When Is A Credit Score Not a Credit Score?

When is a credit score not a credit score?

Many times our clients are anxious to tell us about their credit scores – which seem to be available everywhere. We encourage consumers to obtain their credit reports on a regular basis, if for no other reason to make sure everything on it is accurate (that is your legal right, by the way)and to make sure nobody else has established credit under your name and social security number.

There are many places to get your credit report for a low fee or no cost at all. Many times the reports are free, but the consumer is offered a credit score for a fee.

Here is a key distinction: ANYONE can offer a “score,” but do not rely on it.

The scores offered to the public and lenders can be very different. For example, FICO has copyrighted its scoring range of 300 to 850. There are plenty of folks who will sell you a score, but they may not be FICO. And even if it is, the actual score number may different because there are distinct “scorecards” in the FICO model depending on the reason the credit report is being pulled and maybe who is pulling it.

Does this mean you should not care about your report or score? Absolutely not! But focus on what is IN the actual report, not the score.

And take the time to educate yourself on what the consumer credit reporting & scoring system means to you – or find a reputable professional to explain it to you.

We’re ready to help you through this process! Call us, email us, or set up a time to meet with us.

5 Reasons Why You Should Understand How Your Credit Works

Ignorance is not bliss, it’s actually very expensive.

Imagine a big warehouse full of all kinds of information about you. Now imagine three of them. (Just so you know, these “warehouses” are data storage facilities – and are updated constantly.)

Now whenever you wish to make a major purchase, strangers run your information through a mysterious mathematical equation. Based on the results, more strangers make decisions that can negatively affect your family.

This happens every day to you and folks everywhere. To not understand how this works – and what to do about it – invites trouble.

Here are five reasons you should understand and take action:

Reason #1: Your access to credit could be limited and very expensive.

Reason #2: You could likely pay higher insurance premiums than your neighbors (because your insurance company has convinced regulators that people with lower credit scores file more claims.)

Reason #3: There are some jobs you won’t be able to get with bad credit.

Reason #4: Landlords, utilities and cell phone companies will require substantial cash deposits because they think you are a higher risk not to pay.

Reason #5: Most importantly, your children and grandchildren (who “never listen”) definitely WATCH what you do! Why not show them how to live a better quality of life by improving your’s? That is your true legacy to them

The good news is that you can be in control – and improve your situation. Get started today. Call us, email us, or make an appointment to meet with us. We’re ready to help. 

Default Judgments

Showing up is half the battle!

Many of the clients we help at Phoenix Credit Consultants have credit problems because of something the legal system refers to as a “default judgment.” In simplest terms, a default judgment is what happens when someone who has been sued in court, for example by a “creditor” does not show up for a scheduled court appearance.  For that creditor, winning by default is like winning by “forfeit” in a sports competition.

When this occurs, the court will frequently give the creditor “whatever they want” and award attorneys’ fees, court costs and whatever amount of interest the creditor claims they are entitled to. If the person who got sued isn’t present, the court has no way of knowing their side of the story, the court can only “assume” that the creditor is entitled to recover everything that they claim they are entitled to recover. The attorneys fees, court costs and interest may be something that the creditor is able to lawfully recover, but sometimes there is no legal “right” to such recovery.

Why don’t people who are sued by creditors show up to court?

  • Sometimes, people are not even aware that they have had a lawsuit filed against them. Typically, the court will require that the creditor show the court that they have provided adequate notice of the filing of a lawsuit as well as the date that said suit is set for hearing, prior to the entry of a judgment by default.  This notice is provided through what the law calls “service of process.”
  • Even if a creditor makes a good faith effort to comply with the court’s rules for service of process, it is possible that the person who was allegedly served with notice never gets such notice.
  • A lawsuit and summons to court might be left with a family member who neglects to forward the lawsuit on to that person.
  • Notice can sometimes be lawfully and properly provided by mail that, for various reasons, never makes it to the person who is being called to court.
  • Court is held during most people’s “working hours” and it is sometimes difficult, if not impossible, for them to take the necessary time off from work in order to appear in court as scheduled. This is especially true if the attorney representing the creditor who is suing them asks the court that the case be continued repeatedly.

What do I do if I find out that a Default Judgment has been entered against me?

You, or an attorney, may be able to seek relief from the default judgment. It is usually best that you seek such relief as promptly after the entry of  the judgment as possible. It is sometimes necessary that you provide the court with a reasonable excuse, or “good cause” for your failure to appear in court or otherwise respond to the lawsuit.

You, or an attorney, may request that the court “vacate” the default judgment against you and provide you with another opportunity to respond to the lawsuit and/or show up in court at a new court setting.

You may be able to negotiate a settlement of the judgment that is more favorable to you than the default judgment that has been entered, either in the amount of the judgment or in the terms under which the judgment is to be paid.

What can Phoenix Credit Consultants do to help me if I know or if I am concerned that a default judgment has been entered against me?

Phoenix Credit Consultants can help you to determine whether or not a default judgment has been entered against you in a Court of Law. A default judgment will frequently show up on your credit report. We can help you with the process of obtaining a copy of your credit report, and further can help you with the process of deciphering the information contained in that report.

We can provide you with important guidance as to how to address default judgments, along with other negative matters that may appear on your report.

Give us a call today!!

877- 235-6150 (Toll Free)
314-429-2040 (local)
Contact us on the web at  www.123pcc.com
Facebook – www.facebook.com/PhoenixCreditConsultants