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Five Tips For Building A Good Credit Score

Five Tips For Building A Good Credit Score

Improving yourself is always a good thing. If you thrive hard to become a better public speaker, you can might yourself a promotion. Exercising and going to the gym can help you lose weight and have the figure you have always wanted. But the best thing of all is improving and building your credit score. This can help you save hundreds and thousands of dollars on your biggest purchases.

For some, it may be hard to keep up a good credit score but actually, improving credit is not that hard to achieve. You just need to be patient and learn a little bit about the credit scoring system and how it works.

A person who is patient and willing to improve their credit profile can do it easily. There are five things that they can follow in order to boost their credit scores.

1. Check your own credit report from time to time. It is necessary to regularly check your credit and take the steps to remove any inaccuracies in your credit report. Sometimes bad credit is caused by simple inaccuracies in the report. If you see something, contact your creditor immediately, and work to correct the error as soon as you can. Leaving an inaccuracy on your report counts against you.

2. Be on time with payments. Literally, it means that you have to pay all your bills on time. If you are always late with your payments, it will affect your credit report and score. Also, collections and bankruptcies have the most negative effect on your credit report. All reports including the late payments are noted and written in your credit report.

3. Learn how to manage your debt. You must maintain the balance of your credit report to 35% of your available credit limit. Make sure that you always watch your accounts and estimate if you can still handle the using more credit.

4. Avoid unnecessary inquiries. Every time you make an inquiry, it is written in your credit report. Even if you have no plan to open a credit account, your inquiry records will show how often someone has looked at your report and will cast doubt on your ability to pay. So as much as possible, do not make an inquiry into your credit report unless it is important.

5. Give yourself time. Time is considered one of the most significant aspects that can help improve your credit score. Time management is important to get yourself on the right track and show that you can handle your credit responsibly. You can also keep even the oldest account open in order to help make your credit use look longer.

Credit Score/FICO Report – 5 Steps To Improvement

Credit Score/FICO Report – 5 Steps To Improvement

Your credit score or FICO report can determine your eligibility for loans, what interest rate you pay for loans, and even whether you get a job to which you are applying. With every incentive to improve your score and nothing to lose, it should be a priority step in getting your financial life on track.

Here are 5 steps to improve your credit score.

Tip #1: Pull your FICO report for free:

The first step in fixing your credit is to get a handle on your current score. The Federal Trade Commission has an agreement with the Big Three credit reporting agencies to provide every U.S. citizen with a free credit report every 12 months. To get your free copy, go to the official Annual Credit Report Request Service website, and follow instructions for requesting your report.

Tip #2: Pay your bills on time:

A full 35% of your FICO score is determined by how timely you pay your bills. If you have missed any payments in the past few years, it will likely help your score significantly to go back and fix your past-due status with the creditors involved. By paying your overdue bill, your creditors will remove these glitches from your report from each reporting agency. Hint: go back and pull your report again later to make sure that all three of the agencies have actually removed the problem from your records as promised. Need help in finding blemishes on your credit report? Get a custom plan to help rebuild your credit.

Tip #3: Get the balance (of credit types) right:

10% of your FICO report reflects the specific diversity of types of debt you have and the credit lines you have available to you. Make sure you have the right balance of auto or home loan, department store cards, charge cards, and credit cards. This healthy mix shows potential creditors that you know how to handle different types of debt.

Tip #4: Reduce your debt:

Your debt-to-credit ratio is the ratio of the amount you owe versus the amount of credit extended to you. It determines a full 30% of your credit score. There are three ways to reduce your debt: 1. Make more money; 2. Put more of your current income toward paying off your debt; 3. Reduce the cost of your debt. One great way to reduce the cost of your debt is to transfer your current credit card balances to credit cards with lower interest rates. Doing this can save you $100s per month in debt payments if you have large credit card balances.

Tip #5: Open more lines of credit:

You can also improve your debt-to-credit ratio by actually increasing the amount of credit extended to you. The key here is to do so while avoiding actually using these new credit cards. To avoid using the cards extensively, make a purchase or two with them each month and then hide them so they are not readily accessible. Also: if you do open more lines of credit, do so over a period of a few months since having too much new credit can actually hurt your score.

There are many straightforward ways to improve your credit score. So, pull your free FICO report, assess your situation, and start taking steps toward a healthier financial life.

Credit Repair Myths Exposed

Credit Repair Myths Exposed

If you’ve done any searching on the Internet for information pertaining to “Credit Repair,” you’ve no doubt found that there’s a great deal available. Unfortunately, there’s also a lot of credit repair myths scattered everywhere online.

Let’s take a look at some of the most common credit repair myths you’ll come across and examine them in detail.

MYTH #1: “Credit repair doesn’t work!”

While it’s true that credit repair is more “art” than “science” that’s not to say it doesn’t work. If you undertake to repair your bad credit score, there’s never any guarantee you can restore it to “perfect” status. But sometimes you can, and in almost every case you can at least affect some improvement in your credit score, and often major improvement at that!

First of all, credit reports for the most part are filled with errors. While there seems to be no general agreement, it’s estimated that anywhere from 1/3 (Attorney General of NY) to as many as 90% (Charles Givens Organization) of credit reports contain errors.

Removal of erroneous negative information alone will go a great way toward improving your credit score. But there’s more to the story, which brings us to myth #2.

MYTH #2: “Negative information that can be verified cannot be removed”

This is one of those statements that are “almost” true but taken literally is misleading. As is often the case, the inclusion (or exclusion) of one seemingly small word makes the difference in a truthful statement and one that’s not (or not necessarily) accurate.

Let’s take an analogy. Suppose it’s the middle of summer, and your grass has grown unusually high. Let’s also suppose that you own a lawnmower, it’s in good working condition, and has plenty of gasoline in the tank.

Now let’s say that you’re sitting on your couch and say to yourself “My grass will get cut today because I ‘CAN’ go outdoors anytime and cut it.”

So will your grass get cut? Not necessarily! Just because you “can” go outdoors and cut your grass doesn’t mean it’s going to get done. You can repeat this statement to yourself all day long, but your grass isn’t going to get cut until you actually go outside and DO it!

Likewise, because a negative item on your credit report “can” be verified doesn’t mean it will be. According to the Fair Credit Reporting Act, a credit bureau must investigate and verify “within a reasonable period of time” any item in your credit report that you dispute. If the “information is found to be inaccurate or can no longer be verified, the consumer reporting agency shall promptly delete such information.”

Now in this context “can be verified” clearly means verified by the credit bureau’s investigation of the item, and the “reasonable period of time” has been established (by subsequent rulings) to be 30 days. So if the credit bureau doesn’t complete its investigation of the disputed information within 30 days, or if for some reason the creditor fails to respond and verify the information, by law the disputed data must be deleted from your credit file.

The Facts About Credit Repair and History

The Facts About Credit Repair and History

Although credit cards may be what land the most people in credit trouble, they’re also the best tool for credit repair. With all the tips you’ll find online, you are maybe wondering which facts about credit repair that would really help you in building good credit and get out of financial trouble. Worry no more because all the real facts are revealed here!

The Credit Repair Equation

If you find yourself faced with mounting debts and worsening credit, the most important things you can do are always paying your minimum credit card bills, and not exceeding your card’s credit limit. If you allow your card to be canceled or “charged off,” you will have a very hard time getting credit in the future, which will make it even more difficult to restore your credit rating.

Or, if it’s too late and you’ve already had your cards canceled or charged off, you should apply for a card from a company that specializes in servicing clients with not-so-good credit. Even if the card’s interest rate is exorbitant and there’s a costly annual fee, it’s worth it to have an open, active credit account. Otherwise, how are you ever going to rebuild your credit?

Rebuilding + Revamping = Repairing

But rebuilding your credit through the timely payment of your new bills is only half of the credit repair equation. There’s also the matter of the items that are already listed on your credit reports. If you can get an item deleted from one of your credit reports, then to that credit bureau and all who use it, it’s as if it never happened – the instance of not-so-good credit will have been expunged from your record. Surprisingly, it’s easier to have this done than you might think.

Obtain and Review Your Credit Reports

First, you need to obtain your credit reports from the three major credit agencies – Equifax, Experian, and TransUnion. This can be accomplished by visiting their web sites (equifax.com, experian.com, and transunion.com), and paying the necessary fee. If you’ve been denied credit, insurance, or employment in the past 60 days, you are entitled to free credit reports. Send documentation of your denial along with your credit report requests.

Once you have your reports in hand, scan for inaccurate information – negative, of course. If some untrue positive information somehow made its way on to one or more of your reports, you are under no legal obligation to identify it as being false. It’s probably best to turn a blind eye. But as for the negative information, photocopy your reports and use a highlighter to indicate what you would like to be changed. Send a letter explaining how the information is false and include any corroborating documents that support your claims.

Once you’ve dealt with the inaccurate information, it’s time to move on to the things you only wish were inaccurate. It’s important to note that any negative information (excluding a bankruptcy) that’s older than seven years old should not appear on your credit report. You have every right to request its removal, and the credit agency must comply. If you don’t want to deal with a lot of turnarounds in correcting your credit, find a custom plan that will help you remove those inaccurate, unverifiable, and unfair items for you!

Facts About Credit Repair to Help You Set Realistic Goals – And Make Them Concrete

But next, you need to decide what you would like to have removed, and how realistic your chances are of having it deleted. If you declared bankruptcy last year, or you have an unpaid judgment against you, there’s not much of a chance you’ll succeed. But if you got divorced four years ago and your husband stopped making the car payments, which ultimately resulted in a repossession on your credit record, you just might get it expunged.

Other, minor debts aren’t as difficult to have removed. For example, if you owe a credit card company $1,100 for a canceled card, you may be able to get them to remove the information from your report if you pay them in full. Normally charges like this go unpaid or end up being settled for pennies on the dollar, so if you have the ability to pay your debts in full (or close to it), you may be able to get your creditor to send letters to the credit bureaus saying that it was all a big misunderstanding.

The key is to evaluate your credit report and decide what can realistically be accomplished. Give yourself three achievable goals and go from there. And in the meantime, make sure you don’t repeat the mistakes of your past. Keep two or three credit cards open and active and pay the bills in full and on time. It won’t happen overnight, but by following these guidelines, your credit will be rebuilt, revamped, and restored. The sooner you get started, the sooner the process will be complete.

Don’t forget, having a solid, ongoing payment history with a card is your best way forward. Find yours now.

Credit Repair And Avoiding Court

Credit Repair And Avoiding Court

If you ever entered a courtroom, you know that the stress elevates, even if you are in the room for someone else. Courts are an automatic source for lifting stress. Moreover, avoiding court means we have to abide by laws and pay our debts. If you have taking out a home mortgage, car loan, personal loan, or any other type of credit loan in some instances when the loan requirements are not meet you can be subpoenaed to court.

There are several courts that handle cases that involved negligence, starting with small claims court and finally judgment courts. Any courtroom is stressful, and many of the courts will look at both cases objectionable. However, the party involved in negligence is often deemed untrustworthy.

If you want to avoid more stress than what you will endure on bad credit reports, it is important to make wise decisions before spending money you do not have.

Avoiding court judgments, liens, or lawsuits can be done by meeting payments on your monthly installments. If you find an area of your life when you see that it will be difficult to meet demands, you might want to look into some solutions available that can get you out of harm.

If you are paying mortgage you might want to opt-out by selling your home or else searching the marketplace for loans to help you refinance and get lower rates. When you owe money, your debts are sent to collection agencies.

Once you have a list of bad debts it leaves you open to the court. Creditors are people you owe and if they send your debts to collection agencies, you might be waddling in quicksand since someone else has control of your life. If you are delinquent on payments creditors, can garnish wages from your paychecks, take hold of all your tax refunds, and send you to court.

The only advantages you have when you have debts are the creditors cannot charge outrageous late fees or interest rates. The creditors cannot take a post-dated check from you and cash it until they notify you first. Creditors cannot cash a postdated check ahead of its date. Creditors cannot ask for postdated checks by frightening you with criminal suits. Creditors are not permitted to send postcards in an effort to ask for a payment, nor can creditors label, or place symbols outside of an envelope to press for payments.

There are many areas of legalities and illegal acts to look for if you are in debt and threatened with lawsuits, liens, repossessions, foreclosures, and judgments. Some of the most important areas of illegal acts made by collection agencies include false unlawful authorization forms or sending out a representative of the collection agency posing as an officer of the law.

Some creditors even harshly threaten debtors by using profanity or harassing family members by imitating government representatives.

Creditors have even tried cashing postdated checks and attempting to charge late fees for insufficient funds.

It is important that you learn your rights when your credit is in jeopardy. If you are taking to court and know your rights, you might see a way out of a bad situation. If you know your rights you might even find a way to avoid court by taking another route to stall payments.

Some collection agencies have even threatened debtors by phoning their home at late hours of the night, calling friends, family, and neighbors, and so on. If you suspect you are heading down a bad credit path, then it is important to document all communications between collection agencies, lenders, and other sources so that you are prepared when or if you hit the courtroom. If you see that you cannot avoid court then you want to take all the necessary steps to cover your self when you arrive on the door that is taking your control out of your hands. It is important to know that you can trust only you in most cases.

When your faith is in someone else’s control the worst possible situation can happen. In most cases, however, there are always solutions for avoiding court and you have the right to stand up and take back some of your control.

Credit Repair Advice: How To Improve Your Credit Score

Credit Repair Advice: How To Improve Your Credit Score

Our credit scores determine much about how we live our lives. We buy practically everything on credit and therefore, we need a reliable credit repair advice to keep our finances in order. When applying for a loan, our good credit scores help us receive reasonable interest rates. In fact, from landlords to insurance companies, to utilities, everyone looks at our credit scores, as they are a reflection of our financial health. A healthy credit score may determine what various agencies will charge for their services. Today, even employers check personal credit scores before offering a job.

Knowing more about our credit scores and the factors affecting them may help us build a positive credit history. But first, let’s look at how they are maintained by the various credit reporting agencies.

Three major credit bureaus – Equifax, Experian, and TransUnion – calculate credit scores. Though they use the same methods and formula to calculate scores, they sometimes come up with a different rating for various reasons. One agency may have more updated information about an individual. A creditor may have shared information with one agency only, but not with the others. Creditors, while checking on our scores, take the average of the three scores from these three agencies.

Credit scores range between 300 and 850. A score of 680 and above is excellent for obtaining mortgage financing at low-interest rates. A credit score of 621 to 679 is an average score and you would have to pay a slightly higher rate of interest. A credit score of below 600 makes us potentially unreliable and harder to obtain credit. When a credit score falls below 600, credit repair steps should be taken immediately.

The following are factors affecting credit scores and basic steps to take to maintain an accurate credit score rating with the credit bureaus:

1. Routinely check payment history and the current credit debt held.

2. Credit history length is a determining score factor. Naturally, the longer ‘good’ credit history, the better.

3. Do not close old or paid off accounts. These show the credit history length and contribute to higher credit scores.

4. Pay off debts to improve credit scores.

5. On-time payments. Delayed payments appear on credit reports and adversely affect it.

6. An individual’s race, sex, age, level of education, or marital status has no bearing on a credit score, nor does the fact that an application for credit was previously turned down.

Taking care to maintain a high credit rating enables us to receive credit and loans at good rates. Our credit score is a reflection of how we manage our finances and a determining factor for many aspects of our lives. Get practical credit repair advice to help you have a healthy credit history. Doing so is the best way to avoid bad credit and limited loan options in the future.

A Chance For Much Needed Credit Repair Redemption

A Chance For Much Needed Credit Repair Redemption

There are many actions that you can defend by saying “oh, I was just young and foolish then,” but when talking about credit repair redemption this will only get you sympathy from friends. You can pay dearly for foolish financial decisions and laziness for years after you were “young and foolish,” keeping many people from realizing their full potential financially for so long that by the normal age of retirement rolls around they are forced to work 5 or 10 years longer. The answer that smart business and lawyer types have come up with is called credit repair.

This invention of credit repair has literally been a life-saving thing for thousands (maybe even millions) of folks who were bitten in the butt by the false flash of credit and the increased power to buy. The redemption is well worth the time, money, and effort that it takes to get your report clean—just as if you had never had a problem with debt—and allows you to get on with your life and enjoy the financial freedom that you never dreamed was possible.

The best part of this answer, and the part that makes it work so well, is that it is a good deal for everyone involved. You see credit cards and other sources of credit make money when people owe them a balance but only when the person is able to make regular minimum payments on this debt. The sad thing is that there are so many people that became overextended to the point of crippling them so that they couldn’t even make the minimum payment. The loan companies are more than happy in these situations to cut their losses and the original balance back (forgiving some of the finance charges they are owed and allowing the credit repair) because money in the bank makes more money.

So the system allows people to make the credit report look as if they were regular and on time with their payments and allows them to pay back the outstanding balance at rates that will not sink them into oblivion. Credit repair is done through the legal system with lawyers making deals on an individual basis so that both parties win and are able to walk away from the situation in better shape and with a better future. The process also requires that the debtor goes through some financial training so that the situation won’t repeat itself. Sound like credit repair redemption to me, and I like that sound!

Credit Card Report Questions And Answers

Credit Card Report Questions And Answers

The Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of the nation’s consumer reporting companies. The Federal Trade Commission (FTC) enforces the FCRA with respect to consumer reporting companies. Recent amendments to the FCRA expand consumer rights and place additional requirements on consumer reporting companies. Businesses that provide information about consumers to consumer reporting companies and businesses that use credit card report also have new responsibilities under the law.

Here are some questions consumers have asked the FTC about consumer reports and consumer reporting companies, and the answers. If you have more questions about your credit card report, feel free to contact us for more information.

Q. Do I have a right to know what’s in my report?

A. You have the right to know what’s in your credit card report, but you have to ask for the information. The consumer reporting company must tell you everything in your report and give you a list of everyone who has requested your report within the past year – or the past two years if the requests were related to employment.

Q. What type of information do consumer reporting companies collect and sell?

A. Consumer reporting companies collect and sell four basic types of information:

  • Identification and employment information: Your name, birth date, Social Security number, employer, and spouse’s name are noted routinely. The consumer reporting company also may provide information about your employment history, homeownership, income, and previous address, if a creditor asks.
  • Payment history: Your accounts with different creditors are listed, showing how much credit has been extended and whether you’ve paid on time. Related events, such as the referral of an overdue account to a collection agency, also may be noted.
  • Inquiries: Consumer reporting companies must maintain a record of all creditors who have asked for your credit history within the past year, and a record of individuals or businesses that have asked for your credit history for employment purposes for the past two years.
  • Public record information: Events that are a matter of public record, such as bankruptcies, foreclosures, or tax liens, may appear in your report.

Q. Is there a charge for my report?

A. Under the Free File Disclosure Rule of the Fair and Accurate Credit Transactions Act (FACT Act), each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — is required to provide you with a free copy of your credit report once every 12 months, if you ask for it.

Q: How do I order my free report?

A: The three nationwide consumer reporting companies are using one website, one toll-free telephone number, and one mailing address for consumers to order their free annual report. To order, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Do not contact the three nationwide consumer reporting companies individually. You may order your free annual reports from each of the consumer reporting companies at the same time, or you can order from only one or two. The law allows you to order one free copy from each of the nationwide consumer reporting companies every 12 months.

Q: What information do I have to provide to get my free report?

A: You need to provide your name, address, Social Security number, and date of birth. If you have moved in the last two years, you may have to provide your previous address. To maintain the security of your file, each nationwide consumer reporting company may ask you for some information that only you would know, like the amount of your monthly mortgage payment. Each company may ask you for different information because the information each has in your file may come from different sources.

Q: Are there other situations where I might be eligible for a free report?

A: Under federal law, you’re entitled to a free report if a company takes adverse action against you, such as denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You’re also entitled to one free report a year if you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your credit card report is inaccurate because of fraud, including identity theft. Otherwise, any of the three consumer reporting companies may charge you up to $9.50 for another copy of your report within a 12-month period.

Credit Bureau Reporting, a Bonus of Easy Approval Cards

Credit Bureau Reporting, a Bonus of Easy Approval Cards

Easy approval cards represent a step in the right direction for the many of us who have pretty bad credit. These cards have a significantly lower set of standards for an applicant in order to be accepted and are available from several issuing companies. They also have several features that, if utilized properly, can help move your credit score in the right direction.

As one would expect, though, these cards come at a cost to the applicant in comparison to other cards that are a little more challenging to acquire. Many have an ‘account setup’ fee, and nearly all of them have an annual fee as well. Easy approval cards typically have a low credit limit, usually in the mid to low hundreds, as well as varying interest rates. Some advertise rates as low as 9.9%, though to qualify for such an APR your credit would probably have to be pretty good, likely good enough not to need an easy approval card. Others advertise APRs as high as 19.75%.

Very few, if any, have a low introductory period with their interest rates, so you’ll dive immediately into whatever APR you get assigned. There are a few easy approval cards that allow balance transfers, though most do not, and you can expect a notable balance transfer fee on the cards that do. Although you could consider the fees as a sub-prime debt consolidation cost, they can put a dent in a tight budget.

Not deterred or scared off by all that? Good. There are some upsides to easy approval cards if your credit has fallen as far and as fast as a meteor. If you can keep up with the payments and the various fees, most cards report to several credit bureaus, which means that if you can play ball, they will tell the people that can make your credit better. Go for an easy approval card if you can be a conservative spender for a while.

One thing to remember: do not, under any circumstances, get an easy approval card if you can not make payments on time. Say you’re rolling down the hypothetical financial hillside, taking out credit card after credit card to pay off bills and your old cards. Your credit is already ridiculously bad, so you figure ‘hey, I can get one of these cards to stay afloat a little while longer!’ This is a mistake. With the higher interest rates and fees, if you default on one of these, you’ll be blown back into the Stone Age by your bill. And don’t forget they report to credit bureaus monthly. You see how ugly this could get.

The point I’d like to make is that easy approval cards are risky, but can be beneficial if you pay close attention and don’t do anything crazy. Keep in mind if you need one, your habits with money are probably not the best, so you need to reform a little before you take one of these on. If you can stay on track for a period of time, the financial rewards of an improved credit rating will greatly offset any expenses you incur while digging yourself out of the bad credit pit. Contact us today if you need help with getting easy approval cards!

What Gets Reported in Your Credit History And What Does Not

What Gets Reported in Your Credit History And What Does Not

A credit report is a document that outlines your financial status, specifically your credit history. The three national reporting agencies, Experian, Trans Union, and Equifax, work independently so it is advisable to know what gets reported in your credit history for an accurate picture.

What Gets Reported in Your Credit History

The credit report contains personal, financial, and public information along with recent requests.

The credit report will provide personal information like your full name, frequently used nicknames and aliases, date of birth, and social security number. It will also reveal your current and past addresses, present and past jobs and if applicable, information about your spouse as well.

Financial information of all your accounts with their opening date and the credit limit is noted in it. These could be accounts with banks, credit card companies, power and telephone companies, and such like. It will also detail your loans like mortgages, student loans, and installment loans with relevant information, such as, payment patterns, a default in payment, debts that are less than seven years old, and so on. Some records will appear permanently. These are salaries above $75,000, any credit transaction, or application for a credit card or insurance beyond $150,000 and unpaid tax liens.

Information from public records particularly those with a financial angle will always appear. These are usually obtained from state and county courts. It will include convictions, arrests, charges, and monetary judgments. They can appear only for seven years. However, under federal law, convictions will appear indefinitely. If you have declared bankruptcy, the same will appear on your credit report for not more than ten years.

Certain records do not appear. Debt records more than seven years old and bankruptcy records more than ten years old cannot be given in a credit report. Your age, marital status, and race cannot appear if a current or prospective employer asks for it. Medical records can appear only with your express permission. Any information that has been erased from the records cannot be put back again.

Thus a credit report will help a person or organization make an informed judgment before entering into any transaction or deal with you. Talk to us today for a seamless process in credit reporting.