Synergy Debt Group and More On Your Credit

Synergy Debt Group -- More On Credit

There are the three reporting credit bureaus: Trans Union, Experian, and Equifax. Each has their own method to calculate your credit score, and that’s why the scores usually differ from one to the other. Credit reports contain your basic information such as social insurance number, birth date, employment information and employment history, but none of that is considered when calculating credit scores, although it is updated whenever you officially apply for credit.

As previously stated, the credit score has already dropped due to high balances to limit ratios, maxed out limits, and over limit balances. We’ll use an actual case study to illustrate how Synergy Debt Group’s debt management program can help a person’s credit, and their score.

A single mother of two had three credit cards, all of which had reached their maximum limit with a combined balance of $8,0692. The interest rate on two of those cards was a high 25.99 percent, the fourth was a staggering 35 percent., with a combined minimum monthly payment of C$424.

After enrolling in its debt management program, Synergy Debt Group opened a “special service account” into which every month funds from her regular checking were withdrawn and automatically deposited. From that account the funds were then dispersed proportionately to her four creditors. So instead of juggling three payments on her own, she only had to make one, and that was done automatically on her behalf.

Synergy Debt Group’s negotiators then managed to lower the rates for all three cards down to zero percent.

What does this ultimately mean? If she maintained the minimum payment of C$424, it would have taken her 32 years to pay them all off at a total cost of C$31,285.

In the debt management program at zero percent, her monthly payment dropped to only C$207 (more than half) and will be all paid off in only 46 months with a cost of only $9,522.

Debt management saved her 28 years and C$21,763.

Trade Lines

These are your credit accounts, such as auto loans, bank cards, mortgages, store cards, and so on. It reports the date you opened the account, credit limit or loan amount, the account balance and payment history.

Credit Inquiries

When you apply for a loan, you authorize your lender to access and copy your credit report. This is how inquiries appear on your credit report. The inquiries section contains a list of everyone who accessed your credit report within the past two years. The report you see lists both "voluntary" inquiries, spurred by your own requests for credit, and "involuntary" inquires, such as when lenders order your report so as to make you a pre-approved credit offer in the mail.

Public Record and Collection Items.

Credit reporting agencies also collect public record information from state and county courts, and information on overdue debt from collection agencies. Public record information includes bankruptcies, foreclosures, suits, wage attachments, liens and judgments.

There was a client who had five credit cards with a combined balance totaling $25,000—each was maxed to the limit. And although he never fell behind on any of his minimum payments, nor his auto loans, or his current mortgage, his scores nonetheless had tanked due to having attained their maximum limit. Because of this he could not get his mortgage renewed under the terms that would have done him any good.

Synergy Debt Group helps people get out from under the burden of credit card debt by helping to get their interest rates down to zero percent, and putting them into an automatic monthly payment program that disburses their payments to each of the clients creditors. This way they can be debt free in a matter of 36 to 48 months instead of a decade, or even more, and saving them thousands of dollars in interest.