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How To Bounce Back From Bad Credit Ratings – Starting Today

How To Bounce Back From Bad Credit Ratings – Starting Today

Credit has a very important place in most people’s lives today. Bad credit ratings can prevent you from having essential things we need every day, such as, use a credit card, rent an apartment, qualify for financing for large purchase department store items, or buy a car, just to name a few.

If for whatever reason, you don’t make timely payments to a creditor or miss a payment, your creditor reports this to the credit bureau, and it is added to your credit report. If you do this too often, or default on a loan, you will have a bad credit rating and a low credit score. Once you have a bad credit rating, many doors will be closed to you: you will be unable to obtain most kinds of loans, and without a credit card you won’t be able to shop online, or rent a car, or do many of the other things you have grown accustomed to doing.

For these reasons, it is important that you protect your good credit rating. However, if misfortune causes a change in your circumstances and your credit-worthiness becomes an issue, you should begin your credit repair as soon as possible.

How to Repair bad Credit Ratings

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

A good place to start repairing bad credit ratings is to get your credit report from the credit bureau and examine it carefully for errors. If there are no apparent errors, you can then begin your credit repair.

First, obtain a secured credit card and use it regularly but sensibly. Pay your monthly installment amounts in full and on time. Secured credit cards are issued by companies that usually cater to people who have bad credit. These types of credit cards usually require that you give an initial deposit equal to the card’s credit limit. For example, you give the company $500 for a card with a $500 credit limit. They have the right to use that deposit against any balance you have that remains outstanding for too long.

Using this formula, the credit card company assumes no risk because you will never owe more money than they are holding as your deposit. Secured cards also require annual fees that regular credit cards do not.

Using secured credit cards and paying the bills on time is one of the best ways to improve your credit rating. You develop a history that shows lenders that you take your debts seriously, and that is what lenders want from you — to be paid in full and on time.

To your advantage, paying bills on time not only helps in establishing a good history for you, but it also eliminates late fees and other financial penalties that make paying your bills so difficult.

How To Deal With A Credit Bureau To Repair Your Credit

How To Deal With A Credit Bureau To Repair Your Credit

Good credit is crucial in today’s economy. Good credit allows you to have credit cards, obtain a car or home loan, and to take advantage of many other money-related conveniences. It is possible to live without good credit, but having a bad credit rating can affect you negatively for the rest of your life. It is crucial to deal with a credit bureau to repair your credit if you need to achieve these conveniences.

You might be surprised to know that only a handful of credit bureaus in North America hold the key to your credit rating, and therefore your financial future. These credit bureaus receive the positive and negative reports issued by your creditors and create your personal credit report and credit score based on the results. If your credit history is poor, it is important to repair your credit so that you don’t get turned down for a mortgage or even a department store credit card. In order to do this, you must first learn how to deal effectively with a credit bureau.

Begin by finding out what credit bureau has your file. This information will be on any rejection letters you may have from a declined credit application. Next, you’ll need to obtain a copy of your credit history. Remember that you are allowed, by law, to obtain a copy of your credit history if you’ve been denied credit, though some organizations might imply otherwise. You should only pay for a credit report if you want an instant copy, rather than to have one mailed to you, in which case a bureau will send you one for a fee.

It is important to remember that a credit bureau is in the business of collecting and selling information. This means that you should never provide them with any information that you are not required to by law unless you want them to use it against you. It is legally necessary for you to provide the following to get a copy of your credit report:

  1. Name
  2. Social Security Number
  3. Legal Address

The credit bureau might request copies of your social security card or your driver’s license. If they ask for a copy of your driver’s license as proof of address, it’s best to provide them with a copy of a bill or something else addressed to you instead. You should be careful when providing credit bureaus information because most own collection agencies and they will use any of the information that you provide to hassle you with the credit and collection issues that you are already trying to fix.

Examine your report closely and note any possible errors. If you have questions about a specific debt, you can mail a written request to the credit bureau that they investigate that particular debt to repair it as soon as possible. Legally, the credit bureau is required to document any discrepancies on your credit report, otherwise, if they don’t do this in 30 days, the entire item must be removed. Most of the credit repair companies out there will charge you fees to perform this service, but you can do it yourself for free with just a little bit of time and effort.

Learning to deal with credit bureaus will allow you to engage in successful credit repair without paying a credit repair company a high fee. When you educate yourself on what the legal obligations are that credit bureaus entail, in many cases, you can effectively repair your own credit just as quickly as a credit repair company.

Need more help to repair your credit score? Get some tips here!

How To Get Rid Of Your Bad Credit In Two Months

How To Get Rid Of Your Bad Credit In Two Months

You were sure that you would get the loan that you applied for, but to your surprise, a bank turned down the loan. The bank explained to you that you have bad credit and you have to get rid of it first before you can apply. Also, they consider your subprime. Subprime means that you have bad credit and a score of less than 620 on the FICO scale/rating. This however doesn’t mean that you can’t apply for loans. There are many lenders and companies who specialize in lending to sub primers.

Ways to get rid of your bad credit in two months:

You can start by checking your credit report. Many times the information that may have been entered is incorrect. If you do find the errors, write to the credit company stating the errors and the corrective action for it.

Ask for your credit scores from Trans Union, Experian, and Equifax. Thus you can know your credit score and devise measures to make it better.

Pay off your loans; even payday loans can become big if you add them up. Control the urge to borrow small, even if it is $20. Just imagine $20 a day means $600 a month.

Use cash to make your purchases; this way you can definitely lessen your credit card debts. Use only one credit card. Too many credit cards mean that you have to also pay annual fees on them. Don’t take cash against your credit cards. The rate of interest on cash loans is very steep. In fact, make payment in full for your credit card purchases. In this way, you wouldn’t have to pay for interest on interest.

Make a budget for all your expenses and then weigh it against your income. If your expenses are more than your income, cut back on the expenses. Otherwise, you will be in debt. This will then affect your credit rating. In return, you will have bad credit.

Following these simple techniques, you will be able to get rid of your bad credit in two months.

How To Wipe Out Bad Credit And Rebuild Your Credit Report

How To Wipe Out Bad Credit And Rebuild Your Credit Report

Most people who have bad credit think there is nothing they can do about it. They mistakenly believe that they have to live with their bad credit for a long time.

You don’t have to live with bad credit or pay hefty fees to have your credit repaired. You can remove bad entries in your report and rebuild your credit profile. You don’t need to spend a fortune to accomplish this. Armed with the right information you will be on your way to rebuilding your credit record.

Credit bureaus are required to delete items that are not 100% accurate or cannot be verified within a reasonable period of time. Also, outdated information must be deleted.

The first step in repairing your credit is to get a copy of your credit report. You need to know what the credit bureaus are saying about you. By law, you can get a copy of your credit report, for a fee. However, if you have been denied credit within the past 60 days, then you can get a credit report at no charge from the credit bureau.

When you receive your report, examine it carefully. Damaging information may appear in your report without your knowledge. Make sure all information is current and accurate. Identify any incorrect or inaccurate information that has been entered into your report. Pay close attention to all the accounts listed on your report. Mistakes happen all the time. Make sure you do not overlook any errors.

You can have damaging information deleted from your credit report. You have the right to dispute incorrect or misleading information on your report.

To do this, complete the dispute form that you received with your credit report and return it to the credit bureau. Be sure to send your dispute letter certified mail, return receipt requested. This will provide you with a paper trail and help you remember when to follow up.

If you dispute an item, it must be reinvestigated and deleted if in the event the item is found to be false or unable to be verified. By law, if the credit bureau does not respond within the allotted time, then the disputed item must be deleted from the report.

Another way to smash negative credit remarks on your credit report is to take advantage of the “100-word consumer statement” which allows you to file a brief statement detailing your side of the story and submit this to the credit bureau, for inclusion in your report.

Once your credit report is updated, you should request that the credit bureau send an updated copy of your report to any businesses that checked your credit within the past six months (or two years if it involves employment).

Now that you’ve removed the negative entries, it’s time to rebuild a good credit report.

One way to add positive information to your report is by taking out a small loan backed by funds in your savings account. When you pay off the loan, your security deposit will be released to you.

You can also build credit by having someone with good credit cosign on a loan for you. This strategy can speed up the process of rebuilding your credit.

Having a secured credit card can help you build or rebuild your credit. To obtain a secured card, you are required to deposit money in a savings account to guarantee the charges. The deposit is frozen and left untouched until it is obvious that you have defaulted. So make sure all your payments reach the company before the due date. Always stay within your credit limit.

If you ever wanted to wipe out your bad credit and rebuild your credit report, now you can. A good credit record can make your life easier and more enjoyable. Take action now.

Need Credit Repair Help? Try Doing It Yourself!

Need Credit Repair Help? Try Doing It Yourself!

No matter what many credit counseling scam artists may try to tell you, no one can legally remove any information that is up-to-date and accurate from your credit report. They can’t do it, and you can’t do it yourself. However, you CAN request an investigation of anything you find in your credit file that you believe to be either incomplete or inaccurate. That is perfectly legal and can be done at NO cost to you. In fact, anything that a credit repair company offers to do for you can be done yourself, generally free or for a nominal fee.

The good news is that just because you may have some negative information in your credit report doesn’t automatically mean you can’t get credit at all. Most creditors have their own guidelines when it comes to granting credit, which means that each company will look at your credit report in a slightly different way. For instance, it’s not uncommon for companies to lend more credence to the most recent information in a credit report. That way, if you experienced some financial difficulty a number of years ago, but then were able to get back on an even keel and have been exemplary since that time, you’ll be more likely to receive the credit you’re seeking with those companies. It might even be to your benefit to have an informal discussion with a potential creditor to discuss how they interpret credit reports–even before you apply for credit.

You’re entitled to a free credit report every twelve months, and it’s worthwhile to take advantage of that fact, just to see what information is contained in your file. Many financial advisors and consumer advocates suggest that you review your credit report periodically because erroneous information can sometimes get into your report inadvertently and can affect your chances of getting a loan or qualifying for insurance–as well as how much those will cost you, in terms of interest rates or premiums.

To request a free credit report from one of the Big Three: Experian, Equifax, or TransUnion, and make sure that all the information it contains is up-to-date and accurate, especially if you’re about to apply for a major purchase, seek insurance, or apply for employment. Checking your credit report on a regular basis can also alert you to identity theft, which is one of the fastest-growing crimes in the world today. Inaccurate or incomplete information in your credit report can have a significant impact on your chances of obtaining loans, insurance, or a job, so it’s well worth the effort to make sure everything in your report is exactly as it should be.

If you’re having trouble with your credit report and need help finding assistance, you can contact the Federal Trade Commission (FTC) for help. Find them on the Web at http://ftc.gov, or you give them toll-free at 1-877-FTC-HELP. Their TTY number is 1-866-653-4261. They maintain an online database that lists hundreds of civil and criminal law enforcement agencies in the U.S., and they’ll be able to steer you toward the help you need.

Copyright © Jeanette J. Fisher

Nothing But The Real Truth About Credit Repair

Nothing But The Real Truth About Credit Repair

Accurate and timely information cannot be removed from your credit report, even if you have paid off a once delinquent debt. The fact that it is paid off is to your credit; however, the fact that the account was once delinquent is also true and can remain on your credit files from up to seven years.

Bankruptcy information can be reported for up to ten years. Information reported because of an application for a job with a salary of more than $20,000 has no time limit. Information reported because of an application for more than $50,000 worth of credit line or life insurance has no time limitation. Default information concerning a US Government insured or guaranteed loan can be reported for seven years after certain grantor actions.

Information concerning a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. No one can legally remove accurate and timely negative information from a credit report. The law does, however, allow consumers to request an investigation or reinvestigation of the facts and information in your credit file that you dispute as inaccurate or incomplete. There is no charge for this information.

Credit repair clinics or services can’t do anything to improve your credit report that you can’t do for yourself, at little or no cost. Avoid companies that want you to pay for credit repair services before they provide any services. It is illegal for telemarketers who offer credit repair services to request payment until six months after they have delivered the service.

The Scam

Everyday companies nationwide appeal to consumers with poor credit histories. They promise, for a fee – usually paid up-front – to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job. The truth is, says the FTC, that they can’t deliver on their promises and claims.

According to hundreds of reports, consumers pay hundreds or thousands of dollars in up-front fees and these companies do nothing to improve your credit report, many credit repair companies simply vanish with the consumer’s money. These companies do not tell you your legal rights and what you can do yourself for free. They often recommend that you do not contact a credit bureau directly.

Or they advise you to dispute all information on your credit report or to create a new credit identity which is illegal. If you follow any illegal advice or commit fraud, you also may be subject to prosecution.