The shocking truth about credit scores and why Americans are losing money

Do you manage a company? Are you planning to buy a new home or car? What about trying to put money for investment or saving? All this is related to your credit, which can be in the midst of a “unprecedented” crisis.

Your balance is “the cornerstone of any wealth at all,” according to Micky Smith, influential in personal financing and the founder of its credit restoration company. Today, the Americans urge to wake up and realize that they are more likely to “increase an exaggerated payment” for things because their balance is not the place where it should be.

“It is not only something in your face. It is something you should search for. I think most often people only want to avoid the topic, because if they do not understand how to fix it, it can be above the top, and they go, so that you can only avoid it and leave it alone.”

“The more dangerous it is to look at paper, everything more expensive costs you. So, you want a car, and it will cost you $ 200 per month. If you want a mortgage, it will cost you perhaps $ 500 a month.

Tax expert

In the fourth quarter of 2024, the consumer family debts in the United States amounted to the highest level ever at $ 18.04 trillion, as credit card balances rose to $ 1.21 trillion, according to the FBI in New York.

Credit restoration expert Micha Smith explains how your degrees can remain shattered and “exaggerated payment of everything.” (Foxbushing)

In addition, April 1 Survey from Experian I found that nearly one of every four adult people say they currently have uninterrupted debts.

Smith pointed out that during the Korona virus’s pandemic, the artificial motivation kept confident and spending.

“What happened in 2020 really caused a major shift. So we were seeing, true, what was happening was that all of these money was pumped into the system,” I noticed that interest rates were less than they were ever. What we saw was the economy very strong, and the atmosphere was so hot that, at any time when anything hot stretches, properly, in the end he would eventually go. “

“What we see is that people are now in debts more than we have seen in history … So many people live a salary in salaries, and now we see that just people face the most difficult time to get out of this hill of debt,” she continued.

Smith, who was called “credit doctor”, confirmed that the missing payments remain on credit reports for seven years, causing “catastrophic damage”. Other joint credit errors include not to track the accumulation of student loans and their failure to quickly identify the report such as new accounts, difficult inquiries or possible fraud.

“Thirty -five percent of the entire credit degree comes from the payment record. So the lenders are true, when they evaluate you as a possible borrower, and they determine the type of interest they will offer you, and they look forward to seeing your payment date.”

She warned, “And if you have Litts, and if you have a defect and you lose payments, not only your degrees collapse, but you look very risky for lenders.” “It is likely that the participants in the subscription will decline because the last past payments are an indication of a problem.”

“You must shoot 760 plus because anything less than that, you do yourself with taxes. You increase the payment of everything.”

“I feel that we have been truly prepared for failure during Covid because a lot of money was pumped into the system, and people have been pumped to the extent that it was just wrong inflation, it was a false feeling of safety. Now that the burden of pushing all our bills has become and pushed them at the appointed time really, I feel that we are currently putting in its position at the present time, as it will be difficult.”

The biggest wrong belief about credit is that the debt payment will automatically reinforce your degrees.

Credit card bonuses are about to fade, and to guess who blames?

“I would say perhaps at least half of our customers think that,” I paid this, I had a humiliating element in my credit report, I paid him. Why is my balance not better? Why didn’t it escape? “

“Most of the time what you see is to revitalize the debt … The more influential, the more effective in the degree of credit. So the problem is that you have a 5 -year -old group, let’s say it is $ 100. It causes very great damage to the credit group, the more the number of damage it precedes, the more Zore group. Now suddenly your degrees fall.”

“They pick it up as a completely new group. Now what will happen, it will remain on another seven -year card report.”

Smith recommends that you maintain a 760 or higher credit degree, and you are always aware of what your degrees are at any time, and use daily updated credit institutions such as Experian and Credit Karma.

She said: “You cannot track what you cannot measure. The amount of people who do not know how their credit seems amazing … You must shoot 760 more than that because anything less than that, you do yourself harm.” The first thing you have to do is to be aware, and if you see something in your credit report you do not realize, it seems that it looks little, then this is when you want to bring a professional. “

Smith admits that building strong credit is much easier than repairing bad credit, but many consumers do not know that up to 80 % of the degrading elements are not accurately, which violates the law to report fair credit and can be corrected to restore your degrees.

“This is what we are chasing to try to help clean these things, because, again, causes greater damage than it should be already. Thus, cleaning them although it can be a great challenge because you oppose credit offices, which are profitable entities.

Given the ups in the recent securities market that create panic among ordinary investors and Americans, a credit expert sympathizes that it could be a “stressful” time, but it is more important than ever to avoid late or superior payments of any kind.

“History always repeats itself. So we will get out of this and will recover things and will recover very well,” Smith encouraged. “So, when it comes to this aspect of things, just let them be, wave ride, right? Don’t worry. Don’t sell everything.”

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She added: “With credit at this stage, the biggest thing we see is please, please, please just make all your payments on time … in these types of markets, that is, your surplus, this is the time for you to put money.” “I want you to know that there are many amazing professionals who want to see you succeed and will help you succeed. And don’t try to do it yourself.”

“You are just a patient like your secrets. Don’t keep this for yourself. You need to talk about it. You need to share it with someone who can help you find a solution.”

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