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Great Tips and Advice for Managing Your Money

Do you have bad credit?  Have you ever opened a credit card or taken out a single loan with the intent of improving your credit score?  That seems to be an advise that is heard constantly.  Yet by itself, it may not do as much “magic” as you hopped.  It is possible to have a good credit history and yet a not so good credit score.  Many of our customer have bad credit and take out Personal Loans with us to help improve it.  For that reason, I found an article from a May 16, 2019, Experian’s Blog that addresses this seemly contradiction and gives some pointers that my help.  Below is the article.  You may also read it at

"My credit report is great, but my scores aren't. What's going on?"

While this sounds like a riddle, it's a reality for many people. The reason for the disconnect: Your credit report might not be as attractive as you think it is. Since credit scores are created from the information that appears in your file, those numbers will be low if the data isn't quite right. Here's how and why your credit report may seem good to you, but could translate into a bad (or even nonexistent) credit score.

What Makes Up a Good Credit Report?

A good credit report is one that contains evidence that you've borrowed and repaid money responsibly with several lenders. Specifically, that you: 

  • Use a variety of credit cards and loans, and have done so for a few years 
  • Always pay your bills on time
  • Have repaid loans in full
  • Consistently carry over little, if any, credit card debt

Just as important, there a few line items that are absent from a good credit report. These include:

  • Defaults
  • Charge-offs
  • Collection accounts
  • Liens
  • Judgments
  • Bankruptcies

And while you do have to apply for credit products to get them, you don't want your credit reports to indicate a flurry of applications in a short span of time, since it could be interpreted as a sign that you're desperate for money.

When your credit report only lists plenty of appealing activity, you appear to be a low-risk credit customer—and your credit scores will reflect that. That's because past and present behavior is a predictor of future behavior.

What Is a Good Credit Score?

Credit reports are valuable because they show a detailed overview of what you've been doing with loans, credit cards and other debts. But for a quick mathematical snapshot, credit scores come into play. Credit scoring companies take the financial information from your credit report, enter it into their scoring model, and spit out a three-digit number that indicates to lenders what kind of risk you pose as a borrower.

There are a number of different models, but the most common are the FICO® and VantageScore® models. Both range from 300 to 850, with higher numbers being preferable. For example, in the FICO® scoring range, scores between 740 and 850 are tops. Learn more about credit scoring ranges.

Although the scoring models assess credit report information differently, the same general rules apply: As long as you have an established pattern of on-time payments with a mix of credit products, a low credit utilization ratio (the amount you owe compared with the amount you can borrow) and no visible credit problems, your scores should be on the high side.

How Do I Know if My Credit Report Is Hurting My Scores?

There are a few types of credit reports that might look good to you on first glance, but actually often translate into poor scores.

  • The good . . . and the bad. The first type of report lists some perfectly managed accounts—but also some negative activity, like late payments, collection accounts and credit card balances that are close to the credit limit. These negative line items can overshadow the positive ones, sinking your scores.
  • Inaccurate reports. Undiscovered mistakes or fraudulent activity may also be in your credit file, hurting your scores. Pull your credit reportson a regular basis to check that all the information is correct. This way you won't be blindsided by scores that are at the bottom of the scale when they should be at the top.

If you find fraudulent activity in your report, dispute it with the credit bureaus and consider putting a security freeze on your file if the activity is recent or prevalent. Once the negative information is removed from your report, your scores should see a bump.

  • Not enough credit activity. The other type of surprising bad credit report is the one without enough information in it, also known as a "thin" credit file. While you may think your credit is stellar because you only have one credit card and manage it responsibly, having just one account in your credit file is actually a negative to lenders considering you for credit.

The reason why is data is food for credit scores. And if you only have one account in your file, you likely don't have a credit score at all, since the scoring models typically require at least five accounts to calculate a score. A lender won't know how terrific of a credit risk you might be because your reports and scores aren't proving it.

Your credit scores will also be low if the only credit accounts you have are very new. Building an impressive credit history takes time and a wealth of information.

Credit Scores Change Over Time

Another misperception about reports and scores is that they're static. If you've used an array of credit products and managed them all without a hitch, your scores may be high. That doesn't mean they'll stay that way—and they definitely won't if you stop borrowing and repaying.

Eventually a credit card issuer will close an inactive account, which will impact your credit utilization ratio. Remember, credit scores need sustenance, so you need to feed them with responsible credit activity. You may also not realize that a couple late payments will hurt your score, but they will. In fact, making credit payments on time is the biggest factor in calculating your credit scores.

If you have as many credit cards as you want and don't need any loans, you can still positively impact your credit. Add your cell phone and utility bills to your credit report with Experian BoostTM†. Then your credit report will show the type of data that is important to lenders: timely payments. They will be factored into your Experian credit scores, which could cause them to rise.

Clearly, you can have a bad credit score with what you presume is a good credit report, so ensure they match up. Just use a mixture of credit products often and responsibly, dispute errors, and deal with high or delinquent debts. In time your scores will be where they ought to be—and you can be certain about how lenders see your creditworthiness.

One selling point that we constantly advertise is being able to provide Bad Credit Personal Loans in case that some unexpected expense drains your bank account.  Typically, one may think of an unexpected expense as a really high utility bill or a car breaking down.  However, there are many other reasons for saving some money on set aside that is not to be touched by regular monthly expenses.  Below are some other reasons to have some funds saved for a rainy day.  I took these points from a blog from MoneyNuggets.  If you want to read their blog yourself follow this link

Lost You Job Or Your Hours Get Cut 

No job means no being able to pay your bills.  A reduction in hours is not as drastic a change.  But, with less pay will you be able to keep up with your standard of living?

You Get Promoted

This may seem like great news. But, what if you need to move for your new position.  Do you have the funds to pay for the move?

Income Tax Bill

We love paying taxes.  Just joking.  Don’t send us hate mail, please. 

You Need A New Car

Being able to make a deposit on a new vehicle will reduce the amount that needs to financed and thus lower your monthly car bill.

A Veterinarian’s Bill

If you have a pet, then you know how pricey this Veterinarian bills can get.  If you love your pet, best save some funds.

Your A/C or Furnace Breaks Down

If you are lucky they can be repaired by a technician.  Otherwise, you’ll have to replace it.


Depending on the size of your company there may or may not be coverage under FMLA.  If not, plan for the pregnant spouse to have to take some time off without having the regular income coming in.

Orthodontic Braces

These are very pricey and for some reason every dentist seem to recommend it for just about every child now a days.  Makes a me little suspicious.  But, best plan for that expense.

Mom/Dad Fall Ill Or Need To Attend A Funeral

If your elderly parent falls ill, you may need to take a trip.  Having funds to cover the plane flight would help a lot.  

Rent Goes Up

Once your lease is up, will you be able to afford a higher rent until you find a cheaper place?

Smart Phone Needs Replacing

Unless you are happy with getting into another 2 year contract with the phone company, wouldn’t it be great to be able to replace a lost/broken smartphone by just accessing money in your savings account?

Escaping An Abusive Relationship

It is sad, but it happens.  If you happen to be in an abusive relationship, savings some funds on the side will make it more plausible to escape it.

Hope this points have stirred some to start savings some funds for a rainy day.  If possible, do use a bank account that brings in interest so that you reap the benefit of that also.

Click on this link if interested in read more blogs related to finance and credit repair

No too long ago we were “blessed” with the experience of being phone spoofed, twice.  Somehow scammers were able to hijack out one of our offices phones and call unsuspecting consumers who never heard of America’s Loan Company.  These scammers would act as if they represented our company in attempt to get money from people.  We contacted the authorities, but, there is not much they can do.  Once someone falls for one of these scams the money will most likely never be recovered.  It seems that the best defense against these scammers is to understand their methods.

If you have fallen for one of those scams, you are not alone.  According to an Equifax blog dated March 20, 2019, ( you can read it by following this link in 2018 the Federal Trade Commission (FTC)’s most reported scams were Imposter Scams, Debt Collection Scams, & Identity Theft with an increase of 38% from the previous year.  The FTC takes complaints relating to “Fraud, Identity Theft, or other unfair or deceptive business practices”.  If you would like to file a complaint follow this link to the FTC site

So how are some of these scams performed?  What's their M.O.?

Imposter Scams

Ever gotten a phone from a “Pam from Card Holder Services”?  They go by different names not just “Pam”.  If you do, just hang up.  “Pam” falsely claims to represent some credit card company.  That’s how Imposter Scams work.  It seems, another “classic” is someone claiming to be from the Social Security Administration stating that the Social Security number has been suspended.  The ultimate end is to get your Social Security number and/or some cash to “reactivate” the number.  To protect yourself if you get such phone calls, hang up.  If it helps you be at ease, call the company or agency directly.  Just don’t call the phone that the scammer gives you.

Debt Collection Complaints

This one topped as number once in the FTC complaints from 2015 to 2017.  In these types of scams someone tries to fool you into paying for a debt that has been paid, canceled, or is not a debt at all.  One way to spot this scam is if the “collector” insist that the “debt” be paid by a method that can’t be traced, like putting money into gift cards or reloadable cards or wire transfer.  Also, if you don’t recognize the company for which the “debt” is being collected, contact the company directly and ask for proof that you owe a debt.  In addition, if you get “collector” threatening jail time for non-payment, that’s a clear sign that you are dealing with a scammer.

Identity Theft

According to the FTC’s Top Frauds of 2018 (see the report here “Tax-related identity theft was down last year (by 38%), but credit card fraud on new accounts was up 24%.”  This type of fraud occurs where some opens a credit account under your name.  Imagine the negative effect that it would have on your credit score.

I’m sure that there are other types of scams.  But hopefully being aware of these top contenders above will help some to stay clear.  If you are trying to repair your credit, you may find other Credit Repair Blogs at

Spring is around the corner and as people being so use up their early tax returns we expect to see an increase in the requests for Personal Loans.  Some of these loan applicants will unfortunately end up included in some kind of bankruptcy regardless of how much we try to identify the higher than average risk before loan approval.  Between bankruptcy attorneys advertising to have borrowers seek this way out of debt and consumers getting into more and more debt, it is very tempting for borrowers to use and sometimes abuse bankruptcy as a way to alleviate the pressures of debt.  However, is bankruptcy a great option if you are concerned about your financial future?  Ever wondered what are some of its negative effects?  To answer some of these questions, below is a blog from The Phoenix Group,  

Stated by credit repair companies in Dallas, bankruptcy had a negative stigma associated with it and most people resorted to declaring bankruptcy as an absolute last resort. However, today the stigma of bankruptcy has mostly gone away, and now it’s viewed as an acceptable and quick way to deal with debt.

Even with the stigma removed, however, you should strive to avoid bankruptcy at all costs because of the damage it still does to your credit and your financial and professional future.

Here are the adverse effects declaring bankruptcy has in store for you.

Credit Damage To say that bankruptcy nukes your credit is an understatement. Experts say bankruptcy can be a black mark on your credit that lasts for 7 to 10 years, which means getting any kind of unsecured loan is near impossible.

Not only does this black mark stay on your credit for an extended period of time, but if you do need a loan, the only option you’re likely to have are loan sharks who are going to charge you off the charts interest rates. Also, with a bankruptcy on your credit, you will even have a difficult time getting a secured credit card.

Lost Job Opportunities So, if having your credit destroyed for up to 10 years isn’t bad enough, consider the fact that many potential employers look at an applicant’s credit history before deciding to hire. According to,

“Unfortunately, while federal laws prevent discrimination in the workplace regarding race and gender, no such laws exist to prevent being denied a job due to poor credit history.”

And according to some experts, even if you have a stellar track record with previous employers and a high education, potential employers are likely to overlook these because of your bankruptcy, which paints you as a person who can’t be trusted or as someone who is irresponsible.

Strains Personal Relationships If you’re married or living with your partner and sharing expenses, your bankruptcy is going to affect your household finances negatively. This is likely to put a strain on your relationship if your significant other is pulling more of the financial weight than you’re able. And, as mentioned, it can take years for you to rehabilitate your credit to be considered in good standing and to where lenders will take the risk, and many people can’t or don’t want to wait that amount of time.

You Still Owe Money Bankruptcy doesn’t discharge all of your debts, and if you owe child support, alimony, or tax debts, you’re still on the hook to pay those. So you will still get mail from debt collectors like Ad Astra Recovery Services and GC Services to name a few. Also, student loan debt and income tax debt will have to be paid back unless you can make a case to the court as to why you shouldn’t have to pay them.

For many people, bankruptcy is the only option when they’re under a mountain of debt, however, for too many, it’s seen as an easy way out, but it’s one that comes with heavy and lengthy consequences.

When buying a vehicle from dealerships, it is common to have one’s application processed by different banks and finance companies.  This means your credit may be ran by multiple companies in a very short amount of time.  So, does having one’s credit ran by many companies in a short amount of time have a negative effect on the credit score?  I ran across a blog at the Experian website with some good answers to this.  I have summarized it below.  But if you rather read it the blog, here is the link

Before answering that question, I just want to point out that having multiple finance companys run a credit has the benefit of allowing you to find the best terms for a car loan.  Competition may help you get the best interest rate for instance.  In addition, competition may give you the best chances of getting a car loan if you happen to not have stellar credit.  So, please, don’t deprive yourself of the opportunity to shop around for the best loan terms.

Back to the question at hand, having multiple lenders run your credit for a car loan within a two week period will show as individual inquiries in your credit report, but, would not have as much a negative effect against your credit score expected. The credit report will show the name of the creditor, as well as, month and year that the credit was ran.  This list of inquiries will show on your credit report for many months.  However, companies like Experian claim that such multiple inquiries in such a short period of time are counted as one inquiry for credit score calculations.  That's good news.  Also, finance companies are savvy enough to understand that seeing several vehicle finance lenders and banks running your credit in such fashion is typically due to the purchase of a vehicle or maybe getting a mortgage.  So, it is less likely that they count it against you in the loan decision process.

Please, keep in mind that in the above scenarios we are referring to multiple inquiries made for the purposes of car loans and mortgages. The above points don’t necesarily work if you decide to apply with multiple lenders in an attempt to get a Personal Loan.  Lenders may tend to view those types of multiple inquires in a short period of time as a negative.  For instance, it may be viewed as borrower's attempt to get into more debt that they can handle.  Also this will tend to have a bad effect on your credit score for a short time.  One last point, multiple inquires will have less of an effect the further in past they are.  So, don’t be too hard on yourself if you applied to multiple lenders trying to get the best Personal Loan terms.

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America's Loan Company - Notice

Customer Notice: Personal loans, title loans, and car loans have terms 6 months or longer. There are no early payoff penalties. We currently report to one of the 3 major credit bureaus, TransUnion. However, many factors affect your credit score. Therefore, we can't promise that your credit score will improve while having a loan with us.

Requirements: We are able to service Ohio residents only. Approval depends upon meeting legal, regulatory and underwriting requirements. America's Loan Company may, at its discretion, verify application information by using national databases, including but not limited to Teletrack and any of the national credit bureaus. America's Loan Company may take this information into consideration in the approval process. Due to state and verification requirements, not all applicants for loans may be eligible for approval by America's Loan Company. You may be required to submit additional documents due to state law and qualification criteria.

Products & Services: Products and services offered to customers may vary based on customer eligibility and applicable state and federal law. Actual loan amounts vary. The availability of loans and extensions may vary. Auto loans and secured personal loans are subject to minimum auto value requirements.

Further Personal Loan Disclosures: For qualified customers, America’s Loan Company offers bad credit personal loans with terms of 6 months to 5 years, with APR under 35.9%. As an example, you may borrow $1,500.00 over a 24 month period, with a $10.00 credit investigation fee, $100.00 loan origination fee, and $452.32 in interest, for a total payment of $2062.32, with an APR of 32.6514%, and monthly payments of $85.93.

More information can be found on the America's Loan Company Privacy Policy.

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