Author Archives: approvedcsi

More and more of us are taking getting credit cards these days, and many of us find it very difficult to even make the regular minimum payment, much less pay off the entire balance every month. Some people think about taking out a debt consolidation loan to pay off all their cards and only have one lower monthly payment. However, there are some other options that you should consider.

One of the options to consider is to take the balance of all your cards and transfer them onto one card. The best thing to do would be to see which of your credit card accounts offers the lowest interest rate and transfer all the balances onto this account, thereby lowering your overall interest rate. However, if you are thinking about going this route you should also consider closing all but one of your credit card accounts. It is very easy to charge up your credit cards again right up to the maximum balance, which is the exact opposite thing that you should be doing!

Another option is to open another credit card account with an introductory 0% interest rate on all balance transfers and transfer all your balances onto that one. This way for a period of time you will not be paying any interest at all, and if you are disciplined you can make extra payments and it will all go towards paying off the balance and none to interest. However, when this introductory period is over it is important to know what the interest rate will be and to take action again if it is fairly high. You will want to keep your credit card account with the lowest interest rate open so that you can transfer the remaining balance onto that card, thereby paying as little interest as possible.

Probably the last option that you should consider would be to borrow the money to pay off your credit cards from a family member or a friend. In order for this to work, you would need to draw up a formal contract with the repayment plan and interest rate clearly stated. However, this is really the last option that you should exercise because there is a lot of room in this type of situation for bad feelings to occur and for relationships to become strained.

Whichever option you decide to go with, the important thing is that you do something about your credit card debt now. Don’t wait until you are really in over your head before taking action.

A fast and sure way to take care of emergency cash needs is to avail of a payday loan. A payday loan may also be referred to as a post-dated check loan, or deferred deposit check loan. In the United States, the Federal Trade Commission calls it costly cash.

In fact, it is a short term cash advance to tide over expenses cropping up all of a sudden, like a big repair bill for the car, a medical bill, emergent travel expenses, meeting day to day expenses, or any other expenditure that may require to be met at short notice. It is not intended to cover financial problems that may be of a long-term nature, which may be resolved by consumer credit counseling.

The services of a payday loan company are usually sought when there is a sudden urgent need for cash, which may not be available from any other source. There are about 10,000 payday loan outlets operating in the United States.

The Internet is a good source for finding an outlet or store near a borrower’s place. Care is taken by these companies to locate their outlets at accessible locations and to keep their working hours flexible and different from banking hours. Telephone calls to the payday loan store, a visit to their outlet, or an online application are some of the ways to apply for a payday loan.

Usually, a payday loan is limited to a small amount; anywhere from $50 to $500. On approval, the loan amount is deposited directly into the bank account of the borrower within 24 hours of the submission of the loan application. The borrower can rest assured that confidentiality with respect to the transaction is maintained.

The lending terms for these loans are structured to be hassle-free. Credit rating has no bearing on the approval of the loan application and in many cases, no credit check is done. So, a borrower with bad credit may also qualify for the loan. The borrower just needs to be at least eighteen years in age and should have a full-time job with an income of above a thousand dollars per month. He or she should be a US citizen with a checking account. Post-dated checks are generally given to the lender against the loan.

An advantage of a payday loan is that they are renewable and extendable. The loan is repayable on the next payday of the borrower. There are multiple options for paying back the loan. The lender is allowed to cash the checks given as security or repay the loan amount personally at the office of the lender. However, if either of the options is unfeasible, the borrower can approach the lender for an extension of the payback date. Usually, however, such an extension is permitted only twice.

The interest rates for these loans are exceptionally high. To give an example: if a loan for $100 is taken for 14 days, which is the next date for one’s paycheck, then the amount to be paid back would be $115. The annual percentage rate of which, on a calculation, turns out to be a whopping 391 percent. In case of an extension of the payback date, the rates would go higher.

So, the desirability of a payday loan would depend on the urgency of the borrower’s need and his capability to bear the interest burden. While payday loans are a fast and sure way to solving unforeseen urgent credit needs, on the other hand, they carry an exceptionally high-interest burden.

Credit cards can indeed be a great help for so many people. It works just the same as cash, only that it is much more convenient in many instances. Credit cards generally give you the chance to purchase items today without having to pay for them outright. What happens is that the amount that you purchase gets accumulated as a form of debt and you are required to pay for it in the succeeding months. This means that you may not necessarily worry today and plan your finances at a later time. However, because of this advantage of the credit card, people tend to forget how to budget their finances well. At times, it can come to a point that they overspend, way beyond their financial capacity. In turn, a lot of debt is then accumulated which in the end becomes too much for them to handle.

Control Your Expenses

Paying off your credit card debt is extremely important because it will determine your creditworthiness. It is true that having a credit card can bring you so many benefits and advantages. However, such benefits also comes a huge responsibility of making your credit card a reliable source rather than a burden on the shoulder. The first thing you have to implement is much better handling and budgeting of money. If in earlier instances, you had the habit of overspending or splurging too much on unnecessary items, then perhaps it is time to change such habits. Having a credit card is much like having a constant temptation of spending money. Thus, you have to control yourself in spending too much so that in the future you will only pay for things that truly matter to you.

Manage Your Finances

Remember to always track your finances – your bills, payments, and item purchases. Make sure that whatever you are spending does not exceed your regular income. If it does, then it is definitely time to cut back from some of your miscellaneous expenses. In addition, make sure that you regularly provide a percentage of your monthly income to serve as payment for your credit card debt. This way, you will assure your bank that you can afford to pay off your debt at regular times. This may further lead to you having a good credit history and thus in the future, you can still avail for another card or even perhaps a much larger loan for yourself.

Consult With A Professional

When the time comes that you do not know exactly what to do, then maybe the best thing to do is to visit a debt consultant. This way, he can help you in figuring out what action you need to take in order to get rid of your credit card debt. Although he may require you to pay a consultation fee, the guidance that you will receive will definitely be of great help to you.

Really, having a credit card debt that is quite big is a huge burden and if you think you are already powerless to think of ways to get rid of it, it will not demean you to ask for professional help.

Paying On Time Matters

Lastly, paying off your debt regularly is also definitely important. It is much better than letting your debt accumulate for a certain period of time. When such a thing will happen, it will be a lot more difficult for you to pay off. Naturally, sooner or later you will have to deal with your credit card debt and therefore it is much better to deal with it today rather than postpone it for tomorrow.

Paying the debt is also no guarantee that the nightmare will stop. The collector may decide that if you’re willing to pay at all, you could be made to pay more. Settling a debt for a smaller amount than the collectors says you owe could result in another agency trying to collect the unpaid portion. Or the collector might inform the Internal Revenue Service (IRS) that you’ve received “income” in the form of forgiven debt.

Even if you manage to wrangle written promises from the collector that none of the above will happen, you would have to be willing to go to court if the agency reneged — and possibly face an unsympathetic judge or one who doesn’t know much about collections law.

If you’re being contacted about an old debt, here’s what consumer attorneys advise:

Know the statute of limitations. If you racked up debt in another state, you might want to check the statute of limitations there as well. But generally, it’s the statute of your current state that applies. If the statute has expired, the collection agencies’ legal remedies are limited.

Know your rights. Credit and debt collections can be an extremely complicated area of the law.

Consider ignoring the call. If the statute of limitations has expired put the phone down and walk away. There’s little to gain and a lot to lose if you keep talking. You could inadvertently extend the statute of limitations or find yourself roped into a repayment agreement that might not be in your best interest. “The debt collector is a lot smarter than (consumers) are”, and “They don’t have any obligation to tell you your rights.”

Write to them.

If ignoring them isn’t working, consider writing a letter demanding the agency stop contacting you. Send it certified mail, return receipt requested. Federal law requires them to comply with your request. Make sure in the letter you specifically say that you aren’t acknowledging you owe the debt.

Keep an eye on your credit report.

If a collection agency tries to re-post an old debt or lie about the date it went delinquent, you’ll need to fight back vigorously. Dispute the entry with the credit bureaus and with the collection agency.

Obtaining poor credit loans after bankruptcy can assist individuals who need a fresh start with their credit. The most unsuitable thing that one can have against their credit rating is a bankruptcy. This is because bankruptcy is evidence of an individual’s incapability of paying off debts. Fortunately, there are many lenders who are now willing to give second chances with poor credit loans after bankruptcy. Rates for these types of loans are somewhat higher than conventional loans, however, borrowing small loan amounts will make it easier to pay off and raise your credit score.

What Comes Next After Bankruptcy

Bankruptcy is a legal action, which allows a fresh start for individuals who were unable to pay back debts. In the beginning, it’s a great relief when bankruptcy is filed. It becomes innocuous to answer your telephone without fear of a creditor being on the opposite end, you receive less mail from collection agencies and finally, you can devote your income to all of your living expenses.

After bankruptcy, most people are told that it takes ten years to repair credit. This is no longer true. Naturally, you won’t instantly qualify for most traditional loans, but poor credit loans after bankruptcy are within reach.

Poor Credit Loans Easy to Obtain

The loan market is overflowing with lenders. In order to do more business, lenders do not decline borrowers very easily. Therefore, getting approval for poor credit loans is not as difficult as it used to be. Individuals who file bankruptcy will probably pay a higher interest rate for the first couple of loans. The reason for this being that poor credit is considered a high risk to lenders. This is a small price for borrowers to pay when attempting to rebuild their credit score after bankruptcy.

Secured or Unsecured Poor Credit Loans

A poor credit loan can be found in either secured or unsecured form. If an individual offers collateral for the loan it is called a poor credit secured loan. This loan provides some portentous benefits like bigger loan amounts, smaller monthly repayments, lower interest rates, and a loan period extended over a longer length of time. The risk involved is that whatever collateral is offered may be forfeited in the event of failure to pay off the loan.

Unsecured poor credit loans do not require collateral. This will take away any risk of property repossession. It may also guarantee quick lending if an individual has shown more responsibility at paying their bills on time, as there is no paperwork related to collateral. However, unsecured poor credit loans come with comparatively higher rates of interest, lower loan amounts, larger monthly repayments, and a shorter loan term.

Those people whose credit score is less than ideal take poor credit loans. These loans offer a second chance to those individuals wanting a fresh start. Whether secured or unsecured, these loans offer valued assistance during hardships.

Owning a credit card can truly be a lot of help from many people. At times they even prefer to use a credit card instead of cash in purchasing items on the market. However, before deciding to avail one for yourself, it is extremely important that you first understand the pros and cons of having a credit card. Before anything else, you should first think if you really need one at the moment. If you can still survive without the help of a credit card, then perhaps it is alright if you postpone your plans of having one. Owning a credit card is indeed a big responsibility since you will be accumulating a number of debts while you are using it. Therefore, if you think you are not yet ready for such, then maybe you should first stick with using cash and enhance your budgeting skills first.

Pros of a Credit Card

A credit card can truly be a great help especially for people who are transacting all sorts of businesses on a daily basis. It makes life easier for most people, not having to carry many bills all the time and not having to worry about money being lost. Also, it makes online transactions easier since you can readily use your credit card to purchase items on the Internet. In addition to making your life much easier, it also comes with all sorts of benefits and discounts especially if you always pay on time and observe the terms and conditions set out in your account.

Aside from these benefits, having a credit card gives you the chance to purchase now and pay later. This means that you can buy absolutely anything that is within your credit range and you do not have to pay for it outright. You accumulate a debt which you are going to pay in terms of regular payments in the succeeding months. This is definitely handy especially if you do not carry a lot of money but you are confident that you can afford to pay for it in the coming days.

Cons of a Credit Card

However, having a credit card also has a set of cons. Having a credit card is a big responsibility which means that you must know how to plan and budget your finances well, be cautious about over splurging. Since credit cards have the tendency to give you the freedom to splurge, more often than not, people really do. It is important to keep in mind that as you purchase more items, you also accumulate more debt. Make sure that whatever you are spending today, you can definitely pay for it in the future.

Overspending

It is indeed one of the biggest problems when it comes to credit cards – the tendency of people to overspend. And when such things happen and you are unable to pay for your debt in the coming months, what happens is that your credit history becomes less credible. This will be a downside for you if you are still planning of availing of another credit card or perhaps another type of loan in the future. Having a bad credit history will lessen your creditworthiness and thus the options that may be given to you may not exactly be the ones that you expected. Having a credit card is a huge decision since you are entailing yourself for future debts. That is why it is important that before you apply for a credit card, make sure you have already weighed all the benefits and consequences you may receive with it.

Having credit cards is a trend nowadays. Credit cards could truly be helpful in times of financial crisis and during emergency situations. They could also provide you with the accessibility and convenience of cashless payments. If used appropriately, credit cards could surely improve your financial condition.

However, there are also several cons to having credit cards. Sometimes, fees may get out of hand due to the high-interest rates that most banks charge. Add to the fact that sometimes, there are additional payments that you would have to pay that you are not initially aware of. A credit card could also contribute to your financial disaster if improperly used.

Applying for credit should not be an impulsive decision. Do not fill out an application form just because your company or your favorite store endorses it. It should be given careful thought and consideration to your payoff capability and needs. Banks have great marketing strategies that would definitely lure you. 0% APR or low-interest rates are good ways in attracting customers. However, it is common knowledge that there are clauses in fine print that make these offers not as good as they initially seem.

People who have rushed their credit card application without understanding all the fees associated with the card will possibly experience difficulties in repaying the debt. Some credit card companies are not as transparent as they should be. That is why you must take extra effort in getting all the facts.

Before applying for a credit card, evaluate your financial capacity first. Most banks offer better deals to borrowers who gave a great credit score so better make sure that your records are set straight. You could always get a free online credit report.

Next would be to do some researches. The internet is a huge library. A few minutes online would give you thousands of results regarding credit card applications. Be sure to understand all the terms and conditions associated with each credit card offer to avoid marketing traps and tricks. The most common tricks are great introductory offers but once the period is over, your interest rates would skyrocket.

You could also consider the rewards and other credit card features. These should be in accordance to your needs. When searching, try to shortlist those credit cards which you would likely benefit from.

The internet also offers fast application and approval of credit cards. You can just visit the website of the banks and they have downloadable forms that you could fill out to complete the application process. Within minutes, you’ll know if your credit card has been approved. This is what they refer to as instant credit cards. You will have instant access to your credit line which you may use online though you would have to wait a few days to get the card in the mail.

Once you have finally decided on what credit card to apply, again review its policies. Remember that as much as a credit card is a privilege, it is also a responsibility. The moment you have affixed your signature on the application form, you have agreed to be liable for all the purchases you will make using the card.

By having a credit card, life’s emergencies would not be a problem anymore. You wouldn’t have to have readily available cash. All you need would be your credit card and you should be able to pay for the car repair or overdue bills immediately. A credit card gives you a certain amount of financial security, but just be wary of you how you use the card. It could also lead to a lot of financial losses.

If you have a bad credit record, you know how hard it can be to secure new credit or seek new employment. While you may be willing to do whatever it takes to repair your credit rating, some companies not only offer illegal advice or methods but also misrepresent what they will be able to accomplish.

There are many other individuals and organizations the law does allow to provide you with credit repair assistance. Lenders, banks insured by the FDIC, and nonprofit organizations can give you credit repair advice. In some situations, a real estate broker, attorney, or registered financial advisor may also advise you.

Questionable Credit Repair Offers

You have seen plenty of ads full of promises like these:

“Credit problems? No problem!”

“We can erase your bad credit–100% guaranteed.”

“Create a new credit identity legally.”

“We can remove bankruptcies, liens, judgments, and bad loans from your credit file forever!”

Unfortunately, these companies cannot live up to their promises. Even after you pay hundreds or thousands of dollars in up-front fees, your credit will be no better. No one can remove correct information from your credit report, even if it negatively reflects on you.

If you decide to respond to a credit repair offer, beware of companies that:

– Want you to pay for services upfront;

– Do not tell you your legal rights or what you can do for yourself at no cost;

– Recommend that you not contact the credit bureaus directly;

– Suggest you get new credit by using someone else’s Social Security number or by applying for an Employer Identification Number; or

– Advise you to dispute all information on your credit report.

The Social Security Act prohibits misrepresentation of your Social Security number, and the Identity Theft and Assumption Deterrence Act makes it a federal crime to knowingly use another person’s identification with dishonest intent. Further, it is a federal crime to make false statements on a credit application or to obtain an Employer Identification Number from the Internal Revenue Services under false pretenses. You will be prosecuted by the federal government for these crimes.

Federal law also imposes certain limitations on credit repair companies. They may not:

– Make false claims about their services.

– Charge you until they have completed the promised services.

– Perform any services until you have signed a written contract and a three-day waiting period has passed, during which you can cancel your contract with no fees.

Other practices that may violate the Georgia Fair Business Practices Act include:

– Promising to remove negative but accurate information from your credit report.

– Offering to establish a new credit identity for you, an illegal practice known as “file segregation.”

– Encouraging you to stop making payments to your creditors.

– Telling you to ignore the IRS, collection letters, or other legal documents.

If a credit repair company is able to obtain a credit card for you, often this is a “secured” bank card that requires you to pay a high application fee and deposit several hundred dollars in a bank account or a card for a small and unfamiliar company or catalog. If you want a secure credit card, you can get it on your own.

Your Contract

When you sign a contract for credit repair services, you should know what to look for. The contract must specify:

– The payment terms, including total cost;

– A detailed description of the services to be performed;

– How long it will take to achieve the results;

– Any guarantees they offer; and

– The company’s name and business address.

Filing a Complaint

It is very important to report any credit repair companies that take advantage of you, so they can be stopped. Since most credit-protection laws are enforced at the federal level, you should contact the Federal Trade Commission (FTC) when you have a complaint about a company offering credit repair services. While the FTC does not handle individual cases, it can act when it sees a developing pattern of possible legal violations.

You may send your complaint to:

FTC Division of Credit Practices
6th Street, NW
Washington, DC 20580

Trying to repair credit rating scores is not something you can do overnight. Neither is it something that someone else can do for you. There are ways to help you repair credit ratings, but you really do have to want to improve your rating to an acceptable level.

If you have been denied credit, chances are it is because you have a poor credit rating. To find out for sure, you can request a free copy of your credit report to see what information the report contains. Once you see that you have a lot of outstanding bills with missed or late payments, then you will have to take the necessary steps to repair credit rating. Although this won’t happen overnight, there are ways to improve your credit rating.

One of the easiest ways to improve your credit rating is to start paying your bills on time. Many people have a poor credit rating simply because they are negligent in sending in the payments because they do not realize how important this is to their credit rating. Even if you have plenty of money coming in to pay your bills each month, you could still have a low credit score and have to start to repair credit rating.

If you are having difficulty making your payments, there are still ways that you can improve your credit rating. One of these is to contact your back and arrange for a debt consolidation loan. When you use this money to pay off your outstanding bills and make the payments on the new loan on time, it goes a long way towards the repair of your credit rating. Creditors look favourably upon this because it shows that you really do care about your credit and want to improve your credit rating.

Another of the ways to improve your credit rating is to contact the creditors to see if they will take a lower monthly payment. When you are able to manage a lower payment and have it in on time, then you are also taking steps to repair credit rating. Creditors will usually work with you to find a manageable amount because they do want to receive their money back. You can also start with the lowest amount and make higher monthly payments to repair credit rating. In this way you are rebuilding your credit and getting your bills paid off at the same time.

There are some simple steps to repair credit ratings, but it takes some effort.

Is it necessary to repair a credit score?

There are many who are unaware of this answer. Most of us are not even bothered to have a look at our credit report. We just maintain it for the sake of it. However such negligence can only result in bad credit rating. This makes it very much important to repair credit score at least once in six months.

Credit Score repair plays an important role to wipe off the errors and bad remarks that prevails in your credit score. Repairing not only helps to wipe off the negative remarks but it also helps to increase the credit score rating. If you have the credit score with bad remarks and errors then it is the best time to repair your credit score and improve your credit score.

Usually, credit score ranges from 300-750 but a good credit score is above 700. Many people have their credit score within 600-700, which is regarded as an average credit score. If you have a credit score that is below 600 it is necessary that you repair it instantly. With the prior repair of credit score, you can get more credit flexibility. You know that today’s business places more emphasis on credit simultaneously importance of credit score has also increased.

Credit Repair Service charges you a reasonable fee thereby rendering you valuable services. You can get the best results within 45-50 days. Repairing credit requires a great deal of patience and experience. Below are some useful tips that can prove helpful in repairing your credit score.

• Order Credit Report

Initially, you must order your credit report from different credit bureaus. Remember different credit bureaus have different ways of calculating a credit score.

• Ascertain the Report Carefully

You need to check your credit report properly. It’s quite possible that you find at least one error. The credit bureau calculates your credit score on the basis of the information they get from your creditors. It’s your duty to polish and update your credit score at least once in six months.

• Dispute and Document Strategy

If you find any mistake in your credit score assure that you ask the reason from the respective credit bureau. Keep an up-to-date copy of every document and notice. The Credit Bureau normally replies within 30 days after receiving your letter.

• Dissolve or Solve Debts

One of the best ways to repair your credit score is to dissolve or solve debts if it exists. This step can improve your credit score to a larger extent.

Other Steps

• Assure that you close your newly opened account.
• Close your account carefully and slowly.
• As far as possible avoid revolving balances.
• Maintain low balances.
• In circumstances where creditors ask to increase your credit limit you must always keep it at a moderate level.