Posts filed under 'General'
By Omar M. Omar
Good credit is everyone’s dream. A wise use of credit can go a long way. It certainly makes certain goals in life (like acquiring business loan from bank) easily attainable.
But the key question remains: “What does it take to achieve ‘Triple A’ credit?”
First and foremost, it is important it is critical to point out where most people go wrong when it comes to their credit and credit report.
People with bad credit will usually seek credit repair help. Most would seek credit expert advice and few will try to do it themselves by purchasing a credit repair book.
Mainly, the problem is not the type of help you hire, rather the assumption you are left with after the whole credit repair process.
Where most people go wrong is that once their credit report is free of any negative entries (or errors), they simply assume that they now have an excellent credit.
That’s simply untrue.
In reality, your credit is not bad because you now have managed to erase the negative entries that was shown on your credit report before. At the same time, you do not have ‘ Triple A ‘ credit either.
Unless, you have positive items or entries showing on your credit report.
And the key to a successful credit repair is not just getting rid-off the negative entries on your credit report, but rather to show-off that you have multiple positive entries on your credit report that can buy the confidence of your bank to loan you their money.
You can find numerous articles dedicated to guiding through the credit repair process, but few will discuss further than just repairing your credit. Meaning few will tell you (better yet, know about),
“How to add positive entries to your credit report?”.
It is very important you understand that, you can repair your own credit and make it flawless, better than anyone ever could. Today, there is so many help on credit repair help, but not all are legitimate help. And it is extremely important to keep that in mind.
If you want to avoid getting chopped-down by bogus repair companies, take the following two statements as an advice that will serve you a long way.
1- There is no law available to any credit repair company, expert, or attorney - that is not available to you as the credit consumer.
2- Credit repair companies use the same law made available to you by congress to repair your bad credit. And they certainly can not change the law for their clients.
The above two simple statements might seem obvious, but repeating them like a mantra can be the difference between getting ripped-off and getting the ‘Triple A’ credit you deserve.
Back to the main point - “How To Achieve Triple A Credit?”
Here you will learn two powerful and proven ways that will give you a sterling credit in the shortest time possible - 25 Days. Apply the following two techniques and, guaranteed, you will give your credit a face lift that would have banks open their check book.
1. A Millionaire’s Credit in 25 Days.
Do you have a checking account and a savings account? Good. If you don’t, no worries, these days you can open an account online. It should take you no more than 5 minutes. You got your accounts opened? Good, now comes the second phase.
Phase 2: Now you will need your savings account to use it as a collateral. Now using your savings account ask your bank for a secured passbook loan.
You can borrow a dollar for dollar with a passbook loan. This type of loan works well with as little as $300, but if you have $10,000 - that’s even better. Once you secure a loan with a passbook you can not touch the funds until you have fully repaid the loan. Remember, you should be able to do with-out these funds for 30 days.
A bank secured with your passbook loan has no risk in lending you money, so any bank should be willing.
Note: It is extremely important that the bank reports your loans to the credit bureau. Therefore ask your bank “If they report your payment history to the three credit bureaus?”, it is critical part of this whole process.
After all, the whole purpose of you doing this is to add zing to your credit report with a very powerful and positive payment history, right?
Now once you borrow the money, wait 25 days and repay the loan back to your bank. Because you have fully repaid your loan the bank will send your positive payment history to the credit bureau.
That’s a grand slam!
Now you have the bank as your friend and the credit bureaus can not help it but report your good payment history.
2. How To Use $500 - $1000 into A Millionaire’s Credit.
With let’s say a $1,000 in your account, ask the loan officer for a 12- month a $1,000 passbook loan. Do not be discouraged, you can certainly achieve this with less money, but if you can afford to do it don’t hesitate.
By the time you’re done with this technique - - - well it’ll be all worth it. Just wait and see. Since this is a secured passbook loan (meaning, it is secured by the amount of money available in your savings) most banks will not run a credit check. And if they tried to do so explain it to them why they should not as it is secured by the money you already have in your savings account.
Which you won’t be able to access until you payoff your loan anyway, so there is no justified reason to run a credit check.Now with the $1,000 secured passbook loan from your first bank, open a savings account at another bank with the $1,000 loan received from the first bank.
The request that they give you a $1,000 12-month loan and do not mention the loan received from the first bank. Wait about a week or two, go to a third bank and repeat the process.
Next, at one of the three banks open a checking account with the $1,000 you received from the third bank. You now have a$1,000 in a checking account and three outstanding 12-month loans at three different banks – for a total of $3,000. Deduct your original $1,000 and you need only repay $2,00 plus interest.
Note: Make sure that you ask your bank if they have a pre-payment penalty because you do not want that.
Finally, about one week later start to pre-pay your three loans.
Now you have an advance payment record with three banks and will have established powerful credit for your credit report. From now on every type of loan and credit card will be yours for the asking.
Here you are with un-touchable credit, three big banks as your future business friends, and a credit bureau reporting positive payment history – all in just under 30 days. You just learned about one of the very few techniques that can change your credit significantly within a month time.
Of course you can apply these techniques for as long as you like and keep improving your credit. Apply these techniques discussed and you will get the Triple A credit you deserve.
About The Author
© Copyright - 2004 www.deleteuglyredit.com
Omar M. Omar is the owner of http://www.deleteuglycredit.com and - Author of “The Credit Repair Bible” book. The website is dedicated to providing credit consumers free advice on how to repair credit. It also provides credit consumers numerous information about their credit report, credit laws, and their rights as a consumer.
July 24th, 2005
By Jeanette Joy Fisher
Let’s be crystal clear, right up front. Paying someone to “fix” your credit is a waste of your time and money, since the negative issues that are temporarily removed from your file will only reappear again in a couple of months.
Be careful with credit repair scams.
Most “credit repair” companies really don’t help. In fact, you can improve your credit more effectively on your own. By using credit repair companies, you may also be opening yourself up to identity theft, unsolicited emails, and direct mailings. Protect yourself; don’t ever share your personal information with strangers or give up your right to handle your own financial affairs as you see fit.
Another important point: credit counselors only promise to get you out of debt, not to improve your credit. Some companies will have you send them a check every month, out of which they’re supposed to pay your creditors for you. However, some credit counselors will often pay your bills late, which means that your credit report soon becomes filled with “over 30 days late” notations and your credit score drops even lower than it was.
“Debt negotiators,” posing as non-profit organizations, can ruin your credit even further, advising you not to pay your credit card bills at all. They also charge upfront fees, maintenance fees, and monthly fees, all of which are supposed to be placed in a “trust” account. Then, after many months have passed, debt negotiators finally convince creditors to settle for less money than was owed, making yours an “uncollectible account.”
That tactic not only ruins your credit, due to the many “over 90 days late” remarks and collections notations, but all the money you supposedly saved — which was actually money you owed — will be considered as income by the IRS! In other words, if you owed $20,000 and settled for $12,000, you’d be required to list the $8,000 difference as income!
Credit repair companies promise to help clear up your credit problems. They write letters to credit bureaus, stating that various listed information is false, so the agencies will remove that information while they investigate your account. During that time, the credit repair company sends you a clean credit report, thereby giving you the false impression that you now have good credit. But after you’ve paid off the credit repair company, you’ll discover that all the negative items will soon reappear on your report.
Remember: only incorrect items must be removed from your credit report if they’re proven to be false. If the black marks on your credit report are correct, no one can have them removed, regardless of what credit repair companies may try to tell you. Working with collectors to remove negative remarks is possible, but that’s another article.
Some credit repair agencies can probably do a reputable job removing items that are truly incorrect, such as: items after a bankruptcy that should have been removed, double items, children’s items on parents’ reports, and paid-off items that still show past due. Some people really just don’t like dealing with this kind of thing, so a reputable credit restoration company can help with these problems.
If you’re seeking legitimate financial help to buy a home, the best place to turn is to a mortgage broker. They’re the ones who can offer you the best FREE advice for settling credit disputes and problems, so when you find yourself in difficulty, consider using a mortgage broker as your credit counselor.
(c) Copyright 2004, Jeanette J. Fisher. All rights reserved.
Professor Jeanette Fisher, author of Doghouse to Dollhouse for Dollars, Joy to the Home, and other books teaches Real Estate Investing and Design Psychology. For more articles, tips, reports, newsletters, and sales flyer template, see http://www.doghousetodollhousefordollars.com/pages/5/index.htm
July 24th, 2005
By Jeanette Joy Fisher
The process of clearing credit can be laborious and frustrating, but your efforts will be paid for in better financing. Your rights are protected by laws, but you need to take reasonable actions toward your goal of clearing credit discrepancies. You can get the credit reporting agencies to help you instead of hindering your excellent credit quest with these tips.
1. Order credit reports.
2. Check for discrepancies.
3. Note problems and discrepancies in your Credit Dispute Log.
4. Contact disputed companies by telephone. (Contact original debtors, not collectors.)
Log the telephone call with a brief summary of agreements.
Remember to record the name of the contact representative.
5. Follow up with certified letter to original company.
6. Write letters to collectors, dispute bill, send documentation of payment to original company.
7. Fill out dispute form provided by credit bureau.
8. Write separate letter for each disputed item to credit bureaus.
Send letters by certified mail.
Enclose copies of supporting documentation.
9. Use the number provided by the credit bureau and call for progress; have your reference number handy.
10. Keep comprehensive records in your Credit File.
These ten steps will help you finance your dreams.
Copyright (c) 2005 by Jeanette J. Fisher. All rights reserved.
Forget what you’ve been told about credit. “Credit Help!” author Professor Jeanette Fisher was forced into becoming a credit expert. She loves helping people buy houses. Get the credit you need to buy one house or twenty. Visit Real Estate Credit Help Center: http://www.recredithelp.com Subscribe to Credit Help! Tips. Send a blank email to CreditTips at reCreditHelp.com
July 24th, 2005
By Claire Bowes
What is Credit?
Credit means that you are using someone else’s money to pay for things. It also means that you are making a promise to repay the money to the person or company that loaned you the money.
Whenever a person applies for a loan, mortgage, a credit card or for any other purpose for which he needs to borrow funds from a lending agency, the agency will check the financial credit-worthiness of the person and based upon its assessment of the financial risk involved in the deal, the agency will decide upon the terms and conditions of granting credit. A positive assessment necessitates a sound financial background and a credit history with no bad remarks.
What is Credit Repair?
‘Credit repair’ is a process in which consumers with unfavorable credit histories attempt to re-establish their credit-worthiness. The process usually involves procuring a credit report from the rating agencies and then taking appropriate steps to address any apparent issues such as errors, omissions, misinformation, misreporting or misinterpretation. A consumer can then formally dispute those errors or issues which unjustly distort their financial healthiness and credit-worthiness. Various laws and regulations designed to ensure legal and fair undertaking of the credit repair process can then be utilized to formally and legally start the credit repair process.
Consumers are entitled to a copy of their credit report legally, if they have been denied a credit card or loan and if the information provided on the report is inaccurate, an investigation relating to true facts is necessary for a credit repair.
Why Repair Credit?
A consumer’s credit record significantly influences his future purchasing power and his eligibility of availing any credit facilities in the future. A good rating, or score, can insure a low interest rate and loans for longer term for various purposes like credit card balances, car or home loans. A poor rating makes a consumer vulnerable to finance companies charging exorbitant interest rates and imposing various unnecessary repayment and loan terms. Considering the stakes and the consequences involved, it is absolutely imperative for consumers to understand the importance of repairing their bad or low credit ratings.
The Safe and Legitimate Way to Repair Credit
Credit repair can only be achieved through financial discipline and hard work. Any easy way out of a poor credit history is undoubtedly tempting, but it may lead to further financial difficulties in the future.
If a poor credit history is due to circumstances beyond a consumer’s control, and they are able to somewhat make amends to their credit records after that time, then a creditor can be requested to upgrade credit rating because of a sense of customer loyalty.
Most creditors don’t trust the customers defaulting on their debts, so it may be very difficult to obtain new credit. But once a person is able to demonstrate continuing income stability and prompt payment patterns, his situation can improve in a period of two to three years. This way, even in the case of bankruptcy, a consumer is likely to be offered charge and credit cards within a year or two if maintaining a steady income.
What is most important is evaluating the financial situation. If one finds that they are unable to make at least the minimum payment on outstanding accounts, a contact should be made with the creditors. Many creditors will appreciate the willingness to pay and are most likely to help set up plans for repayment. Avoid making promises which cannot be kept as a small payment is preferable to a large payment that never arrives. Sometimes a small contact can be enough to reduce payments and forestall more severe measures.
The next step is consulting a credit counseling agency. These organizations are staffed with trained individuals experienced in the credit field. A distinction needs to be made between these and the commercial “credit repair” companies who claim that, for a fee, they will undertake credit repair.
No one can legally remove accurate and timely negative information from a credit report. But the law does allow one to request a reinvestigation of information in their file that may be inaccurate or incomplete. There is no charge for this. Everything a credit repair clinic will do can be done by a consumer themselves at little or no cost.
The most important factor in credit repair is recognizing the legitimate and viable options available, recognizing what the scams are, and differentiating between the two. A poor credit history can make it difficult to obtain additional lines of credit making consumers fall prey to many unethical programs that target consumers with less- than-perfect credit. There are no quick fixes in credit repair. Common sense tells you that a third party doesn’t know your credit history better than you. Through contacting credit bureaus, making your own corrections, consolidating your debts and budgeting, you can improve your own score. You don’t need to pay someone to fix it for you. It’s better to apply that money towards discharging your debt.
Summary
Understanding the basics of credit repair and knowing what exactly is needed in order to rebuild your credit history goes a long way to getting it resolved. However, you must be disciplined, find the right credit repair solution for you and not be tempted to fall back into debt.
Claire Bowes is a successful freelance writer and owner of http://www.uk-secured-loans-centre.co.uk where you will find further advice and information on all aspects of secured loans for debt consolidation, car loans and home improvement loans.
July 24th, 2005
So-called “credit repair” companies claim they can remove negative information from credit reports. Advertising as “Credit Advisors,” “Credit Rating Correction Services” or “Credit Consultants,” they trumpet variations on this message: “Turned down because of bad credit? We can help!” Many of these companies charge hundreds if not thousands of dollars for the promise to “clean up” bad credit reports. But the truth is, these companies can only do what you could do yourself–at no charge.
Nobody can remove negative information that is accurate from your credit report. No company has a “secret” ability to remove all negative information.
But this doesn’t stop their claims. This deceptive quote is from a credit repair company brochure: “Charged-off accounts, collection accounts, judgments, tax liens, repossessions, and even bankruptcies can be removed from your credit records in less than one year (five to seven month average).”
One tactic is to bombard credit reporting agencies with requests to verify information. If a credit reporting agency cannot verify an entry within 60 days, it will remove the information from the report. But if the information is later verified to be accurate, it will go back in the report.
Before you even consider signing a contract with a company that promises to repair your credit, remember these facts:
* You may obtain a copy of your credit report on your own.
* You have the right to dispute entries in your credit report.
Beware guaranteed credit offers!
Credit repair and other companies often claim they “guarantee” to get you a credit card, regardless of your credit history. In fact, these companies do not always honor their guarantee. Sometimes, they’ll just take your money and run–you will not get any credit, regardless of what they promised.
If they get you a card at all it often will be a “secured” bank credit card, with high up-front “application” fees, that requires you to deposit and keep several hundred dollars in a savings account, or a card that only allows you to buy items in a catalogue from a business that you probably never heard of. (You can apply for a secured credit card by yourself. For a free list of banks that do not charge application fees for secured cards, see the information from Consumer Action in the “For More Information” section below.)
Credit repair companies often advertise on television, in newspapers and even on matchbooks. Sometimes they require consumers to dial a “900″ telephone number to get more information. Calls to 900 numbers can cost $2 or $3 a minute, so listening to a few minutes of information about the cards can be expensive.
Some companies try to get people a credit card by having them apply using financial information of other people with good credit histories. It is a criminal act to apply for credit under someone else’s name–do not do business with one of these companies.
Law enforcement agencies have shut down many credit repair outfits, but it is hard to stop a fraudulent credit repair outfit unless people complain about it. Therefore, be careful about responding to credit repair ads and be sure to complain to the agencies listed below if you think a credit repair company took advantage of you.
For more information
* The Federal Trade Commission (FTC) publishes information for consumers on the subject of credit and enforces federal laws on credit. For a list of free publications, write to the FTC’s Public Reference Department at the address given below. While the FTC does not handle individual cases, it can act when it sees a pattern of possible law violations develop. Complaints about credit reporting agencies and credit repair scams must be in writing. Send them to: FTC Credit Practices Division, 6th St., N.W., Washington, DC 20580.
* Contact your local consumer protection agency or your state Attorney General’s office. Many Attorneys General have toll-free consumer hotlines. These numbers may be listed in the “self-help” or government sections in the front of your phone book. These agencies can offer you advice and may also be able to help resolve your complaint.
* Consumer Action’s free complaint/information switchboards offering non-legal consumer advice and referrals can be reached from 10 a.m. to 2 p.m. on weekdays. Chinese, English and Spanish are spoken. Call either (415) 777-9635 (San Francisco office) or (213) 624-8327 (Los Angeles office). Consumer Action has a free list of secured credit card banks that do not charge application fees. To receive a free copy, send a self-addressed stamped envelope to: Consumer Action Secured Credit Card Survey, 717 Market St., Suite 310, San Francisco, CA 94103. (Available in English only.)
* The Consumer Credit Counseling Service (CCCS) assists consumers who have problems in paying their bills–before their good credit ratings suffer. Your local CCCS office can help you work out flexible payment plans to make debt repayment more feasible. Call (800) 388-CCCS for an interactive recording that will provide you with the phone number of the office nearest to you. Spanish-speakers can call (800) 68-AYUDA (800-682-9832) between 8 a.m. and 7 p.m. central time.
* Before you sign a contract with any company, check it out with the local Better Business Bureau (BBB), a non-government service which advises consumers on fraud prevention. Call your local BBB. If you cannot find a local number listed in the phone directory, call the Council of Better Business Bureaus at (703) 276-0100 for a referral to the office nearest you.
About The Author
© Copyright. http://www.deleteuglycredit.com
Omar M. Omar is the owner of http://www.deleteuglycredit.com. The website is dedicated to provide credit consumers with information about their credit right and how to dispute inaccurate information on their credit report. Omar M. Omar is also the author Of “The Credit Repair Bible” book.
July 24th, 2005
By Douglas Hanna
Log onto to a search engine such as google.com and type in the term credit repair. It’s likely that Google will return more than 25 pages of listings, many of which will be companies claiming they can “erase bad credit,” “create a new credit identity – legally,” “ credit problems – no problem.” “quick credit repair,” and on and on.
Here’s the good and bad news of credit repair, according to the U.S. Government – nobody but you can repair your credit.
If you do respond to one of these credit repair offers, here’s what to look for to know it’s probably a scam:
· The company wants you to pay for credit repair services before they provide any services.
· The company does not tell you what your legal rights are and what you can do for yourself.
· The company recommends that you do not contact a credit reporting company directly.
· The company suggests you create a new credit “identity” and then a new credit report by applying for an Employer Identification Card to use instead of your Social Security number.
· The company advises you to dispute all information in your credit report or take an action that seems illegal – such as creating a new credit identity.
The truth is that no one can legally remove accurate and timely negative information from your credit report.
The law allows you to ask for an investigation of information in your file that you believe is wrong or incomplete. There is no charge for this. Everything a credit clinic can do for you legally, you can do for yourself at little or no cost.
So, what can you do?
Let’s suppose you apply for and are denied credit, insurance or employment. The most likely reason for this is that one or more companies provided negative information about you. This could be a credit card company or mortgage company reporting that you missed payments or that some of your payments were 60 or more days late. Or it could be a report that you wrote checks that were returned for insufficient funds.
If you believe the information was inaccurate, you should first request a copy of your credit report. You need to ask for this report within 60 days of when you were denied credit or turned down for insurance or a job. This report will be free.
If you find negative items on your credit report that you believe are mistakes or outdated, you can dispute them, also at no cost. Both the reporting company (Equifax, Experian or TransUnion) and the company that provided the negative information about you are responsible for correcting any information you can prove was inaccurate or incomplete.
To take advantage of this, you need to contact the company with the negative information on your credit report, and the company that provided the information to that company. For example, if the credit report with the negative information came from TransUnion and the company providing that information was your mortgage holder, you need to contact both TransUnion and the mortgage company.
Start by telling the consumer reporting company (TransUnion, Experian or Equifax) in writing, what information you think is wrong or incomplete. You should include copies (not originals) of any documents that support your position. Make sure you provide your complete name and address, and that you identify each item in the credit report you dispute. State the facts and explain why you disagree with the information. Be sure to request that the information is removed or corrected.
The consumer reporting company must investigate the items you questioned – usually within 30 days – unless they consider your dispute frivolous. They must also send all the your information to the company whose information you dispute. In turn, this company must investigate your claim and report the results back to the consumer reporting company.
If the information provider finds the disputed information is, in fact, wrong, it must notify all three nationwide consumer-reporting companies so they can correct the information in your file.
This is how you repair your credit if the “bad” items in your credit report were inaccurate.
On the other hand, if the negative information was correct, the only sure cure is time. A consumer reporting company can report most accurate information for seven years, and bankruptcy information for 10 years. Information about an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.
Here’s the better news. Just because you have a poor credit report doesn’t mean you won’t be able to get credit. Creditors set their own credit-granting standards, and not all of them will look at your credit history the same way. Some may look only at the more recent years when they evaluate you for credit, and they may grant credit if you bill-paying history has improved.
For FREE help with debt and credit problems, get Douglas Hanna’s free email newsletter “8 Simple Steps to Debt Relief” at http://www.all-in-one-info.com
July 24th, 2005
By Douglas Hanna
If you are in danger of credit problems because you have more debts than you can handle, there are things you can do at least keep your creditors reasonably happy.
First, prioritize your debts or rank them in terms of the ones that can give you the most trouble the quickest. If you’re three months behind on your utility bill and the company is threatening to cut off your power, you should deal with this debt first.
Second, be sure to keep an accurate log of all phone conversations with creditors and copies of all correspondence.
This way, you will have a good record of what’s going on, to whom you spoke last, the date of that conversation and its result. It’s not uncommon for large corporations to have different people or even different departments contacting you about late or missed payments. If you keep accurate records, you will always be able to defend yourself against the claim that you have been unresponsive or uncooperative.
It’s kind of human nature to want to run away and hide from creditors. But it’s better to be aggressive. If you know you are not going to be able to meet a mortgage or credit card payment, call the company before the payment is due. Tell the company’s representative why you are having money troubles. Be sure to give a real reason for your problems such as a divorce or loss of a job, and not just some feeble excuse.
If you can give your creditors a real reason for being in financial trouble, you may find that they are sympathetic and willing to work with you.
Your next step is to arrange a payment plan. When you contact your creditors’ representatives, explain that you know you are behind in your payments but that you want t make a payment arrangement. Let them know what you can afford to pay this month and the next. Make certain they know you intend to make full payment eventually.
You might also see if one or more of your creditors would be willing to let you skip a month’s payment. Be sure to get all payment plans in writing. If the company’s representative does not volunteer to mail you the plan in writing, send a letter requesting that he or she do so. Calculate just how much you can afford to pay a creditor before contacting the company. Then, do not agree to pay any more than this, no matter what the company demands. It may take a number of phone calls before the company agrees to a reduced payment. If the company keeps saying “no” to your offer, keep calling until you get a different answer. Or ask to speak to the representative’s supervisor as he or she may have more authority to work out a plan with you.
Finally, always try to negotiate. Your landlord may be willing to let you miss a payment now if you make it up at the end of the lease.
If you have a mortgage, ask your lender if they would take a 60 percent payment now with the promise to make this up over the next few months. If you will be paying late, explain the circumstances and ask that at least they waive the late fees.
If you are having trouble paying for your utilities, see if you can switch to a budget plan or set up a partial payment plan. Most utilities will not cut off your service so long as you are making some kind of payment.
You could sell your car and purchase a cheaper one if a car payment is a problem. If you’re going to make a late payment, be sure to let the lender know in advance. Otherwise, you might find your car has been repossessed. You might ask for an extension of the loan. For example, if you have 36 months left to pay, you might ask to extend this to 42 months in return for lower monthly payments. And if you are leasing a car, see if you can terminate the lease early. All the leasing company can say is “no.”
Being in serious debt is never any fun. But if you tell your creditors what you will do and then do what you say, things will get better.
For FREE help with debt and credit, subscribe today to Douglas Hanna’s free email newsletter “8 Simple Steps to Debt Relief” at http://www.all-in-one-info.com
July 24th, 2005
by Jakob Jelling
Everyone can be put at a disadvantage if they have poor credit. Lenders are less likely to loan to people with a poor credit history, therefore it becomes a huge handicap for people looking to buy on credit.
If you want to buy your car or house on credit, poor credit can be a huge obstacle. Even if you are approved for the loan, it is hard to secure competitively low interest rates in the industry.
Anyone with a Fico score under 600 is usually considered a person with poor credit. Many people end up with poor credit due to misuse of credit cards. People are usually uninformed about how late payments can negatively affect their credit report. In fact a lot of bankruptcies in the United States are caused by mishandling of credit cards.
Fixing Poor Credit
Tired of being rejected for loans? Tired of sky-high interest payments? It is time to repair your poor credit.
One way you can fix your poor credit is to try to regain control over your debt situation. There are many agencies that can provide debt consolidation or complete debt elimination services. Once you are able to make your debt payments in time, you will reduce the deductions taking place on your credit score.
Poor credit can be caused by not properly planning your expenses so that you do not have enough money left over to pay your bills on time. By creating financial plans such as a household budget and a savings plan, you can get control over your expenses. Proper organization can help you get rid of your poor credit.
Credit cards available to people with poor credit usually have lots of fees such as an annual fee and a high APR. However these cards can give you the chance to start repairing your credit. With a good credit score you can become eligible to lower interest rates and fees on any loan you take out, therefore it is certainly very desirous to start fixing your poor credit.
If you need money in an emergency and are hindered by your poor credit, you can look into a cash advance payday loan. Cash advance agencies usually do not carry out credit checks. However these loans are meant only for the short term and could cost you dearly if you delay the repayment.
Good credit is not built in a day. It will take persistence on your part to repair your credit. With a good credit you can finally be able to buy the house or car of your dreams. You will find many more doors open to you after you have fixed your poor credit.
Even with poor credit you may find agencies willing to loan to you. Search the advertised offers from home mortgage companies, auto dealers and credit card agencies where they say they will provide loans even to people with poor credit.
About the Author
Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.
June 4th, 2005
by Gary Gresham
Understanding credit report scores is important when you see your credit report because you need to be able to make some sense of it.
Your credit score is used by anyone loaning you money such as credit card companies, home loan lenders, auto loan lenders and finance companies. They all use your credit score to determine your credit risk. The interest the lender charges you is based on your credit risk. So you can see how understanding credit report scores is information that can save or cost you money.
You need to find out what your credit score is before you talk to any lender in case there is something on your report that you may question. You don’t want the lender to find a mistake that you aren’t aware of. If you find a mistake, it takes at least 30-60 days before you see corrections in your credit reports and scores.
You have probably heard that checking your credit will bring down your score. But checking your own credit report and score is counted as a “soft inquiry” and doesn’t harm your credit score at all. Only “hard inquiries” from a lender or creditor, made when you apply for credit, will bring your credit score down a few points.
Your credit report should have the three main credit services Experian, Trans Union and Equifax and each service will give you a different credit score.
The credit scores will range between 300 and 870 with each credit service giving a different score. The higher your score is the better, because as your credit score increases, your credit risk decreases.
The average high approval score where the best interest rates are offered is 680 or above. The credit score the lender uses comes from the middle score or an average of all three scores is sometimes used.
Don’t be surprised if you find an error once you get your credit report. Statistics show that 70 percent of credit reports contain serious errors. Those errors are what you want to clear up because they will affect your credit score.
If you find a mistake, you have the right to dispute the information free of charge. Contact the credit bureau that provided the information and dispute the inaccurate information.
Below are the names, addresses, phone numbers and web sites of the three credit bureaus TransUnion, Experian and Equifax.
Equifax Credit
P.O. Box 740241
Atlanta, GA 30374
Equifax 800-685-1111
http://www.equifax.com
TransUnion
P.O. Box 1000
Chester, PA 19022
Trans Union 800-888-4213
http://www.transunion.com
Experian
P.O. Box 2002
Allen, TX 75013
Experian 800-682-7654
http://www.experian.com
You can also contact the creditor direct and ask that the corrected information be provided to the credit bureaus.
If you suspect any fraud, contact all three credit bureaus immediately and place a fraud alert on your report. Then, contact your credit card companies and bank to protect your accounts.
Understanding credit report scores and checking your credit report at least once a year will keep fraud in check and keep your credit score safer.
Copyright © 2005 Credit Repair Facts.com All Rights Reserved.
About the Author
This article is supplied by http://www.credit-repair-facts.com where you will find credit information, debt elimination programs and informative facts that give you the knowledge to correct your own credit and credit report. For more credit related articles go to: http://www.credit-repair-facts.com/articles_1.html
June 4th, 2005
by Jakob Jelling
If you do not understand consumer credit, you will be far more likely to misuse credit, and ruin your financial situation. That is why the subject of consumer credit is so important.
A lot of people get their first experience with consumer credit when they get their student credit card. This is where their study of consumer credit begins. Credit card users need to be knowledgeable in credit terms such as APR, rewards, balance transfer and cash back.
You can also get department store cards specific to one brand name store. A department store card has its pros and cons. A lot of offers are advertised if you sign up for a card, such as discounts and free gifts. However the APR on these consumer credit cards is often considerably higher than most regular credit cards.
When you are a consumer of credit you need to know your legal rights so that you can protect yourself. For example if you are being hassled by collectors, you should be aware of the Fair Debt Collection Act, which lays out the rules that limits the actions a collector can use to retrieve his money.
You have a legal right to view your credit report. Your credit report is a history of your financial transactions and if you are turned down for a loan, you can view your report to determine why. You can get your credit report from a credit reporting bureau. You may be eligible for a free credit report to view your consumer credit status. How good your credit score is will determine what loans you can get and on what interest rates.
Consumer credit counseling
Misuse of credit can often lead to a high amount of consumer credit loans which can in turn lead to bankruptcies. If you are facing an overwhelming debt situation, it may be advantageous to seek out consumer credit counseling.
If your credit situation has deteriorated, consumer credit counseling may help. Counseling can help you determine your financial situation and help you find ways to repair your credit. Counseling can help you better manage your finances, so that you can stay out of debt and become a more informed user of consumer credit.
About the Author
Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.
June 4th, 2005
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