CREDIT RESTORATION
Your Credit Score
Your credit score is not just a random number. It represents your ability to receive loans, buy cars and homes, and potentially saves you money on insurance, interest rates and various other fees. Essentially, a good credit score could pave your way to financial freedom. Conversely, a bad credit score could:
​
-
Make it difficult to get approved for loan
-
Cause loans to have higher interest rates and restriction
-
Decrease your ability to rent apartments and homes
-
Block you from obtaining jobs or certain security clearances
-
Increase prices on cell phone plans and insurance premiums
-
Bring stress into personal relationships
-
Keep you in debt
Your credit score paints a picture of risk with creditors. Lenders, insurers and even employers will make judgments and decisions based on those three number. Car loans, mortgages, and credit card rates all cost more when you have a subprime credit score. This puts additional strain on your budget.
​
Common Types of Debt
Americans are living beyond their means. The average American household carries $137,063 in debt, according to the Federal Reserve's 2017 Annual Report. Yet the U.S. Census Bureau reports that the median household income was just $59,039, suggesting that many Americans are living beyond their means.
Payday lending is a controversial, yet widely used component of the consumer financing industry, with about $40 billion in short-term loans extended to cash-strapped working individuals, according to the Community Financial Services Association of America.
A payday advance is a small, unsecured short-term loan, normally between $100-$500 with typical interest rates between 15-20 percent and maturities of about 14 days. The idea behind this lending is that people who need fast cash can use their expected payday earnings to immediately pay back the loan.
However, because of the short term of maturities, APR for payday loans can be anywhere between 400 and 700 percent and, if not immediately paid in full, individuals can get themselves into serious financial trouble.
The best measure for delinquent or underreported tax payments is in the "tax gap," calculated by the IRS. This number represents the difference between the amount of tax that taxpayers owe in a given year and the amount that is paid voluntarily and on time. The IRS's most recent total available number, $345 billion, is from tax year 2011, which was released in 2016.
The report also found that individual income tax is the single largest source of the annual tax gap. According the IRS measurement of delinquent collection activities, in the years 2005-2015, the IRS collected an average of $29.3 billion from delinquent filers per year.
Paying for college is a major expense, and according to the US Department of Education, total outstanding federal student loans is $556 billion. According to the College Board, federal loans account for 77% of all education loans.
Non-federal, private-sector loans are not included in the total, as these types of loans are offered by numerous institutions and there is no reliable measure of total private education loans outstanding. However, according to College Board estimates, in 2007-08 the total amount of student loans disbursed by private institutions totaled $17.60 billion, up 592% from the 1997-98 total of $2.54 billion.
The volume of private loans today is a relatively recent phenomenon. In comparison, last year Federal education loans totaled $66.81 billion, up 70% from totals 10 years earlier.
Often referred to as a home equity line of credit, or HELOC, this type of debt differs from a conventional home equity loan in that the borrower does not receive a lump sum of money, but instead is given a credit limit that can be drawn from during a given period, and repayment is made on any amount drawn, plus interest. According to the January 2017 Economic Report of The President, revolving home equity credit outstanding in the United States amounted to $577.8 billion.
Revolving Consumer Credit Outstanding
According to the Federal Reserve Board of Governors' most recent G19 report, the total amount of revolving consumer credit outstanding tops $953 billion. The largest component of this type of debt arises from credit cards, which CreditCards.com estimates comprises 98% of revolving consumer credit.
Major Holders (in billions)
-
Pools of securitized assets: $440.3*
-
Commercial Banks: $382.0
-
Finance Companies: $55.8
-
Savings Institutions: $39.0
-
Credit Unions: $32.2
-
Non-Finance Businesses: $3.8
*Outstanding balances of pools upon which securities have been issued; these balances are no longer carried on the balance sheets of the loan originators.
​
How We Can Help!
When consumers have made poor financial choices and damaged their credit score, they are on their own to fix it. There is no federal bailout or fund that will rescue them. That's where Credit Sense comes in. We can assist you with reestablishing your credit health, and give you the tools you need to maintain a great credit rating.
​
Let us help you obtain a better understanding of your credit report, credit history, credit score, and show you how to improve your creditworthiness.
Through a third-party affiliate, Tax-Unlimited helps monitor the scores submitted by the credit bureaus to ensure that only accurate and up-to-date information is reflected.
​
We find ways for you to reduce interest rates, pay off loans and unsecure debt in a timely manner - which helps raise your credit scores.
​
Your credit worthiness is often based on your debt-to-income ratio. Tax-Unlimited will help you budget your money to increase your scores.
Unlike most companies that make you pay monthly fees for an indefinite amount of time, we offer an Unlimited Service and you just pay us once. This means that we work on every single negative Item on your credit report (rather than just a set number of negative items per month).
You receive results much faster than those other companies that charge you monthly fees for credit repair. 90% of customers see a 100 Point Increase in 30 Days. Our program takes an average of 15-30 days for completion whereas others take 12 months to 2 years.
​