics. When the recession hit, a lot of unemployed people had to make emergency financial decisions that are still dogging them today.

There’s a push to prevent employers from using credit reports against potential employees. But right now you can be denied a job due to a poor credit score. Allegedly, employers are supposed to inform you if your credit is the reason you were not hired, but this is no consolation to any job seeker who really wants and needs to work. One out of four Americans have had to go through an employer credit check, and one out of 10 are denied work because of a low credit score.

9. Stunted Growth for StartUps

Many lenders require borrowers to put up their home as collateral for a small business loan. But even getting a home equity line of credit requires a good credit rating. Like landlords, many franchisers make decisions about licensing new franchises based on credit rating.

10. Higher Interest Rates

Even if you are able to borrow money, borrowers who are considered to be higher risk pay higher interest rates.

11. Loss of Basic Utilities

Utilities regularly check credit before beginning service. If you have been late making payments — especially utility payments in the past – you might be required to pay a deposit in order to get service.

12. Impact on Professional Licensing

The Fair Credit Reporting Act allows government agencies that regulate professions to use credit reports. This means that states can require proof of creditworthiness before issuing everything from medical licenses to doctors, to construction licenses to contractors.

13. Lack of Disposable Income

I am working furiously to pay down my home equity line of credit early, so I can achieve the peace of mind that financial independence offers, and save thousands of dollars in interest payments. In order to achieve this goal, I have cut out pretty much all varieties of elective spending. No eating out. No dry cleaning. No college classes. No new purchases beyond the absolute necessities, such as food and health care. While I spend part of every day feeling annoyed and inconvenienced by my lack of ready cash, I make an effort to realize that my situation is temporary. I will enjoy a better retirement because of the savings I am making today.

People with poor credit spend more on fees and interest and, therefore, have less money to spend on experiences that enrich their lives.

14. Increased Stress

When I was 20, I watched as a sales clerk cut up my credit card right in front of me. That experience scared me straight. I will do almost anything to avoid public shaming, including pay my bills on time. However, most people would rather struggle with the stress of debt than admit that they can’t afford something.

15. Poor Quality of Life

Debt can keep you from getting an education. It can keep you in an unhealthy relationship. It can keep you from getting a better job. Debt can keep you from fulfilling your potential as a person.

Every journey starts with a single step, including the journey towards creditworthiness. Even if you can only afford to pay down an extra $10 a month on your credit card debt, that is $10 you are spending to make your future better and more financially secure. Don’t you deserve a better future?

Article by Max Wong

You can view this article on the Daily Finance website here:  Daily Finance


Need help raising your scores and getting the best credit consulting there is to offer? Look no further. Check out what National Credit Solutions can do for you. See Our Services.


Fight Debt Collectors – Mike’s Story

Fight Debt Collectors – Mike’s Story

Fight Debt Collectors – Mike’s Story

This is a story about a Client named Mike, who joined our program with the goal of purchasing a home. One of the things that was standing in the way of being approved for a mortgage was a Default Judgment for $1125 filed in February 2010.  The plaintiff in the judgment was an apartment complex that Mike had lived in. Mike had given a 30 day notice instead of the required 60 day notice, and he left the apartment owing the last month’s rent of $1,125.  Mike understood that the Judgment had to be paid in order to gain approval for the mortgage. The problem is, he couldn’t get the apartment complex to accept payment.

To make things even worse, the apartment management company also sent this account to a collection company in an attempt to collect.  A few months ago, this collection had grown to $8,500. Yes, what began as an $1125 debt had grown by over 700% in 5 years!  How is that even possible?

While Mike could pay off the Judgment (if he could find someone to accept the payment), he couldn’t afford to pay $8,500 on a $1,125 debt.  So, Mike contacted me to see about possibly settling the collection account.  He and I developed a strategy for him to discuss a settlement over the phone (recorded, of course) with the collection company.  It was agreed that when Mike spoke to the collector on the phone, he was to offer a settlement in the amount of $700 on the $8,500 collection account.  I personally felt this was a fair offer for two reasons: 1) The debt was now approximately five years old and outside the Statute of Limitations of four years in Texas; and 2) The collection account was scheduled to be removed in approximately two more years.

Mike made the call and spoke with the collector to see if the collection company would be willing to settle the debt for $700. The collector scoffed at his offer and said there was no way they would be willing to offer him that type of settlement. Mike then attempted to give him the reason for the $700 offer, mainly that the account would be removed from his credit report in less than 24 months.

The collector replied, “You know, you may be exactly right. On your credit bureau, it might fall off in a couple of years. However, you know you have a renter’s bureau too, right? You have a credit bureau, that’s what you’re talking about. You can dodge the debt until it falls off your credit. Were you aware you have a renter’s bureau too?”

Michael: “It’s seven years, no matter what.”

Collector: “No, not seven years, no matter what. It could fall off your credit bureau tomorrow. It will stay on your renter’s history indefinitely, until it becomes a problem for you and you have to pay.”

Because the collector misrepresented how long the account can remain on a Renter’s Report, after I gathered the evidence and assisted on the case, our FDCPA attorney sued the collection company.  Long story short, they agreed to forgive the $8,500 debt, remove the account from his credit file, and paid Mike $750 which he used to settle the judgment!

This is one of the things we do at National Credit Solutions!  We fight debt collectors!

If you are currently receiving collection calls or voice mail messages, don’t surrender!  Give me a call or email me.  There may be hope.

Thank you,

Ron Reed
FDCPA Compliance Director
National Credit Solutions
(214) 504-7102 DIRECT

“Is this collection legitimate?”

***Update: Our Client, Rhonda, received $1,500 in her pocket, plus had the $2,000 debt forgiven, as well as saving the $2,000 she would’ve paid the collector!

Legitimate Collection? 

There aren’t too many jobs out there that allow you to help your Clients and lots of times not only save them money but make them money.  Case in point:  A couple of weeks ago, I’m working on several cases of FDCPA violations for some of our clients.  (By the way, FDCPA stands for Fair Debt Collection Practices Act, the set of laws that govern Collectors and how theyLegitimate Collection? communicate with debtors.)  One of my duties at NCS is to talk with Clients who have been receiving calls and/or voice mail messages from Debt Collectors and determine if there may be violations of the FDCPA and if the collection is legitimate.  If there appears to be a violation or the debt is not legitimate, then I begin to gather evidence and put a case together.

Anyway, as I’m working, an email from one of my clients, whom I will call Rhonda, appears in my inbox.  She had forwarded a collection offer that she had received by email and said, “Hi Ron, is this collection legitimate? Should I pay it?”  The offer was for the settlement of a debt totaling approximately $9,000.00 for only $2,000.00.  A great deal, right?  Problem is, Rhonda really didn’t know any of the details about this debt.  I suggested that we do a little research and get some information before paying.

Well, we did some fairly extensive research and, as it turns out, Rhonda came to the realization that the debt is probably not hers.  Not only that, in communicating with the Collection company, there were several violations:  1) No Mini-Miranda statement on at least one call and one voice mail message,  2)  A veiled threat of legal action, and 3) Stating that when paid the account would be removed from her credit report.  The problem with #3 is, the account isn’t on her credit report and the debt is so old that they can’t put it on anyway.

Rhonda admitted that, had I not cautioned her to do some research before paying, she would’ve gone ahead and paid the debt and been out the $2,000.  Okay, so saving her $2,000 is pretty cool, but check this out:  I turned the information that Rhonda and I had gathered over to the attorney that we refer our FDCPA cases to.  He has now filed suit in Federal Court on Rhonda’s behalf for the above-mentioned violations!  So hopefully Rhonda will soon be receiving a settlement from the Collector–all at no cost to her!  I will update this blog as soon as I know the results of the lawsuit.

See why I love my job?

Best Regards,

Ron Reed
FDCPA Compliance Director

National Credit Solutions
214.504.7102 DIRECT


NOTE:  How do you know if the collection calls or voice mail messages you are receiving are legitimate?  Give me a call at 214.504.7102 or email me at R.Reed@NCS700.COM.



Debt Collectors Contacting You?

Are Debt Collectors Contacting You?

If Debt Collectors are contacting you, National Credit Solutions is here to help. Illegal collection attempts can result in debt collectors paying you for violating your rights, and possibly canceling and deleting the debt from your credit file—all at no cost to you!    Are you getting Voicemail Messages that sound 100% Legal?


Actual Case Results from some of our Clients:

Here are some actual results of the work we do while assisting our Clients in fighting back against bad debt collectors, at absolutely no upfront cost to them. The amounts shown are the approximate amounts received by our Clients:

JEREMY – One collector called Jeremy a “deadbeat” and threatened to sue him. Another agency threatened to sue Jeremy and have him served with the lawsuit in front of his co-workers. RESULT: 2 Cases with approximately $7,500 in his pocket.

JOHN – One collector left a voice mail message threatening a lawsuit. Another collection agency threatened to garnish John’s wages without judicial proceedings. Another agency implied that it was a law firm. RESULT: 3 Cases with approximately $10,000 in John’s bank account!

JULIA – Received a call from a Debt Collector who implied that he was a ‘process server’ and that a lawsuit had been filed against her. RESULT: Approximately $3,300 in Julia’s bank account, plus forgiveness and removal of the $11,000 collection account!

TAMMY – Tammy had disputed an account on her credit report that she had paid but still showed a balance. The Credit Reporting Agencies, Original Creditor, and Debt Buyer ignored her disputes. RESULT: 1 Case with approximately $8,500 paid to Tammy!

MIKE – When the collector and the collector’s supervisor both told Mike that his $8,500 apartment collection would show up on his Renter’s Report indefinitely, they had violated the Fair Credit Reporting Act and the Fair Debt Practices Act. RESULT: Forgiveness of the $8,500 apartment collection, removal from Mike’s credit report and $750 in his pocket to pay the $1,100 judgement from the owner of the apartment.

JOHN – After a lot of digging, we found four lawsuits for this client based on illegal collection practices that were being used against him.  One collector called an ex-wife and discussed the debt and two others failed to inform John that the calls were from a debt collector.  While one of these claims remains open, three claims have resulted in a net payment to John in the amount of about $2,500, cancellation of approximately $5,600 in debts and removal of two items from his credit report.

These are just a few of the dozens of National Credit Solutions’ Clients that have received not only settlements but also peace of mind! There are many more examples just like this.

 If you are currently receiving calls from a Debt Collector:
  • Have you been threatened or harassed by a collector?
  • Do Collectors call relatives, co-workers or neighbors?
  • Do they give you the Mini Miranda statement (purpose of the call is for the collection of a debt and any info obtained can be used for that purpose) each and every time they communicate with you by phone, mail or email?
  • Do Collectors call you before 8:00 AM or after 9:00 PM local time?
  • When Collectors call, do you speak with them?
  • Do you currently have voice mail messages from Collectors?


If you’ve received collection calls or voice mail messages that are similar to these calls and would like more information, please give me a call at (214) 504-7102 or by email.


Ron Reed
FDCPA Compliance Director
National Credit Solutions
(214) 504-7102 DIRECT


*Some of our Clients have been paid and/or had items removed from their credit report by the collection agencies that harassed them.

How your student loans affect your credit score

How Student Loans Affect Credit Scores

(Dallas, TX – National Credit Solutions) It’s a fear that most recent grads have: how will my thousands of dollars in student loans affect my credit score?

The fact is, student loans are loans: they can be beneficial to your credit score if you pay them off on time, or they can be harmful if you don’t.

According to FICO, a student loan is treated like an installment loan (mortgage or car note). The good news is that most credit bureaus treat installment loans differently than revolving credit; they look more at your revolving credit (such as how you pay off your credit card bills) than at your installment loans.

The second piece of good news is that student loan deference of forbearance will not hurt your credit score. Deferment or forbearance allow you to put your student loans on hold, whether because you lost a job or suffered another economic hardship. You can defer these payments anywhere from a couple months to a couple of years without damaging your credit score. Student Loans

Many people are under the impression that student loans can only harm their credit score. This is far from true, however, as student loans help you establish credit history – an essential step in building good credit. Your credit scores can actually improve because of your student loans, as you now have an installment loan on your credit resume, and this adds to the diversity of your credit history. The more types of credit you have, the better your score will be (provided you pay off your debts on time).

Although you may have accrued thousands of dollars in student loans, remember that you used this money as an investment in your future. Instead of stacking up debt with superfluous credit card charges, you built up a “good” type of debt. While your credit score does not reflect this “good credit”, individual banks often take this into consideration when deciding whether or not to give you a loan. Since you took out these loans for a productive purpose, most banks view student loans in a positive light.

So despite what most people assume, student loans can actually help your credit score. As long as you make your payments on time (unless, of course, you need to defer your loans for a short period of time), your credit will thank you for taking out those student loans and furthering your education. Not only can pursuing higher education give you a leg up in the job market, but it can also give your credit score a helpful boost that will help you down the road.

Millennials Are the Worst at Managing Debt

Millennials Are the Worst at Managing Debt

Millennials Are the Worst at Managing Debt

(Dallas, TX-National-Credit-Solutions) Millennials have had a rough entry into adulthood: not only have they struggled to find entry-level jobs in a tough economy, but they are also the worst at managing their debt.

Most Millennials (ages 19-29) have piles of student loans to pay off, shaky job prospects, and a poor understanding of how to properly manage their credit. Experian’s “State of Credit” study found that the average credit score of Millennials is shockingly low: 628.

This low number is surprising, considering that Millennials own an average of only 1.5 credit cards and carry an average balance of $2,700. While other generations have higher balances than these Millennials (the national credit card balance average for people 30-65 is $5,300), this younger generation has little knowledge of how to properly manage its debt.

Although Gen-X and Millennials are just as likely to make late payments or max out their credit cards, Gen-X has more assets and longer credit histories than the Millennials, which means that their credit scores do not suffer like those of Millennials.

Experian’s study also showed that Millennials are the most hesitant generation to accept loans, which is largely due to the unstable economy and the poor job market for young adults. Yet despite the fact that more young adults are avoiding borrowing money, their generation still finds itself burdened with debt and at a loss of good debt-management skills.

It seems as though many Millennials were never taught how to properly build credit or how to manage their debt so as not to damage their credit score. So if you are one of the millions of Millennials struggling with debt, here are three ways you can improve your credit score:

1) Get a Credit Card

More and more Millennials are avoiding credit cards, perhaps because they fear they won’t be able to control their spending habits. However, since you need credit history to have a credit score, it is essential for young adults to have a credit card. Even if you only charge a small amount to your credit card every month, you are still building good credit!

2) Pay your bills on time

This one might seem obvious, but many young adults are juggling new careers, student loans, car loans, and rent, so many of them decide that making a late payment now and then is acceptable. Unfortunately, this is not the case. Since Millennials have a short credit history and few assets, it is important that you pay your bills on time. Start budgeting your money to ensure that you can make your payments every month.

3) Choose transportation wisely

Don’t splurge on that expensive SUV that will eat away at your bank account. Instead, find a reasonable, affordable car or rely on public transportation. This will help you save money so that you can pay off your bills on time and keep your credit score strong.

Although Millennials are facing a tough job market and are wary of borrowing money, it is important for them to learn how to manage their debt more effectively in order to improve their credit scores.

Smart Credit Decisions for Entrepreneurs – Business Credit

Smart Credit Decisions for Entrepreneurs – Business Credit

Smart Credit Decisions for Entrepreneurs

(Dallas, TX-National-Credit-Solutions) Without inventive young entrepreneurs, we would have no iPhone, no Facebook, no Starbucks, and no Disneyland. Thankfully, bright young thinkers still continue to take risks and dream big, but many of the most creative entrepreneurs still have trouble funding their startups. Here is a look at how entrepreneurs can make smarter credit decisions that will help them transform their ideas into reality:


1) Open a business credit card

Many entrepreneurs do not have a long credit history, which can be problematic when applying for small business loans. However, it is crucial to start building good credit as soon as possible to further your business. Once you have enough personal credit history to open a business credit card, create a separate account for your business so that you can start funding it with credit.

2) Don’t mix business with your personal life

While there are a few success stories where entrepreneurs have used their personal credit cards to build their business, this often causes more problems than not. Separating your personal finances from your business finances can save you a great deal of stress and endless headaches.

3) Create a cash reserve

It is a good idea to build a cash reserve in case of emergencies. Entrepreneurs often hit snags in their plans, and many have to fail a couple of times before they succeed. Don’t let this deter you from pursuing your ideas, though, just consider setting aside a certain amount of cash each month in case you run into a rough spot. This cash can help bail you out of debt that could (if left unpaid) wreck your credit score.

4) Be aware of your debt-to-income ratio

While ambition is one of the most admirable qualities of entrepreneurs, it can also lead them into tumultuous financial situations. Instead of being overly ambitious and optimistic about your new business, play it a little safer so as not to max out your credit cards and become burdened with debt. Keep your debt-to-income ratio low to avoid sinking your business.

Entrepreneurs need to maintain a good financial record for various reasons: to appeal to potential partners, to obtain a loan for business expenses, to start another business, and to attract investors. It’s no secret that entrepreneurship requires risk, but it also requires attentive financial maintenance and smart credit decisions.

5) Know what’s on your Dunn & Bradstreet report

Do you know how potential creditors view your business credit?  If not, it may be time to check your D&B report.  Dun & Bradstreet has a huge database of more than 140 million business records.  Similar to the Credit Report Agencies, Experian, Equifax and TransUnion, D&B is a data furnisher that is used by potential investors, lenders and business owners to determine the credit-worthiness of a business.  If you are the owner or authorized business agent of a business, you can obtain a Dun & Bradstreet Report and Score online for free.
FICO vs VantageScore

FICO vs VantageScore

FICO vs VantageScoreFICO vs VantageScore


(Dallas, TX-National-Credit-Solutions) When discussing credit scores, FICO – the credit scoring company, Fair Isaac Corporation – always comes up at some point during the conversation. Because of FICO’s dominance in the lending industry, fewer people know about VantageScore, a second credit scoring company that started as FICO’s rival eight years ago. Both FICO and VantageScore provide lenders with credit scores, but each one takes a different approach to calculating the scores. Here is a look at some of the biggest differences between the two credit scoring companies:



1) The Scoring Models

FICO’s scoring model consists of combining various elements of your credit history to obtain a score between 300-850. The higher your credit score, the less of a risk you are to lenders, which means you will qualify for better loans, top cash back, and more reward cards. If your score is on the lower end of the scale, you are considered a high-risk borrower, and therefore you may have trouble getting a loan.

The VantageScore is largely based on a 24-month review of your credit report, which includes components similar to that of the FICO score – payment punctuality, your available credit, the amount of debt you have, etc. One of the most noticeable differences between FICO and VantageScore is the scoring model: VantageScore combines a three-digit number ranging from 501-990 with a letter grade to reflect your credit standing. For instance, if you have a VantageScore of 850, you will be assigned a letter grade of “B”, and if you have a score of 920, you will have an “A”.  Similar to the FICO scoring system, a high credit score is desirable, and a low score means you have poor credit.


2) Scoring Requirements

It shouldn’t come as a surprise that to have a credit score, you must have some sort of credit history. FICO requires you to have at least six months of credit history and at least one account reported in the past six months. VantageScore, one the other hand, requires only one month of history and an account reported to the Credit Reporting Agencies within the last two years.

So what does this difference mean for credit card users? It means that VantageScore can score millions more people, which can be especially beneficial for those who have just recently started to build credit or those who have not used credit recently.


3) Late Payments

Late payments can damage your credit score, which is why it is crucial to always make your payments on time. That being said, VantageScore looks at the various types of late payments differently. If you are late on your mortgage payments, your VantageScore will be negatively impacted more than it would if you made a late payment on a car. Alternatively, FICO treats all late payments similarly; so paying your mortgage late won’t devastate your FICO score as much as it will your VantageScore.

Although many experts see great benefits in the Vantage scoring system, most lenders still rely on FICO. Since FICO remains #1 on the credit scoring scene, you should focus more on your FICO score than your VantageScore. However, it is a good idea to ask your lender which scoring method they use so that you can determine what type of rate you may qualify for before applying for a loan.