Education Center

Credit Repair and Tax Write Offs

Credit Repair

Everyone needs help at some point in there life. We at Valorem Investment Group Inc. understand how frustrating it can be even disappointing when you try to finance the simplest thing like a car. That is why we are here to help you. With our extensive knowledge in finance and credit we can improve credit scores drastically allowing people to get the home of there dreams or the car they want. Each client receives a credit repair plan customized just for them.

Credit Repair & Tax Write Off’s

You don’t have to live in the home you own, It is ok to rent the home you live in as long as you own at least one home. Here is a diagram showing how effective it can be to own.

100,000 vs. 600,000
With 100% Financing
80/20 Loan to prevent PMI
First Loan 80,000 @ 10% = 566.66 vs. First Loan 480,000 @ 10% = 4000.00
Second Loan 20,000 @ 15% = 250.00 vs. Second Loan 120,000 @ 15% = 1500.00
Total Payment = 816.66 vs. Total Payment = 5,500.00

When rebuilding you credit it helps alot not to be a first time buyer when going for a big loan. We can get better interest rates; on the big loan where it helps lower the payments drastically.

Let us show you how to save money, build wealth & get the home of your dreams!

Scoring your Credit - How's your FICO?

In today's increasingly automated society, it should come as no surprise that when you apply for a mortgage, your ability to pay can be reduced to a single number. All the years you've been paying your mortgage, car payments, and credit card bills can be analyzed, sliced, diced, spindled and mutilated into a single indicator of whether you're likely to meet your future obligations.

All three of the major credit reporting agencies (Equifax, Experian and TransUnion) use a slightly different system to arrive at a score. The best known is called the FICO score, based on a model developed by Fair Isaac and Company (hence the name) and used by Experian. Equifax's model is called BEACON, while TransUnion uses EMPIRICA. While each of the models considers a range of data available in your credit report, they utilize the same primary factors.

Credit Rating Primary Factors:

Credit History:
How long have you had credit?
Payment History:
Do you pay your bills on time?
Credit Card Balances:
How much do you owe on how many accounts?
Credit Inquiries:
How many times have you had your credit checked?

Each of these, and other items, are assigned a value and a weight. The results are added up and distilled into a single number. FICO scores range from 300 to 850, with higher being better. Typical home buyers likely find their scores falling between 600 and 850.

FICO scores are used for more than just determining whether or not you qualify for a mortgage. Higher scores indicate you are a better credit risk, and thus may qualify for a better mortgage rate.

What can you do about your FICO score?

Unfortunately, not much. Since the score is based on a lifetime of credit history, it is difficult to make a significant change in the number with quick fixes. The most important thing is to know your FICO score and to ensure that your credit history is correct. Conveniently, Fair Isaac has created a website that let's you do just that. For a reasonable fee, you can quickly get your FICO score from all three reporting agencies, along with your credit report. Also available is some helpful information and tools that help you analyze what actions might have the greatest impact on your FICO score. Each of the credit services offers similar services on their web sites: Equifax, Experian, and Trans Union.

Armed with this information, you will be a more informed consumer and better positioned to obtain the most favorable mortgage available to you.

How can you improve your credit score?

Fortunately times have changed and with technology at our fingertips it makes it allot easier for us to help our clients reach there FICO Score Goals. It used to be difficult to make significant changes in the number with quick fixes. Now between 3 days to 3 months we can increase FICO Scores drastically that makes for better interest rates to our clients.

Make sure that the information each of the three credit reporting bureaus has on you is consistent and up to date. Order a copy of your credit report about once a year, and dispute any inaccuracies.

Note: Theoretically, if a series of credit reports is requested on your behalf during a limited amount of time, your score goes down until time passes without any inquiries. Changes in the law though have made "consumer-originating" credit report requests not count so much. Also, a series of requests in relation to getting a mortgage or car loan is not treated the same as a number of credit card requests in a limited time. This is because the credit bureaus, and lenders, realize that people request their own credit reports to keep up with what's on them, and smart consumers shop around for the best mortgage and car loans.

Unsolicited credit card solicitations in the mail don't count against your credit report, so don't worry.

The two main components of your credit score are your payment history and the amounts you owe. Bankruptcy filings and foreclosures, which can stay on your credit report for as many as 10 years, can significantly lower your score. It's never a good idea to take on more credit than you can handle.

How to Raise Your Credit Rating:

Late payments work against you.
It's extremely important to pay bills on time, even if it's only the monthly payment.
Don't"max out" your credit lines.
Since the size of the balance on your open accounts is a factor, lower balances are better.
Carefully managing your credit.
It's possible to add as much as 50 points per year to your score.