Tips on How to Cut Credit Card Debt

Most Americans have too much credit card debt, we've all heard that before, right? Only now its gotten a bit personal... right again? You personally have too much credit card debt and its about to drive you crazy. You may even find yourself making plans at some luxurious spa, to sample of their relaxing (not to mention, extremely costly) facials, massages or treatments. After all, you work hard and so you've definitely earned it since you've been stressed out all month long from your hectic schedule and tight deadlines.

Well there is hope so don't file those bankruptcy papers just yet. One major thing you have to keep in mind is your creditor is probably very willing to work with you. Its in their best interest to have you making some payment versus no payment.

So here are a couple points to help you deal with your credit card debt. The first thing you have to do is simply contact your creditor and let them know your situation. Ask for a lower interest rate or a repayment plan. You might not have thought of it because you're just naturally so polite but it’s a very good strategy to be courteous at all times when negotiating with your creditor.

Polite, but firm. Come across as one who knows what you're asking for and expect to get it. If you're not sure what you're asking for in the first place you might consider a reputable credit counseling service.

There's a lot of great, honest organizations out there whose mission is to help you work things out with your creditors. Next you've GOT to stop using your cards. Cut them up, freeze them in a tub of water, whatever you need to do to get them out of your wallet or purse, do it! You simply can't keep adding to the problem by running the debt up any higher. This is actually one of the hardest parts of cutting your credit card debt. Its like you're addicted to spending money you don't have.

So go cold turkey and drop the habit. Start paying the ones with the highest interest rate first and work from there. How do you do that? Concentrate on those high interest rate cards by paying more than the minimum balance each month. The minimum is just designed to keep you on the hook longer anyway. The credit card companies are in this business to make a profit and want to have you paying them for years to come. Even a little extra each month makes a big difference in the long run. Lastly, keep your chin up and have a good attitude. Millions of folks just like you have begun to cut their credit card debt by following the common sense steps outlined above. You can do it too. Good luck.

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Credit Cards Account after Divorce

Divorce might be a very painful process and money issue often makes it even more unpleasant. You need to divide both assets and liabilities. The situation can be especially complicated if you have joint credit card accounts or your spouse is an authorized user on your account.

You need to know the law to make sure your interests are defended. First of all, you need to understand what a joint account is. A joint credit card account means that both you and your spouse are equally responsible for all the transactions and payments. It is a good option for a married couple in a situation when one of you does not have too much of a credit history or a strong income and can not qualify for a good credit card deal.

When considering applicants for joint accounts creditors check credit reports of both family members. If you will be late with your payments the information will be reported to credit bureaus in both names. If your marriage has fallen apart and you are getting divorced do not forget that both of you are responsible of making the payments.

According to the law, your bank cannot close your joint account just because you are divorced. Your ex-partner or you need to request the bank to do it. However, the creditor has the right to ask you to reapply for a credit card deal on an individual basis. Thus the credit-issuing company checks your individual creditworthiness. If the credit card is opened in your name and your spouse is an authorized user. Although credit information might be reported to credit bureaus in the user's name you alone are responsible for payments.

So if you are getting separated make sure you have enough income to make at least minimum payments. If you and spouse have separate credit card accounts usually you won't have problems dividing responsibilities. However if you are lucky to live in a community property state you might be held responsible for any debts incurred during marriage. Moreover, your spouse's debt may affect your credit score. The best way to clinch the matter is to get the divorce decree that will state who is responsible for what credit cards. Make sure you discuss the issue with the bank because your creditors are not parties to the decree. If you have joint accounts you might still be held liable. If you act according to the law you should not have a problem separating your financial responsibilities.

However, you need to pay special attention to your credit report and make sure everything is correct. If the bank charges you for late payments your spouse is responsible for you should immediately contact its representative. If the creditor does not want do anything and keeps billing you the best way would be to get a lawyer and file a complaint.

Of course, it is hard to be clearheaded when you are in love but if you have decided to get married do not forget about the possibility of a divorce. So, if you and your spouse have found a credit card deal that you want to apply for carefully consider all the possible types of credit card accounts.

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How to Get a Grip on your Credit Score

Financially and economically, they say times are pretty good right now. I guess everything is relative, but for the most part, that statement is correct. Mortgage rates are not the lowest they have ever been, but they are manageable without being ridiculous. Personal loans are available, car loans are available, all at competitive interest rates.

Most people know they have a credit score but very few know that they can raise their credit score by just a few simple steps, and they don't need to take on more debt to do it. Start enjoying the rewards that having excellent credit can provide for you.

That is, times are pretty good for people with good credit or excellent credit. But what about people who account for the vast majority who do not have good credit, and may even have bad credit. Are times as good for them?

The answer is not no, depending on who you ask. If you ask the average consumer with bad credit, you will probably be told that times are not good. But if you ask the savvy consumer with bad credit who understands how loans are determined and rated, you might be surprised to find out they would agree with you that times are pretty good.

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What is the difference? The big difference is knowledge. Knowing how the credit score game is played and how to score points in it are a huge advantage over the consumer who simply accepts their bad credit score and goes glumly on their way.

If you have a bad credit score, there are things you can do. Or more correctly phrased, there are things you need to be doing, starting today, because you do not want to keep the label of a person with "bad credit". Determine what it is that puts you in that category, and then get it changed. Despite what some companies will tell you, it does not happen overnight, but if you start showing a track record of on time payments for all your financial obligations, as well as taking other steps to improve your credit score, it will make a huge difference.

The place to start is with your credit reports. Yes, that is plural because you have three totally separate and distinct credit reports, one from each of the big three credit reporting agencies. These companies do not share information, so they each have a different view of you from a credit perspective. The thing you will very likely discover when you are going over your credit reports is that they contain errors. One of your creditors is reporting late payments, another is still reporting a loan you paid off years ago, and much more. These errors will be reported for years to come if you do not dispute the errors with the credit bureaus. Once you dispute an item, it is their legal responsibility to investigate the error with the creditor, and if it cannot be proven, it needs to be removed from your credit report. Many consumers find that their credit score can jump to the next level by just getting errors corrected in their credit reports.

Next, negotiate with your credit card issuers. If you have been a long time customer of theirs and they are still charging you 22% interest or more, then ask for a reduction in interest. If they decline, show them how much you appreciate them by closing that account. It's a competitive industry and there is no sense in allowing them to make money off you by the truckload with their high interest rates.

If you have several accounts with the same issuer, ask if you can consolidate your accounts into just one or two cards, perhaps combining the credit limits to give you a decent credit limit on one or two cards. If they won't do that, then close some of those accounts.

For the accounts you have open, try to keep your outstanding balance under approximately 30-35% of your credit limit. More than that raises red flags with credit issuers, and less than that indicates you don't use the account enough for it to be a real indication of your credit.

Above all, make each and every payment on time, paying more than the minimum amount when you can.

Just these simple steps can raise your credit score by an appreciable amount, and you haven't taken on any more debt to do this! Keep your credit clean and treat it with the respect that it deserves so that you can reap the benefits of having excellent credit.

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How to Get Back your Good Credit Rating

So many things we do every day are dependent on a good credit rating. Try getting a credit card, renting an apartment, financing a large purchase, or buying a car, just to name a few, without good credit, and reality will set in.

If you don't make payments to creditors on time or you miss a payment, you are reported to the credit bureau. The credit bureau, in turn, adds this to your credit report. If you are guilty of habitually being slow in making payments, or default on a loan, you will suffer a bad credit rating and a low credit score.

Many doors will be closed to you when your credit score is low. You will have a hard time getting a loan, a credit card, renting a car or doing many of the other things you have grown accustomed to. A bad credit rating might even keep you from obtaining certain jobs. For these reasons it is important that you protect your good credit rating. If unforeseen circumstances have affected your credit worthiness, you should start repairing your credit as soon as possible.

How to repair your credit rating is usually a slow process. You need to build your credit rating little by little over a long period of time. Although you might consider going to a reputable company offering credit repair services, you can repair your own credit.

A good place to start repairing your credit right away is to get your credit report from the credit bureau, and examine it carefully for errors. If you don't find any errors, you can then begin repairing your credit.

First, get a secured credit card and use it regularly but cautiously. Make your monthly payment amounts on time and in full. Secured credit cards are issued by companies that usually cater to people who have bad credit, and you are usually required to give an initial deposit equal to the card's credit limit. For example, you give the company $500 for a card with a $500 credit limit. They are authorized to use that deposit against any balance you have that remains outstanding for too long. As you can see, by doing this, the credit card company does not assume any risk because you will never owe more money than they are holding as your deposit.

Secured cards also require annual fees that most regular credit cards do not. Using secured credit cards and paying the bills on time is one of the best ways to start improving your credit rating. Your goal is to develop a history that shows lenders that you take your debts seriously, and that is the only thing lenders require from you. They want to be paid in full and on time. Paying bills on time helps you establish a good history, and it eliminates late fees and other financial penalties that make paying off your debts so difficult.

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Why you should Care about your Credit Score (FICO)

Unless you live in a cave (and maybe even then), you know that your credit score is incredibly important when it comes to securing credit. But did you know that it’s also used for much more than that? What follows is a list of five other areas of your life that can potentially be impacted by your credit score…

• Renting Property - Many (if not most) landlords now run credit checks on prospective tenants. Think about it… They’re essentially giving you a credit line when you sign a year long lease, but are allowed to pay it off in monthly installments. In many cases, bad credit = no apartment (or house, or whatever).
• Cell Phones - Cell phone companies typically check your credit before signing you up for service. Here again, they’re essentially extending you a credit line and they want to be sure you’re good for the money. Not only are they concerned that you might rack up a bunch of airtime charges and be unable to pay for them, but they’re also letting you walk out the door with a shiny new handset at a (sometimes steep) discount. They want to be sure that you’re good for the standard monthly charges. Crappy credit might result in you being shunted over to a pay-as-you-go plan, and the hardware deals might not be as good.
• Future Credit Card Agreement Changes - It’s not uncommon for credit issuer to run routine credit checks (so-called ’soft pulls’, which don’t show up as credit inquiries on your credit report) on existing customers. If your credit score takes a nosedive, you represent a bigger risk, and they might change the terms of your agreement (e.g., increase your interest rate) to reflect that.
• Car Insurance - Car insurance issuers are increasingly looking at credit scores as a way to gauge risk. If you’re reckless in one area of your life, you might not be a good bet in other areas. This can result in higher premiums, or they might simply decide not to cover you.
• Employment Opportunities - I’ve never experienced this one first hand, but I’ve heard that it’s increasingly common for employers to include a credit check when looking into the background of prospective employees. In short, they’re looking to see if you’re responsible. Credit reports also provide an employment history. Of course, they can only do this with your permission, so hopefully you read all of that paperwork that they give you when you apply before signing anything. Then again, if you decline they’ll more than likely show you the door.

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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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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.

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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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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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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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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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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.

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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.

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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

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