Credit Repair – Making “Cents” of Things

How Credit Is Counted

· 35% Payment history
· 30% Amounts owed
· 15% Length of credit history
· 10% New credit
· 10% Type of credit

- Stay away from small department store cards; they have a low limit and tend to bring down your overall score.
- You must use credit in order for it to report to the bureaus.
- If you do not use a card it may be cancelled by the bank - this WILL hurt your score.
- Never use more than ½ of your available credit line.
- Ask for line increases.


How Do They Calculate a Credit Score?

Different credit bureaus calculate your Fico or Beacon Score slightly different. Each credit bureau makes the score their own and gives it a different name. Equifax calls the score a Beacon Score, Experian calls it a Fair Isaac Score and Transunion calls it an Empirica Score. Every time something changes on your bureau, your score will change. A lot of information is used to calculate your score; however, there is no formula that has ever been given to the public. Lenders will look at your score along with your income and the kind of loan you are applying for to determine interest rates.


Improving Your Credit Score

Here are some suggestions on how you can begin making some changes.
· Pay your bills on time. This sounds simple, but this is the biggest thing you can do to keep your score high. Delinquent payments and collections have a major negative impact on your score.
· Keep your balances low on unsecured revolving debt like credit cards. High balances still owed can affect a score.
· The amount of unused credit is an important factor in calculating your score. You should only apply for credit you need.
· Make sure the information on your credit report is correct. If it is not, dispute it with the Bureau Company or lender directly.
· Removing negative accounts on your credit report has the biggest impact on your score.


Credit Repair - Some Common Questions And A Few Myths

How long does information remain on my report?

Generally negative things can stay on your credit for 7 to 10 years. But you can hire a professional credit repair service to do it for you.

Credit bureaus report credit information for a period of seven (7) years. Some states have special provisions for collections and paid liens. Chapter 7, Chapter 11 and Chapter 13 Bankruptcies are each reported for 10 years and the date is measured from the date of the filing.

Does paying off my bills repair my credit?
The credit reporting system doesn't work that way. When you pay an old debt, the negative credit listing doesn't disappear. In fact, it re-ages and the seven year clock begins again with that negative listing. The most ironic thing is that a paid, current negative listing is not any better than an unpaid negative listing.

How does a Credit Bureau make money?
A credit bureau is a commercial business. It makes money by selling your credit report to others. A person with bad credit means more business for them as such a person applies for credit about ten (10) times more than a person with good credit.

Why do Credit Bureaus not want me to use a Credit Repair Company?
The credit bureaus will tell you that it is easier and less expensive to do it yourself. While it may be true that you have the right to repair your credit yourself, many individuals do not have the time, experience and organizational savvy necessary to deal with bureaucracies. You must also spend hours of study to gain a working knowledge of the consumer laws available to you. Many who start repairing their credit turn to a credit repair company after months of work.


What can you take off of my credit bureau report? Aren't these items impossible to remove?
We can take off unpaid collections, charge-offs, repossessions, bankruptcies, medical bills, foreclosures, tax liens, civil liens, judgments, student loans, credit card debt, inquiries, slow pays, old addresses and all incorrect names.

How does CFAM Credit Group do this legally?
Disputing your credit report is your right. Credit restoration is as legal as pleading "not guilty" in a court of law. The Federal Trade Commission and The Consumer Credit Protection Act have enacted 100's of regulations that the reporting and collection agencies have to adhere to in order for an item to remain on credit reports. The Fair Credit Reporting Act gives you the legal right to dispute items on your credit reports that may be inaccurate, out of date, incomplete or unverifiable.

We challenge the credit agencies how they posted the information. Are they in compliance with all of these laws? And more often than not, they are not in compliance and we have them remove the negative information.

How much does a low score cost you?
Having a low score can cost you thousands of dollars. The higher score you have, the lower interest rate you will have. The lower interest rate that you have... the less money you will pay!
$100,000 mortgage over 30 years


Home Loans
••       Category                       Interest Rate       Payment      Total Cost After 30 Yrs
••       Prime                               6.50%               $632            $228,625
••       Alternative A                    7.50%               $699            $251,715
••       Subprime                         10%                  $877            $315,925
••       Hard Money (Jilted)         14%                  $1,184         $426,553


For Credit Repair Issues...
Email - brhoades@cfamcredit.com 

The Piggy Bank – Is It Time To Add Some Brothers and Sisters?

Lately I have been reflecting my own financial habits, some good and some bad. Looking back at my past and the current, I wanted to make improvements for the future. I noticed that I never seemed to be able to budget for certain items or categories too well; items like emergencies, entertainment, or a new home. 

It seemed to be difficult because all of my expenses were intermingled into one account and I found myself always coming up with some reason or another, to dip into the money set aside for other things.  And so I never have been too successful saving for those things.

I noticed that my adult account (the average bank account) was very much like my childhood account – the “Piggy Bank”. Everything was put into one account and not really kept organized or separated.

I am sure most of us had a piggy bank of some kind when you were a kid and can remember this was the start of our first savings account. Every week we would get our weekly allowance and then we would stuff our savings into the piggy bank, shake it vigorously, and listen to the coins rattle around inside. And then at some point in time we would empty it all out and spend the whole thing on the latest toy or craving that we desired.  Sound familiar?

Well now as adults it seems we sort of end up doing the same thing, only in an adult version – we put all of our money into the one bank account (our adult piggy bank).  The problem I had been having was saving up for items like emergencies, entertainment, business expenses, a new home, new car, etc. With these items being mixed in the same account along with my bills, I never seem to be able to separate the other stuff and so I don’t seem to be saving like I should be… or at least… like I want to be doing.

And so this brought me to my solution (at least for me – maybe you have another way that works best for you).  I opened up 3 additional checking accounts and each with its own savings account.

The first account was for emergencies and auto related. You know…when the car breaks down or you need to spend a $100.00 on each tire or the mechanic says that will cost you a billion dollars and you almost die of a heart attack.  Or when it comes time to replace the entire car? Fun stuff like that. 

The second account was what I have nick-named the “Family Fun” account. This is for entertainment. I got tired of not having any cash to take my wife out or if she wants to see her family… and telling her “sorry… we don’t have the cash right now.” The reason why I never have the cash is I simply had not been budgeting for it. And now that was going to change! And I am not using credit cards! I want to save up for fun not to go into debt as the result.

The third account I created was for business, charity and fund raising. This might seem like a strange mix at first but for me…it seems many business people like to network via charity events or at some kind of fund raising social gathering. But if you never have the cash to participate…then…you never participate.  And so I have decided to budget for it and make this a part of my marketing strategy, plus it is for charity right? A win, win.  Now…I am starting to save and as a result the next time in the future I will be able to participate.

Do you have other hopes and dreams like a new home like I do?  Then perhaps add another savings account for that dream so it will happen. Then dreams can come true… if we budget for them and systematically put money into these funds.

And this brings me back to the lonely Piggy Bank… all by itself. Maybe we should give our kids a few piggy banks and designate each one for its own purpose. So for example, one piggy bank for fun, one for education (college), and one for our future dreams.  And that way our kids can still have fun with the one piggy bank but learn how to save for the future with the other banks… so they can have a future and live their dreams.

This is just a thought…. an idea… so if you have a better idea…that is awesome! And I would love to hear it! I think when we can share new ideas or new ways of creating a better future, then we all can benefit by sharing those ideas, even if we don’t agree with them.  I find that when I hear about a new idea it makes me start thinking about more ways for that solution. 

I am always trying to find a better way to fund my family’s future…but not go into financial debt, or credit card debt, and not to have my general credit ruined.

It is my wish that we all have a chance and opportunity to live the lives we imagine.

So Keep Proactive and Keep Moving Forward!

Do you have a suggestion or a story to share? I would love to hear it!

That's Too Difficult - Overcoming New Challenges

A few weekends ago I was doing some yard work and trimming some trees down when I took notice to a bird’s nest up high in the trees. It suddenly hit me how amazing and inspiring this was to see the amount of work that went into building this nest. And more amazing than anything was the fact that it was built without the use of hands and fingers, and our detachable thumb that humans brag about… also no computers or the aid of some design program were used.

Imagine if I ask you to build your home with only your mouth! No arms, no hands, and no help either…just you and your mouth. How insane right?

I bring this story up because I am sure that many of us from time to time say to ourselves… “I can’t do that or…I can’t learn that. It is too difficult for me to learn this “new idea” or “new field”.  And so we discourage ourselves from trying something new in fear of failure of our peers.

And then I think of the bird’s nest. If it can build this amazing nest with only its mouth, than why can’t I learn this new field of work? Why can’t I push myself to learn more, to do more, to expand my limitations, and reach to higher levels of success?

I encourage us all to think of the bird’s nest next time we feel afraid of trying something new or feel we cannot accomplish something challenging. I believe we have something in us all that can help push us to higher levels of achievement.

We just need to overcome the doubts in our mind and ignore the negative voices from our past. And instead…strive to be like the amazing birds who build their masterful works of art each day in our presence.

So if you are going through some difficult times during this economy…don’t give up! Hang in there and keep going for it. Ignore the negative voices, set your goals, stay persistent, and keep moving forward.  

Tomorrow is a new day and another chance to build a new nest.

Bartering Your Way Back Through the Economy

Bartering – A Way To Move Your Business Forward

Is cash tight these days with your business?  Maybe you work independently and it’s difficult to find any kind of lending for a small business or for an individual?  Or maybe your business needs to expand but there are simply no extra cash reserves. Well, bartering might be a great way to keep your business moving forward by trading your services or products in exchange for someone else’s goods or services.

If you find your business is lacking cash, then this might be a creative way to help obtain new opportunities, goods, or services for your business.  

Trading goods or services can be a terrific solution to acquire something in exchange to help improve or benefit your business without using any cash, especially these days when cash is so tight and banks are not lending too eagerly. This could be that out of the box solution to help push things ahead and keep your business and your life moving forward.

According to Wikipedia, there is an estimated of over 350,000 businesses in the United States which are involved in barter exchange activities.  And there are approximately 400 commercial and corporate barter companies serving all parts of the world. I even found quite a few websites that let you look up others online to exchange skills, services, and knowledge. So bartering is looking alive and well these days. These online services take a little off the top from a small commission…but that might be something to consider to help find what you are looking for and vice versa.


You might want to first just sit down and start brainstorming what types of jobs, services, or physical items you can trade with to another business or individual. Then start thinking what services and goods do you need? Who might need your product or service? Who might like to swap with you?

Maybe you are great with social media or computers? Do you have a special skill set to trade? Are you a handyman? Are you a hairstylist? Are you a plumber? Or maybe you are a dentist or an eye doctor? Maybe you are great at organizing things? Maybe you can help another business with accounting? Then barter your services or goods to acquire what you need for your business, in place of paying for cash.

Here are some ideas to get your business moving without any cash… And this doesn’t have to be just for your business… you might want to consider bartering for your personal life? I think we all have to do whatever it takes to get this economy rolling again and bartering might be one idea to help us do just that. I also listed some skill sets to think about trading with?  Why not? If you have a skill that someone else wants…find that someone who wants to make a trade.

~ Barter for marketing and promoting your business.

~ Barter to secure a business coach.

~ Barter to get your website built or online business going.

~ Barter to obtain some computer and office equipment.

~ To get your car tuned-up.

~ Hair Stylist

~ Math tutor, language tutor, or other educational subjects.

~ House Cleaning

~ Real Estate Agent

~ Home Stager

~ Pest Control

~ Catering Service

~ Photography

~ Plumbing, Handyman, Carpenter, Roofer, Electrician, etc.

~ Accounting

~ Website Designer

~ Landscape Specialist

~ Financial Planner

~ Soccer Coach, Martial Arts Instructor, Football Coach, etc.

~ Taxi or Shuttle Service

~ Make-up Artist

This list could go on forever but I hope this gives you some ideas to work with and I would encourage going online and researching for more ideas. Also, you can barter things like jet skis, pick-up trucks, tools, furniture, computers, and that list goes on forever as well.

So if cash is tight these days then make a trade and keep things moving forward. Again, we all need to do whatever it takes to make this economy and our lives strong again. So be creative, be persistent, and make it happen!

Do you have a bartering story to share? Please feel free to comment below. We would love to hear your thoughts and experiences with bartering.

Bouncing Back in The Great Recession

It might be quite some time before this economy picks back up and I really think it is going to take a movement of we the people to be “proactive” to start turning this economy around.  And I say “proactive” and not optimistic.  Because without “Action” then being optimistic is simply wishful thinking. Action is key!

Personally, I don't think the economy is going to pick up anytime soon and I certainly don't think the past or current government will make any kind of difference to our personal situations.  So don’t wait for your ship to come in...Swim out to it! It is going to be up to YOU to make your situation work. You can do this but it is not going to be easy. You are going to have to work more hours, work smarter, network, increase your skill sets, get some mentoring or coaching, and then…step it up another 5-10% each month on top of that. It will take persistence, persistence, and more persistence to make it happen!

If I sound crazy….maybe…but I sincerely think it will take this extra pushing to do well in this present state of The Great Recession.

The rules have changed. Above average effort will no longer bring above average results, it will only bring average results. And average effort will no longer give average results, it will bring little to no results.

If you want to see above average or pretty good results than you need to bring your “A game”.  And if you want to see awesome results, than you will need to be a super star! You will need to shine like you never shined in your life. You’ll need to be “obsessive” and “passionate” in your work that you do. You will need to dazzle, and go way beyond people’s expectations. You can do this! But prepared not only to go that extra mile but to go way past that point!

Personally I see a huge opportunity right now for anyone who is willing to take all of these challenges and obstacles and turn them into opportunities and success. 

There are a lot of wonderful networking groups out there to join and I would recommend to anyone to join a networking group in your local area. Get connected! It is a fantastic way to get group support, mentoring, and increase your business.

Or find a business coach to help you put together an action plan.  Make a map to where you are going. Stay the course. Stay strong. Keep faith and keep going! You will get there!

Don’t listen to the negative people out there! Negative minds only bring negative results!

Don’t let setbacks defeat you. Learn how to turn setbacks and obstacles into financial opportunities.  If you fall down seven times…stand up eight!  Turn your challenges into financial fuel. Take this time to become smarter, increase your skill sets, and become the person you were meant to be.

"A champion is someone who gets up when he can't." by Jack Dempsey

"Don't count the days...Make the days count!" by Muhammad Ali

Success is the sum of small efforts and action that we achieve each day. So take a few actions at a time but don’t quit!  Even if you only achieve a few parts of your goal today...that is OK. That means you are that much closer to your goal. Keep fighting and keep moving forward…Inch by inch if that is what it takes.

Some days it can be hard to find that "extra" energy to push yourself forward but that is when you need to dig deep! Move forward! Don't quit!

Challenges and obstacles are opportunities to create success! So let's start creating some success!  The difference between impossible and being possible is persistence and determination.

Don’t let The Great Recession be your recession. Let’ turn it into…The Great Opportunity!

If you have a story to share I would love to hear it.

Keep Moving Forward and Stay Proactive!

~ Brad Rhoades

Little White Elephants in the Room – Inconvenient Budgets Which Lead To Financial Debt

See List Below:  All of these “life’s occurrences” listed below can potentially have a huge impact on our finances because these situations in our daily lives tend to get ignored and pushed aside. These are the little white elephants that are ignored mainly because they are uncomfortable and inconvenient conversations, that for most of us, we simply do not want to talk about these topics.

We put off these conversations and these little white elephants quietly lay in the corner of the room, waiting for their future attacks.  These are the little “Financial Sleeper Agents” silently waiting for that right moment to spring their attack…waiting to grow into big elephants of financial pain…and…bam! We are suddenly surprised and cannot believe this has happened to us. And since we did not want to discuss it… we never considered to budget for it…and so we never set any money aside for this occurrence…and with that… we whip out our lovely credit cards and swipe those bad boys to cover the costs. This is “Where the Rubber Hits the Road!”  This is the moment where this little white elephant can grow into huge debt. This is that defining moment where our lack of planning for everything including these uncomfortable topics, can really get us into debt and start the avalanche of our finances.  

I mean…who wants to talk about buying new tires for their car? My wife certainly doesn’t. Or who wants to talk about saving up some extra money for a plane ticket for when one of our relatives dies? And now we will need to fly across the country to attend the funeral, plus we need to cover hotel and food costs, etc. No one wants to discuss this! And I don’t blame them. But these life occurrences will happen. There is no way getting around it. And who wants to discuss setting extra money aside for when the car needs to be replaced or it breaks down, or when you need to upgrade your cell phone, or what about when the plumbing “hits the fan?”  Or when you need to replace the fridge… Oh, the fun in that conversation. And so they are usually ignored and zero money is set aside for them. Not so fun but they are important.  

I strongly urge all of us (including myself) to take a look at the list below and seriously think about setting money aside for these life occurrences. They will happen! Make no mistake they will happen! And if we don’t set money aside, plan for it, and budget for it…then most likely we will have to use a credit card to cover the expenses. And this can be the cause for many of us, the start of our financial decline with debt. The credit card companies charge you huge interest, you pay the minimum payment because you did not plan for this to happen, and then like clockwork… another small white elephant comes tromping into the room with another “life surprise”. And then the finances really start to turn south.

So just a suggestion (to myself included)… set aside an emergency debit credit card or a savings account that you automatically fund a certain small amount of money each week or month… and then start accumulating the emergency cash reserves.

Start funding for "life's little mishaps" on a weekly or monthly basis and then we will be ready for it! And let’s say goodbye to credit card debt!

Again…these things will happen in life…it is just a question of when?

Small White Elephants to Watch Out For!

Transportation ~ Auto repairs, maintenance, new tires, DMV renewals, car insurance, accidents, toll road assistance, car rentals, etc.

Holidays!  If you celebrate say Christmas, Hanukkah, birthdays, weddings, anniversaries, etc.,
I would plan for setting money aside for these celebrations in life. 

Family Death ~ Sadly there is nothing to stop this but we can at least make this less painful by having the finances at hand when this unfortunate event does happen. Travel expenses, hotel expenses, funeral costs, can all add up in costs.

Medical ~ Dentist, doctor visits, unplanned accidents, maybe you will need to take work off due to an injury? etc.

Cars and transportation ~ New Car or pre-owned car – your car will break down someday. Better to start making payments to yourself than to the dealership, right? And don't forget car rental for when the cars break down or other reasons.

Tech Gadgets ~ New computer – the one you have will become outdated and be useless! New Cell phone – Whatever you use…Plan for those cool items to become outdated and will need to be replaced with the latest and greatest.

Home Appliances ~ Washing Machine and Dryer, Refrigerator– the machines will break down at some point in time and need to be replaced. AC and Heater.

Plumbing ~ water pipes break, toilet busts, mold behind the wall, shower head, bath tub, etc.

Other stuff ~ Bed mattress, new TV, living room couch, kitchen accessories, etc. And let’s not forget about replacing the carpet someday in the future or whatever flooring you have.

Do you have children???  New clothes, shoes, sporting equipment, team sports costs, school band, clubs, hobbies; this list can go on and on.

I am sure you can add to this list of NO FUN BUDGET ITEMS…

Please feel free to comment and add if you have some suggestions for anyone to help prepare, to plan, and fund these life’s surprises.

Keep safe, Stay healthy, and Keep Moving Forward!

Is The Middle Class Spending Themselves Into Poverty?

Do we really want to keep up with the Jones’ anymore? Do we really want to race and see who has a short sale first? Who can be first to have a foreclosure? Or let’s race to see whose family can split up after a huge financial wreck?  It seems our addiction to buying “stuff” is really starting to take its toll with all of the debt that follows with it.

The total number of U.S. bankruptcies filed during the first six months of 2010 increased 14 percent over the same six-month period in 2009, according to data released by the Administrative Office of the U.S. Courts on Aug. 17, 2010.

The typical family filing for bankruptcy in 1997 owed more than one and a half times its annual income in short-term, high-interest debt. A family earning $24,000 had an average of $36,000 in credit card and similar debt.  Source: Federal Reserve (1997)

According to one of my sources over 40% of US families spend more than they earn. That is extremely alarming. Perhaps it is time we started to restructure our spending habits and our core values, relearn how to budget, become better savers, and educate ourselves on money.  

At what point do we take “ownership” of our spending habits? We really need to start taking responsibility for our actions and change the way we view our values. Our addiction to spending money on “stuff” simply needs to stop!

Buying things on impulse will not bring you happiness tomorrow, only debt. And then even more debt. That “stuff” will never fill your heart up with love or joy. The only thing stuff will fill is your garage filled with crap!  

Remember when cars use to be parked in garages? Now we use them to store our crap we don’t want but for some reason we won’t let it go. And if we do finally decide to part with our stuff…we hold a garage/yard sale only to sell our things for pennies on the dollar.

I am not suggesting never buy anything ever again. But let’s save up for something and pay for it in cash! Let’s save up for something that is made well, high quality, it will last long, and is something we truly need and not some crappy item we use for 15 seconds and then toss away…or ….we pile it into our garage. Let’s stop purchasing items with our credit cards for something that falls apart in a few months. Oh, and what is even sadder is when the broken item is still not paid for since we only were paying the minimum balance on the cards. That is true insanity!

I really admire my grandparents’ era on the values of things that they had. Yes, they bought items but they seemed to “think” before they purchased any of their items. And those items were made really well!  For example, the best furniture was from their generation. Even though it is really old it is still ten times better than anything made from today. The older furniture was handcrafted, made flawlessly, made of fine materials and it was built solid and built completely. No assembly required! Now the furniture of today is not only crappy but the stores expect us to put the darn thing together. They say “assemble” but it really means we need to finish “building” it.  Now we need not only pay for it but we also are expected to “build” the crap after we take it home. If I pay for it…I want them to build it. That is why I am paying them, right?

We need to teach our youngsters better habits…let’s not teach them our poor habits we were taught as kids. When I was kid I had this huge Coca-Cola collection.  I would work hard doing chores around the house to earn extra money to keep buying more stuff to add to my collection. Now I have a pile of “stuff” that is basically worthless!  Now imagine if my parents had me purchase stocks and shares of Coco-Cola? Then my collection would be paying dividends instead of collecting dust!  What if we taught our youth (and ourselves for that matter) to buy stocks, assets, and invest our money wisely, instead of buying things we really don’t need?  Just imagine if your children bought company shares from when they were say 9 year old and up.  They might even be able to help out with their own college fees!  Maybe if we could focus “just a little less” on buying baseball cards, dolls, tons of toys, and instant gratification things?  I know…you think I am the Grinch that stole fun. Then perhaps a compromise? Maybe if we had some sort of balance on spending???  

I am writing this because I am deeply concerned for our country as a whole if we keep heading down this path. Poor habits will bring poor results. It is my hope that we can start teaching our younger generation to be smarter investors, take ownership of their actions, and become truly empowered.  We don’t need more impulse shoppers of “stuff.” We need to break this poor cycle of spending habits. We need to change our values back to my grandparents’ era.

Not only did my grandparents on both sides of my family own their homes out right but on my mother’s side….my grandfather built his own home!  And on my father’s side…my grandmother made all of her clothes. And they were beautiful dresses and well made!  Both sides had big gardens too… with fruit trees and lots of vegetables. The times might have been a little simpler back then, but they were not up to their eyeballs in debt and a garage filled with “stuff” that no one wants.

Seriously…Is buying all of this stuff really worth going into huge credit card debt, putting a second mortgage on your home, and then ultimately losing everything?

My mind keeps going back to my grandparents’ era. Pay for things in cash. No credit card debt. If you don’t have the cash to pay for it…put it down and save up for it. Don’t buy stuff just because you had a bad day. Instead work through our problems and not buy things to avoid them. Demand higher quality of ourselves and the things we purchase. Save up for things we want to buy and be grateful for the things we do have. We need to be owners and not debtors.

And we need to stop trying to keep up with our neighbors!

Besides….if your neighbors are short selling their home…do you really want to keep competing with them? Spending yourself into poverty is NOT a retirement plan. It is a death sentence.

My point of this discussion is simply to get us thinking more on what we spend our hard earned money on.  I would love to hear your thoughts. Please feel free to comment.

Spend wisely, Keep learning, Keep growing, and Keep Moving Forward.