Can you repair my credit? Although there are many Internet sites that claim to be able to do credit repair for you, they cannot. When you ask “How can I repair my credit”, there are many places you can get advice about credit repair, but you are the only one that can actually do it.
A credit repair guide is one way you can get the information you need about improving a credit score. When you say “repair my credit”, you are asking for help to repair bad credit. There are many places where you can get the free information you need, but first of all you need to know what your credit score is. You can get this by requesting a free annual credit report from the three major credit bureaus. Since you have bad credit, then there is a file on you at one or all of these places.
Actually no credit is almost as bad as bad credit. If you have never borrowed any money or had a credit card, you will have difficulty getting a loan. In this case instead of asking how to repair my credit, you need to ask how can I build a credit score. Although most people will tell you that it’s best to pay cash for everything, even if you have money, you should use a credit card once in a while. If you pay the balance in full before the end of the month then you won’t pay any interest, and you are improving your credit score.
Most people, however, tend to go overboard and let their borrowing habits get out of hand. Then the first question is “how to repair my credit”. If you do avail of the advice that you find in a credit repair guide, you will find that first of all, you have to start making your monthly payments on time. If this is not possible because of unforeseen circumstances, then you should contact the creditors to work something out. Each month that you miss a payment lowers your credit score.
Repair My Credit. It is not hard to do once you get started. If you are really serious when you want to do something about credit repair to help you with your “repair my credit” problem, you have to make a budget and stick to it. This might mean doing without some of the extras you are used to, but it will result in you improving your credit score.
Can I repair my credit? You bet you can, with a little effort.
To find out more about Credit Repair visit Peter's Website [http://www.credit-repair-answers.com/online-credit-repair.html] Credit Repair Answers and find out about [http://www.credit-repair-answers.com/free-credit-report-online.html] A Free Online Credit Report and more, including Credit Repair Services, Credit Bureaus and Online Credit Repair.
Article Source: http://EzineArticles.com/?expert=Peter_Crump http://EzineArticles.com/?Repair-My-Credit---I-Dont-Know-Where-To-Start&id=102563
Friday, November 30, 2007
Thursday, November 29, 2007
Credit Repair Leads
If you are in the credit repair business, you may have at one time or another expressed interest in purchasing credit repair leads.
Credit repair leads can be provided in many different ways. Such as referrals, a toll-free number allowing for people to contact you that may need your assistance, and a web site for people to visit to familiarize themselves with your company and educate themselves about credit repair and the services you can provide them with.
Along these lines of leads, you may have considered purchasing credit repair leads from an internet company.
This isn’t such a bad idea if you are looking for an alternative lead source for credit repair.
The benefits . . .
The benefit of purchasing credit repair leads from an internet company is that the person that needs the credit repair came to a site and found an on line form to fill out specifically to acquire credit repair from a credit repair company.
The customer already understands that they will be contacted from somebody in the credit repair industry and they are waiting for a phone call.
The prospects on these credit repair leads are not playing with the idea of credit repair or just looking for information, they really need and want it. They have committed themselves to going somewhere and to someone for help.
For this reason alone it is a good idea to consider buying credit repair leads. Or at the very least, look into it. Call a few credit repair companies and find out where the leads are obtained from and what is involved with the purchase and delivery process. Purchasing credit repair leads just may be worth your time and money, so give it a shot.
Jay Conners is the owner of two mortgage related lead sites where he obtains leads from people looking for credit repair. Please visit his sites at http://www.callprospect.com/credit_repair_leads.html and http://www.callprospect.com
Article Source: http://EzineArticles.com/?expert=Jay_Conners http://EzineArticles.com/?Credit-Repair-Leads&id=119004
Credit repair leads can be provided in many different ways. Such as referrals, a toll-free number allowing for people to contact you that may need your assistance, and a web site for people to visit to familiarize themselves with your company and educate themselves about credit repair and the services you can provide them with.
Along these lines of leads, you may have considered purchasing credit repair leads from an internet company.
This isn’t such a bad idea if you are looking for an alternative lead source for credit repair.
The benefits . . .
The benefit of purchasing credit repair leads from an internet company is that the person that needs the credit repair came to a site and found an on line form to fill out specifically to acquire credit repair from a credit repair company.
The customer already understands that they will be contacted from somebody in the credit repair industry and they are waiting for a phone call.
The prospects on these credit repair leads are not playing with the idea of credit repair or just looking for information, they really need and want it. They have committed themselves to going somewhere and to someone for help.
For this reason alone it is a good idea to consider buying credit repair leads. Or at the very least, look into it. Call a few credit repair companies and find out where the leads are obtained from and what is involved with the purchase and delivery process. Purchasing credit repair leads just may be worth your time and money, so give it a shot.
Jay Conners is the owner of two mortgage related lead sites where he obtains leads from people looking for credit repair. Please visit his sites at http://www.callprospect.com/credit_repair_leads.html and http://www.callprospect.com
Article Source: http://EzineArticles.com/?expert=Jay_Conners http://EzineArticles.com/?Credit-Repair-Leads&id=119004
Wednesday, November 28, 2007
Warning: Free Credit Report Imposter Websites Springing Up on the Web
A recent amendment to the federal Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer credit reporting companies to provide consumers with a free copy of their credit report, upon request, once every 12 months.
Access to the free credit reports has been phased in beginning last December in the West and will finally be nationwide by 1 September. This is good news to consumers.
However, a new form of phishing, is manifesting itself even before access to free credit reports is available for all Americans.
The new law that requires the three national credit bureaus to provide a free annual credit report to consumers, has met with the law of unintended consequences. Although the law was initially created to help thwart identity theft, the process for requesting the free credit reports may in fact contribute to further identity theft or loss of privacy.
While the intent of the law was to make it easier for consumers to check for errors and possible evidence of identity theft in their credit reports, according to a new report by the World Privacy Forum, more than 200 imposter websites have sprung up trying to exploit one of the methods made available for consumers to apply for their free credit reports.
One of the methods by which consumers can apply for their free credit reports is through a website that was established jointly by the three credit bureaus. The official website for applying for the free credit reports is at http://www.annualcreditreport.com
But, if the identity thieves and other unscrupulous internet swindlers have their way, part of the very process sent up in an attempt to curtail identity theft, will leave consumers vulnerable to further loss of privacy.
The online pilferers create websites with domain names that are very close to the official website www.annualcreditreport.com. By registering similar names or close misspellings, such as wwwannualcreditreport.com (note the missing dot), creditannualreport.com and
www.freeannualcreditreports.com they hope to entice consumers to unwittingly enter their private information into online web forms, thinking that they are on the official website.
Depending upon the level of personal information detail captured from the imposter websites, the swindlers can then use the garnered information for illegal purposes, sell the information to purveyors of personal information databases, or they can simply send the unsuspecting consumer to commercial websites.
While the majority of imposter websites, simply gather names, addresses, and email addresses and then send the consumer on to advertising sites, some sites attempt to gather social security numbers, birth dates, and other sensitive information.
To guard against the possibility of entering personal information on an imposter site, consumers can go to the official website from a link off from the www.ftc.gov website or call the official toll free number (877-322-8228) to get the free copy of their credit report.
Note: Strange as it may seem, your free annual credit report does not contain your credit score. For more information on your credit score, what it is, how it is used, and why it is important, see the resource box below.
------------------------
George Dodge has been developing on the Web since 1994 and is owner of http://www.The-Credit-Repair-Center.com a source of information on personal finance management. For information on how you can also get a free copy of your credit score (which is NOT included with your annual free credit report), click here ->
http://www.The-Credit-Repair-Center.com/scores/credit-scores.html Your Credit Score - Do You Know What It Is?
Access to the free credit reports has been phased in beginning last December in the West and will finally be nationwide by 1 September. This is good news to consumers.
However, a new form of phishing, is manifesting itself even before access to free credit reports is available for all Americans.
The new law that requires the three national credit bureaus to provide a free annual credit report to consumers, has met with the law of unintended consequences. Although the law was initially created to help thwart identity theft, the process for requesting the free credit reports may in fact contribute to further identity theft or loss of privacy.
While the intent of the law was to make it easier for consumers to check for errors and possible evidence of identity theft in their credit reports, according to a new report by the World Privacy Forum, more than 200 imposter websites have sprung up trying to exploit one of the methods made available for consumers to apply for their free credit reports.
One of the methods by which consumers can apply for their free credit reports is through a website that was established jointly by the three credit bureaus. The official website for applying for the free credit reports is at http://www.annualcreditreport.com
But, if the identity thieves and other unscrupulous internet swindlers have their way, part of the very process sent up in an attempt to curtail identity theft, will leave consumers vulnerable to further loss of privacy.
The online pilferers create websites with domain names that are very close to the official website www.annualcreditreport.com. By registering similar names or close misspellings, such as wwwannualcreditreport.com (note the missing dot), creditannualreport.com and
www.freeannualcreditreports.com they hope to entice consumers to unwittingly enter their private information into online web forms, thinking that they are on the official website.
Depending upon the level of personal information detail captured from the imposter websites, the swindlers can then use the garnered information for illegal purposes, sell the information to purveyors of personal information databases, or they can simply send the unsuspecting consumer to commercial websites.
While the majority of imposter websites, simply gather names, addresses, and email addresses and then send the consumer on to advertising sites, some sites attempt to gather social security numbers, birth dates, and other sensitive information.
To guard against the possibility of entering personal information on an imposter site, consumers can go to the official website from a link off from the www.ftc.gov website or call the official toll free number (877-322-8228) to get the free copy of their credit report.
Note: Strange as it may seem, your free annual credit report does not contain your credit score. For more information on your credit score, what it is, how it is used, and why it is important, see the resource box below.
------------------------
George Dodge has been developing on the Web since 1994 and is owner of http://www.The-Credit-Repair-Center.com a source of information on personal finance management. For information on how you can also get a free copy of your credit score (which is NOT included with your annual free credit report), click here ->
http://www.The-Credit-Repair-Center.com/scores/credit-scores.html Your Credit Score - Do You Know What It Is?
Tuesday, November 27, 2007
An Easy To-Do Credit Repair All By Oneself by James Arther
Credit repair is a means that helps one to improve their credit report, get lower interest rates on loans and improve the overall credit status. There are a lot of service providers that offer services to fix credit problems and prepare effective credit repair programs. There are professional consultants who look in to the matter and repair the credit score for a nominal fee.
Some individuals are not very comfortable with sharing their financial information with other. For them, many websites offer tips and step by step guidance to prepare a credit report and a credit score all by themselves!
An easy five step credit repair system can easily be done by oneself. The first step towards a credit repair is to prepare the credit reports. A credit report prepared is half the work done. The next step is to carefully examine the credit reports and verify it with the creditors. It is important to find errors and inaccurate information in the reports; if any.
After careful examination of the reports and understanding of the same, one should identify with the pattern of payment. Consistent on-time bill payments can improve on certain mistakes. It is very necessary to have a good credit report to have a through credit repair. One should prepare the necessary documents that need to be submitted to the credit bureaus who prepared the credit report. The mistakes and the inaccuracies should be forwarded to the credit bureaus so that they know of the problems present in the credit report. One should keep a copy of all the letters, documents and forms that are being sent to the credit bureau. Communication with ones creditors is also very necessary to rectify and solve certain mistakes. After this, one should devise a spending plan that reduces the debt and sets a pattern to pay up at regular intervals. If one is facing difficulties to make payments, it is advisable to negotiate with ones creditors and plan out new bill payment scheme. Even though this will help only in the short run, one can save ones credit rating.
Debtips is a resourceful channel to make you finance literate and helps you in managing your personal finances. Credit, is the provision of resources by one party to another party. A Credit Report generates financial information about the individual and helps in Credit Repair.
Article Source: http://www.articlecube.com
Some individuals are not very comfortable with sharing their financial information with other. For them, many websites offer tips and step by step guidance to prepare a credit report and a credit score all by themselves!
An easy five step credit repair system can easily be done by oneself. The first step towards a credit repair is to prepare the credit reports. A credit report prepared is half the work done. The next step is to carefully examine the credit reports and verify it with the creditors. It is important to find errors and inaccurate information in the reports; if any.
After careful examination of the reports and understanding of the same, one should identify with the pattern of payment. Consistent on-time bill payments can improve on certain mistakes. It is very necessary to have a good credit report to have a through credit repair. One should prepare the necessary documents that need to be submitted to the credit bureaus who prepared the credit report. The mistakes and the inaccuracies should be forwarded to the credit bureaus so that they know of the problems present in the credit report. One should keep a copy of all the letters, documents and forms that are being sent to the credit bureau. Communication with ones creditors is also very necessary to rectify and solve certain mistakes. After this, one should devise a spending plan that reduces the debt and sets a pattern to pay up at regular intervals. If one is facing difficulties to make payments, it is advisable to negotiate with ones creditors and plan out new bill payment scheme. Even though this will help only in the short run, one can save ones credit rating.
Debtips is a resourceful channel to make you finance literate and helps you in managing your personal finances. Credit, is the provision of resources by one party to another party. A Credit Report generates financial information about the individual and helps in Credit Repair.
Article Source: http://www.articlecube.com
Monday, November 26, 2007
How To Repair Your Bad Credit
Reading about Bad Credit is the only way of coming to rational conclusions about it. And that is why you would do well to read this article. Decision making is all about having ample information about a given topic and that is what we intend to do-providing you with ample information about Bad Credit.
Sometimes, when we owe money, it seems like the bottom has dropped from our glass. When it comes to debt relief and repairing credit ratings, the road always seems uphill. One of the best solutions for getting out of debt is finding a way to pay off your bills. If you elect to go with a debt consolidation program, then look for a program that will not charge you high rates of interest, costly monthly fees, and so forth.
Some debt consolidation programs will apply the money you sent each month to your debts, but will deduct a percentage of pay for themselves. The debt consolidation programs that are government structured are often better programs than the ordinary companies that are not affiliated. Some debt consolidation programs may be affiliated with religious organizations, and these programs are often less pricey than many other debt consolidation programs.
Anytime debtors put forth the effort to repay their debts, it enhances their human needs immensely while reducing stress levels. Debtors are like ordinary people; and most hate to be in debt. However, hard times have knocked on their door and debt consolidation is the only solution for relieving stress.
One of the best ways to relieve debts is to call your creditors, explain your situation, and then pay off the agreed amount. Some creditors will offer lower debt amounts or even write off your balance owed; however, it is important that you become aware that debts written off are subject to repay when the IRS and taxes come your way. Even the debts lowered may be subject to costly fees during the tax invasion season. If you are fortunate to find a debt consolidation program that will help you without charging outrageous fees, then by all means consolidate your debts with the program's help. It is a prerequisite of making any decision that you have ample knowledge about that field. And now that you have read this article about Bad Credit, you must be able to take the correct decisions. After reading this article, do, you still think that you know everything about Bad Credit that was to be known?
Gunvors website help people to get a debt free living. Please visit the site for more info.... [http://www.debtfree-life.com]Bad Credit
Article Source: http://EzineArticles.com/?expert=Gunvor_Drysen http://EzineArticles.com/?How-To-Repair-Your-Bad-Credit&id=824074
Sometimes, when we owe money, it seems like the bottom has dropped from our glass. When it comes to debt relief and repairing credit ratings, the road always seems uphill. One of the best solutions for getting out of debt is finding a way to pay off your bills. If you elect to go with a debt consolidation program, then look for a program that will not charge you high rates of interest, costly monthly fees, and so forth.
Some debt consolidation programs will apply the money you sent each month to your debts, but will deduct a percentage of pay for themselves. The debt consolidation programs that are government structured are often better programs than the ordinary companies that are not affiliated. Some debt consolidation programs may be affiliated with religious organizations, and these programs are often less pricey than many other debt consolidation programs.
Anytime debtors put forth the effort to repay their debts, it enhances their human needs immensely while reducing stress levels. Debtors are like ordinary people; and most hate to be in debt. However, hard times have knocked on their door and debt consolidation is the only solution for relieving stress.
One of the best ways to relieve debts is to call your creditors, explain your situation, and then pay off the agreed amount. Some creditors will offer lower debt amounts or even write off your balance owed; however, it is important that you become aware that debts written off are subject to repay when the IRS and taxes come your way. Even the debts lowered may be subject to costly fees during the tax invasion season. If you are fortunate to find a debt consolidation program that will help you without charging outrageous fees, then by all means consolidate your debts with the program's help. It is a prerequisite of making any decision that you have ample knowledge about that field. And now that you have read this article about Bad Credit, you must be able to take the correct decisions. After reading this article, do, you still think that you know everything about Bad Credit that was to be known?
Gunvors website help people to get a debt free living. Please visit the site for more info.... [http://www.debtfree-life.com]Bad Credit
Article Source: http://EzineArticles.com/?expert=Gunvor_Drysen http://EzineArticles.com/?How-To-Repair-Your-Bad-Credit&id=824074
Credit Repair Leads
If you are in the credit repair business, you may have at one time or another expressed interest in purchasing credit repair leads.
Credit repair leads can be provided in many different ways. Such as referrals, a toll-free number allowing for people to contact you that may need your assistance, and a web site for people to visit to familiarize themselves with your company and educate themselves about credit repair and the services you can provide them with.
Along these lines of leads, you may have considered purchasing credit repair leads from an internet company.
This isn’t such a bad idea if you are looking for an alternative lead source for credit repair.
The benefits . . .
The benefit of purchasing credit repair leads from an internet company is that the person that needs the credit repair came to a site and found an on line form to fill out specifically to acquire credit repair from a credit repair company.
The customer already understands that they will be contacted from somebody in the credit repair industry and they are waiting for a phone call.
The prospects on these credit repair leads are not playing with the idea of credit repair or just looking for information, they really need and want it. They have committed themselves to going somewhere and to someone for help.
For this reason alone it is a good idea to consider buying credit repair leads. Or at the very least, look into it. Call a few credit repair companies and find out where the leads are obtained from and what is involved with the purchase and delivery process. Purchasing credit repair leads just may be worth your time and money, so give it a shot.
Jay Conners is the owner of two mortgage related lead sites where he obtains leads from people looking for credit repair. Please visit his sites at http://www.callprospect.com/credit_repair_leads.html and http://www.callprospect.com
Article Source: http://EzineArticles.com/?expert=Jay_Conners http://EzineArticles.com/?Credit-Repair-Leads&id=119004
Credit repair leads can be provided in many different ways. Such as referrals, a toll-free number allowing for people to contact you that may need your assistance, and a web site for people to visit to familiarize themselves with your company and educate themselves about credit repair and the services you can provide them with.
Along these lines of leads, you may have considered purchasing credit repair leads from an internet company.
This isn’t such a bad idea if you are looking for an alternative lead source for credit repair.
The benefits . . .
The benefit of purchasing credit repair leads from an internet company is that the person that needs the credit repair came to a site and found an on line form to fill out specifically to acquire credit repair from a credit repair company.
The customer already understands that they will be contacted from somebody in the credit repair industry and they are waiting for a phone call.
The prospects on these credit repair leads are not playing with the idea of credit repair or just looking for information, they really need and want it. They have committed themselves to going somewhere and to someone for help.
For this reason alone it is a good idea to consider buying credit repair leads. Or at the very least, look into it. Call a few credit repair companies and find out where the leads are obtained from and what is involved with the purchase and delivery process. Purchasing credit repair leads just may be worth your time and money, so give it a shot.
Jay Conners is the owner of two mortgage related lead sites where he obtains leads from people looking for credit repair. Please visit his sites at http://www.callprospect.com/credit_repair_leads.html and http://www.callprospect.com
Article Source: http://EzineArticles.com/?expert=Jay_Conners http://EzineArticles.com/?Credit-Repair-Leads&id=119004
Sunday, November 25, 2007
Clearing Up Credit Card Jargon by Michael D. Strauss
Like most things connected with personal finance, the area of credit cards is sometimes awash with jargon and impenetrable language. You only need to pass an eye over your credit card issuer's Terms and Conditions section of their web site to see how fond of technical language they are - in fact, cynics might suggest that card companies like to make their conditions as hard as possible to understand so that they can quietly change the way they operate your account without you noticing.
Although we're unlikely to see simplified wording in the near or even distant future, properly understanding a few of the more common terms will be a great help when you're reviewing the market to choose the best deal on your next credit card.
Allocation of Payments
This phrase refers to how your repayments are used to clear your debt. Although you are shown a single balance on your statement, your account is actually made up of various chunks of debt charged at different rates, for example purchases, balance transfers, and cash withdrawals. The allocation of payments sets out the order in which these debt chunks will be repaid. Normally, the cheapest rate of debt is repaid first - probably a 0% balance transfer - and this must be completely cleared before any of the more expensive debts will be reduced. For the credit card companies, this has the happy side effect of increasing the total amount of interest they earn on your account. For you, it means you should try and stay clear of the expensive forms of debt such as cash advances.
Interest Free Period
If you clear your credit card in full every month, and never carry any debt from one statement to the next, you will normally be able to enjoy a delay between spending on the card and being charged interest on what you've spent. This interest free period is also known as a grace period, and is usually in the region of 50 to 60 days.
Typical APR
The APR, or Annual Percentage Rate, is the basic measure of how much interest your card charges on your debt, and the lower the figure, the better. The Typical APR is the rate that at least two thirds of successful applicants will be offered, and was introduced to stop card issuers heavily advertising extremely low rates that in fact only a tiny minority of applicants would be offered.
Minimum Repayment
This is simply the smallest amount you have to pay each month after receiving your statement. It is normally in the region of 3% but has drifted inexorably down over the years, meaning that if you only pay the minimum it will take longer and longer to clear the debt, costing you dearly in terms of interest.
Cash Advances
These are an expensive way of using your credit card, either by withdrawing cash physically from an ATM using your card, or by using the card in some designated outlets such as casinos. The rate charged is normally much higher than the standard APR, and because of allocation of payments, cash advances will be the very last part of your debt to be repaid and will cost you the most in interest, and so for this reason they should generally be avoided.
There are dozens if not hundreds of other pieces of jargon related to credit cards and finance in general, but hopefully this article has cleared up a few unknowns for you and will be of assistance in choosing your next card wisely.
Michael writes for the credit cards advice and comparison site Card Sense, where you can compare low APR credit cards and balance transfer offers.
Article Source: http://articlefree4all.com
Although we're unlikely to see simplified wording in the near or even distant future, properly understanding a few of the more common terms will be a great help when you're reviewing the market to choose the best deal on your next credit card.
Allocation of Payments
This phrase refers to how your repayments are used to clear your debt. Although you are shown a single balance on your statement, your account is actually made up of various chunks of debt charged at different rates, for example purchases, balance transfers, and cash withdrawals. The allocation of payments sets out the order in which these debt chunks will be repaid. Normally, the cheapest rate of debt is repaid first - probably a 0% balance transfer - and this must be completely cleared before any of the more expensive debts will be reduced. For the credit card companies, this has the happy side effect of increasing the total amount of interest they earn on your account. For you, it means you should try and stay clear of the expensive forms of debt such as cash advances.
Interest Free Period
If you clear your credit card in full every month, and never carry any debt from one statement to the next, you will normally be able to enjoy a delay between spending on the card and being charged interest on what you've spent. This interest free period is also known as a grace period, and is usually in the region of 50 to 60 days.
Typical APR
The APR, or Annual Percentage Rate, is the basic measure of how much interest your card charges on your debt, and the lower the figure, the better. The Typical APR is the rate that at least two thirds of successful applicants will be offered, and was introduced to stop card issuers heavily advertising extremely low rates that in fact only a tiny minority of applicants would be offered.
Minimum Repayment
This is simply the smallest amount you have to pay each month after receiving your statement. It is normally in the region of 3% but has drifted inexorably down over the years, meaning that if you only pay the minimum it will take longer and longer to clear the debt, costing you dearly in terms of interest.
Cash Advances
These are an expensive way of using your credit card, either by withdrawing cash physically from an ATM using your card, or by using the card in some designated outlets such as casinos. The rate charged is normally much higher than the standard APR, and because of allocation of payments, cash advances will be the very last part of your debt to be repaid and will cost you the most in interest, and so for this reason they should generally be avoided.
There are dozens if not hundreds of other pieces of jargon related to credit cards and finance in general, but hopefully this article has cleared up a few unknowns for you and will be of assistance in choosing your next card wisely.
Michael writes for the credit cards advice and comparison site Card Sense, where you can compare low APR credit cards and balance transfer offers.
Article Source: http://articlefree4all.com
Personal Debt Relief by rateempire
Debt relief is the forgiveness or partial forgiveness of a debt. Other definitions have also been applied such as the slowing of a debt or the stopping of the interest on the debt as well. In terms of personal relief this has been seen to be an escalating problem over the last few years in many places around the world. This problem is by no means limited to the United States but it is prominently seen there as the figures correlate to the fact that the average American household has debt to as much as $19000 that is separate from their mortgage payments. This means that they can often have mortgage payments as well as this debt and that is an astronomical figure to deal with.
With the presence of such large debt loads it is no wonder that there are many problems being faced by individuals in the repayment of these loans. These individuals are continually burdened by the debt that they have and often see this debt increasing with interest rates. They are consumed by the debt and the mistake that is often undertaken is that they continue to create more debt to repay older debts. This can eventually lead to bankruptcy and much care must be followed when dealing with the issue of debt.
When you are in need of debt relief the impulse is to be persuaded into signing up with one of the debt consolidation firms on the market. This option may work for some but for many it can spell disaster for many. These companies that are private companies promote themselves as debt relief organizations use marketing ploys to persuade people to turn to them but do not offer the best personalized solutions to reducing debt. They are often interested in the consolidation of the loans by using the property that you have as security and making the loans into a mortgage repayment. Many a person has lost their home in this way.
When debt is a concern that is consuming you should first turn to a consumer's association that provides advice before turning to the commercialized companies. They will more often than not have experience with the matter and be able to guide you to the better options for debt forgiveness. Their interest is not in getting you to use your home as security for a loan but in leading you to debt free living.
In addition to providing you with links to ways to debt relief and agreements with debt relief companies that are credible you will be taught what you are doing wrong by the provision of tips. You may even receive financial planning advice that can serve you well and avoid you getting yourself into the same situation again. This is important as most often the problem lies with the individual living above their means and the problem is not solved with debt relief and the person will soon go back into debt again.
Martin Lukac represents RateEmpire.com Debt Relief financial marketplace which connects consumers with multiple debt relief companies that compete for their business. RateEmpire.com is a destination site of credit information, personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. Article source: Personal Debt Relief
Article Source: http://www.information-overload.eu/articleland
With the presence of such large debt loads it is no wonder that there are many problems being faced by individuals in the repayment of these loans. These individuals are continually burdened by the debt that they have and often see this debt increasing with interest rates. They are consumed by the debt and the mistake that is often undertaken is that they continue to create more debt to repay older debts. This can eventually lead to bankruptcy and much care must be followed when dealing with the issue of debt.
When you are in need of debt relief the impulse is to be persuaded into signing up with one of the debt consolidation firms on the market. This option may work for some but for many it can spell disaster for many. These companies that are private companies promote themselves as debt relief organizations use marketing ploys to persuade people to turn to them but do not offer the best personalized solutions to reducing debt. They are often interested in the consolidation of the loans by using the property that you have as security and making the loans into a mortgage repayment. Many a person has lost their home in this way.
When debt is a concern that is consuming you should first turn to a consumer's association that provides advice before turning to the commercialized companies. They will more often than not have experience with the matter and be able to guide you to the better options for debt forgiveness. Their interest is not in getting you to use your home as security for a loan but in leading you to debt free living.
In addition to providing you with links to ways to debt relief and agreements with debt relief companies that are credible you will be taught what you are doing wrong by the provision of tips. You may even receive financial planning advice that can serve you well and avoid you getting yourself into the same situation again. This is important as most often the problem lies with the individual living above their means and the problem is not solved with debt relief and the person will soon go back into debt again.
Martin Lukac represents RateEmpire.com Debt Relief financial marketplace which connects consumers with multiple debt relief companies that compete for their business. RateEmpire.com is a destination site of credit information, personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. Article source: Personal Debt Relief
Article Source: http://www.information-overload.eu/articleland
Friday, November 23, 2007
College Student Credit Card Debt. Tips For Parents by
For parents college can be expensive, however for the college student, credit card debt seems to come with the territory. Do students and credit cards go well together?
If you're starting at a university and beginning to ease into a situation where you will be in charge of your own money,college student credit card debt is something to be aware of. However, used wisely a student credit card might be just thing you need to get started!
These days, many universities offer credit cards to their student body and many students have found these cards to be both convenient in terms of day to day life and extremely useful when establishing a good credit line.
One of the first things to think about when considering getting student credit card is that for the most part, you are pre-approved if you are student at the university. One of the most frustrating things that can occur when you are looking for a credit card is being told that you do not have enough of a credit history to apply.
This can work against you in other situations as well; for instance, many apartments do credit checks before allowing you to rent a unit. A university credit card will allow you to both build up credit and take advantage of the convenience of having a credit card right away.
In fact, many universities that offer credit cards allow you to pay online, ensuring that you will have your credit card in a matter of days, rather than weeks. Similarly, you can keep track of all of your transactions while you are online as well, something that the major companies are just beginning to take advantage of,but be aware that college student credit card debt, can build up without you realising it, especially if your parents are footing the bill!
.
Student credit cards, especially as they offered through a university, often have kinder interest rates than otherwise. Do some comparison shopping and there's a good chance that you'll end up with a student card during your university years even if you do qualify for a Visa or Mastercard! While the best plan with a credit card is simply to pay it off immediately, a good line of credit at a low interest rate can really help out if money gets tight. No one wants to make the decision between textbooks and groceries, and a good university credit card help out with that.
Think of your student credit card much like a student apartment. While you would eventually like to move into a larger house or condo, there's nothing wrong with student apartment at the moment. At this juncture of your life, you have different needs than you will later. A student credit card, while not ideal for the rest of your life, is often just the solution you've been looking for when you've newly entered the university life.
For parents college can be expensive, however for the college student, credit card debt seems to come with the territory. Do students and credit cards go well together?
There are many ways to find out if your university has a credit card available. As soon as you get to campus, you'll probably get a notice regarding it, but if you haven't, check the university web pages, and if there is an information center, inquire there. Sometimes, it's as simple as clicking the right links and filling out a brief application.
Start building up good credit at this point in your life and when you're ready to graduate, you'll find plenty of reasons to be glad you did. College student credit card debt, is not a bad thing and on the whole, students (our future) do a great accountable job. So nothing to worry about parents!
College student credit card debt and it's long term ramifications has intriqued Dr S for many years. A student loan resource and information portal is important for the best credit card interest rates and long term accrued interest.
Article Source: http://articlefree4all.com
If you're starting at a university and beginning to ease into a situation where you will be in charge of your own money,college student credit card debt is something to be aware of. However, used wisely a student credit card might be just thing you need to get started!
These days, many universities offer credit cards to their student body and many students have found these cards to be both convenient in terms of day to day life and extremely useful when establishing a good credit line.
One of the first things to think about when considering getting student credit card is that for the most part, you are pre-approved if you are student at the university. One of the most frustrating things that can occur when you are looking for a credit card is being told that you do not have enough of a credit history to apply.
This can work against you in other situations as well; for instance, many apartments do credit checks before allowing you to rent a unit. A university credit card will allow you to both build up credit and take advantage of the convenience of having a credit card right away.
In fact, many universities that offer credit cards allow you to pay online, ensuring that you will have your credit card in a matter of days, rather than weeks. Similarly, you can keep track of all of your transactions while you are online as well, something that the major companies are just beginning to take advantage of,but be aware that college student credit card debt, can build up without you realising it, especially if your parents are footing the bill!
.
Student credit cards, especially as they offered through a university, often have kinder interest rates than otherwise. Do some comparison shopping and there's a good chance that you'll end up with a student card during your university years even if you do qualify for a Visa or Mastercard! While the best plan with a credit card is simply to pay it off immediately, a good line of credit at a low interest rate can really help out if money gets tight. No one wants to make the decision between textbooks and groceries, and a good university credit card help out with that.
Think of your student credit card much like a student apartment. While you would eventually like to move into a larger house or condo, there's nothing wrong with student apartment at the moment. At this juncture of your life, you have different needs than you will later. A student credit card, while not ideal for the rest of your life, is often just the solution you've been looking for when you've newly entered the university life.
For parents college can be expensive, however for the college student, credit card debt seems to come with the territory. Do students and credit cards go well together?
There are many ways to find out if your university has a credit card available. As soon as you get to campus, you'll probably get a notice regarding it, but if you haven't, check the university web pages, and if there is an information center, inquire there. Sometimes, it's as simple as clicking the right links and filling out a brief application.
Start building up good credit at this point in your life and when you're ready to graduate, you'll find plenty of reasons to be glad you did. College student credit card debt, is not a bad thing and on the whole, students (our future) do a great accountable job. So nothing to worry about parents!
College student credit card debt and it's long term ramifications has intriqued Dr S for many years. A student loan resource and information portal is important for the best credit card interest rates and long term accrued interest.
Article Source: http://articlefree4all.com
Checking Your Credit Report by Jim Brown
How often should you check your credit report? Checking on it and your finances enables you to take on the necessary steps to improving your finances. While you may read advice being given online that indicates your credit report should be checked once every year this is not particularly the case. For people with good credit standing or for those who don't open many credit accounts each year, this is a good rule of thumb to follow. But this does not apply all the time for there are certain circumstances that trigger for your credit report to be checked.
In a loan approval for a house or a car for instance, one of the factors that could get you approved or denied for the loan would be your credit history. Certain entries on your credit report could actually keep you from obtaining your dream car or dream house. It would be wise to check it about six months prior to the time when you will be availing yourself of a loan application to help clear up possible erroneous entries or discrepancies. This can apply to other types of loans like installment loans, student loans, etc.
If you have been denied of a credit card or any other credit based service, you should check your credit report and review it in case of inaccurate information being reported. Most creditors and lenders who have denied your credit card application or loan application will provide you with the reason behind the decision as well as inform you of how you could secure a copy of the report used in making such a decision.
Identity theft has been becoming rampant and it can go on for months and even years being unnoticed. Other people even discover that their identity has been stolen only when a loan or credit application gets denied. If you begin to receive cold calls or collection letters from collection agencies for accounts you have never opened in the first place, then you should be suspicious and check your credit report. You should report immediately to credit reporting agencies if your identity has been stolen.
If you are planning to get out of debt, repair your credit or do both, a good place to begin would definitely be your credit report as this contains many of your financial accounts. You can absolutely use the information found on it.
Check your credit report periodically to check on what creditors are saying about your credit standing. It is always best to be ready and not wait to check it when you need good credit.
James Brown writes about privacymatters.com coupon, CreditReporting.com deals and CreditSolutions.com deals
Article Source: http://articlefree4all.com
In a loan approval for a house or a car for instance, one of the factors that could get you approved or denied for the loan would be your credit history. Certain entries on your credit report could actually keep you from obtaining your dream car or dream house. It would be wise to check it about six months prior to the time when you will be availing yourself of a loan application to help clear up possible erroneous entries or discrepancies. This can apply to other types of loans like installment loans, student loans, etc.
If you have been denied of a credit card or any other credit based service, you should check your credit report and review it in case of inaccurate information being reported. Most creditors and lenders who have denied your credit card application or loan application will provide you with the reason behind the decision as well as inform you of how you could secure a copy of the report used in making such a decision.
Identity theft has been becoming rampant and it can go on for months and even years being unnoticed. Other people even discover that their identity has been stolen only when a loan or credit application gets denied. If you begin to receive cold calls or collection letters from collection agencies for accounts you have never opened in the first place, then you should be suspicious and check your credit report. You should report immediately to credit reporting agencies if your identity has been stolen.
If you are planning to get out of debt, repair your credit or do both, a good place to begin would definitely be your credit report as this contains many of your financial accounts. You can absolutely use the information found on it.
Check your credit report periodically to check on what creditors are saying about your credit standing. It is always best to be ready and not wait to check it when you need good credit.
James Brown writes about privacymatters.com coupon, CreditReporting.com deals and CreditSolutions.com deals
Article Source: http://articlefree4all.com
Wednesday, November 21, 2007
How To Repair Your Credit Using Credit Repair Services - Save Hundreds of Dollars In The Process
Credit Repair Services are available to consumers that want to repair their own credit and eliminate high cost attorney or credit counseling services. If you have little money and more time you may want to consider using a credit repair service and repair your own credit.
Many people do not understand the American credit system. The credit system has "little credit secrets" that they do not want consumers to know about. If the credit bureaus do not intimidate you, then you might consider using a credit repair service to repair your credit.
Credit repair services offer you an understanding of how the American credit system operates. They can show you step by step how to raise your credit score and eliminate debt if you are willing to take advantage of their services.
By using these credit repair services you can improve your credit much faster and more efficiently without paying (up to) $795 for attorney fees. Utilizing these do it yourself credit repair services versus a credit counseling service also allows you to eliminate hundreds of dollars in monthly fees plus the start up fees they require.
The problem is that the attorneys and credit counseling services don't want you to know about credit repair services; they want you to believe they are the only ones that can fix your credit.
The truth is you can repair your credit yourself. During my investigations of how to repair credit I discovered how to take advantage of these credit repair services that allow you to follow a simple step by step, at home program and repair your credit twice as fast as any attorney or credit counseling service while saving hundreds.
Credit repair services are for the average person that needs to repair their credit, it might be worth while to check into these credit repair services.
Credit Repair Services are easy to understand and incorporate to help you repair your own credit. If you want to learn how to raise your credit score for half the cost and in half the time that an attorney or credit counseling service can do, then check out [http://CreditSecretsBibleOnline.Info/]CreditSecretsBibleOnline to get all the information.
Article Source: http://EzineArticles.com/?expert=D_DeCoteau http://EzineArticles.com/?How-To-Repair-Your-Credit-Using-Credit-Repair-Services---Save-Hundreds-of-Dollars-In-The-Process-&id=541380
Many people do not understand the American credit system. The credit system has "little credit secrets" that they do not want consumers to know about. If the credit bureaus do not intimidate you, then you might consider using a credit repair service to repair your credit.
Credit repair services offer you an understanding of how the American credit system operates. They can show you step by step how to raise your credit score and eliminate debt if you are willing to take advantage of their services.
By using these credit repair services you can improve your credit much faster and more efficiently without paying (up to) $795 for attorney fees. Utilizing these do it yourself credit repair services versus a credit counseling service also allows you to eliminate hundreds of dollars in monthly fees plus the start up fees they require.
The problem is that the attorneys and credit counseling services don't want you to know about credit repair services; they want you to believe they are the only ones that can fix your credit.
The truth is you can repair your credit yourself. During my investigations of how to repair credit I discovered how to take advantage of these credit repair services that allow you to follow a simple step by step, at home program and repair your credit twice as fast as any attorney or credit counseling service while saving hundreds.
Credit repair services are for the average person that needs to repair their credit, it might be worth while to check into these credit repair services.
Credit Repair Services are easy to understand and incorporate to help you repair your own credit. If you want to learn how to raise your credit score for half the cost and in half the time that an attorney or credit counseling service can do, then check out [http://CreditSecretsBibleOnline.Info/]CreditSecretsBibleOnline to get all the information.
Article Source: http://EzineArticles.com/?expert=D_DeCoteau http://EzineArticles.com/?How-To-Repair-Your-Credit-Using-Credit-Repair-Services---Save-Hundreds-of-Dollars-In-The-Process-&id=541380
How To Repair Bad Credit
How To Repair Bad Credit
Can bad credit be repaired? Most consumers believe that once you have bad credit, then you will never again have good credit. Bad credit is extremely difficult to repair, however, it can be done. What you need to keep in mind, is that bad credit only lasts as long as the delinquencies on your credit report last. Once the negative items on your credit report are removed, then you will once again have good credit.
Okay, so what is the time limit for negative items to stay on a credit report? Bankruptcies stay on the credit report for about ten years and negative items stay on for about seven years. Why do I say "about" seven and ten years for negative items? Typically, the negative items should be removed after seven and ten years, however, it often takes a bit longer for these items to be removed by the credit bureaus. In general, the seven and ten year periods are calculated from the date that the event took place.
One way to repair bad credit, is to negotiate a settlement of delinquent debt. Generally, you can negotiate with the debt collection agency or bank that owns your delinquent debt. A rule of thumb, is to try and pay about thirty to fifty cents on the dollar. You can usually get an agreement, in which the debt owner, will agree to place a "settled in full" statement on your credit report, once you have paid the agreed upon amount. Never pay the negotiated debt settlement amount, until you have an agreement in writing. This is because once you have paid this amount, the debt owner, has no incentive to place the "settled in full" statement on your report. If you pay the debt, and the debt owner fails to place the "settled in full" statement on your report, without an agreement in writing, you will have no proof that the debt was settled in full.
If you don't have any money to repay any portion of the delinquent debt, then another way to re-establish good credit, is to start taking out small loans at a bank or loaning institution. This method also works by establishing timely payments through secured credit cards. It seems quite bizarre, but you can actually drown out bad items with good items. What this simply means, is that if you have fifty loans that are in good standing and ten loans in bad standing, the loans in bad standing, will be eclipsed by the loans in good standing. Keep in mind, that you will have to take out very small loans, and pay these loans back on time, in full, every time. Paying off about twenty to thirty small loans on time, will make a significant difference in calculating your credit score. Many individuals credit scores can raise a few hundred points, in a relatively short period of time, with this method.
What if you have bad credit because of fraudulent activity? First, let's specifically define fraudulent activity. The majority of the consumers define fraudulent activity, as individuals who take out credit cards or loans, based upon someone else's identifying information. That is only partially true. Fraudulent activity, can also be a credit card company illegal raising an interest rate in violation of contract terms, a loan being called in before it is due, a bank demanding an illegally accelerated payment of a loan or credit card, or any other violation of law by a financial institution regarding the repayment of a debt. Most consumers fail to recognize when financial institutions commit fraud. The simple solution for fixing bad credit because of fraudulent activity, is to dispute the activity on your credit report. In real estate, the motto is: location, location, location. When it comes to fraudulent credit activity, the motto is: dispute, dispute, dispute. Consumers have the right to dispute any and all fraudulent activity on the report, whether by individuals or financial institutions, by contacting the three credit bureaus and disputing the debt, in writing.
Bad credit, can and should be, repaired. With a little effort and time, bad credit items can be either erased, settled, or eclipsed by good credit.
------------------------
Bryan Pringle, Ph.D., has written many articles on the credit industry, and is the webmaster of websites offering news and information regarding credit cards. For more information, please visit: http://www.apply-forcreditcards-online.com
Can bad credit be repaired? Most consumers believe that once you have bad credit, then you will never again have good credit. Bad credit is extremely difficult to repair, however, it can be done. What you need to keep in mind, is that bad credit only lasts as long as the delinquencies on your credit report last. Once the negative items on your credit report are removed, then you will once again have good credit.
Okay, so what is the time limit for negative items to stay on a credit report? Bankruptcies stay on the credit report for about ten years and negative items stay on for about seven years. Why do I say "about" seven and ten years for negative items? Typically, the negative items should be removed after seven and ten years, however, it often takes a bit longer for these items to be removed by the credit bureaus. In general, the seven and ten year periods are calculated from the date that the event took place.
One way to repair bad credit, is to negotiate a settlement of delinquent debt. Generally, you can negotiate with the debt collection agency or bank that owns your delinquent debt. A rule of thumb, is to try and pay about thirty to fifty cents on the dollar. You can usually get an agreement, in which the debt owner, will agree to place a "settled in full" statement on your credit report, once you have paid the agreed upon amount. Never pay the negotiated debt settlement amount, until you have an agreement in writing. This is because once you have paid this amount, the debt owner, has no incentive to place the "settled in full" statement on your report. If you pay the debt, and the debt owner fails to place the "settled in full" statement on your report, without an agreement in writing, you will have no proof that the debt was settled in full.
If you don't have any money to repay any portion of the delinquent debt, then another way to re-establish good credit, is to start taking out small loans at a bank or loaning institution. This method also works by establishing timely payments through secured credit cards. It seems quite bizarre, but you can actually drown out bad items with good items. What this simply means, is that if you have fifty loans that are in good standing and ten loans in bad standing, the loans in bad standing, will be eclipsed by the loans in good standing. Keep in mind, that you will have to take out very small loans, and pay these loans back on time, in full, every time. Paying off about twenty to thirty small loans on time, will make a significant difference in calculating your credit score. Many individuals credit scores can raise a few hundred points, in a relatively short period of time, with this method.
What if you have bad credit because of fraudulent activity? First, let's specifically define fraudulent activity. The majority of the consumers define fraudulent activity, as individuals who take out credit cards or loans, based upon someone else's identifying information. That is only partially true. Fraudulent activity, can also be a credit card company illegal raising an interest rate in violation of contract terms, a loan being called in before it is due, a bank demanding an illegally accelerated payment of a loan or credit card, or any other violation of law by a financial institution regarding the repayment of a debt. Most consumers fail to recognize when financial institutions commit fraud. The simple solution for fixing bad credit because of fraudulent activity, is to dispute the activity on your credit report. In real estate, the motto is: location, location, location. When it comes to fraudulent credit activity, the motto is: dispute, dispute, dispute. Consumers have the right to dispute any and all fraudulent activity on the report, whether by individuals or financial institutions, by contacting the three credit bureaus and disputing the debt, in writing.
Bad credit, can and should be, repaired. With a little effort and time, bad credit items can be either erased, settled, or eclipsed by good credit.
------------------------
Bryan Pringle, Ph.D., has written many articles on the credit industry, and is the webmaster of websites offering news and information regarding credit cards. For more information, please visit: http://www.apply-forcreditcards-online.com
Tuesday, November 20, 2007
How to Get Out Of Debt Without Bankruptcy Filing by Cornie Herring
Debt relief related industries are in a rapid growth rate showing that more and more people are looking for debt free solutions to get them out of debt. The fact shows 40% of American households are holding at least ten thousands of debt and many of them are at overwhelming level that urgently need a solution for relief. The bad news is many of debtors are getting out of debt with the worst option: bankruptcy filing. If you are in a serious debt trouble, you want to avoid bankruptcy with your best effort. Then, what are the alternative options available for you other than bankruptcy?
Before finding a debt solution that can pull you out of debt, you must first understand your debt situation. Don't ignore your debt problem and let your debt continue to snowballing from month to month, you will be very surprise when your debt is piling up to the level that is out of your expectation if you keep ignoring them. The earlier you face your debt problem, the more chances your will resolve it with the best option.
The first thing your need to do it is "Get to know your debt". Although it very scaring to look at all your credit card bills and loan balances that are over due and need immediate payment, you must take out all these statements and do a summary on what you owe and the overdue amount that need immediate attention. If you are too stressful to calculate all your debt, you may get help from your family members, spouse or friends to help you. If you are considering of getting help from professional counselor to analysis your debt situation, then you may contact a consumer credit counseling agency. Most of credit consumer credit counseling services are free. Their purpose is to help and educate anyone who needs help in handling their debt issue. A counselor will be assigned to handle your case and he will help you to analysis your debt situation before propose to you a debt solution.
Once you know your total debt. You next action is to think of the best solution to settle your debt and this is the hardest part. The immediate action that you can do is carefully thinks of what are the ways to cash out in the shortest period of time. You may perform garage sell or sell your home items at eBay or at your local newspaper free ads column to cash out as much cash as possible. If you have more than one car at home, you may want to reduce to one and sell the rest to cash out the money or reduce your monthly auto loan installment.
The next thing to do is reduce as much as possible your monthly expenses so that you don't add more debt to your current balance and able to squeeze more money out to be allocated for debt payment. You should create a budget plan so that you know where your money goes and what expenses can be cut to reduce your monthly spending. With that you know how much money left each month that you can dump into your debt payment.
After knowing how much money you can cash out and the amount of money that you can allocate for monthly debt payment, it's time to negotiate with your lenders for a settlement with discount. Many lenders are willing to reduce the amount you owe as long as you can settle your debt in one settlement. You probably can save 20% to 30% if you have enough cash for settlement. If you have not enough money for one time settlement, lenders may accept to waive the interest as long as you promise to pay an agreed amount each month. Try to negotiate with your lenders to come to an agreement that benefits both parties. If you feel that you are not confident enough to perform the negotiation with your lenders, then you can get help a debt settlement company to do the negotiation on your behalf. But, be aware that there will be fee involved. In most case, lenders do not want you to file a bankruptcy because they won't really benefit from it. If the negotiate terms are acceptable by lenders, you can be avoided from filing a bankruptcy while working your way out of debt.
Summary
The bottom line is bankruptcy may not be the ultimate option. There are other options available which should be better that bankrupt filing. What you need to do is understand your debt situation, get help from professional if needed to explore the available options and work out with your lenders to get yourself relief from overwhelming debt problem.
Cornie Herring is an finance author of http://www.debt-consolidation-1stop.info, an informative website that provides FREE information and guides on debt solutions, consumer credit counseling & bankruptcy alternatives.
Article Source: http://www.articlesnatch.com
Before finding a debt solution that can pull you out of debt, you must first understand your debt situation. Don't ignore your debt problem and let your debt continue to snowballing from month to month, you will be very surprise when your debt is piling up to the level that is out of your expectation if you keep ignoring them. The earlier you face your debt problem, the more chances your will resolve it with the best option.
The first thing your need to do it is "Get to know your debt". Although it very scaring to look at all your credit card bills and loan balances that are over due and need immediate payment, you must take out all these statements and do a summary on what you owe and the overdue amount that need immediate attention. If you are too stressful to calculate all your debt, you may get help from your family members, spouse or friends to help you. If you are considering of getting help from professional counselor to analysis your debt situation, then you may contact a consumer credit counseling agency. Most of credit consumer credit counseling services are free. Their purpose is to help and educate anyone who needs help in handling their debt issue. A counselor will be assigned to handle your case and he will help you to analysis your debt situation before propose to you a debt solution.
Once you know your total debt. You next action is to think of the best solution to settle your debt and this is the hardest part. The immediate action that you can do is carefully thinks of what are the ways to cash out in the shortest period of time. You may perform garage sell or sell your home items at eBay or at your local newspaper free ads column to cash out as much cash as possible. If you have more than one car at home, you may want to reduce to one and sell the rest to cash out the money or reduce your monthly auto loan installment.
The next thing to do is reduce as much as possible your monthly expenses so that you don't add more debt to your current balance and able to squeeze more money out to be allocated for debt payment. You should create a budget plan so that you know where your money goes and what expenses can be cut to reduce your monthly spending. With that you know how much money left each month that you can dump into your debt payment.
After knowing how much money you can cash out and the amount of money that you can allocate for monthly debt payment, it's time to negotiate with your lenders for a settlement with discount. Many lenders are willing to reduce the amount you owe as long as you can settle your debt in one settlement. You probably can save 20% to 30% if you have enough cash for settlement. If you have not enough money for one time settlement, lenders may accept to waive the interest as long as you promise to pay an agreed amount each month. Try to negotiate with your lenders to come to an agreement that benefits both parties. If you feel that you are not confident enough to perform the negotiation with your lenders, then you can get help a debt settlement company to do the negotiation on your behalf. But, be aware that there will be fee involved. In most case, lenders do not want you to file a bankruptcy because they won't really benefit from it. If the negotiate terms are acceptable by lenders, you can be avoided from filing a bankruptcy while working your way out of debt.
Summary
The bottom line is bankruptcy may not be the ultimate option. There are other options available which should be better that bankrupt filing. What you need to do is understand your debt situation, get help from professional if needed to explore the available options and work out with your lenders to get yourself relief from overwhelming debt problem.
Cornie Herring is an finance author of http://www.debt-consolidation-1stop.info, an informative website that provides FREE information and guides on debt solutions, consumer credit counseling & bankruptcy alternatives.
Article Source: http://www.articlesnatch.com
Top Credit Repair Tips
If you're working hard at your job every day, but still face financial concerns, such as bad credit, then you may be interested in getting a credit repair tip or two. Every day there are thousands of people just like you who are dealing with bad credit problems, so you’re not alone.
There are many different kinds of resources that help you to find out more information and access the credit repair tip you need to make good on your credit. The first place you’d start is doing a basic search on the Internet through Google or Yahoo. Once you do the search, you’ll find thousands of sites that offer all kinds information on how to help solve your credit problems.
The most obvious tip is to make sure that you pay your bills. Of course, that’s easier said than done, but what if you could work out a new payment plan with your creditors? One excellent credit repair tip is to try to figure out a way to work out smaller payments that you can actually afford, even if it is just 5 pounds a month.
Another credit repair tip is to get a copy of your credit report. Lenders look at the length of your established credit. You could hire a company to help and guide you through the steps of repairing it, or you can do it yourself for free. Of course, it may take some time and thought, but in the end you can have peace of mind knowing that you have done your home work and that things are done correctly.
An additional credit repair tip is to look at your credit report and check it for accuracy.
You can get in touch with Experian and get a copy of your credit report for a small fee. Then you want to look over your credit report and analyse the information that is included in it. Check to see if there are any default notices against you. Sometimes you may find that there are companies on your credit report that you’ve never even heard of, and that you have not had any dealings with.
Often, you could be denied credit due to errors and mistakes on the report that are no fault of your own. When you do spot errors, write to the agency and get in touch with whoever put the information on your report. You may even have to write to your lender directly to solve this problem.
If you are having difficulties getting errors fixed on your report, you have a legal right to contact the Data Protection Commissioner.
Next, look at your accounts with different lenders. Note the length of time you have them. Pay the ones that you can. Other lenders look at how long you’ve had an active account. This can work in your favour.
Another credit repair tip is to open a credit account if all of the ones you already have are closed and pay on time. This will help your ratings tremendously. With due diligence and dedication, along with this credit repair tip information, you'll soon see your credit become good as new.
About The Author
Michael Sherriff has produced a product called UK Credit Secrets which shows you exactly how to repair your own credit history instead of paying someone £100's to do it for you. This product is unbiased and unique in the UK. Find out more at http://ukcreditsecrets.co.uk
There are many different kinds of resources that help you to find out more information and access the credit repair tip you need to make good on your credit. The first place you’d start is doing a basic search on the Internet through Google or Yahoo. Once you do the search, you’ll find thousands of sites that offer all kinds information on how to help solve your credit problems.
The most obvious tip is to make sure that you pay your bills. Of course, that’s easier said than done, but what if you could work out a new payment plan with your creditors? One excellent credit repair tip is to try to figure out a way to work out smaller payments that you can actually afford, even if it is just 5 pounds a month.
Another credit repair tip is to get a copy of your credit report. Lenders look at the length of your established credit. You could hire a company to help and guide you through the steps of repairing it, or you can do it yourself for free. Of course, it may take some time and thought, but in the end you can have peace of mind knowing that you have done your home work and that things are done correctly.
An additional credit repair tip is to look at your credit report and check it for accuracy.
You can get in touch with Experian and get a copy of your credit report for a small fee. Then you want to look over your credit report and analyse the information that is included in it. Check to see if there are any default notices against you. Sometimes you may find that there are companies on your credit report that you’ve never even heard of, and that you have not had any dealings with.
Often, you could be denied credit due to errors and mistakes on the report that are no fault of your own. When you do spot errors, write to the agency and get in touch with whoever put the information on your report. You may even have to write to your lender directly to solve this problem.
If you are having difficulties getting errors fixed on your report, you have a legal right to contact the Data Protection Commissioner.
Next, look at your accounts with different lenders. Note the length of time you have them. Pay the ones that you can. Other lenders look at how long you’ve had an active account. This can work in your favour.
Another credit repair tip is to open a credit account if all of the ones you already have are closed and pay on time. This will help your ratings tremendously. With due diligence and dedication, along with this credit repair tip information, you'll soon see your credit become good as new.
About The Author
Michael Sherriff has produced a product called UK Credit Secrets which shows you exactly how to repair your own credit history instead of paying someone £100's to do it for you. This product is unbiased and unique in the UK. Find out more at http://ukcreditsecrets.co.uk
Monday, November 19, 2007
Online Credit Counseling Services – to get free credit counseling services by Gibson Petry
Credit counseling is often equated with debt consolidation, though they are not necessarily the same thing. There are basically three ways that the credit counseling term is used. First, it can be the same thing as debt consolidation. Many companies use “credit counseling” as a nicer way to refer to debt.
A second way that credit counseling can be a “good” term is to actually mean counseling. Many credit reduction companies and private financial institutions offer credit counseling as a type of financial planning. Counseling can help figure out how much debt is owed and how to control debt in the future. In this sense, credit counseling should be apart of every debt reduction strategy.
Finally, credit counseling can be a negative thing. The credit counseling industry is so profitable that dozens of new companies spring up each month. Many of them are operated by hucksters out to make a buck at your expense. Newsweek recently ran a story about the numerous complaints the FTC has received from consumers taken for a ride by online credit counseling services. Because many of these companies care only about making a big profit, they don't bother to adequately train their counselors, or they hire telemarketer types that are clearly unqualified to offer advice on debt and budgeting. Some counselors have actually told their clients to stop paying their car and home loans and send the money to the counseling service - these people had their cars repossessed and homes foreclosed!
About 60 percent of those who sign up for credit counseling drop out. You can find dozens of sites on the Internet where those who have participated in credit counseling warn those who haven't not to sign-up.
Ezconsolidation provide Online Credit Counseling Services for your bad debt credit solution. Please visit www.ezconsolidation.com for the latest finance related news.
Article Source: http://www.articlecube.com
A second way that credit counseling can be a “good” term is to actually mean counseling. Many credit reduction companies and private financial institutions offer credit counseling as a type of financial planning. Counseling can help figure out how much debt is owed and how to control debt in the future. In this sense, credit counseling should be apart of every debt reduction strategy.
Finally, credit counseling can be a negative thing. The credit counseling industry is so profitable that dozens of new companies spring up each month. Many of them are operated by hucksters out to make a buck at your expense. Newsweek recently ran a story about the numerous complaints the FTC has received from consumers taken for a ride by online credit counseling services. Because many of these companies care only about making a big profit, they don't bother to adequately train their counselors, or they hire telemarketer types that are clearly unqualified to offer advice on debt and budgeting. Some counselors have actually told their clients to stop paying their car and home loans and send the money to the counseling service - these people had their cars repossessed and homes foreclosed!
About 60 percent of those who sign up for credit counseling drop out. You can find dozens of sites on the Internet where those who have participated in credit counseling warn those who haven't not to sign-up.
Ezconsolidation provide Online Credit Counseling Services for your bad debt credit solution. Please visit www.ezconsolidation.com for the latest finance related news.
Article Source: http://www.articlecube.com
How Credit Repair Works
With personal debt at an all-time high, a number of individuals have found that they have overextended themselves and have become immersed in debt. As their debt grows, they can't help but get more and more behind… and their credit score pays the price. If you are one of the many who have had problems with your credit in the past (or still have problems with it), you may be considering credit repair as a way to get back on track.
Before you sign up for a credit repair plan, you should make sure that you understand exactly what is involved in repairing your credit score… while there are a lot of credit repair agencies that are legitimate, there are also some that seek to prey on those who need help and perform services that are both immoral and illegal.
What Credit Repair Is
Obviously, the goal of credit repair is to improve your credit score and get you back on track financially after past credit problems. A variety of credit repair services exist, providing everything from credit counselling and debt negotiation to debt consolidation loans and budgeting advice.
When used properly, credit repair services can not only help you to get caught up with your bills and on the path to a better credit score but they can help you to avoid bankruptcy and set you up to avoid credit problems in the future.
Credit repair takes time, however, and should never be viewed as a “quick fix” for your credit.
If an offer claims that they can instantly grant you new credit, then it's likely not only bogus but can also get you into legal trouble if you accept it.
Common Types of Credit Repair
As mentioned above, credit repair can take several different forms. Credit counselling services provide assistance with the budgeting and repayment of your debts, and offer advice on simple ways to improve your credit without additional loans. They also often provide debt negotiation, which is the working out of a settlement with your creditors so that you only have to repay a portion of your original debt within a certain timeframe.
Debt consolidation loans are also used for the purposes of credit repair, allowing you to take out a loan in order to pay off outstanding debts and leaving you with a single monthly loan payment instead of several different payments.
Budgeting assistance services are also available to help you get control of your spending and personal finances.
Avoiding Credit Repair Scams
Unfortunately, there will always be unsavory individuals who seek to make money off of those who are in need of assistance.
Any credit repair service that promises instant results or that offers to simply create a new credit report for you should be avoided… what they're really creating is a business tax identification number, and any individual who uses one is in danger of being charged with fraud and possibly other charges.
Credit repair takes time; if an offer sounds too good to be true, then it likely is.
Repairing Your Own Credit
Of course, by paying off old debts and establishing and maintaining new lines of credit you can begin the process of credit repair yourself.
Request a copy of your credit report and check it for errors, and then focus on clearing the debts that appear as negative reports.
It may take years for all of the negative reports to expire, but by preventing new ones while increasing your positive reports your credit score will slowly rise on its own.
--
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
Before you sign up for a credit repair plan, you should make sure that you understand exactly what is involved in repairing your credit score… while there are a lot of credit repair agencies that are legitimate, there are also some that seek to prey on those who need help and perform services that are both immoral and illegal.
What Credit Repair Is
Obviously, the goal of credit repair is to improve your credit score and get you back on track financially after past credit problems. A variety of credit repair services exist, providing everything from credit counselling and debt negotiation to debt consolidation loans and budgeting advice.
When used properly, credit repair services can not only help you to get caught up with your bills and on the path to a better credit score but they can help you to avoid bankruptcy and set you up to avoid credit problems in the future.
Credit repair takes time, however, and should never be viewed as a “quick fix” for your credit.
If an offer claims that they can instantly grant you new credit, then it's likely not only bogus but can also get you into legal trouble if you accept it.
Common Types of Credit Repair
As mentioned above, credit repair can take several different forms. Credit counselling services provide assistance with the budgeting and repayment of your debts, and offer advice on simple ways to improve your credit without additional loans. They also often provide debt negotiation, which is the working out of a settlement with your creditors so that you only have to repay a portion of your original debt within a certain timeframe.
Debt consolidation loans are also used for the purposes of credit repair, allowing you to take out a loan in order to pay off outstanding debts and leaving you with a single monthly loan payment instead of several different payments.
Budgeting assistance services are also available to help you get control of your spending and personal finances.
Avoiding Credit Repair Scams
Unfortunately, there will always be unsavory individuals who seek to make money off of those who are in need of assistance.
Any credit repair service that promises instant results or that offers to simply create a new credit report for you should be avoided… what they're really creating is a business tax identification number, and any individual who uses one is in danger of being charged with fraud and possibly other charges.
Credit repair takes time; if an offer sounds too good to be true, then it likely is.
Repairing Your Own Credit
Of course, by paying off old debts and establishing and maintaining new lines of credit you can begin the process of credit repair yourself.
Request a copy of your credit report and check it for errors, and then focus on clearing the debts that appear as negative reports.
It may take years for all of the negative reports to expire, but by preventing new ones while increasing your positive reports your credit score will slowly rise on its own.
--
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
Sunday, November 18, 2007
How To Erase Fraudulent Activity On Your Credit Report
Everyone has heard the horror stories. The stories about individuals whose credit score is ruined from errors and fraudulent activity that is posted on their credit report. Stolen identities, stolen credit card numbers, and stolen Social Security Numbers, can all be used to fraudulently apply for credit on your credit history. There are a few simple rules to keep in mind if ever you have fraudulent activity reported on your report.
Always remember to dispute the fraudulent activity on your credit report as soon as you find out about it. Waiting too long, can erode your rights to dispute the fraudulent activity on your report. Make sure to write to all three credit bureaus, when disputing fraudulent activities. Only disputing fraudulent activity with one credit bureau, will not erase the activity reported on the other two bureaus.
Make sure to ask for proper documentation from the financial institutions that are reporting the fraudulent activity. Many times individuals will dispute the activity, but forget to request documentation from the financial institutions reporting the activity. If you don't ask for the proper documentation, then you won't receive it. Usually, the fraudulent activity is some sort of mistake that can be cleared up upon inspection of the credit application and identifying information, given to the financial institution by the credit applicant. In many cases, the financial institutions may have wrongly reported someone else's credit activity on your report, simply by erroneously giving the wrong address, wrong name, or wrong Social Security Number to the credit bureaus.
Keep in mind, that if the financial institution doesn't provide the proper documentation to prove the debt is actually yours within thirty days, then by Federal law, the credit bureaus have to remove the disputed charges from your report. This is defined in the Fair Credit Reporting Act. Don't be under the impression however, that after thirty days, the disputed charge will be removed. Although the credit bureaus are required by law, to remove the disputed charges from your report if the financial institution doesn't provide the appropriate documentation automatically, usually you have to write them again, after the thirty day period expires, to inform them of the failure by the creditor to provide the proper documentation. Persistence is the key.
It usually takes on average, about four to six months, to clear up fraudulent activity on one's credit report. Unfortunately, it is a very slow process. Also, be aware that the individuals who work at the credit bureaus, may not necessarily be legally savvy. It is always a good idea, to provide the credit bureaus with copies of the relevant legal statutes, under which you are making the dispute of charges.
Don't get discouraged if at first the disputed charges are not removed in a timely manner. Remember that persistence is the key. Sooner or later, the financial institution will usually give in, and remove the disputed charges. They are not in business to fight with consumers over disputed charges on their credit report. They are in business to make money from interest charged on the borrower's debt.
Sometimes, the credit bureaus and the financial institution will refuse to remove the disputed charges. If this happens, then you have the right to place a comment along with disputed charges. You can say something like "Credit company refuses to remove fraudulent charges", or "Credit card was issued to someone else fraudulently, and charges are not mine." You may also want to consult an attorney, because you may have the right to sue the financial institution and the credit bureaus, to force them to remove the fraudulent activity on your report.
Always remember, that just because a fraudulent charge is shown on your credit report today, doesn't mean that it has to be there tomorrow.
------------------------
Bryan Pringle, Ph.D., has written many articles on the credit industry, and is the webmaster of websites offering news and information regarding credit cards. For more information, please visit: http://www.apply-forcreditcards-online.com
Always remember to dispute the fraudulent activity on your credit report as soon as you find out about it. Waiting too long, can erode your rights to dispute the fraudulent activity on your report. Make sure to write to all three credit bureaus, when disputing fraudulent activities. Only disputing fraudulent activity with one credit bureau, will not erase the activity reported on the other two bureaus.
Make sure to ask for proper documentation from the financial institutions that are reporting the fraudulent activity. Many times individuals will dispute the activity, but forget to request documentation from the financial institutions reporting the activity. If you don't ask for the proper documentation, then you won't receive it. Usually, the fraudulent activity is some sort of mistake that can be cleared up upon inspection of the credit application and identifying information, given to the financial institution by the credit applicant. In many cases, the financial institutions may have wrongly reported someone else's credit activity on your report, simply by erroneously giving the wrong address, wrong name, or wrong Social Security Number to the credit bureaus.
Keep in mind, that if the financial institution doesn't provide the proper documentation to prove the debt is actually yours within thirty days, then by Federal law, the credit bureaus have to remove the disputed charges from your report. This is defined in the Fair Credit Reporting Act. Don't be under the impression however, that after thirty days, the disputed charge will be removed. Although the credit bureaus are required by law, to remove the disputed charges from your report if the financial institution doesn't provide the appropriate documentation automatically, usually you have to write them again, after the thirty day period expires, to inform them of the failure by the creditor to provide the proper documentation. Persistence is the key.
It usually takes on average, about four to six months, to clear up fraudulent activity on one's credit report. Unfortunately, it is a very slow process. Also, be aware that the individuals who work at the credit bureaus, may not necessarily be legally savvy. It is always a good idea, to provide the credit bureaus with copies of the relevant legal statutes, under which you are making the dispute of charges.
Don't get discouraged if at first the disputed charges are not removed in a timely manner. Remember that persistence is the key. Sooner or later, the financial institution will usually give in, and remove the disputed charges. They are not in business to fight with consumers over disputed charges on their credit report. They are in business to make money from interest charged on the borrower's debt.
Sometimes, the credit bureaus and the financial institution will refuse to remove the disputed charges. If this happens, then you have the right to place a comment along with disputed charges. You can say something like "Credit company refuses to remove fraudulent charges", or "Credit card was issued to someone else fraudulently, and charges are not mine." You may also want to consult an attorney, because you may have the right to sue the financial institution and the credit bureaus, to force them to remove the fraudulent activity on your report.
Always remember, that just because a fraudulent charge is shown on your credit report today, doesn't mean that it has to be there tomorrow.
------------------------
Bryan Pringle, Ph.D., has written many articles on the credit industry, and is the webmaster of websites offering news and information regarding credit cards. For more information, please visit: http://www.apply-forcreditcards-online.com
Wednesday, November 14, 2007
Calling Your Way Out Of Debt
Debt is a four-letter word we all want to avoid. However, the cost of living alone is so demanding that debt follows us wherever we go. We have to pay bills, pay for clothing, food, gasoline, taxes, rent, mortgage, car payments, college, etc, that sometimes it is next to impossible not to find yourself humming this four-letter word.
The best way to solve debt is to sit down and find solutions. Solving problems is the first step you will need to take to find a way out of debt. Once you start to see you have options, you can find it easier to cope with your stress and debts. If you cannot find new ideas to help you find ways out of debt, visit your local library and look for debt solutions and guides that walk you through steps in getting out of debt.
Having many resources can help you to pull up new ideas that lead to solving problems. Rather than allowing problems weigh you down, take action now and find solutions that will reduce your stress and your debts.
If you have access to the Internet, search the engines to find relevant links that guide you into debt relief. Stay away from companies that offer to get you out of debt for a high monthly fee. The concept of getting out of debt is to relieve self of extra burden, such as a new bill. For the most part, you can call your creditors and make payment arrangements. The creditors are often glad to hear from you. Rather than have the hounds from hell hunt you down, the creditors would rather keep you as a friend, since they want you to pay your debt and incur future debt with their company.
You have recourses when it comes to finding ways out of debt. Debt elimination is not an option, since when you get rid of one debt another will follow. You get the point. The solution is getting out of the past debts you owe, set a budget and avoid spending more than you can afford. Pay off one debt at a time, until gradually you find relief.
To avoid incurring additional debt, stay away from credit cards. Only use your credit cards to pay bills, and payoff your credit card as soon as possible to avoid high interest rates. Stay away from payday loans also, unless you see that you can avoid late fees and can payoff the loan right away. Keep in mind however, that payday lenders often attach a steep fee.
The above tips are just some of the many ways to keep out of debt and manage the debt that you already have. If you can manage your debt effectively you can save a massive amount of money over the years in interest.
Martin Lukac represents RateEmpire.com mortgage rates marketplace which connects consumers with multiple mortgage companies that compete for their business. RateEmpire.com is a destination site of refinance rates and home equity rates.
Article Source: http://www.information-overload.eu/articleland
The best way to solve debt is to sit down and find solutions. Solving problems is the first step you will need to take to find a way out of debt. Once you start to see you have options, you can find it easier to cope with your stress and debts. If you cannot find new ideas to help you find ways out of debt, visit your local library and look for debt solutions and guides that walk you through steps in getting out of debt.
Having many resources can help you to pull up new ideas that lead to solving problems. Rather than allowing problems weigh you down, take action now and find solutions that will reduce your stress and your debts.
If you have access to the Internet, search the engines to find relevant links that guide you into debt relief. Stay away from companies that offer to get you out of debt for a high monthly fee. The concept of getting out of debt is to relieve self of extra burden, such as a new bill. For the most part, you can call your creditors and make payment arrangements. The creditors are often glad to hear from you. Rather than have the hounds from hell hunt you down, the creditors would rather keep you as a friend, since they want you to pay your debt and incur future debt with their company.
You have recourses when it comes to finding ways out of debt. Debt elimination is not an option, since when you get rid of one debt another will follow. You get the point. The solution is getting out of the past debts you owe, set a budget and avoid spending more than you can afford. Pay off one debt at a time, until gradually you find relief.
To avoid incurring additional debt, stay away from credit cards. Only use your credit cards to pay bills, and payoff your credit card as soon as possible to avoid high interest rates. Stay away from payday loans also, unless you see that you can avoid late fees and can payoff the loan right away. Keep in mind however, that payday lenders often attach a steep fee.
The above tips are just some of the many ways to keep out of debt and manage the debt that you already have. If you can manage your debt effectively you can save a massive amount of money over the years in interest.
Martin Lukac represents RateEmpire.com mortgage rates marketplace which connects consumers with multiple mortgage companies that compete for their business. RateEmpire.com is a destination site of refinance rates and home equity rates.
Article Source: http://www.information-overload.eu/articleland
Credit Score and How It"s Built
Credit Scores are so important because they are used for everything today. They determine the interest rate on loans; auto, personal and mortgages. They determine the premium you will pay for auto insurance etc.
How do you build an excellent credit score? There are three important factors that build you score.
1. History - your payment history is an important part of building your credit score. The credit bureaus monitor the amount of delinquencies (past due accounts) you have. It is very important to make your payments even if it is the minimum on time. Judgments and collection accounts will have a larger impact on your score; the drop in points will be substantial. Medical collections are seen on credit reports all the time usually for small dollar amounts. FYI: If the collection agency is not updating the file it is recommended to leave it alone. From what I have learned if it hasn't updated in six months it is no longer impacting your score. If you now pay that debt it will re-active the history and effect you score. I'm not saying don't pay the debt because it looks better in the long run that it is paid when applying for a mortgage it will need to be paid. I'm saying if it is small amount to pay it in full because if you are making payments the negative history will start reporting again.
2. Length of Credit - this makes up a good portion of your credit score. If you have no credit score and are just starting out it takes at least six months of good payment history to establish a credit score. When starting out do not go out applying everywhere in town since the inquiries also affect your score and you do not want to have excessive inquires on your report. Try not to take out a lot of new credit all at one time since this will affect the history and make it look like you have all new credit.
3. Capacity - this is about 35% of your credit score and often the most misunderstood. Capacity is were they look at your revolving credit limits (credit cards, overdraft, HELOC etc) and compare the balances that are carried. For example if you have 10 credit cards with $10,000 line each and you carry a balance of about $500 a month you will have about 90% capacity available giving you a higher score. If you have one card with a $1000 limit and you carry a balance of $900 every month you will have about 10% capacity giving you a lower score. This is very important: DO NOT CLOSE CREDIT LINES! If you are disciplined and do not use the credit limits given to you do not close them. Closing them can decrease your capacity therefore decreasing your score.
This is a simple explanation on how a credit score is built. Please pay close attention so you too can have an excellent score and get the low interest rates you deserve.
By Lisa Burkhardt is Editor of http://12546bc.NewCreditApplications.com. and http://www.work-home-today.com; great resources.
Article Source: http://www.articlerich.com
How do you build an excellent credit score? There are three important factors that build you score.
1. History - your payment history is an important part of building your credit score. The credit bureaus monitor the amount of delinquencies (past due accounts) you have. It is very important to make your payments even if it is the minimum on time. Judgments and collection accounts will have a larger impact on your score; the drop in points will be substantial. Medical collections are seen on credit reports all the time usually for small dollar amounts. FYI: If the collection agency is not updating the file it is recommended to leave it alone. From what I have learned if it hasn't updated in six months it is no longer impacting your score. If you now pay that debt it will re-active the history and effect you score. I'm not saying don't pay the debt because it looks better in the long run that it is paid when applying for a mortgage it will need to be paid. I'm saying if it is small amount to pay it in full because if you are making payments the negative history will start reporting again.
2. Length of Credit - this makes up a good portion of your credit score. If you have no credit score and are just starting out it takes at least six months of good payment history to establish a credit score. When starting out do not go out applying everywhere in town since the inquiries also affect your score and you do not want to have excessive inquires on your report. Try not to take out a lot of new credit all at one time since this will affect the history and make it look like you have all new credit.
3. Capacity - this is about 35% of your credit score and often the most misunderstood. Capacity is were they look at your revolving credit limits (credit cards, overdraft, HELOC etc) and compare the balances that are carried. For example if you have 10 credit cards with $10,000 line each and you carry a balance of about $500 a month you will have about 90% capacity available giving you a higher score. If you have one card with a $1000 limit and you carry a balance of $900 every month you will have about 10% capacity giving you a lower score. This is very important: DO NOT CLOSE CREDIT LINES! If you are disciplined and do not use the credit limits given to you do not close them. Closing them can decrease your capacity therefore decreasing your score.
This is a simple explanation on how a credit score is built. Please pay close attention so you too can have an excellent score and get the low interest rates you deserve.
By Lisa Burkhardt is Editor of http://12546bc.NewCreditApplications.com. and http://www.work-home-today.com; great resources.
Article Source: http://www.articlerich.com
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