Families and Identity Theft

When we imagine an identity thief, we tend to imagine a complete stranger. According to an MSN article, "the Federal Trade Commission, which broke the news earlier this year that nearly 10 million Americans were victims of identity theft in the last year, found that 9% of victims identified the thief as a family member or other relative." Though still a small percentage, family identity theft is increasing on parental end and the children's end.

Some teens, not only steal credit cards, one 18 year old was arrested for stealing 28 checks from one of his friends' father. He forged his signature, stealing over $10,000. Though it is typical to imagine a teen running off with mommy and daddy's credit card, some parents have chosen a life of crime by stealing their own child's identity. Some parents have chosen to use their child's social security number to open accounts and commit fraud. Other parents raid trust funds and custodial accounts or sell saving bonds given as gifts. Many young people don’t find out until they apply for their first credit card or loan, years later. When they find out why they are rejected, it isn't due to lack of credit history; it's due to a bad credit history of unpaid accounts.

In order to prove that someone's identity is stolen, credit bureaus will require a police report, resulting in the offender's conviction and arrest. While parents find it in their hearts to justify stealing from their children, some sons and daughters can not find it in their heart to turn in their parents. Consequently, the child suffers with bad credit. They may also be forced into paying off loans and credit cards they never used a day in their life.

If someone you know or trust is using your information, consider:

Filing a police report. If your parent or friend is willing set your financial and emotional life ablaze and not turn themselves in, it is likely, they no longer care about your well being.

Keep monitoring your credit. Make sure that your parent is no longer trying to steal your identity and do everything you can to restore your credit.

Credit After Bankruptcy

Bankruptcy is somewhat of a taboo word for consumers and businesses. With bankruptcy, not only comes ruined reputations, but destroyed credit. Nevertheless, there’s always hope. With the right guidance, self control and patience, your credit can be repaired, even after an event as extreme as bankruptcy. Know the basics of repairing your credit.

Check out this article by MSN for some advice on how to financially bounce back after bankruptcy.

Innovative Credit Consultants are here with the latest news and credit tips. Check out icreditinc.com for a free credit consultation and more information on credit repair.

State of the Union Address Inspires ICC

Innovative Credit Consultants is inspired by President Obama’s State of the Union Address.

President Obama said, "If we don't take meaningful steps to take care of our debt it could damage our future."

Innovative Credit Consultants agrees that what you do or what you do not do impacts your future.

It costs more to do nothing about bad credit then to improve it.  It takes guts to face the debt you owe, but if Obama can do it, so can you. Innovative Credit Consultants is here for you, you do not have to face your credit alone.  If your credit report is inaccurate or if you need help understanding your report, you will benefit from the free consultation offered by Innovative Credit Consultants.

Take meaningful steps towards credit repair today with Innovative Credit Consultants. Don't wait any longer, your future is waiting for you and so it your credit report.  Innovative Credit Consultants is here to help you, visit icreditinc.com for more information.  Take the very important first step towards better credit and a better future and contact us today!

ICC Responds to the State of the Union Address

Innovative Credit Consultants is inspired by President Obama’s State of the Union Address.
President Obama said, “Let’s get it done!”

Innovative Credit Consultant likes this motto after all we are one of the few companies that do not charge for our time.

Reputable credit repair companies are charging up-front fees before they accomplish anything.  They also drag out the time it takes to repair your credit report because they will make more money monthly.  These so called top of the line credit repair companies take advantage of their clients.  Many people really do not understand the credit system, so big companies can make it seem intimidating and complex to get more money out of their clients. Innovative Credit Consultants gets it done and gets it done right.

We do not charge for our time because we respect yours.  Innovative Credit Consultants is productive and efficient and while we consider our service to be fast and easy we do not rush through our consultations.  We give you all the time you need and offer continued support throughout your credit repair process.

Let’s get it done together and boost your credit report.  Visit icreditinc.com today!

What is VantageScore?

The three major credit bureaus, Experian, TransUnion and Equifax are using a new credit report scoring system.  Each bureau follows the same formula to determine the new VantageScore.  But this does not mean your credit report would be the same from each bureau.  The information each bureau has about you may vary.  The purpose of the VantageScore is to help Lenders identify a borrowers credibility however some think this new system is consumer friendly.

The new VantageScore is sort of challenging FICO which uses a number system to determine your credit score. The three bureaus are treating this as a test period.

The new VantageScore uses numbers and letters to determine your final credit score. Your report would list a letter score and a number score.


The VantageScore System

901 - 990: A    
801 - 900: B
701 - 800: C
601 - 700: D
501 - 600: F

It is not yet clear if this new scoring system will have a positive or adverse effect on a lenders’ decision. There are many variations of credit scores because of the licensing cost to use FICO. This cost tends to be rather steep for lenders. Banks and other companies typically have a high volume request for scores which is why they are more willing to opt for a more cost effective solution. These other scores are typically referred to as non-Fico or even “FAKO” scores. However, the VantageScore system and is not a FAKO.

What is the difference between FICO and VantageScore?

 The FICO score ranges from 300 to 850 while the VantageScore ranges from 501 to 990. It is based on five variables, while the VantageScore is based on six variables.

The following chart compares VantageScore to FICO and shows the percentage of a variable and its role in the total credit score. Click the image below.

Innovative Credit Consultants will be following the new scoring system and will keep you updated on consumer progress.  Extra tip: Never assume a lender uses FICO. The VantageScore method could change your credit score by almost 50 points. Always ask your lender what scoring system they use

For more information about credit, visit icreditinc.com.  You can also talk to a credit repair consultant who can help you  boost your credit score.

FICO Credit Score

Do you know what FICO is? The FICO (Fair Isaac Corporation) Score is a mathematical equation used to evaluate risk and information contained in consumer files to determine one’s credit ranging in a number ranging from 300-850. It is formulated by the average of credit scores taken by the three national credit bureaus. Do you know what factors affect your credit score? Visit icreditinc.com for more information.

Not Paying Child Support Affects Your Credit

Did you know that not paying child support can affect your credit? According to www.essortment.com, if you do not pay on time, the company can report you to a credit bureau, potentially lowering your credit 20 to 30 points.  If you have fallen into this situation, get the advice you need. Visit icreditinc.com for a FREE consultation.

Transferring Balances

In the last post we mentioned transferring balances as a way to lower your debt payments but many people don't know the best way to transfer balances, even less, what transferring a balance is. Take a look at this article to learn more about transferring balances.

Types of Credit Cards

The days of credit cards used to be so simple. Now, with all the options and perks available with a myriad of cards, it is hard to sift through the complexities in order to obtain the perfect one to suit your needs. Below, is a list of the various types of credit cards available to you. Take a look at this article to understand the difference between them all.

Standard Credit Cards
     *Balance transfer credit cards
     *Low interest credit cards..

Credit cards with rewards programs
     *Cash back credit cards
     *General reward points credit cards
     *Hotel or travel points credit cards
     *Retail rewards credit cards
     *Gas cards with points or rebates
     *Automobile manufacturer rewards cards
     *Home improvement rewards credit cards

Airline mile / frequent flier credit cards
     *Airline-specific credit cards
     *Generic airline miles cards

Bad credit and/or credit repair cards
     *Secured credit cards
     *Prepaid credit cards

Specialty credit cards
     *Business credit cards
     *Student credit cards

Shopping!

Tis the Season to shop and worse, create excuses to shop.  Reviewing your finances, creating a budget and following a shopping plan that falls within a budget is the best way to avoid Post Holiday Regrets.  We understand many people want to buy for others and sales make it seem ok.   But think ahead to after holiday season and the consequences of spending.  Don't max out your credit cards, it feels good now but horrible later.  Your credit needs you to be frugal too!

Good luck and don't over spend!

5 Words Never to Say to Your Lender

With many lenders getting bought up or going out of business, the standards for obtaining a loan have gone up tremendously. One can't even hope to obtain a loan with a credit score under 750. Other factors can contribute to the denial of your loan request. These are the five words NEVER to say to your lender: 

Desperate
Unemployed
Entrepreneur
Back Taxes
Gambler

Take a look at this article from Walletpop.com explaining why these words are taboo to lenders' ears.

Black Friday

There are many sales that go on during the year, but perhaps Black Friday is the most popular day to shop for good deals.

It is at this moment we all look at prices and spend and charge because the deals are good...but it does not mean the person spending can afford to spend.

If you can afford to shop take advantage of the sales, if you can not afford to shop don't dig a deeper hole and be suckered into a good deal that is ultimately bad for you.

Don't run up your credit cards this black Friday, the first is around the corner which means we will all have bills to pay already for last month!