Doing it Yourself Credit Repair

We all know what bad credit can do to our ability to get financial help when it is needed the most. Although, it is a part of life, things do get out of hand; missing payments and piling up debts; we don't always control everything that happens to us in life. But that does not make bad credit less damaging, anyway. Bad credit could readily make a bad situation worse. It prevents you from getting loans, financial help or credit cards, or makes you pay neck-breaking interests on loans. Since we all will need credit someday, the earlier you start doing something about that bad credit, the better. It sure will be no good to pay off debts just before requesting credit, because most lenders are more interested in your financial history.

It may not be so easy to repair bad credit, but there are steps you can take to make the whole process easier. So, when you find yourself in such a situation, the following advice could be of great help.

I think the first port of call should be the credit bureaus responsible for providing credit reports in your locality or country. Each country has established credit bureaus with the task of monitoring your credit performance, as reported by financial institutions and you can always get your credit report from these bureaus, free or for a fee, depending on your country. If there is more than one established bureau, you may want to get each body's version of your report. It affords you the privilege of comparing the different versions. The reason why the reports may differ is that they are prepared based on the information supplied to the bureaus and it is possible they get different information about your accounts from different reporters.

Once you have the reports, scour them for errors. Don't be surprised to find mistakes or negative comments that are not true in your reports, it happens. You will also want to take note of credits that have been cleared but are still showing in your report, or accounts you cannot remember opening. Fraudsters do open accounts in people's names only to clear out the credit when the attached credit line gets reasonable. These are all very bad for your credit rating. You may also find scathing negative comments in your report. For a start, you will need to clear all these anomalies. Get accounts that are not yours removed from your credit report. Talk to creditors who are reporting negative comments about you or still showing bad debts that have been paid. You may be pleasantly surprised at how many creditors are willing to cooperate once you have explained your situation. The bottom line is communication. Talk to creditors; explain the situations you are facing. People can't help you if you don't tell them what you are experiencing. Besides, you can file a dispute, if you are sure some negative comments or bad debts are not supposed to be on your credit and the creditor don't want to cooperate, especially when you have documents to back up your claims.

There are times when the scathing comments on your report are indeed true. However, if your account is in a good condition now, you could still talk with the creditors and arrange to get the comments removed from your report. Your credit report will look better with fewer of those negative comments. Another factor that needs to be considered is the amount of debts hanging round your neck. Too much debt, definitely, spells pending financial crisis and a low credit rating. Lenders will be reluctant to grants loans or credit lines, if your report shows significant debts, even if you have re-paid most of the debts. Too much debt is a sign of financial recklessness, it does a heck of a lot of damage to your credit rating. The ugliest side of the story is that you will be required to pay higher interest rates for loans if your credit is bad, to cover the risk of lending you money. It is wise a idea to keep debts less than 30% of your limits and to pay off debts with the highest interests rates first.

Just as too many accounts will pull down your credit, too few accounts may also be harmful. If you don't have enough established accounts, your credit may be poorer than it should be. Adding departmental store or gas cards account that are in good standing to your credit report will surely boost your credit standing. Another idea is to get a loan or credit card and buy something you know you can pay for quickly. Re-paying debts on small loans or credit card purchases quickly will speed up your chances of repairing bad credit.

Bad credit is not a thing to get over with in a hurry. It takes time and requires patience. Take your time, clear your debts gradually beginning with those with the highest interests rates. Your seriousness in dealing with past debts could impress lenders and show them you are financially serious and reliable. Whatever you do, remember that you are affecting your financial future.

Related Post:
How to Improving & Establishing a Great Credit Score
How To Repair Credit Rating

More on this article...

Visa Vs MasterCard – Which Is The Best?

The two leading credit card companies in the world today are the competitors Visa and MasterCard. They both operate along very similar lines. While Visa can claim to have almost a billion cards issued, MasterCard has over twenty five thousand banks issuing its cards and it is difficult to find any difference in the number of locations worldwide that accept the cards, which is now estimated at over twenty million.

In fact, as far as most consumers are concerned, there is no real difference between the two. They are both very widely accepted in over one hundred and fifty countries and it is very rare to find a location that will accept one but not the other.

However, neither Visa nor MasterCard actually issue any credit cards themselves. They are both simply methods of payment. They rely on banks in various countries to issue credit cards that utilise these payment methods. Therefore, the interest rates, rewards, annual fees, and all other charges are issued by your bank and when you pay your bill you are paying it to the bank or institution that issued your card and not Visa or MasterCard.

How Visa and MasterCard make their money is by charging the retailer for using their payment method. So the truth of the matter is that a Visa issued by say the Bank of Scotland will have very little to do with a Visa issued by other banks and may in fact by more similar to the Bank of Scotland’s MasterCard.

What this means for the vast majority of customers is that you do not have to overly concern yourself with whether a credit card is MasterCard or Visa. You would be better off concentrating on the interest and other charges on the card, the balance transfer possibilities or their reward scheme. You are very unlikely to ever be effected by the fact that it is one and not the other.

If you prefer, if you are going to have two credit cards, you may decide that you want one of them to be Visa and the other MasterCard, this means that if something drastic were to happen to one company, or if you were in the unlikely position of finding a location that accepts one but not the other, then you would have the option of paying with either.

At the end of the day however, much more depends on the bank that gave you the card, than on the type of card it is.

Related Post:
How to Choose a Credit Card
How The Credit Card Companies Rip You Apart-

More on this article...

How to Improving & Establishing a Great Credit Score

Our credit scores are extremely important for buying houses, new cars, and getting other types of loans. Often when we are young we don’t realize how important it is to keep our credit scores on the high end of the scale. In order to get our credit scores on the excellent side of the scale we first have to establish credit, so it is kind of a catch 22. In order to improve your score there are many things you can do.

• Keep your credit cards below 49% balance. In other words do not exceed your limit by more than 49%. The loan companies are looking to make sure your debit ratio is within a certain limit and when you exceed the 49% mark you tend to get higher interest rates.
• Do not keep switching cards and transferring balances. While there are credit cards that offer a great introductory rate you may be hurting your credit score if you continue to change credit cards every six months or less. Generally you need to keep paying down the cards and only exchange credit cards when you have a very high interest rate. When you do switch cards you need to make sure the interest rate is a fixed rate.
• If you are trying to establish credit the first thing you will want to do is get a credit card. Make sure there is no annual fee, a low fixed interest rate, and that it has perks. Perks can be cash back bonuses, or flight miles. You will want to use the card once a month to avoid having it stolen, however you will want to pay off the balance every month. The key is to barely use it, but let the loan company see that you are establishing a credit history by having the card.

Your credit score is your way of getting great deals on mortgages, car loans, and other loans.

How to Repair Your Credit Score Now: Simple No Cost Methods You Can Put to Use Today by Jamaine Burrell

Related Post:
5 Must Know Things About Credit Reports
How To Repair Credit Rating

More on this article...

How to Avoid Bad Credit & Repair

Pay your bills on time to avoid getting bad credit. Research the marketplace before coming to a purchasing decision, and continue on your way to reestablishing your good credit.

Understand all applications, including credit cards, student loans, mortgages, and car loans carefully to avoid being overcharged. Make wise decisions ahead of the game as the ultimate solution to maintaining good credit. Most people are not aware of the options available to them when they take out a home mortgage loan. Many walk into the bank, fill out an application, and accept the terms & conditions when offered to them without concern for the fine print.

People are filing bankruptcy because they can’t afford their homes anymore. This is because these people did not take the time to check the marketplace for options available to them. Millions are, instead, in debt and searching for a way to repair their credit. The real solution is to avoid bad credit in the first place.

Research, invest wisely, make good decisions, and budget. Information and education are two of the best tools offered to us. Some mortgage loans offer overpayments and underpayments. These loans include vacation packages and lump sum payments to the borrowers. Other loans offer low mortgage monthly installments and low interest rates with attached insurance policies that will pay your mortgage if you are sick, unemployed, in an accident and so on. On the other hand, some mortgage loans have high interest rates, high mortgages, and balloon payments attached. When balloon payments are attached to home mortgages, it’s almost guaranteed in a few years you will be searching for a solution to repair your credit.

There are very few home lenders willing to tell you the truth about all the home loans available. Most of the lenders are making money off the loan. Your debt is their source of income. Scope out the terms & agreements carefully, and read all the fine print on any loan contract before you sign.

If you want to avoid bad credit and repair, stay on the right path. Loans are agreements that are made between two parties. Interest rates and other fees are always attached to those agreements. If you are applying for a home loan and want to avoid bad credit, learn what fees are included and how much those fees are. You will be charged fees up front any time you take out a mortgage loan. In some cases, however, you can get a home for little or no money out-of-pocket. Search the marketplace to save time and money.

Some home loans offer an “acceleration clause,” which covers missed mortgage payments. Lenders apply the clause by allowing leniency for one month, providing you make payments the following month on time. This type of loan is great for avoiding bad credit, foreclosures, and repossessions.

The marketplace is swarming with realtors and other resources that will help you get an affordable mortgage loan with benefits included. One tip to consider is painting your home and adding a little landscaping to increase curb appeal and property value.

If you are applying for a car loan, it is also important to search the marketplace carefully before agreeing to terms & conditions. Make sure that your find the best deal affordable to you. Most car dealers increase fees on cars 15%. This means if you can negotiate a price reduction with the dealer up to that amount. Stay away from credit cards that have fees attached and high interest rates. Avoid credit card offers that have upfront fees or offer a high line of credit. Consider a student loan. You may be qualified for a student grant from the government. These lower-rate options should be considered before you commit to a loan agreement.

Related Post:
Mortgage loan for people with bad credit!
Bad Credit Mortgage Refinance

From Credit Repair to Credit Millionaire by Donna L. Fox From Credit Repair to Credit Millionaire explodes the credit myths and takes you on the journey to become a credit millionaire. Learn about credit leveraging, the most powerful tool of wealth building.

More on this article...

Worst Student Credit Card Mistakes that Cause Most of the Credit Card Debt

Do you find most of your friends end up their college with huge credit card debts to repay? What ails them? In this article we take a look at the 3 worst mistakes students make with their student credit cards, and pay for it heavily later on in their life.

1. Sign up the first offer you receive
A student is offered a number of credit card when he or she enters the college. A good thing would be to contact the financial aid office to get help on which card is better. Ask your friends, get their opinion, see how well they are faring with their student credit cards, compare various offers that you get on a credit card comparison website online. This will ensure that you have made an informed decision. Else, you could land in trouble.

2. Max out the credit limit
Credit card companies are quite generous in giving huge credit limits by student's standards. Student's should not take this as easy money and max out the credit card. A good thing is to keep the credit card balances to below 30% of the maximum credit limit. This will keep them in the good books of credit card company and won't invite huge penalties and high APR's.

3. Don't repay on time
Taking a loan (yes every expenditure on credit card is a loan and has to be repaid with interest) and defaulting on repayments, doesn't go well with credit card agencies. When they find that a default on repayment has taken place, they increase the APR's, take back all rewards and slap late payment fees. This also doesn't goes well with the credit rating agencies.

Credit card is there to help you in times of difficulties and it has to be used wisely to build the credit. If the credit card companies find that your credit card use is judicious, they will increase your credit limits, lower interest rates, throw in few more rewards etc. This will seriously help in building a good credit history.

Related Post:
Everyone Should Know About Student Credit Cards
Why Credit Card Companies Target College Students
How to Avoid Student Credit Card Debt

More on this article...

How The Credit Card Companies Rip You Apart?

Bad credit can happen to anyone. The reasons could be different but the result is the same. Credit card companies see bad credit people as a good means to fill up their coffers. Without paying attention to how the person got into this grim situation, they enforce their credit card issuing norms in such a way that they make maximum amount. How they rip us apart? Take a look at the following article and you will find the answer for sure.

High Interest Rates
A less than perfect credit repot attracts high APR on your credit card. Credit card companies simply can't digest the fact. The feel it risky to provide credit card, so to offset the risk high interest rates come in.

Low Credit Limits
A very low credit limit is given if you have an unsecured bad credit credit card. On the other hand if you offer any collateral or link your credit card to a bank account, the credit limits can increase slightly. However, don't expect huge credit limits instantly, they can grow gradually if you are prompt on repayment and get the credit card companies faith.

High Annual Fees
High ownership costs are a regular feature of bad credit credit card, this includes a high annual fees which can go in hundreds of dollars if the situation is really bad on the credit history front.

Low Grace Periods
With very less tolerance for defaults, credit card companies levy heavy late payment penalties and do not allow large grace period. Considering the fact that the borrower's credit history is already tainted, credit card companies feel that they have very little choice but to enforce strict repayment schedules to recover their money.

Advance Processing Fee
Yes, don't be surprised if a credit card company demands a huge sum in advance to give you that bad credit credit card. It has become a norm with some 'shady' credit card companies.

The facts above present the stark reality which faces a person with bad credit when he approaches a credit card company. To avoid getting ripped off by the credit card companies he/she should compare various bad credit credit card offers available in the market and choose only the one which suits best. A bad credit credit card is an opportunity to remedy the credit history. This can only be done if the monthly balances are repaid promptly and the credit card is used in a responsible manner.

More on this article...

How to Choose a Credit Card

When it comes to choosing a credit card, you have many options to consider as a means of achieving your goal. Ultimately you want a credit card that is the cheapest, and that gives you the most flexible terms and conditions. However, judging those two factors can be difficult for those of us that are not credit card experts. Before you decide for sure that you wish to get a credit card, why not consider the alternatives that are available?

The Alternatives
Debit Card – should you want a credit card as a means of ensuring that you can pay with a card, then why not consider getting a debit card instead? This will mean that you are not borrowing any money and that they money is coming out of your bank account.

Bank Overdraft – you should consider using a bank overdraft if you are wanting to borrow money over a longer period of time, as you may find that it will work out cheaper than a credit card. A bank overdraft is basically like a loan of money, however all it means is that you are allowed to have a negative balance in your bank account.

Bank Loan – a bank loan is often the best solution when you need a loan of money over a longer period of time, or if the amount you need to borrow is a larger amount than what a person would usually borrow using a credit card or a bank overdraft.

Friends & Family – if you want to borrow money, then you could consider asking your friends and family rather than asking a financial institution. Although many people are in a position where they are not able to do this; some are, and if they can, then it can often work out to be a good solution.

Factors to Consider when Choosing a Credit Card
APR – when choosing a credit card, one factor you need to look at it APR. APR is the amount of money that you will get charged for borrowing money. This amount means the interest rate that you will be charged over the course of a year, and is usually presented in percentage form.

Limit – this is the amount of money that you will be allowed to borrow. When you reach the limit on your credit card, then that is you; you are back to having no money. Despite that, limits can often work well for ensuring that you keep any debt under control.

Credit Rating – if you always pay your bills on time, then you will most likely have a good credit rating. If you manage to always pay your bills on time with a credit card, then this will also help to make you look like a person who is more than capable of sound financial management. Because it is important to keep a good credit rating, you should always do whatever it takes to keep your credit rating as good as possible.

Related Post:
How To Obtain Credit
A Viable Alternative to Credit Card Debt- Prepaid

More on this article...

A Viable Alternative to Credit Card Debt: Prepaid Credit Cards

For some people, having a credit card in hand is like giving a beer to a recovering alcoholic. They mean well, but have trouble abstaining. The problem is compounded by the fact that in today’s society, there are many occasions (such as renting a car, selling on ebay or ordering online) when you really do need a card.

This is where a prepaid credit card can be especially helpful. Originally designed for adults with poor credit ratings, prepaid credit cards are also becoming a valuable tool for parents of teenagers. The credit limit on such cards is determined by how much money is placed in the bank. This fact alone can teach an important lesson: if the money isn’t there, they can’t spend it. Rather than enabling us to spend money we don’t have, credit cards should be tools of convenience.

Not Free
It’s impossible to get a late free on a prepaid card, as there is nothing to pay off. But there are annual fees, monthly fees, activation fees, customer services fees, ATM cash withdrawal fees, fees per purchase on prepaid cards and even inactivity fees. So it pays to shop around before picking a card.

There are scammers in the prepaid credit card business too, just as there are in just about any business. If your prepaid credit card company is tacking on $1 every time you use the card, or $10 per month just to carry their plastic, beware. There are better alternatives available, but it’s up to you to find them.

Not always accepted
There are also some gas stations and car rental companies that do not accept prepaid credit cards. The logic behind this seems unclear and the incidences may be minor, but the fact it, your prepaid VISA may not work “everywhere you want to be” and this is one drawback to consider before getting a prepaid card.

Neutral on your credit
While prepaid credit cards won’t tear down credit, they don’t build it up either. If your goal is to re-establish your credit history, a secured credit card might be the better way to go. Prepaid credit cards are a great tool for gift-giving or spending money for your child, however.

The bottom line is you need to do your homework before buying a prepaid card. The bank has to make money somehow, so even the best of deals is going to cost you something. With a regular credit card, the bank makes their money on interest, late fees and penalties. If you have good credit and the willpower to manage a regular credit card wisely (e.g. never charging more than you can pay off each month and never being late on a payment), a regular credit card will always be your less expensive option. But if or one of your dependents really has trouble keeping the balance in check, a prepaid card may be just what the doctor ordered.

Related Post:
How to Avoid Student Credit Card Debt

More on this article...

The Dos & Don'ts of Credit Repair Services

If you're in serious debt or have a very low credit score, it may be time to look into credit repair services to help you out. Let's be honest – few of us understand the details about how your credit score is worked up, what may negatively affect your score, how long bad credit information stays on your report, etc. Good credit repair services can help you to understand the credit process and even educate you on what you can personally do to buoy your own credit. The truth is, you can do the same things a credit repair specialist can do – but it would take a very long time and a whole lot of headache. Legitimate credit repair services have had years to perfect techniques and gain knowledge on how to improve credit scores.

The first thing to realize is there is no quick fix to erasing bad credit history. It takes time, effort on your part and a strict debt repayment plan to improve your credit score. The difference is, a good credit repair service will have these steps down to a science and can help save you unnecessary aggravation in figuring out just what these credit bureaus want from you!
When shopping around for a good credit repair service, there are things you should do and things you definitely should NOT do.

The Do's of Finding Good Credit Repair Services:

• DO shop around – have several options.
• DO ask questions about fees – legitimate credit repair services shouldn't take all your money up front.
• DO find out what kind of promises they make.
• DO try and get as much in writing as possible to protect yourself.

The Don'ts of Finding Good Credit Repair Services:

• DON'T believe claims that the service can erase any bad credit, can raise your credit score in a short period of time, etc.
• DON'T pay a large sum up front – many scams will take your money and run.
• DON'T sign up for any credit repair services who are unwilling to give you something in writing.
• DON'T use a service without thoroughly researching its credentials.

By law, credit repair services must give you a copy of “Consumer Credit File Rights Under State and Federal Law” before signing a contract with them. They should also spell out your rights and obligations in some sort of written contract that you should carefully review. A credit repair service cannot make false claims about their services or charge you in full until they have provided services. Your contract with them should specify details such as the company's name and address, the payment terms for the service, a detailed description of the service to be rendered, the expected time period to achieve results and any guarantees they may offer.

Not everyone who is in debt needs credit repair services, but if you have a very negative credit report, are bad at budgeting, or just lack knowledge in the area of credit and credit history, a credit repair service can be a great tool in educating you and keeping you on track with paying off debt. When it comes down to choosing credit repair services, just keep in mind: if it sounds too good to be true, it usually is.

More on this article...

Mortgage loan for people with bad credit!

When a Mortgage loan for people with bad credit is taken to purchase a house, a charge needs to be created in favour of the lender. The borrower needs to mortgage the property in favour of the lender- the bank or the housing finance institution. This creates a security in favour of the bank. It enables bank to secure the repayment of the people with bad credit Mortgage loan. In case the borrower defaults on the repayment of the Mortgage loan  or the interest, the bank can enforce the security. In the case of housing loans, continuing security of the residential building mortgage to the bank is accepted, provided the value of the property is sufficient to cover the liability with the prescribed margin.

Mortgage is a form of hypothecation of the property. A Mortgage loans for people with bad credit can be secured by either an equitable mortgage, a mortgage by way of memorandum of entry, or by a registered mortgage. The type of mortgage differs from one bank to another depending on the loan amount, value of equity, customer profile etc. An equitable mortgage is created by way of deposit of title deeds. The ownership documents of the property are deposited with the bank. No formal mortgage deed is executed. This is the simplest and cheapest form of bad credit mortgage.

Registered mortgage is the safest form of mortgage. This is also referred to as English mortgage. No documents of property are required to create an English Mortgage. The borrower has to enter into a mortgage agreement with the bank. This deed is then
stamped and registered in order to make it enforceable. This is an expensive mortgage. The stamp and registration charges have to be borne by the borrower. The borrower binds himself to repay the mortgage loan amount as per an agreed schedule and transfers property absolutely to the mortgagee (lender) subject to the condition that the bank or lending institution would transfer the property back to the mortgagor on repayment dues.

In case of mortgage by way of memorandum of entry, the borrower has to sign a declaration stating that he is mortgaging the property to the lender. This declaration is entered in the memorandum of entry of mortgage which can be enforced by the bank in case the borrower defaults in the repayment of loan dues.

Once mortgaged, the borrower can neither sell nor transfer the property to anyone else without the consent of the bank. While purchasing a property, the purchaser should do a due diligence exercise and visit the registrar’s office to see if any prior encumbrances on the property proposed to be purchased by him are there.

Normally, banks prefer to have the first charge on a property. In case the purchaser has availed of a loan from more than one bank, a pari passu charge may be created in favour of the lenders. However, this usually applies to large projects. In case of a pari passu mortgage, if there is any default in repayment, all the lenders share a right on the property as per the proportion of the loan amount disbursed by them.

The charge needs to be registered with the office of the registrar. Both the lender and the borrower need to be present. The mortgage deal needs to be executed on a non-judicial stamp paper.

Related Post:
Bad Credit Mortgage Refinance
FICO Score: Bad Credit Home Mortgage Loans

LiveJournal Tags: Bad Credit, Mortgage Loan

More on this article...

How Does Consolidation Affect Your Credit Report?

Truth is that these processes consist of a cluster of measures that include byzantine negotiations with creditors and implementation of budgeting techniques that need some time to start showing results. But in the meantime consequences on your credit score and history are simply unavoidable. Let’s analyze what they are and why they happen:

Current Delinquent Accounts
While you start a debt consolidation or management program, your accounts and balances being negotiated may be considered delinquent accounts because the repayment is suspended. After negotiations, lenders tend to exclude these accounts from their delinquent reports for credit bureaus. And though this isn’t necessary the rule, it is a fact that can be negotiated among other things. And it can be imposed as a condition for creditors by negotiators to retake the repayment of debt.

The time frame that will determine when your creditors start reporting your accounts as clear and to account for your timely monthly payments is variable and it really depends on the lender and your agent’s negotiation ability. The reasons for this to happen are varied but they basically have to do with the delays associated to any negotiation process that involves borrowers and creditors even when there are intermediaries on a particular field.

What Should I Expect?
Even the accounts that are current once you start the consolidation program should be expected to run late for at least a month or two. Depending on your creditors the situation may be even worse. This is due to the fact that some of them require at least three periods of payments through the agency to reconsider the account state. This implies that your account will show late or missed for at least four months.

All this should be taken into account upon joining a debt consolidation program especially if you think you’ll need finance in the near future. During this period, which can last up to 6 months but usually lasts 4 months top, your credit score will drop due to the missed payments and you’ll find it very difficult to obtain finance. So, don’t forget to mention this fact to the agent that guides you through the consolidation process. If you are going to need finance, it might be a good idea to postpone consolidation for a couple of months.

Also, even if you do not need finance, you shouldn’t be surprised if your credit score drops dramatically at the beginning and you shouldn’t judge the results of the consolidation process till it finally is completed. Or, at least, you shouldn’t worry about your score till after the first six months of the consolidation process have ended.

LiveJournal Tags: Credit Score, Credit Report

More on this article...

How To Read Your Credit Report

Anyone that has a credit card or any type of loan, also has a credit report. Most Americans are aware of this fact, they just don't have the ability to understand or access their credit report. The Fair and Accurate Credit Transactions Act, signed into law on Dec 4, 2003, a bill that gives every American the right to a free copy of their credit report every year from each of the three major credit bureaus. These are Equifax, Experian and TransUnion.

Most credit reports will follow a basic format. If you didn't get a copy of your credit report directly from one of the bureaus mentioned above, your best option for a translation is the source that's providing your copy. There is a four part outline most bureaus use in writing your credit report. The first part is your identification information. This information would include your name, social security number, current address, previous addresses, date of birth, driver's license number, telephone number, spouse's name, your employer's name and length of employment with the company. When reading your credit report, make sure all of your identification information is absolutely correct. You might be surprised at the mistakes that can be made.

Your credit history is the next part of your credit report. This will be the majority of your credit report, especially if you have department store accounts, multiple credit cards, multiple bank and other financial institution loans, mortgages, car loans, lines of credit, home equity loans and other transactions involving credit. It can also be quite extensive if you've had credit for a long time. The credit bureau will refer to these accounts as trade lines.

The information listed on these accounts (trade lines) begin with when you initially opened the account, then follow with the type or kind of credit (installment, car loan, personal loan, etc.) and whether it is in your name solely or whether your sharing the account with someone. The total amount of the balance due on your loan or charge account is included along with your credit limit (how much you can spend on the account). The Credit Report will also show how much you still owe and if the payments are fixed or minimum monthly amounts. Your status, open/inactive/closed/paid, follow your payments. The most influencial part of your credit report follows next, were you on time with your payments? This is where the bureaus list if you were late with payments, and if late, how late and how often you've been late. If you are not late, it will show you pay on time.

The third part of your credit report is called Public Inquiries or Public Records. This section lists tax liens, judgments, foreclosures and bankruptcies. It is definately to your benefit to have this part bland want this part to be blank. If you see anything listed in this section, attempt to correct it immediately.

The fourth part of your credit report is the Inquiries section. It is divided into two parts. Part one lists the inquiries you initiate by filling out a credit application. This section is generally referred to as the hard inquiry section because you are the initiator of the inquiries. The second part is called the soft inquiry section. Here you'll find the names of companies who have sent you offers of credit or current creditors who are monitoring your account.

Sometimes, your credit report will have a fifth section called Remarks. This is a section where a creditor might make a specific remark about you. Hopefully, something nice. Your credit report will have an explanation of terms on the backside of the report. Here is where they explain what the numbers and letters you see next to your accounts mean and how good or poor your credit report actually is. It's really quite simple to read your credit report, once you understand the basics.

Related Posting:
Things Need To Know About Credit Report
Credit Repair & Mortgage Refinance

Technorati Tags: Credit Score, Credit Report

More on this article...

Tips on Choosing Your Credit Repair Company

Almost everyone has some kind of debt. Most people have credit cards, student loans, a mortgage, or car payments. Your timeliness in paying off these loans make up your credit history, something that people usually don’t think about until it’s too late and you are declined on an application. Your credit history is an important tool in maintaining your financial stability, and can have a big impact on your way of life. Once your credit rating is listed as “poor,” you will have a hard time renting a car, putting a deposit on a service, or getting a credit card. If you have bad credit, it is important to begin working toward credit repair right away, before you find that the damage gets worse.

Many people find the thought of improving their credit history to be daunting, and might understandably be tempted by a company online that offers to quickly fix their bad credit for a price. Though there are situations where one of these credit repair companies may prove useful, in most situations they are unnecessary.

Credit repair companies aren’t a realistic solution for most people, because they provide you with a service that you are able to do perfectly well on your own. These credit repair companies will have you obtain a copy of your current credit report from a credit-reporting agency. They will then launch an attack on each of the negative items on your report, in writing. They don’t do this with the idea that you have many mistakes on your credit report, but in the attempt to take advantage of the credit reporting agency’s legal obligation to respond to all investigation requests within 30 days. In effect, the credit repair company is gambling. If the credit reporting agency fails to respond within the specified time period (difficult to do if you multiple items are challenged at once) they are required to remove the challenged item (or items) from your credit report.

This may seem clever, but it is important to remember that the credit reporting agency can put the items they removed from your credit report right back on once have the correct documentation. You could end up paying the credit repair company to perform a “service” that was undone a month or two later.

Aside from this strategy that some credit repair companies use, many more companies like this regularly scam their customers. Remember that these companies, by law, must render all promised services before they accept your payment. They must also clearly outline every fee and service that they intend to provide. If you do choose to enlist the services of a credit repair company, read over all paperwork and fine print to avoid possible scams.

For most people, using the services of a credit repair company isn’t necessary. Make sure that if you do decide to use one, that you check them out completely and that they are actually able to perform a service that you can't, or don't have the inclination to do on your own.

Technorati Tags: Credit Repair

More on this article...

How to Avoid Student Credit Card Debt

Credit card debt is very common to students. Most of the youth don't pay much attention on managing their credit cards properly. To prevent credit card debt, the article feature some practical tips for the students to learn how to use the credit cards the right way.

Students are prone to acquiring credit card debt. Why? Because most young people do not know or are not paying attention on how to handle their credit cards correctly. Here are some practical advice on the proper use of student credit cards and how to avoid credit card debt.

It’s Just a Marketing Strategy
Be aware that credit card companies are experts when it comes to marketing their business. They spend millions of dollars in using different marketing strategies to get your attention, to grab your interest and move you to sign up with their company. Credit card companies may give away freebies, offer instant approval, and other promotional tactics which can be very hard to resist. Don’t be too naïve in applying for a credit card just so you can get a free coffee mug or t-shirt. Remember, there’s more to it than just the freebie.

Don’t Settle for High Rates
There are so many different credit card companies that are competing in the market today that students don’t have to settle for a credit card with unsatisfactory features. Some credit card companies charge high rates for students because they haven’t yet established their own credit. However, there are still other credit card issuers who offer reasonable rates even for students like you. Don’t rush in signing up that application as if there’s no tomorrow. Take your time in choosing the right student credit card with the most reasonable rates. Compare the rates and features that each credit card provides. Only then can you be sure that you’ve chosen the right one.

Control the Use of Your Credit Card
Don’t use your credit card on all your spending needs. For instance, if you’re going to eat in a restaurant or watch a movie be sure you have the budget to spend on it. Don’t use your student credit card on such expenses. If you’ll get into the habit of charging all your expenses on your credit card, it is not unlikely that you will soon be facing credit card debt. Because credit cards are so convenient to use, you won’t immediately realize that you’re already spending way out of your means. In the end, you’ll have a very hard time paying off your balances.

Educate Yourself
You can find valuable articles on the internet that are related to credit cards and credit card management. Learn about the features of a credit card, know your rights and your responsibilities as a credit card holder, know what a credit report is, how your credit report can affect you and read advises on how you can manage your finances correctly.

Budget your money
Budgeting plays an important role in avoiding credit card debt. What is your exact budget for an entire month? Whether you are self-supporting or receiving allowance from your parents, plan exactly how much you intend on spending out of that cash. Don’t forget to save even just a small portion from your monthly allowance. This savings will be your fund which you can use when emergencies arise. Make sure that you will not go beyond your intended expenses for the month. When making a purchase, think about it ten times. Do you really need that particular item? Or do you just want it? Have the determination to say no or back out from making a purchase if you know that it’s not really very important.

Pay Your Dues
Using your student credit card in purchasing doesn’t grant you the freedom from paying it back. So pay your credit card balances on time and never ever try to skip on a payment. Be aware about the scheduled deadline on your payments. Check your monthly statement of account and see to it that you’re keeping up with your credit card payments.

Technorati Tags: Student Credit

More on this article...

Why Credit Card Companies Target College Students?

Many credit card companies see the marketing potential in college students. Credit card companies use promotional offers and free gifts like t-shirts, coffee mugs, or CDs to entice students on signing up for their company.

Many credit card companies see the marketing potential in college students. Credit card companies use promotional offers and free gifts like t-shirts, coffee mugs, or CDs to entice students on signing up for their company.

Have you ever asked why? Loyalty is a good reason. Credit card companies are competing to be the first credit card that the student will own. By being their first credit card, it is very likely that even when they graduate from college and enter the corporate world, students will be upgrading their credit cards with the same credit card company.

Students are Big Spenders
Aside from this, college students are great spenders. Let’s face it, credit card companies love customers who spend much using their credit cards. The more a person uses his credit card, the better it is for the business. And students are usually prone to over spending or using their credit cards excessively not just for their school necessities but on luxuries as well.

Despite the fact that college students are still in school and most do not have stable jobs to finance them, credit card companies are still doing everything to encourage these students on obtaining a student credit card. Furthermore, credit card companies are encouraging students to use their credit cards as often as they can.

Regardless of whether a student can afford to pay it or not, credit cards are willing to take the risk. Why? Because they can simply charge additional costs on the customer’s account if they fail to make their payments on time. For instance, credit card companies profit from charging interest rates and penalty fees on their customers. Obviously, customers who fail to pay their balances promptly pay more even if it takes them some time to repay their bill. In the end, the credit card company is still the one who benefits.

Students Need Credit
It is also interesting to know that students will do everything in order to repay their credit card debts. Although, students may fall behind on their payments, they will still find some way to pay off their debts especially as they are about to graduate and find employment. Students may get a part-time job, get a student loan, or borrow from their parents or relatives the money to get off their credit card debts.

Students need to clean up their credit report from any unimpressive records. They need to boost their credit rating so that future employers and creditors can find them worthy of their approval. Thus, credit card companies know that whatever happens, students will find a way to settle their credit card debts sooner or later.

In view of this, it is up to the students on how they will use their student credit cards to their advantage. Credit card companies do not have to be the only ones to profit. A student credit card can provide great help and support during a student’s college years as long as the student knows how to manage his finances responsibly.

Technorati Tags: Student Loan Counseling

More on this article...

How To Lower Your APR Rate

Credit card companies do lower the APR rates if approached with the right attitude proper planning. What is the correct procedure to do it? In this article we take a look at 3 important things that could help you get that skyrocketing APR under control.

Keep a good re-payment record
If you pay  your credit card bills on time, chances are good that your credit history will be excellent. Paying bills on time gives you a good leverage for asking the credit card company to turn things in your favor. Having a good credit history will always help as there would be numerous other options available to you in case your present credit card company doesn't heed to your request of lowering your APR.

Do a good research
Before presenting your case to the credit card company it will help greatly if you find other credit cards floating in the market, which provide similar services but at a significantly lower APRs and balance transfer options. Once you have your data ready, it is time to call the company.

Call the credit company
Ask the credit card company to lower your APR, substantiating your request with your good repayment history, and other cards which offer better options. Having a good bargaining position doesn't mean in anyway that you loose your manners while calling the credit card company. Being polite and courteous always pays.

Contacting the right person, who makes the APR related decision will speed up the process. If the customer service representative denies your request, you always have other options to switch.

Technorati Tags: Credit Report

More on this article...

Everyone Should Know About Student Credit Cards

Finances are a real problem during student life. Part of it is because of day to day college expenses but the major factor is increased cost of education. Very fact, that a lot of things demand our attention during student life, budgeting is automatically not on the priority list.

Help from parents or a part time job or some tuition could arrange the much needed money to some extent but, more and more students are now relying on a student credit card to fund their college expenses.

As the name suggests, a student credit card is specially designed for students and is very different from your regular credit card. Because it may be the first time for college students to apply for a credit card, most credit card companies designed their student credit cards to be a form of secured credit cards.

It will help a student to avoid accumulating high amounts of debt because of reckless spending. If you need groceries, or that recommended book but you don't have the money for it, then it may be time for you to use your student credit card. It is good if you start learning good financial habits from your student life itself. Don't use the card to pay for everything and anything. Use it judicially or it will land you in a debt to repay after the college finishes.

It is not unusual to find the representatives of credit card companies promoting student credit card in college campuses. However, finding a right card will take much more than contacting the representative of credit card company. Develop a habit of shopping around and getting the best deal out there. Though the interest rates on student credit cards are relatively low, they also offer a low credit amount. If used judicially student credit card can become the perfect means to build a credit history and jumpstart your financial well being.

Technorati Tags: Student Credit Card

More on this article...

5 Must Know Things About Credit Reports

The basic idea behind reporting and tracking your credit history is to get an idea on how prompt and reliable a person is in repaying the loans.

1. Experian, Equifax and TransUnion. These three credit bureaus are responsible for reporting your credit scores to banks and other lending institutions. The basic idea behind reporting and tracking your credit history is to get an idea on how prompt and reliable a person is in repaying the loans.
2. The three digit credit score is one of the most important numbers that you will require for getting any loan. A good credit score means low interest rates, better and bigger loans and easy repayment options. On the other hand, low credit score means the opposite.
3. Your credit score is updated regularly. So, don't even think of missing a payment to the lenders. Default on this front could cause a shift in your credit scores and thereby make the loans dearer. Checking your credit score regularly, guards you against any such unpleasant situations. Credit reporting agencies are bound by law to send you a free credit report every year when you ask for it.
4. Credit reports can be questioned and got corrected if found incorrect. Keeping track of every single financial transaction and repayment detail will help you confront the credit rating agencies, when you find any discrepancy in your credit report. Being proactive in tackling such situations with ample proofs to substantiate your point will keep your credit report clean.
5. Taking secured loans like auto loans, personal loans, mortgages, credit cards, lines of credit and repaying them promptly will keep your credit score healthy. It will enable the lending institutions to have more faith in you and hence give you more loan next time on even better terms.

Technorati Tags: Credit Report

More on this article...

Save More On Credit Card Debt Consolidation

Reasons that can lead to a credit card debt are numerous and far more complicated than simply over-shopping. A sudden medical emergency, costly surgery, loss of a job, sudden death of someone beloved can all potentially escalate credit card debt.

Reasons that can lead to a credit card debt are numerous and far more complicated than simply over-shopping. A sudden medical emergency, costly surgery, loss of a job, sudden death of someone beloved can all potentially escalate credit card debt. It's easy to get oneself into mounting credit card debt. If someone has more than one credit card, things become more complex and unmanageable.

Credit card debt consolidation can be a good solution if you have something to offer as collateral, usually the home you live in. But, things are not so gloomy for those who are not a homeowner, or those who don't have a good credit history. Banking and financial institutions present a good number of options for such people to get themselves out of debt.

There may be lot of options but the poor credit situation and the fact that the borrower is not a homeowner goes against him or her in deciding the terms of credit cad debt consolidation. The lenders when they find that there is no collateral to secure their loan, they hike the interest rates and give a considerable less amount of loan for credit card debt consolidation.

The drawbacks of taking a credit card debt consolidation while not being a homeowner can be tackled to a certain extent if you take the following precautions.

Adopt good financial habits. Don't keep more than one credit card unless you absolutely require and never ever max out your credit card.

Shop around for the best debt consolidation offer. Don't just settle for the first one you get. Take your time and negotiate. If you hire a debt management or a credit counseling organization, be in touch with them constantly. Ask them what they are doing about your situation. Being vigilant and keeping your eyes open could save you a considerable amount of money and avoid unpleasant surprises later.

Credit card debt consolidation is a process to tackle your multiple debts in a more efficient way. Let it be that way. It should not be used to get temporarily relief and waste out on the opportunity. Check out your credit report progressively and make sure that the hard work you did on getting out of debt is reflected positively on your credit report. Keep in constant touch with the credit card counseling agency about this.

Technorati Tags: Credit Debt

More on this article...

How To Obtain Credit

Credit beginners usually have but one question, which is, “How do I get credit?” All the details about getting credit will follow, but the simple answer is, “Apply for it.”

Where to Apply For Credit
The best way for a beginner to get credit is by applying through a bank that specializes in credit cards for those who are just starting out. If you already have a checking or savings account, find out if your bank offers credit for people without a credit history. If the answer is yes, then you’re in business. However, if the answer is no, there are two things you can do.

You can often obtain a department store credit card or an oil company credit card easier than a major credit card, like Visa or Mastercard. Be careful, though. These cards may be easy to get, but they also come with a higher cost.

The interest rate, which is essentially the cost of carrying a credit card balance from month to month, is higher on department store and oil company credit cards. On the bright side, having a positive history with one of these cards helps you qualify for a major credit card later on.

You can also apply for a secured credit card. With this type of credit card, you first make a deposit into an account. The amount of your deposit will be the credit limit on your credit card. Some secured credit cards will convert to non-secured cards after a certain period of positive credit history.

How Old Should You Be?
Although most people believe that you must be eighteen years old to obtain credit, technically this is not true. What these people are thinking about is the age of majority at which a person can legally sign a contract. This age, which varies by state, is usually 18. Teenagers under the age of majority can usually obtain store credit from certain stores that cater to them. However, major credit cards, like Visa and Mastercard typically do not offer credit to applicants that are underage.

What to Watch Out For
Avoid making several applications for credit. Each will show up on your credit report making it appear as if you are desperate for credit.

Be wary of credit card offers that guarantee approval regardless of your credit history. Offers like this are usually scams that end up costing much more than you spend.

Once you obtain a credit card, it will be important for you to use it wisely. Building Credit guides you through using credit responsibly.

Technorati Tags: Credit Score

More on this article...

10 Things You Can Do Today To Improve Your Credit

Blemished credit is both stressful and costly, but it’s not the end. As hopeless as the situation might seem, bad credit won’t last forever. There are things you can do right now to begin repairing your credit.

1. Stop using your credit cards.
   In a bad credit situation, one of the worst things you can do is continue accumulating debt by making credit card purchases. Put your credit cards away until you have more control of the situation.
2. Get a copy of your credit report.
   You can’t begin repairing your credit until you know exactly what you need to work on. Obtain a copy of your credit report from each of the three credit bureaus to find out which accounts need work and which are just fine.
3. Clean up your credit report.
   If your credit report contains incorrect information, you have the right to have it removed. Your credit report will include information about disputing inaccurate information with the credit bureaus.
   
4. Get current on past due accounts.
   Your payment history makes up 35% of your credit score. Getting current on your delinquent accounts will have a great impact on your credit.
5. Don’t put in any more credit applications.
   As long as your credit is in repair mode, you should avoid making any more applications for credit. It’s likely that you’ll get turned down for credit and the applications will only decrease your credit score.
6. Keep accounts with balances open.
   You might be tempted to close out credit card accounts that have become delinquent, but wait. Before you close any accounts make sure it won’t negatively affect your credit.
7. Call your creditors.
   Right now they’re certainly the last people you want to talk to, but you’d be surprised at the help you might receive. Talk to your creditors about your situation. Offer to send lower monthly payments for a period of time, until you are able to get on your feet.
8. Pay off debts.
   You will have to start paying off your debts to improve your credit situation. If you don’t have the money on hand, sell off some of your belongings to speed up the process. It will be a sacrifice, but the financial freedom you gain will be worth it.
9. Get help.
   Resources, like consumer credit counseling, are available to assist you. If you are overwhelmed by your credit situation, seek professional assistance. You can locate a credit counseling agency through the National Foundation for Credit Counseling.
10. Be patient.
    Your credit wasn’t damaged overnight, so don’t expect it to improve in that amount of time. Continue paying your debts and over time you will see an improvement in your credit.

    Even small steps toward repairing your credit are better than no steps at all. Start repairing your credit today.

Technorati Tags: Credit Score

More on this article...

Disputing Credit Report Information

Your credit report contains key information that identifies you and how you've paid your bills. Whenever you make a credit-based application, your credit report is viewed to help make a decision. That’s one of the reasons that it’s so important for you to check your credit report. If, for some reason, your information is reported incorrectly, it could cause you to be denied for services for which you would otherwise would have been approved.

Find Inaccurate Information
To find out if there is any incorrect information on your credit report, you need a copy of the report. Under federal law, you have the right to one free copy of your credit report from each of the credit bureaus annually. You can get this free credit report from www.annualcreditreport.com.

Review your report thoroughly to make sure the information reported is correct.

If your credit report has incorrect information, the Fair Credit Reporting Act (FCRA) gives you the right to dispute the information.

Alert the Credit Bureau
When you find something incorrect in your credit report, you should alert both the credit bureau who provided the report and the information provider. You should always do this in writing.

If you have statements or cancelled checks that support your claim, include copies of them with your statement(keep the originals for records). In your statement, include your name, complete address, the information you are disputing, and the reason the information is not accurate. It will be helpful to include a copy of your credit report with the disputed information highlighted.

Send your dispute via certified mail with return receipt requested. This way you not only have proof that you sent the dispute, but also that the credit bureau received your dispute. Keep a copy of the letter along with any enclosures you sent.

What Happens Next
The credit bureau has 30 days to investigate your dispute and respond to you, in writing, with the results of the investigation. Any data you provided about the inaccuracy of the information will be forwarded to the original information provider. The information provider is then required to investigate and respond back to the credit bureau.

Once the investigation is complete, the credit bureau will provide you with the results, along with a free copy of your credit report if the dispute resulted in a change. You can request that the credit bureau send a correction notice to any company that accessed your credit report within the past six months.

If there is inaccurate information in one credit bureau’s version of your credit report, it’s likely that the information will be inaccurate on the other two bureaus' reports as well. You should check all three credit reports to be sure that the information in each is complete and accurate.

Dispute Addresses for the Three Major Credit Reporting Agencies
Equifax
P.O. Box 7404256
Atlanta, GA 30374
Experian
P.O. Box 2002
Allen, TX 75013
TransUnion
P.O. Box 390
Springfield, PA 19064

Technorati Tags: Credit Report

More on this article...

Using Secured Credit to Rebuild Damaged Credit

If you’ve ran into financial difficulty that resulted in damaged credit, you might find it hard to obtain new credit. Past credit mistakes can be nearly impossible to move past, especially when new creditors and lenders are unwilling to give you a second chance. What do you do when you need to re-establish your credit, but can’t get a credit card?

What is a secured credit card?
A secured credit card operates just like a regular credit card. The major difference is that you, the cardholder, are required to make a deposit against the credit limit on the account. This creditor uses the deposit as security in case you default on credit card payments.

The credit limit on a secured credit card is usually 50% to 100% of the deposit you make.

For example, if you make a $500 deposit for a secured card, your credit limit will be between $250 and $500.

Secured credit cards usually have fees that regular credit cards do not. This includes application fees, processing fees, and annual fees. Beware of cards with high fees because they can greatly reduce your deposit and ultimately, your credit limit.

Take advantage of secured credit
Most damaged credit is a result of poor payment habits. When you can’t obtain credit the traditional way, secured credit can help you demonstrate your improved payment habits. You can’t prove a renewed ability to make timely payments until you have a new credit card.

Before you apply for a secured credit card, make sure the creditor reports to all three major credit bureaus. If not, the card won’t benefit you in terms of re-establishing your credit because future creditors won’t have a way of seeing the payment history. It won't be included on your credit report or in your credit score.

After you’ve been approved, remember that your purpose for the card is to build a positive credit history. That said, don’t use the card to incur debt. Instead, use your secured credit card to make small purchases that you can pay in full each month. If you can’t afford to pay for a purchase, don’t charge it.

Transitioning to unsecured credit
Many credit card companies will allow you to convert to an unsecured credit card after one or two years of timely payments. Even if you can’t convert your secured credit card, you can apply for an unsecured credit card with another card company.

Don’t repeatedly apply for credit cards after you’ve had an application denied. This makes you look desperate for credit. Instead, continue making timely payments on your secured card and apply again within six months.

Technorati Tags: Secured Credit

More on this article...

Rent An Apartment With Bad Credit

Landlords and apartment complexes are among the many businesses that use your credit to decide whether or not let you borrow money or services. Bad credit can cause you to end up homeless, if you're looking in the wrong places.

Different landlords have different credit requirements. Some might deny your rental application if you have blotchy credit, even if you have a spotless rental history and a sizable salary.

If you’re worried that a bad credit history will keep you from finding a place to live, there are other options you can exercise.

Avoid A Credit Check
The key to getting an apartment when you have bad credit is finding a landlord that doesn’t do credit checks.

Start by looking on Craigslist, an online classified listing. In the housing section of Craiglist, apartment owners advertise rentals (apartments, condos, townhouses, and houses) they have available.

The classified section of your local newspaper (or that of the area you’re interested in moving to) is another place where property owners advertise for rentals.

Sunday's paper usually has the most advertisements.

Many homeowners use real estate agents to rent their homes. Checking with real estate agents in your area might help you find an apartment, townhouse, condo, or house to rent.

As you inquire about an apartment, ask the landlord what criteria is used to approve tenants for the rental. If credit check isn't one of them, then you have one less thing to worry about. However, if there is a credit check involved, you have some additional options for getting approved.

Get Recommended
Getting someone to vouch for your financial responsibility can help dampen the effect of negative entries on your credit report. Contact people with whom you've have a financial relationship – previous landlords, your bank, current/previous employers.

If you have past due accounts on your credit report, pay them off and get the creditor or lender to write a letter stating the account has been paid in full.

Write your own letter explaining the situation that caused your financial problems to persuade the landlord to rent to you.

Be careful about the situations in which you use letters of recommendation. If a landlord isn't aware of your credit history he may become unnecessarily suspicious when you hand him a letter explaining your past financial problems.

Have A Co-Signer
Getting someone to co-sign your lease is another option. Your co-signer will need to meet the necessary credit qualifications.

Keep in mind that if you skip out on your rent or get evicted for any reason, the landlord can legally go after the co-signer for the value of the lease. Use other people's credit sparingly and be more careful with it than your own.

It Can Cost More
Whether you're able to get around the credit check altogether or you get approved for an apartment despite your credit history, expect to pay more money upfront. You'll might be required to pay a higher security deposit or several months of rent to move into your new apartment.

If you don’t have the best credit and will be moving in the near future, start setting some money aside and begin looking for a new place as early as possible. The sooner you start looking, the more time you'll have to prepare.

Better Credit For The Future
A bad credit history doesn't mean you won't pay your rent on time. Unfortunately, your credit report and score might tell a different story. Even though you can work around some credit checks, you often end up paying more than you would have otherwise. That's why it's important to take steps to ensure your credit report matches your bill-paying habits.

Related Reading:

• How to Repair Your Credit
• Tips on How to Repair Credit Score Legally

Technorati Tags: Bad Credit

More on this article...

Bad Credit Home Mortgage Loans - From FICO Score

If you have bad credit history and are looking to get a home mortgage loan, then chances are you are going to need to know all about how the FICO credit scoring system works.

FICO Fair ISAAC & Company is the leading credit reporting agency that lenders turn to when it comes time to credit scoring your home loan mortgage application; so if you do have bad credit history, these guys will know.

The formula used by FICO cannot be disclosed because of a decision made by U.S. Congress. There are some things generally known about FICO which that could help you understand why and how you can get approved:

• The higher your FICO score, the better chance you have of getting that home mortgage loan. Also, the higher your score, the more room you have to negotiate a lower interest rate.
• If you have a FICO score lower than 500, there is very little chance you ll be getting a mortgage home loan.
  
  That said, if you have a score of:
  500 - 600 you should be able to get a home mortgage loan, provided you are willing to make a down payment.
  
  600 - 640 You should get a 100% home loan financing. That's right, with no money down.
  
  640 - 700 You should be able to be approved for a 125% home mortgage loan. 700+ You are in the drivers seat! You should be able to get an excellent rate with excellent terms.
• FICO depends on each credit report, so before you apply for a home mortgage loan, if you have bad credit history, get a copy of your credit report and make sure there is nothing on there that should not be there. If there is, get it changed before you apply for the home mortgage loan.
• Wait until after you have purchased or refinanced your home before you buy anything additional on credit. More loans or higher balances can have a dramatic effect on your mortgage approval, regardless of whether or not you had over a 600 FICO score before you bought on credit.
• Remember, the FICO score is only a part of your home mortgage loan application, so if at first you don't succeed in getting your home loan mortgage, don't give up. Some lenders may still be willing to lend to you!

People with bad credit often don't understand how the credit scoring system works. It is beneficial to find out more about it when looking to get a home loan with less than perfect credit to bad credit or when dealing with sub prime mortgage lenders.

Technorati Tags: Bad Credit

More on this article...

Bad Credit Mortgage Refinance

You have probably heard of auto refinance before. Or simply refinance. The term refinance actually refers to a financial situation wherein a borrower finds financing to pay off a current loan. Refinance is often put into practice in home buying. In fact, refinancing is one of the most popular methods of getting financing for a home loan.

With auto refinance, the same thing applies. Auto refinance is basically paying off one loan with a new loan. The goal of auto refinance is to allow the borrower to save some money from your monthly loan obligations. And as such, it is one of the best kept secrets in the financing industry. For years now, people have refinancing their homes and saving thousands of dollars. However, the practice of refinancing car loans has yet to be indulged by most. Why? Perhaps the reason is that auto loans generally behave differently from home loans and people are naturally skeptical about new methods. Regardless, auto refinance is still a good choice, provided that the situation is right.

When to get an Auto Refinance Loan
The only way for auto refinance to work is if you get it when the interest rates are low. Mortgage rates tend to move with interest rates. Therefore, if interest rates are low, then it's likely that mortgage rates are low also. Low mortgage rates typically mean low monthly repayments and this then is the situation you should aim for.

Only few people really understand the time value of money. Keep in mind that the longer you pay for a loan, the bigger amount of money you actually spend for it. Thus, by the end of the loan period, you would have paid more money on interest than on the principal. This is why auto refinance is important for it is one of the few methods that could help you minimize loan costs and maximize your savings.

Who can benefit from Auto Refinance?
Almost anyone with a loan to his name can benefit from auto refinance. Even car buyers with bad credit can obtain auto refinance as a way for them to lower down their APRs. Let's say, for instance, you make an auto refinance loan for $16,500 on a new Honda Accord. At the end of six months, you agree to pay off the amount at 21% APR. So for a few months, this will be your monthly loan obligation.

Then, you decide to take an auto refinance loan. However, this time, your loan rate is at 6% APR. Your current monthly payment is $446 which gives you total interest charges of $10,283 at the end of your loan period. Your auto refinance loan offers you a monthly payment of $319 with total interest charges of $2,639. Thus, by refinancing, you can save up to $7,600.

Technorati Tags: Bad Credit

More on this article...

Bad Credit Equity Home Loan

Choosing the right home equity loan can be tricky, you have to consider interest rates and repayment schedules, among others. Choosing the right lender, however, does not have to be a difficult task. If you ask the right questions, you can pick the best lender for your needs. The following is a list of seven essential questions that you should ask any potential lender.

• What are the terms? This will include interest rates and the length of the loan. Some lenders may require you to carry private mortgage insurance or to pay your mortgage through ACH deposit. Get the terms in writing, so that you can compare them with other lenders.
• How about my credit? Your credit score may play a huge factor in deciding which lender to go through. If you have bad or no credit, many lenders may not be able to help you. So you will want to find a lender that offers sub-prime loans for borrowers of your credit status. Bad credit does not necessarily disqualify you for a loan, but it will make the process a bit more difficult.
• What is their reputation? The lender will delve into your personal and financial history, so why shouldn't you do the same? If the company is public, you should have no trouble finding financial and news information. Look for recent mergers or restructurings that could indicate a potential problem. Be weary of lenders that are not publicly traded. Many lenders use the same underwriters, so do your homework beforehand.
• How much will the loan cost me? Closing costs can be a major concern for most homeowners. You probably need the home equity loan because you are short on funds or in debt, so coming up with a few thousand dollars for closing costs can be all but impossible for many borrowers. Your lender should be able to provide you with a good faith estimate (GFE) that will outline the fees that you will be responsible for.
• How long is the process? A typical home equity loan, should not take more than a month on average. Ask your lender how long the process will take from the initial application to receipt of the funds. This can be particularly critical if you are needed to do repairs on your home, such as purchasing a new water heater.
• Is the staff knowledgeable? Never underestimate the power of a good customer service representative. Ask the loan officer and others in the office the various questions that you have. They should be knowledgeable on the loan process, and be able to guide you through the process.
• Early payment penalty? If you won the lottery or got a big raise, would you be able to pay your loan off early? Many people forget to ask this question when choosing a lender, but it can save you thousands of dollars. So, make sure that if you choose to sell your home before it is paid off, you will be covered.

Use your common sense when choosing a home equity loan bank. Research the company just as you would with any major purchase. Don't be afraid to ask questions, and to try another lender if you don't get the answers that you desire. It is your home and your money on the line, so do your homework!

Technorati Tags: Bad Credit

More on this article...

Tips on How to Repair Credit Score Legally

Understanding every detail of information on the credit report is an important step to repair your credit score. Your credit report carries free credit score that the lenders look at before finalizing their lending decisions. A good credit score means that you can easily qualify for loans and credit products at low interest rates and attractive terms. Conversely, bad credit rating means that the lenders will stay away from you and even if they offer credit, that would attract high interest rates.

If you are having a negative credit rating, you need not worry because you can repair your credit legally on your own or with the help of legal credit repair companies. Moreover, you still have a chance of getting a loan with credit score that is not good because all creditors have their own guidelines of granting credit. Some lenders have special loan and credit products for people with bad credit. Still you should try to improve your credit rating and take steps to improve your credit legally because a good credit rating can help the lenders to offer you loans and credit at better terms.

The Myth and Reality of Fixing Credit Rating

Some credit repair companies lure you and convince you that they can help in credit repair by fixing credit ratings. You should remember there is nothing such as fixing credit rating. No matter what a credit repair company may offer you, the fact is that nobody can remove any up-to-date legal and accurate information from your credit report.

The credit repair companies can at best help you removing the errors and mistakes from your credit reports. A legal credit repair company can help you with debt consolidation and other legal means for debt reduction and credit repair.

If you find there is any incomplete or inaccurate information in your credit report, you can request for an investigation and take remedial measures on your own. You, as a consumer, have the full right to ask for an investigation of your credit report and fix the errors legally and that too without any monetary cost. If you do not have time for the same, you can take help of legal credit repair companies who can help you with necessary steps for how to repair your credit legally.

Self-credit Repair

For self-credit repair through legal means, you need to get the copies of your free annual credit reports from the legal credit reporting companies. Read and go through the credit reports thoroughly and check if there is any erroneous information on the credit reports. Any inaccurate or incomplete information in your credit report can inadvertently affect your chances of obtaining loans, insurance, job, house on rent etc. Therefore, it is well worth to inform the credit reporting companies about the errors with documentary proofs and get them corrected. You can legally challenge the wrong entries in writing.

The Federal Trade Commission is always there with you (the consumers) in providing assistance for your legal credit repair. The FTC maintains an online database of all civil and criminal law enforcement agencies in US. It can steer you for the help you may need for your credit repair. In this way, you will notice that you are slowly repairing credit rating.

Keep patience and make smart budgeting decisions. This way you will eventually be able to pay your creditors on time and prove yourself suitable for credit. This is a slow but effective way to repair your credit legally. This approach of credit repair on your own is far successful in the longer run as compared to engaging a credit repair company that indulges in illegal means for fixing credit rating.

 

Technorati Tags: Credit Repair, Credit Score

More on this article...

Understanding The Credit Repair Agency

A credit repair agency will help you get out from under that feeling that you are being weighed down by all the debt you have. Not only will they provide you with the help that you need in order to get the information you require but will help to educate you further in ensuring that you do not end up in the same situation again in the future.

There are hundreds of companies such as Creditaxis.com which can help you to repair your credit rating. But they will help you to be aware of the pitfalls in relation to having more credit than you need. These sites will help you to focus on the ways that you can get out the debt situation you are in and then stay well clear of it in the future.

Although there are good credit repair agencies around there are also some bad ones. It is these ones which are saying that they can sort out your financial situation through various different methods, including providing you with a new identity. Certainly any agency that is offering this kind of service should be avoided at all costs unless you want to find yourself in court being charged and prosecuted for committing fraud. If you really want to sort out your credit rating and any problems with your credit report the only person that can help you is yourself.

There are plenty of other services around such as credit counseling services and this will help to provide you with valuable advice. But be wary as some of these will charge a fee and if you come across such a site it is best if you look elsewhere for financial assistance.

Plus no longer do you need to rely on the services of a credit repair agency in order to sort out any problems with your credit report. There are hundreds of sites on the internet today where you can obtain everything you need to know with regards to repairing your credit report and so helping to improve your credit rating. So rather than rushing out and using the first agency you find spend a little time researching the subject on the internet and you will be amazed at the wealth of information available to help you.

 

Technorati Tags: Credit Repair Agency

More on this article...

How To Repair Credit Rating

So what is the answer when someone ask you "How do I repair my credit rating?". Well there are a number of things a person will need to know in order to ensure that they do everything correctly.

The first thing a person will need to learn about is how their credit rating score is calculated. When it comes to a credit reporting agency preparing the calculation of someone's credit score there are five things which they will take into consideration.

1. Payment History - This will be the section where late or missed payments will be noted.

2. Amount Owed - This will tell the just how much credit that you have outstanding on all your various loans and credit cards including retail cards as well. Plus it also tells what your actual credit limit is in relation to each of the various accounts.

3. Length of Credit History - Generally a person with a longer credit history is likely to be provided with a better credit score than someone who has not.

4. The type of credit you have - This is where the lenders will be able to see the various types of loans that you have.

5. New Credit - This is the last one which will be used in order to calculate a person's credit score. In this section there will be details of the number of loans that you have taken out and the actual number of loans that you have applied for even if they were not accepted.

Once a person has better understanding of how their credit report works in order to calculate a person's credit score this will then help them to repair the problem should any arise.

In most cases the first thing a person should be doing if they have noticed a problem when they are trying to get credit is to obtain a copy of their credit report. Once they have received this they should then look through it thoroughly to see if there are any errors or information which should not be on there. If they do notice any discrepancies they should contact the credit reporting agency immediately. When doing this they should provide copies of all documents which relate to the discrepancy and which are going to back up the person's claim. However if you would like to learn more about how to repair my credit rating there is plenty of information available on the web regarding this subject.

 

Technorati Tags: Credit Repair, Credit Rating

More on this article...

Credit Repair - Understanding The Basics

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.

 

Technorati Tags: Credit Repair

More on this article...