Articles, Tips and Resources on Credit Repair
Lenders and credit card companies use your credit score to help determine how likely it is that you will pay back the money they lend you. Fair Isaac Corporation, the creator of FICO credit scores (the most commonly used credit scoring system) has a breakdown of the relationship between your credit score and your chances of being a “Good Player” vs. a “Bad Player” (see chart here).
So, your credit score reflects an estimate of how well you’ll be able to manage your credit in the future. Your past credit usage and mistakes factor into this score of ...
Many people ask me, “How many credit account should I have?” I could give you a “Well, it depends...” kind of answer, but you are reading this looking for real answers and advice, so I’m going to boldly give you an answer. I don’t know of any scientific study that suggests that my answer is the correct one.
All I can tell you is, I’ve dealt with literally thousands of credit reports over the years, some good and some (ahem) not so good. And based on that experience, seeing reports with excellent scores vs. the kind of reports ...
If you HAD to earn a bunch of money in a short amount of time, could you? Let’s say a friend, a family member, or maybe your pet had a life-threatening medical emergency and could only be saved if you were able to raise $2,000 in the next 30 days. Could you do it?
Most people, if faced with that kind of emergency, would find a way to do this. You’d go to any length necessary to make this happen, and you probably have some ideas about what you could do to raise the money. What that ...
Almost all credit card companies have adopted the policy of Universal Default. So what is Universal Default? This is the legal right for them to change the terms of your agreement if you become a riskier borrower.
What kinds of changes can they make? Well, they can immediately raise your interest rate up to a predetermined “default rate” that you’ll find somewhere in the fine print of your credit card agreement. It is quite common to find these rates ranging from 24% - 32% or more right now.
Oh, but you don’t need to worry about that – you’re responsible ...
Read the fine print of virtually EVERY credit card agreement these days, and you will find a hard to understand clause called “Universal Default”. Most everybody understands that failing to pay your credit card bill on time can result in a late charge being tacked on. This has been going on for years.
And many credit card users have learned the hard way that failing to make your payment on time can result in a significant and immediate increase in your interest rate up to the “default rate” that is also listed in the fine print of your agreement. ...
During World War II, when there was a nationwide program of gasoline rationing, there were signs posted along highways saying, “Is This Trip Necessary?” reminding people to not waste fuel. As we begin to get control over our finances, maybe a good sign to carry with us is one that says in bold letters, “Is This Purchase Necessary?”
In his book, The Automatic Millionaire, David Bach coined the phrase “The Latte Factor” to help us look at our spending habits with new eyes. You see, if you ...
Too many bills? Credit scores suffering? Credit payments taking every last dime each month? You try to pay a little extra on each account, but the balances don’t seem to ever go down? How can you possible get out from under this dark cloud of debt?
Well, don’t fret. Sunnier days are on their way, if you can figure out a good way to start getting rid of some of your accounts. And in this article, I’d like to give you a quick little formula to help you pay off your debts faster and more ...
FUD’s can keep you from success in real estate. FUD’s stands for: Fears, Uncertainties, and Doubts. FUD’s prevent many, many potential real estate investors from ever getting started. You simply cannot invest in real estate until you’re able to counteract your Fears, Uncertainties, and Doubts. Notice I didn’t say “overcome” your FUD’s – I said “counteract”, which is different.
You see, FUD’s will help you be cautious and make wise decisions. If you didn’t have any FUD’s, you would just head out and buy the first property you see, but this is NOT a healthy ...
Before you can start working on raising your credit score, you need to get a copy of your credit report to see what you’re dealing with. You’ve no doubt heard of the website FreeCreditReport.com, and this is one place you can get your report if you’re willing to sign up for a $14.95 a month credit monitoring service (you do have 7 days to cancel before you have to pay anything – just be aware that they make a lot of money from these “free” reports).
Another source is the site www.AnnualCreditReport.com. Congress passed a law requiring ...
Don’t you just love going to your mailbox and finding all those new pre-approved credit card offers waiting for you? Filled with your personal financial information and easily accessible to thieves, it’s no wonder identity theft is so widespread. And having to take all that time shredding those offers before throwing them in the recycle bin. (You ARE shredding them, aren’t you? Thieves know that stealing your mail is a Federal crime, but stealing your garbage isn’t even considered a crime at all in most places.)
You Can Protect Yourself From Identity Thieves
Did you know ...
With each new article, I hope I’m bringing you some new ideas and new ways of thinking. And hopefully you’ve begun to use some of the strategies that I’ve been sharing with you to improve your credit situation and get control of your finances.
In future articles, we’ll be talking about earning more income, spending more wisely, building an investment portfolio, and buying a home, and how to best settle debts. That seems like a lot of conflicting ideas. I mean, how do you pay down your debts while at the same time you build your ...
Many of you are trying to improve your credit scores before you can, say, buy your home. But there is a lot of confusion and misinformation out there on just how to do that. By not understanding what credit scores are based on, you can hurt your scores by doing the wrong things.
For example, how many of you have been told that you should close your old inactive credit accounts to improve your score? The logic of this advice is that future lenders will get scared off if they see you have access to too much ...
In order to score maximum points towards your credit score, you should always keep your credit card balances below 30% of the credit limit. And one thing many credit users don’t stop to consider is: you don’t know which day of the month your credit card company reports to the credit bureaus.
So you may be paying off your bill in full each month when the statement comes, but if you are charging up the balance during the month to above that 30% mark, and your credit card company chooses that time when your balance is high to report to ...
As you are searching for your home or taking care of your financial situation, let’s discuss what type of mortgage you should get once you’re ready.
Rule #1: If you can’t afford a standard 30 year mortgage, you shouldn’t buy the home.
Let me put that more snottily: If you want to live in a $300,000 house, you should be able to afford a standard $300,000 house payment.
Many of my readers have had financial struggles or are just trying to get ready to buy their first home and want to make sure they do it right. Trust me ...
Something for you to be aware of as you continue your home shopping. For a long time, the 3 main credit bureaus (Equifax, TransUnion, and Experian) have been selling your information to marketers. Those pre-approved credit card offers you get in the mail are the result of data purchased from these agencies. This is not a secret to anyone – been going on for years.
Recently, these 3 agencies have rolled out a new product that they are selling within the mortgage industry – something known as “trigger leads”. For a starting price of around $25,000 per ...
As Ira Hill Case looked out his soot-stained window, the view as far as he could see was ruin, darkness, destruction, and ashes – and he certainly must have wondered why he had been called here. Ira had a place to do his work – a single desk on the second floor of a downtown office building which he shared with a dozen other businessmen representing a dozen other businesses. But Ira was a one-man show – the only employee of a hastily-formed, loosely organized association – with little idea what he was supposed to do or how ...
During the current doom-n-gloom economic situation, where the entire economy is going to fall and everyone in America will soon be thrown out of their homes because of the collapse of our banking system, one statistic used to support this gloomy outlook is the abysmal state of the US Savings Rate. “Americans don’t save.” “Americans outspend their incomes.” “Americans have no self discipline.” And on and on the American-bashing goes.
One article puts the current US Savings Rate at 0% to minus 1% and many other articles (easy to find by searching for "US Savings ...
Debt for many Americans is out of control and with all the turmoil in the mortgage markets, does it still make sense to consolidate debt using a second mortgage? The answer is: “Yes” for some people, “No” for some people, and “Maybe” for other people. So, which “people” are you? Let’s look…
But before determining whether this is a good financial strategy for you, be aware that you may not qualify for a second mortgage right now. One of the big casualties of the current liquidity crunch is second mortgage programs. Wall Street ain’t ...
Most Americans today suffer from less than stellar credit. The very first step in improving your credit involves ordering free personal credit reports from the three major credit bureaus, Experian, Equifax and TransUnion. However, once the credit reports arrive to you, it is filled with abbreviations, numbers, terminology, and difficult formatting. In order to begin repairing your credit, it is important that you learn how to read a credit report.
The credit reports that you obtain from the credit bureaus are consumer files, and thus, they are consumer friendly. Of all of the reports, the Experian report is easier to ...
Your first step to financial well being is to take control of your consumer debt. There are many credit counseling and debt management options - however, there are some that may be detrimental to your financial health. It is important to research and ask questions, even if a credit counseling service purports that it is non-profit. Once you have done your research and found the consumer credit counseling agency that you are comfortable with, you should be on your way to achieving your financial goals. This article will help you choose a legitimate one.
Together with your ...
If you have less than stellar credit, one option is to try and repair your credit report yourself. Having a good credit score is important for almost any major activity in life, including obtaining a mortgage, car loan, and even car insurance. In addition, more and more employers are beginning to review a candidate’s credit score and credit history as a factor in making their hiring determination.
If you have poor credit, not only are your lending options minimized, but your ability to obtain a job or sign a good lease are also jeopardized. If you feel you ...
Strike while the iron is hot! That is exactly what scammers and fraudsters are doing with credit repair. Because of the current financial crisis, more and more people are getting into uncontrollable debt and, as a consequence, many of these people are seeking help.
There is help available, but telling the difference between legitimate organizations who offer assistance and duplicitous fraudsters who are out to take advantage of the current credit crunch is nearly impossible, unless you know what to look for.
Recognizing the Problem
If you are realizing there’s a problem and you’re slowly, or even hastily, taking steps backward, ...
If you have never received mail pre-approving you for a new credit card, you are in the minority. Most consumers have at least one credit card, and the statistics show that credit card debt is sharply on the rise. If you are deep in debt and are struggling to pay off your bills, you must come up with a financial plan and understand the fundamentals behind how the debt accrues.
Understanding how credit card debt impacts your financial health
Credit cards are great for quick and easy purchases without having to carry hordes of cash in your wallet. ...
Thinking that debt consolidation is a way out of your financial woes? When weighing the pros and cons, you must maintain your focus on your goal of becoming debt-free. Too many times, consumers incorrectly believe that their lower monthly payment on the bad debt means that they are paying less. In reality, many people who obtain a debt consolidation loan pay more money in the long run, due to the long shelf life of the loan. Basically, you are trading future cash in your pocket for smaller monthly payments today.
Pros of consolidating your loans
Eliminates penalties and interest ...
Research demonstrates that three quarters of all credit reports contain inaccurate information, which can negatively impact your credit score. An effective way to repair your credit is by writing credit repair letters disputing incorrect information. By law, the credit agencies and creditors must provide the evidence to prove that the information on your credit report is correct; therefore, the burden of proof is on their shoulders, and this is great news for your credit score.
HOWEVER ... disputing items the wrong way will range from being ineffective all the way to get creditors to sue you for a ...
While credit repair can be easily done yourself by disputing erroneous entries on your credit report, it still can be a confusing and time consuming task. Most of the time, credit repair can be done effectively yourself. However, there are definitive benefits associated with a reputable credit repair service, who ensures that your credit is fixed correctly and comprehensively.
If you are thinking of paying a credit repair agency to improve your credit history and score, it is important that you choose a reputable company. While most legitimate credit repair services do charge fees, normally ...
Did you know your spending habits are being monitored? This may be common news to you, however, do you know exactly what information is being compiled about your finances? Your credit report is a compilation of all your debts, spending habits, savings, payments and all other financial transactions you have made in the last seven to ten years. Unless you take some action to obtain these necessary credit reports, you have no idea if they are accurate or not. The more "bad" or negative credit on your report, the higher the interest you will have to pay the next time ...
Debt silently creeps up on many individuals. It's not the debt that traps people in the quicksand of messy finances, but the heavy interest to pay for that debt. If you know your credit line is about to be yanked, and the bills are piling so high that
you can no longer see the kitchen table, stop for a moment and take a breather. Weigh your options to see what you can do to grab that rope and pull yourself out. A reputable credit counseling service in your community or online is one such way to pull yourself free of ...
