The Best Ways To Rebuild Your Credit

A good credit score or credit rating is very important when come the time of applying credit. The better your credit score is, the better deals that have attractive low interest rate will be offered to you by many lenders, enabled you to have choices to select the best offer among the good deals. Hence, you have the responsible to maintain it and ensure it always have a high value. Actions such as default a loan, delay of credit card payment or miss payment and filing a bankruptcy can jeopardize your credit rating. If you already go through this bad phase, then, it is important for you to build your credit and get it back to order. Here are a few ways that you use to rebuild your credit and achieve a good credit score.

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  You've probably heard myths that suggest that credit repair specialists have some divine dispensation with the credit bureaus...

The Credit Repair Kit: Everything You Need to Know to Maintain, Rebuild, and Protect Your Credit by John Ventura A bad credit record can make it tough to get a loan or adequate insurance, find a good job, or rent an apartment. Yet, nearly half of all credit records contain serious errors. The new edition of The Credit Repair Kit provides consumers with all the information they need to order a copy of their credit record, understand what their records say about them, and deal with any problems they may find in those records.

Build Your Credit With A Secured Credit Cards
When you are in debt, many experts will advise you to put away you credit card and not to charge your credit card again, so that you won't add new debt into your current debt. They are right, because the uncontrolled use of credit card can make your debt situation worse. But, if you want to rebuild your credit, the best way is "Use Your Credit Card".

Instead of using unsecured credit card that you still own, it's better for you to apply for a secured credit card.

You probably had given up your credit cards if you had gone through a debt management program during the process of getting you debt issue resolved. And if you credit score is not good, you probably won't be able to be approved for an unsecured credit card if you apply for one now; hence, applying for a secured credit card is the only way you can get a credit card that you can use to rebuild your credit.

What is secured credit card? Why it difference from my existing credit card? If you have not owned a secured credit card before, these questions may rise in your mind. Well, a secured credit card is the same physically with any other credit cards; the only different is a secured credit card is like a pre-paid card where you need to pay first before you use. It requires you to deposit a certain amount of cash as the collateral for a credit line. And the credit limit is the same with the amount of deposit. For example, if you put $500 into the account, you will be able to charge up to $500.

You use the secured credit card to purchase items and make the monthly payment in full on time. The issuing bank will report your good payment behavior to the credit bureau, and you will be on your way to establish a good credit history over time.

Build Your Credit With A Secured Personal Loan
Besides applying for secured credit card, you can also rebuild your credit by getting a secured personal loan. Like in secured credit card, a secured personal loan required you deposit cash or other valuable asset such as automobile, boat and jewelry as the collateral for the loan. The maximum loan can up to the collateral's value, but most of time, you can only get about 80%-90% of collateral's value.

Build a good credit history by making monthly loan repayment on time so that your good payment behavior will be consistently reported to the bureau and get it recorded into your credit report.

Summary
Rebuilding your credit after it has been jeopardized need time, patient and commitment. Secured credit card and secured personal loan are among the easier ways to regain your good credit score. Make your full monthly payment consistently and you will see your credit back to order when the time comes.

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Credit Dispute Dangers, Avoid Red-Flagged

The first thing you should know is that the credit reporting system is rigged to serve corporate interests first. The key to repairing your credit score quickly is knowing how to safely (and legally) maneuver within the consumer protection laws. Your goal is to beat creditors and collection agencies at their own game, and force the credit bureaus to help you do it.

The law is on your side. Nobody wins if you spiral down to bankruptcy.

Dirty Little Secrets: What the Credit Bureaus Won't Tell You by Jason R. Rich For anyone who is about to buy a home, refinance their mortgage, buy or lease a car, apply for credit cards, or make any type of large purchase Includes in-depth interviews with credit experts from well-known companies Includes sample letters that can be personalized and sent to credit bureaus and creditors to speed up the process of updating and/or correcting credit reports Compact, concise guide with low price point

There's no shortage of information on the internet about credit repair strategies. Filing credit disputes is a favorite. But tread carefully. Much of the information floating around out there is self-serving... Made-For-Adsense content that exists only to get you to click advertiser's ads... or a masquerade secretly (or not so secretly) shilling for some pricey "credit repair specialist." If you visit enough credit repair sites, you'll begin to notice that the same drivel is recycled again and again.

Here are a few drivel-free insider credit dispute secrets to get you started...

1. Boilerplate credit dispute letters almost always do more harm than good.
   As with medical diagnoses, blanket prescriptions for credit repair can be dangerous. Make the wrong moves and you'll actually drop your credit score! Plus, credit bureau investigators don't take boilerplate letters seriously -- especially boilerplate threats. They feel that the consumer who takes the time to write a concise, legally binding letter is more likely to hold the bureau's feet to the fire until they get what they want. They know this type of consumer is more likely to report them for FCRA violations, and more likely to sue.
2. Don't dispute negative credit items online.
   Send all dispute letters by U.S. Postal Service Priority Mail, Confirmation of Delivery -- no signature required. The credit bureaus typically refuse letters which require signatures. If a credit bureau doesn't properly verify your disputed item, you'll need the paper trail to gain the sort of leverage which will force the bureau to delete the item.
3. Don't file frivolous disputes.
   For example, don't pretend to the credit bureaus that you don't owe a particular debt when you do. That's a good way to get red-flagged and lose your right to dispute. Plus, such a ploy is highly unlikely to accomplish your goal of getting the negative item removed.
4. Dispute factual inaccuracies, and file foolproof disputes.
   The good news is that you can almost always find a factual dispute, if you know what to look for. You must learn how to identify which disputes will actually lower your credit score, or worse -- get your credit file red-flagged, which will cost you the right to dispute for up to 12 months!

Credit Secrets: How To Erase Bad Credit by Bob Hammond This expanded Credit Secrets will save you thousands of dollars in fees, finance charges and interest payments as you learn the very latest techniques to get rid of debt once and for all and establish good credit. Discover proven tricks used by lawyers, credit counselors and other pros who charge handsomely for their services.

Now, many credit courses and so-called credit repair specialists will tell you to dispute every single negative item in your credit file in the hopes that all those items will simply vanish because your creditors are too lazy or too busy to respond to the credit bureau's request for verification, or because the credit bureaus are too lazy to verify the item. Rarely happens that way, and it's a good way to get your credit file red-flagged. This "bazooka gun approach" is dangerous. The credit bureaus may very well be too lazy to investigate some items (and you can indeed use that for leverage), but not all of them.

Your success will lie in properly executing the Triage phase -- collecting and organizing every tidbit of ammunition that could be used as leverage to erase negative credit items -- and in sending (and documenting) the right series of letters. Credit histories can turn on a dime -- both positively and negatively.

Above all, your goal should be fast, safe credit repair. Often, the smallest changes can have an enormous impact on your credit file. With a little work, you can become the person every choice lender wants to loan money to, and in a relatively short period of time.

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Credit Repair Clinics: Secrets You Should Know Before Hiring One

If your credit score could use a boost, a credit repair specialist may seem like the best solution. But don't even think about hiring one until you read this.

You've probably heard myths that suggest that credit repair specialists have some divine dispensation with the credit bureaus. They don't. Far from it. In fact, in a minute, we'll show you why they have less leverage over your credit file than you do.

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The sad truth about the credit repair clinic industry -- and it is an industry -- is that many of these so-called credit repair specialists are scam artists, and the ones that aren't will be using the exact same techniques to repair your credit score that you can wield more effectively -- and safer -- yourself. And they'll charge you at least $750 to $1000 for their "expertise."

Now for those dirty little secrets...

Dirty Little Secret #1: If a credit bureau suspects that your dispute is being filed by a credit repair clinic, they'll trash it.

Dirty Little Secret #2: Credit repair specialists may be in cahoots with your creditors. Many of them are secretly paid as much as 15% by the creditor to reach a so-called "debt settlement!" Who do you think comes out ahead in that scenario? Not you! Such credit repair clinics are the worst kind of predator, exploiting their client's financial woes.

Dirty Little Secret #3: Credit repair specialists usually won't give you access to their correspondence with the credit bureaus on your behalf. Why? Here are a few reasons:

(1) They don't want you to know how easy it actually is to do your own credit repair, and wonder why you're paying them.

(2) If they resort to boilerplate dispute letters (which will just likely end up in credit bureaus' trash cans), they don't want you to see their boilerplate letters.

(3) The ones who are scamming you -- only pretending to correspond with the credit bureau on your behalf -- surely don't want you to know they're not doing much in exchange for the hard-earned fee you forked over.

If you do hire a credit repair clinic to represent your interests, make sure that they are, in fact, representing your interests. Force them to detail their plan of action. Don't sign until they agree to provide you with copies of all correspondence with the credit bureaus.

Remember: your goal is to take control of your finances again, instead of letting your creditors, a credit repair specialist, or the credit bureaus control your financial health. Don't rely on anyone who isn't personally vested in your financial health -- and doesn't even necessarily have your best interests at heart -- to fix your credit score.

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How To Get A Credit Card With No Credit

When you first turn 18 it is important that you start your credit. All you need to do first is make sure you have a source of income. You don't have to make a certain amount of money or anything like that. You just need to have some way to prove that you make money. A bank isn't going to give you a credit card if you don't have a job to pay your minimum payments with. So if you are in school the ideal thing to do is get a small part time job working at least 10 hours a week. If you plan on not having a steady income you will not want to revolve your balances on your credit cards.

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Charge on your credit cards and pay them off at the end of every month until you are working consistently. This will help you establish a payment history. This is the main factor when you go to buy any large purchase in the future they are going to look for a solid payment history to prove you are trustworthy with borrowing money. Credit cards are a financial tool. But as most of us know they can get you in trouble real quick. Do not spend money that you don't have to spend. Only buy things when you know you can pay them back within a reasonable amount of time. Hear my words of warning because most people screw this part up within the first 2 years of establishing their credit. You don't want to be one of them. So we have established payment history is the most important.

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Now when you have no payment history you have a different set of options. Their are only certain credit cards that you can qualify for approval. These type of cards typically will give you between $200-$500 credit limit. This is a manageable limit that can teach you to manage money responsibility. This is good especially for people who don't make a whole lot of money. Like college students for example. College students get the most benefits for people trying to start their credit. This is because the credit card companies want you to get an education so you can afford to spend more of their money in the future.

Credit cards are a business like any other. They want to to establish a payment history now so when you graduate you can qualify for cards that will give you a credit limit of a few thousand dollars. When you prove that you can be trusted to pay back a small amount of money for at least 1 year. You credit is then experienced enough to get a card with a higher spending limit. What can really help this whole process for you is if you have a car loan.

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The credit agencies want to see different types of credit on your report as well. An auto loan is a loan that is secured by something. They like this because a car loan isn't as risky to a bank as it is to give someone a credit card. Credit cards are not secured by anything. It is just money that a bank gave you that you can make payments on. Go to the link below and find credit card offers that say you need limited credit, no credit ok, and bad credit ok.

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Avoid Cash Advances at all Cost

After receiving your online credit card approval, you sit down and wait for your credit card that offers a 0% intro APR. When you receive your credit card, you realize that it is not enough for your needs. Luckily, you can get a cash advance on your credit card if you need cash quickly. It’s an easy thing to do, and you can get cash from any ATM accredited by your credit card issuer.

Using a credit card, especially for cash advances, is very easy. However, paying it off is not. Read on and learn the reasons why you should avoid cash advances on your credit cards at all times.

The first reason why you need to avoid cash advances on your credit card is the upfront fees for getting some cash. When you withdraw cash from any ATM, you will incur two charges automatically from some of the credit card companies. The first charge will be the processing fee. This could be a percentage of the amount taken or the minimum amount set by your issuer, which ever is higher. The other charge comes from the owner of the ATM, which is another bank. When you receive your bill, it will show the amount of the charge for the transaction fee, which could be a flat fee or percentage of what you’ve taken from their ATM.

The next reason is that the interest that is applied to your cash advance is much higher than your purchase rate. Normally your credit card after the 0% intro APR will be from 12%-18%. However, the cash advance will have a rate from 20% to 25% not including the additional fees that we have previously mentioned.

Another bad thing about using cash advances with your credit card is the application of interest. Your purchase APR will take effect after a month has passed, and it will include all the interest. If you have the money, you can immediately pay off your balance with minimum interest. The interest rate on cash advances is completely different in terms of the application on the cash advance. The moment you withdraw your money from an ATM, interest will be applied to it immediately. Even if you pay it back after a day or two, you still need to pay for the interest rate.

Lastly, and maybe the most hurtful is that cash advances are on your account itself. When you pay for the balance of your purchase, the cash advances are combined on your credit card bill, and the money that you are paying will not go to the cash advance first, but to your purchased bills. This will create a big disadvantage for you since as we just indicated; the rate of your cash advance is much higher compared to your credit card purchases.

This is the most upsetting truth about cash advances. If you can get hold of cash in another way, do it. Credit card advances will cripple your finances and once you get hooked on it, it’s really hard to pay it off.

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The Best Bad Credit Student Loan Options

A Bad Credit Student Loan can be sought through many different avenues. It all depends on your personal credit rating. The biggest challenge is finding one that offers the lowest interest rate.

There are various routes to explore when seeking out a bad credit student loan and I would suggest that your first port of call would be the school for which you are about to attend. You will need to fill out a FAFSA form in order to initially apply for a federal loan. Perkins loans are combined school and government funds.

A combination loan may be another alternative way of acquiring a bad credit student loan. This type of student loan enables you to consolidate any existing loans that you have whilst applying for a new tuition loan. The only drawback to this type of loan is that you may need someone to co-sign.

Another way to get a bad credit student loan is to get a co-signer. Maybe a family member with good credit would help. This way you could get loans with more attractive interest rates and terms, in spite of your bad credit.

Finally, if all else fails you will need to contact banks and financial institutions. They will more than likely be happy to lend you the money, but it will be on a higher interest rate than usual. When you have bad credit the banks will check out your personal credit score first and then offer terms based on the credit rating assessment.

Take heart, even if your bad credit student loan is set at a high interest rate, numerous student loans defer your payment until you have finished college. This in turn will allow you time to improve your credit rating and when you leave college you could then look into consolidating your bad credit student loan at a better interest rate. This will mean your monthly payments will be at a lower level and therefore more affordable.

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What You Need To Know about Joint Application Credit Card

A joint application credit card is simply a credit card that allows two people to use it. It typically works as follows: An individual completes a credit card application and then requests an additional card. The other card or cards will have that second persons name on it, but will have the same account number assigned to it. Probably the most common example of this is a husband and wife.

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In many cases married people have joint financial accounts for such things as savings, checking and investment portfolios. It greatly simplifies the management of finances. Another common reason for filling out a joint application credit card is a parent wanting to assist their child in establishing credit.

In a way it is similar to them cosigning an auto loan. This is often done when the child goes away to college. The advantage here is that the parent can keep an eye on all the activity generated by the student. Now here are some important points that you must understand before applying for a joint credit card.

The debt acquired by one of the cardholders is also the responsibility of the other cardholder. In other words, if your husband runs up a $3000 debt on the card and you should happen to become separated, simply stating that it is his debt and you are not liable for it isn't going to relieve you of that debt.

As long as your name is still on the card, you will be held responsible for any and all debts accrued. The way to stop this is to pay off the debt in full and cancel the card so there can be no further purchases made with it. Canceling a joint credit card can be done by a single party, as long as the account is free of outstanding debt.

The information I have given here is only a cursory look at the joint application credit card. Be sure to read the terms of service and conditions of the credit card issuer carefully and do not hesitate to directly contact the credit card company with any specific questions that you may have.

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When is a Right Time to Use Credit? Cash or Credit

These oft-repeated words are a cashier's stock phrase. Yet the question packs a powerful punch in demanding a response that may have a significant impact on your budget.

When should you charge a purchase? The following guidelines may help you think about the best answer to this question.

1. Charge only when you must. If you can afford to pay cash, do so to avoid interest payments being added to the amount of the purchase. Emergencies like a flat tire, an unexpected medical bill, or a one-time expense can be paid by credit if you have no savings or cash on hand to cover it. But keep in mind you will have to pay interest charges and possible additional account fees if you do not pay the balance in full on the account statement when it arrives.
2. Charge when other options are unavailable. For example, if you don't have cash or a debit card, you may need to charge something. But get in the habit of using your bank's debit card, which deducts a purchase amount from your checking account. This can be done without fees when you don't use your PIN, but check with your bank to clarify their specific rules and regulations.
3. Charge against your home equity line of credit to get a tax deduction. Check with your mortgage institution for details or if you don't already have an equity credit line. Ask about the interest rate to be sure it will not exceed the benefit of a tax deduction.
4. Charge to get cash-back value or bonus points on your credit account. Sometimes it pays to purchase gas, groceries, and routine home maintenance supplies if you can pay them off in full when the statement comes in. Some credit companies offer cash back on a percentage basis, depending on the amount of the credit purchase. Fuel card companies offer gasoline discounts. The goal is not to get hooked into overusing your card in exchange for services you may not really need.
5. Charge for convenience. Rather than carrying cash around all day to the drugstore, grocery store, or video store, you may want to charge these and other purchases to avoid running out of cash, as long as you are able to pay the balance off each month rather than letting it accumulate. Paying at the pump for gasoline is especially handy when you're in a hurry or the weather is bad and you don't want to take those extra steps to pay inside or at the window.
6. Charge when you travel. Tracking expenses and checking each purchase can help you monitor expenditures and the family budget as well as give you a few extra weeks after you return to pay the bill. Travel checks work well, too, although the monthly credit card statement provides a helpful spending history.

While a majority of people have at least one credit card, don't fall into the trap of relying on credit too heavily. Debt is a heavy burden to carry, especially as it continues to accrue added interest charges.

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How Long Does Credit Repair Take?

If you are looking for a quick fix to your bad credit read no further. Real credit repair is hard work, time consuming, and an ongoing affair. For whatever reason your credit needs fixing, be it a divorce, bad personal decisions, loss of job, or any other of a hundred and one reasons, it can be accomplished, but with time and effort. How much time? Seven years on average for most bad debt situations, excluding instances where a bankruptcy is filed. When a bankruptcy is introduced into your credit file, it will stay put for an average of ten years! Those lengths of time in reality are longer. They start from the time the information was listed or filed, not from when the debt occurred.

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Disputed Information in Your Credit Report:
Your first defense in cleaning up your credit file should be to know what is in it. The three major credit-reporting agencies are Equifax, Experian and Trans Union. If you have recently been denied credit, you may be entitled to a copy from the reporting agency free. Laws are also under way to ensure everyone has the right to a free combined report yearly. For now, a copy of each can be purchased from the individual agencies for a nominal fee. Once you have the reports, go over them carefully. If you notice any errors, file a dispute report. Information from each company will be included with the reports on how to file. Transunion offers convenient web access to file a dispute instantly. Be aware that when a dispute is in progress it is best not to apply for any new credit. Most disputes will be resolved within thirty days. A note of caution: Be sure to only dispute actual discrepancies. Frivolous disputes are not treated lightly.

What Can You Dispute:
All errors. For example, upon recently applying for a car loan, I was denied. I had what I thought was good credit. Upon receiving a copy of my credit report, imagine my surprise when it came and showed active accounts for not only my current mortgage, but a duplicate for the same…My bank had recently been acquired by a larger bank. Account numbers were changed, but no one notified the credit agencies that the old loan numbers were closed. It looked as if I was paying for two houses on my relatively modest income. The same for an overdraft account on a checking account through the same bank, and what was actually a checkbook balance to the good, showed as a loan. We still have not actually figured that out, but it was removed successfully from my credit report.

FTC:
The Federal Trade Commission can offer additional assistance to consumers who believe they are not being treated fairly.

Assess:
Assess how you got where you did. Be honest with yourself if there is any doubt about how you have arrived where you are. If the reason for your bad credit is a one-time life occurrence, such as the death of a spouse who was under insured and the main breadwinner for instance, the outlook may be bleak, but probably not as bad as you think. If you have a tendency to buy first and think later about how you are going to pay for that must-have purchase, take an honest look at how these ‘purchases’ affect your life.

Interest:
Oftentimes, people are truly astounded when they look at how much interest costs them on a month-by-month basis. Everyone, seemingly, wants to get credit at a low rate, but even those that truly shop for the best rate they can qualify for, often do not look at the actual cost their credit costs them from month to month. Pull out your statements and look at the bottom line: How much of your payment went towards the principal? How much went towards the interest? Quit a shocker, isn’t it? This is the fastest way to explain why it is necessary to pay as much as you can afford on any money owed. For every dollar paid towards the principal amount owed, it will be that much more, additional interest saved.

Keeping Out of Debt:
Once you have found the edge of your debt and crawled over it, keeping from falling back in, can be as hard, or harder, than it was to get out. You suddenly feel rich, like all the burdens of the financial world you call life, have been lifted. Stay strong, be realistic, and make a list. A list? That's right, a list of goals, wants, needs, etc., along with a budget, will give you hard insight into what and where your money needs to be spent on. If you are not by nature a list maker, you may scoff at this, but try it. Pick up a notebook from the local dollar store, and within its pages; map out a budget. Start with the basics, such as mortgage/rent, insurance, utilities, vehicle expenses, including car payments, insurance, and gasoline, and don’t overlook groceries, annual bills such as tax payments, or visits to the vet for your dog or cat’s yearly shots. Be generous when you mark down what you spend on each item, do not mark less, thinking you can get away with spending $50 a week on groceries, when you know you currently spend at least twice that much. You may be able to spend only the $50, but at this point, we want the ‘big’ outlook of your spending.

Next, make a list of things you would truly like to purchase in the next year or two. Also, make a note of how much you spend on holiday shopping, and other gift giving, such as birthdays for both family and friends. This list may grow in the coming days, as you remember this one or that, but do not worry, that is why we are making the list. Often overlooked when making a list such as this, but that should be a priority, are two items: Savings and fun money. If you tell yourself that you are going to put away a set amount off the top of each check for savings and do it, after a learning curve, you truly will not miss it. It may hurt at first, but once you see that amount grow, it can actually be a bit addictive and you will find yourself trying to save a few dollars extra here and there. The fun money is just as needed, even if it is only $5 a pay period. You work for the money. Do not begrudge yourself a favorite magazine or a couple of lottery tickets, if you truly obtain pleasure from purchasing them. Now, once you have down all the expenses you can possibly think of, write down what your earnings are. If the bottom line does not meet what your expenses are, see if you can trim your expenses anywhere. Be realistic; remember you do have to eat! If the figures do not add up, and you have cut everything you can, think about ways to increase your income. A second job, a possible raise, selling a few possessions, even a stay at home spouse taking on a part time job. A few final words: Keep a perspective of your spending. It is only money and it will only do what you allow it to do.

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Your Credit Repair: Date of Last Activity

When repairing your credit, one of the most important items on your credit report is the date of your last activity. To verify the dates of your accounts last activities, you need a copy of your credit report. Your credit report will give you all the information on past and present accounts. To get a copy of your credit report you can contact your credit bureaus and they will send you a copy of your most current credit report. There are three credit bureaus that you can contact: Equifax (800) 685-1111 www.equifax.com; Experian (888) 397-3742 www.experian.com and Trans Union (800) 916-8800 www.tuc.com

• Tips on Choosing Your Credit Repair Company

The last date of activity is when the credit bureau lists on your credit report the actual last date of any transaction that was done to your account. That date can be the actual last time you charged an item on your credit card, the last payment you made on an installment loan or when you paid off an account. The date of last activity can also be negative. It can state when an account went into collection, the date it was charged-off, the maximum delinquency date and the date when someone inquired about your credit. Your last activity date will tell you and anyone else how you handle your credit. Creditors review your last date of activity to see when you made your last payment on an account or when you paid off an account. This can help you get new credit if everything is paid on time and as agreed. If your last date of activity shows something negative like a charged-off, collection or a delinquent account, you could become a credit risk. The last activity date is guidance for good or bad credit.

To repair your credit your first step is to find out exactly what dates are on your credit report. This will tell you how bad or good your credit is. Also it will let you know if you should apply for any new credit. If your last dates of activities are all coming up negative, you will not be able to get any new credit. The date of last activity will also tell you if any of your accounts have expired. If you don’t check your credit report you won’t know what accounts have expired to be removed from your report. Keeping up with that will help repair your credit report by watching your dates to inform the credit bureau which accounts needed to be dropped off. Bankruptcies stay on your report for ten years, whereas a tax lien can stay on your report indefinitely. Collections, judgments and delinquent credit will stay on your credit report for seven years. You need to know the date these items were placed on credit report and how long it will be before they are dropped off.

The date of your last activity is very important. Those dates should be taken very seriously along with any other transactions on your credit report. You are responsible for keeping up with your activities dates and your credit information placed on your credit report.

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When To Consider Outside Help For Credit Repair

Certainly, you would like to handle all of your credit payments on your own in a timely and efficient manner, but sometimes your best bet is to consider outside help for credit repair. Here are some of those times…

When You’re Up to Your Ears in Debt
If your monthly minimum payments cannot even be satisfied by your monthly income, you need to seriously consider outside help. Many people start out with one credit card, thinking that it’s no problem, and that they’ll charge some purchases, and then pay it off in full at the end of the month.

Guess what? That often doesn’t happen. In fact, what often happens is that not only is the card maxed out, and only the minimum payments are made on it, but also new credit card offers come in and are accepted. A vicious cycle ensues – paying with credit cards for everything – and then one day you realize that you don’t make enough money to support your out-of-control spending habits. Credit cards can be very addictive.

Many college students fall victim to the allure of having multiple lines of credit even though they do not have an income yet. They assume that once they graduate from college, they will be able to pay it off. Unfortunately, that is often categorically untrue. In fact, many young people who have gotten mixed up in this credit trap find that they ruin their credit before they are even out on their own in the world, and then when they want to get out there, their bad credit severely impedes them in getting an apartment or a mortgage or a new car. If you are in more debt than you can handle, you should contact a financial planner or a debt consolidation advisor to explore your options for getting out of this debilitating debt.

When You Lose a Job
If you lose your primary source of income, you may find that you cannot juggle your bills anymore. If you had a high-paying job, you may have become accustomed to enjoying a luxurious lifestyle. You may have gotten credit accounts based on your high salary, and you could have paid them off if you hadn’t lost your job unexpectedly. Unfortunately, despite your good intentions, you cannot stop the world from being an unfair place sometimes. If you lose your job and you have to adopt a new lifestyle as a result, it is a good idea to speak with a financial planner or analyst so that you can create a plan for managing your debt until you get a new job. Once you get a new job and you know what your new salary will be, you should seek outside help again so that you can restructure your payments.

When a Straw Has Broken The Camel’s Back
Sometimes it can seem as if one unplanned financial burden can completely topple your financial house of cards. The fact of the matter is that you were probably in over your head before this unforeseen financial burden. If you have so much credit that you are “just making it,” as in you are living paycheck-to-paycheck, and one more payment will be your undoing, you need to seek outside help. Your financial plan has to cover unforeseen emergency pay-outs – because they are inevitable. Like the great saying goes: “Expect the unexpected.” Speak to a financial planner about setting up an emergency fund so that you don’t have to lose complete control over your finances when things don’t go your way.

When You Can’t Sort It Out
If you have a large quantity of accounts to tend to every month at bill-paying time, you may feel overwhelmed and confused. Even if you have enough money to cover your expenses, you may need to consider outside help so that you can get organized and under control. It may sound ridiculous – if you have money, then why would you need any help, right? Well, even wealthy people are not immune from getting bad credit scores. Having too many open accounts can make you more susceptible to accidentally missing payments or losing track of specific payment dates. Consult financial planners so that you can either consolidate some of your accounts or develop a strategic plan for managing the plethora of accounts that you have.

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When You Should Not Use Credit?

Decades ago, it used to be that credit purchasing privileges were reserved for the rich and famous. While farmers, miners, and other small blue-collar communities could buy "on credit," large-scale purchases were made primarily by cash.

Not anymore. Today, it is rare to meet someone who does not use a credit card. Many people have several. The down side of this development is that with the easy access to credit card use, consumer debt has mounted significantly, with some hapless victims running tens of thousands of dollars into debt that may be difficult to escape without incurring bankruptcy.

If you have a credit card or are thinking of getting one, here are a few guidelines to consider in making purchases.

• Don't charge if you can't afford to pay it off in one statement cycle. For many middle-class consumers, the limit might be an amount in the range of a hundred dollars. Charging a more expensive item could impact your monthly budget if you strain to pay it off, jostling existing obligations. Or you may be tempted to make several monthly payments instead of paying the balance in full with the first statement. Check your credit terms to see if interest accrues from the date of purchase or when the first billing cycle (usually 30 days) ends.
• Don't charge if you don't need it. "Make do or do without" is the motto of some thrifty people. A "needed" charge expense might be an unexpected car repair or a veterinarian bill, though a healthy budget includes savings for items like these. A new dress or shirt along with a visit to a classy restaurant are not true "needs" for most people. Pause before pulling out the plastic to determine if this purchase is worth the eventual wear and tear on your wallet.
• Don't let someone else use your charge card. Even well-meaning friends or family members can get careless about paying back a charge on someone else's account. The old saying "business and family don't mix" particularly applies to a credit situation. Keep your card to yourself.
• Don't buy something just because it's on sale. Those 50 percent off signs are like magnets, pulling us in against our will. A lower price doesn't necessarily mean you need to rush out and buy something on discount. Consider it only if you have been planning the purchase for some time.
• Don't charge presumptuously. "I'll pay it off with the income tax refund." Sometimes expected windfalls blow the other way. You don't want to get stuck with a large debt and no way to pay it off. If you plan to buy something using a special or one-time income, wait until you have the money in hand. It's safer that way and you'll have peace of mind.
• Don't be pressured into charging a purchase. Guilt, joy, forgetfulness, or empathy can cause us to want to run out and buy something for another person that they may not need and we cannot afford. The resulting charge will only make you feel worse when the statement comes in the mail.

Credit cards can convey a sense of financial power and well-being. But the mature consumer will control his spending and credit card use before it takes control of him. If you are having trouble limiting your credit purchases, meet with a financial adviser who can help you set limits.

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How to Establishing & Protecting Good Credit

Rich Dad's Advisors: Turn Bad Debt into Good Debt and Bad Credit into Good Credit by Garrett Sutton Know yourself, get your attitudes and behavior under control, and then use the author's formulas and action steps to wrestle your credit report, account by account, back into something respectable.

Many people claim they will never need to use credit in order to obtain the goods and services they need, but credit is necessary unless a person is financially well off and can pay cash for everything. The average person cannot obtain a home or a new vehicle without making monthly payments. It would be ideal to never have to pay interest in order to obtain the luxuries and necessities of life, but few are able to do so. You may think you’ll never need credit, but you may find yourself unable to buy what you want if you haven’t established and maintained a good credit history.

If you want to establish credit, one of the ways of doing so is with a credit card account. Some credit card companies are willing to take a chance on a new customer, and offer a small credit line to those who have yet to establish credit. The easiest credit cards to obtain are department store cards and service station cards. They are however not as valuable in the eyes of credit reporting agencies. Even if you always remit the required payment on time, your credit score won’t improve as much as if the major credit card companies such as Visa or MasterCard issued the cards. Try to obtain a small line of credit with one of the major credit card companies, but keep in mind that every time you apply for credit and are turned down, this information ends up on your credit report, even if you haven’t established credit. This can become a vicious circle that is sometimes difficult to break into.

Some credit cards are considered secured, which means you must maintain a savings account to secure the balance of the card in case you default on the payment. These types of cards are useful if the issuing company doesn’t inform credit-reporting agencies that the account is secure. If the card is reported as being secure, your credit score will actually become damaged instead of improved. Avoid secure credit card accounts if at all possible, or at the very least, find out what the company policy is regarding sharing information about the account.

If you are in need of new furniture, appliances, or electronics, you can begin establishing credit by shopping at a rent-to-own store. Items sold in rent-to-own stores are often more expensive than other retailers, but this is sometimes the only way people without credit can obtain items such as these. Not only will you get the items you desire; you’ll be establishing good credit when you pay the monthly amount due on time, every time.

Some stores, such as carpeting and flooring stores, offer credit accounts to their customers. Carpeting and flooring is rather expensive, so credit customers are important to the success of a business such as this. It is for this reason that this type of credit is relatively easy to obtain. Improving your home by purchasing new flooring is a great way to begin establishing credit.

Once your credit has been established, it’s of the utmost importance to maintain good credit by paying your bills on time. Everyone makes mistakes and forgets to pay a bill now and then, but if you pay a bill more than 30 days late, chances are it will be reported to the major credit bureaus. Make a habit of paying your bills late, and your credit score will take a major nosedive.

Don’t let your credit get out of control. People often make the mistake of overextending themselves, and they become buried by credit card debt. Use your credit wisely, and it will be there for you when you need it.

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Myths of Instant Credit Repair

If you are looking to buy a new house or a new car, your credit may be on your mind. Knowing your credit rating and what it means can help you decide if the time is right to buy or if you should do some credit repair first.

When you apply for credit of any sort, a company will look at your credit history to decide what interest rate to offer you, or if they want to offer you anything at all. Your FICO score is a cumulative number that represents what your credit looks like at that moment. Your FICO score will go up and down from week to week.

7 Steps To A 720 Credit Score by Philip X. Tirone,Jocelyn Baker Teaches you everything you ever needed to know about credit & perfect resource for people who have great credit, bad credit or no credit at all.

Depending on your past credit and your current credit standings, your FICO number will range between 300 and 850. 850 is considered perfect credit. Anything under 650 may be labeled as "risky". This varies from company to company; each set their own standards as to what is acceptable. There are three major credit reporting companies. They are Equifax, Experian, and TransUnion. Your number or report may differ from company to company.

Debt-to-income ratio, payment history, closed unpaid accounts, up-to-date open accounts, defaults and liens are all considered when your FICO score it tallied. The number of times someone has requested your credit score can also influence this number. If there are an excessive amount of requests, this may paint you as desperate for a loan. This may make some companies think twice about offering you a loan or line of credit. Bankruptcies are also accounted for in your FICO score.

Not only are loan companies looking at your credit when you apply for a loan, so are potential employers and potential landlords. You can request your credit report to see where you stand. If you do not like what you see, there are a few things you can do to raise your credit score.

One thing to avoid is a company that claims that they can instantly "fix" your credit, wipe your credit report clean and erase all debt. Some even guarantee that they can do this. The only thing they can really guarantee is that they will take your money.

There are no quick fixes to credit problems. There are only a few things these companies can do for you, and you can easily do them for yourself. What surprises many people is that credit reports often contain errors that are lowering their credit score. You can write to the credit reporting companies to have these errors removed. Any listed debt that cannot be verified in thirty days must be removed from your report. Outdated listings (those on your report longer than seven years), can usually be removed.

Mistakes are often made about payments and the closing of accounts. You may even find someone else's listing in your report. If you find a discrepancy that might be lowering your score, you can often get this ironed out as well. One thing that you cannot change is factual information. No company can clear away valid debts. If you made your car payment three months late, there is nothing you can do to get this erased from your report. If you defaulted on a loan, that information stays on your report for 7 to 10 years. Any company that tells you that they can get rid of these types of factual listings are simply not telling you the truth.

If you find a legitimate credit counseling service, there are a few things to remember. They may be able to help you negotiate a lower payoff amount for some of your debts. However, this may not reflect well on your credit report. If the company chooses to do so, they can list the debt as “closed, but not paid-in-full.” This can hurt you, even though you think the debt is gone. It depends on the company. Some will simply mark it as “paid-in-full.”

Just as with everything else in life, if it sounds too good to be true, it probably is. Be careful with who you trust when it comes to credit repair, and remember that with a little work, you can do most of this yourself.

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Credit Repair Steps

When your credit becomes damaged, the road to credit repair can seem difficult indeed. However, it doesn’t have to be that way. There are simple steps that you can take to start repairing your credit right away. Combine these simple steps with planning and discipline, and you are virtually guaranteed to achieve your credit repair goals.

The first step is to access your credit condition by obtaining a copy of your credit report. This can be done very easily, right online. From the comfort of your living room, you can get access your credit report from one of the three main credit reporting companies – Equifax, Trans Union, or Experian.

While a small fee is customary, there are many circumstances in which you can get your credit report for free. If you’ve been turned down for a loan, you can make a written request, within 30 days of the refusal, to receive a copy. You can also get a free credit report if you suspect that there are illegitimate purchases on your credit card, if you are job hunting or are receiving public assistance.

Once you have your credit report in hand, you can use it as a guide to map out your return to financial health. Look it over carefully, and make sure that all the information is correct. Mistakes do happen occasionally. If you find inaccurate data, you must take immediate action to correct it by contacting the creditors or lenders involved. If you have debt, craft a budget and repayment plan. Even a small amount will move you towards your goal of financial health and demonstrate your intention to resolve outstanding debt.

Use the credit that you do have wisely. Do not carry a balance or add to the one that you already have, unless it is a true emergency. If you have a balance, stick to your repayment plan. These actions will improve your credit rating by demonstrating your financial responsibility. If you have no credit, try to obtain a retail credit card, meaning a credit card from a national retail store, such as Sears. The standards for obtaining these cards tend to be lower, as do their credit limits. It is important to remember, however, that their interest rates are often higher. Use this card to demonstrate your financial abilities and responsible attitude. Treat it with respect, as this will be your opportunity to create positive input for your credit report.

Closing any open credit accounts that you do not use frequently or that are not essential will serve to improve your credit rating, as many available lines of credit can frighten potential creditors or lenders. It looks to them as though you could be a financial risk due to your ability to take on a lot of debt very quickly.

Each time your credit report is viewed by a potential creditor or lender, which is called an inquiry, this becomes a permanent part of your credit history. Frequent inquiries can appear as though you are being turned down a lot or that you are under some type of financial strain that has you in search of credit. To avoid this negative connotation, do not apply for credit or a loan more than one time in a six-week period. Only apply for credit cards that you will really use, and use wisely.

With these step in mind, guided by your realistic financial planning and determination to reach your credit repair goals, you are sure to achieve success. Don’t wait, take the steps to ensure your financial health today.

Credit Repair Kit For Dummies by Stephen R. Bucci Essential guide to managing your credit, from fixing mistakes on your credit report, to improving your credit going forward, to establishing manageable payment plans with creditors.

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1 Hour Success to Credit Card Debt Elimination

The road has been a bumpy one indeed, but realize that you are not alone in your quest for financial freedom. Most people that you meet are in the same boat as you are…They are strapped with credit card debt. Unfortunately, many people believe that their only way out is through;

• Filing for bankruptcy
• Living off Mac & Cheese for the next five years
• Or finding some miracle way to earn the money needed to pay off the debts

Well guess what? It’s not about any of these. There is a simple plan for credit card debt elimination that anyone can master. I think back to when I was strapped with debt. I tried borrowing money from family and friends and even tried doing some crazy schemes where I would send a letter and believe the banks would just wipe away the debt because I said it wasn’t mine. It wasn’t until I broke down and started researching the methods that banks use to place you in debt, which I realized how easy it was to get out of debt.

The nice thing is that I didn’t need to hire lawyers or go to court at all. I applied some simple steps and was amazed. In 3 years I was debt free and I did it all with the one small job that I had and I didn’t even need to go to a high priced counselor or debt be gone boot camp. I simply mastered my own destiny and experienced my own credit card debt elimination.

More often than not people believe that they have to be stuck in a certain type of rut until enough time passes so that things naturally take care of themselves or feel that they must locate a way to raise thousands of extra dollars. Not Needed! I researched and found out that there was extraordinary software available that took care of the process of credit card debt elimination and it was free (Debt Knife). I also realized that there were free credit counselors in every major city that were not for profit.

The truth is, do NOT get depressed or feeling like there is no way out for you. By looking through free sites, gathering free software, and speaking to the right individuals, you can be debt free in 3.

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What To Do If Credit Card Debt 80k Plus

Many consumers are faced with overwhelming financial hardship and have a substantial amount of debt. I have seen debt amounts from $200 dollars all the way to $629,589 in unsecured credit card bills. There are major differences between the average person that has $15k in credit card bills to the person that has above $80,000 in credit card bills.

Once the debt amount has grown to $80k or above the chances of the consumer paying off that debt becomes bleak. On that amount of debt payments would be above the $2,000/month mark and based upon your credit score the interest rates may hover around the 20% range. The combination of the compounding interest and the extreme monthly payments is a recipe for disaster.

Most consumers accumulate high credit card debt in a few ways. The first being a medical expenses and the other being a long term job loss. For some families if an emergency occurs and medical attention is required but not covered by insurance most people will result to credit cards to solve the lack of cash or savings issue. In certain instances a job loss depending upon the field could take 12-18 months to be rehired and when that rehire takes place you have to hope that you are getting the same rate of pay as before. During the 12 months that you are off work un-employment does always cover the costs of living and credit cards can be the crutch to get through tough times.

Before things get to out of control you should look into debt relief or seek debt counseling for your debts above $10k but debts larger than $80k require immediate attention. Debt settlement programs can help to reduce the total amount of debt that you need to payback and can provide you with one lower monthly payment in order to settle your debts in a efficient time frame.

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How to: Credit Repair Information

Credit repair has become a necessary part of today's life as more and more people fall victim to bad credit. Credit repair takes time, however, and should never be viewed as a "quick fix" for your credit. Credit repair is a million dollar industry with a lot of scams. If you decide to respond to a credit repair offer, look for these tell-tale signs of a scam: companies that want you to pay for credit repair services before they provide any services.

The Complete Credit Repair Kit (+CD-ROM) (Complete Credit Repair Kit) by Brette McWhorter Sember This easy-to-use guide explains how to clean up your credit report, lessen your debt and cope with your financial woes. It teach you how to get back on track.

Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised. For example, a credit repair company cannot: make false claims about their services charge you until they have completed the promised services perform any services until they have your signature on a written contract and have completed a three-day waiting period. Many states have laws regulating credit repair companies. If you’ve had a problem with a credit repair company, don’t be embarrassed to report it.

Don't pay money upfront for credit repair services. It's against the law for a company to require payment before the promised credit repair services have actually been performed. If the services are offered through an interstate phone call, the federal Telemarketing Sales Rule says that the company cannot ask for payment until it has provided you with proof of the promised results by giving you with a copy of your credit report that has been issued by a credit bureau more than six months after the corrections were made.

Depending on your time, patience, perseverance, and complexity of your case, you can successfully dispute inaccurate credit report items on your own. However, credit bureau’s strategies and tactics make the process often time-consuming, overly-burdensome and ineffective for the consumer.

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