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Consolidating Debt – Investing In Debt Management

Consolidating Debt – Investing In Debt Management

John Dewey had quoted that a person’s money had more value than their credit. However, today’s creditors, like banks, do not share the same view. A good credit file report history is essential for obtaining personal loans thus, consolidating debt might be one of the next options. However, the inability to repay personal loans causes people to avoid calls from debt collectors and to miraculously pretend to forget any debts owed to their creditors.

The resulting fact is that all your banking, financial, purchasing, credit and store card, and other credit history is reported to credit bureaus by your creditors and recorded on your credit file. This file is designed to assist creditors, like banks, to evaluate your credit history and any risk you may pose in regards to repayments.

Bad credit is not a dead-end street, and you can repair and rebuild it in time with the proper management of your finances. However, one or more bad credit reports on your file will have you blacklisted by the banks, destroy your credit score, and stop you from investing in something you want, like a car.

A creditor’s negative credit report takes up to 7 years before it is removed from your credit file. However, you still need at least one year of good credit reporting after that before you can start getting credit or personal loans again. To avoid waiting 7 years for the item you want, like a car, even though you may have a very good income and professional status, consider a problem-free, loan for those with bad credit. Simply, apply to consolidate debt, your debts.

A debt management loan for those with bad credit does have a higher rate than normal personal loans. However, such a loan focuses on your current situation and regular and steady employment, whilst ignoring your past credit report history.

You benefit from promptly fixing your credit report history and credit score, and you can start to rebuild your life. You have the opportunity to work towards buying a home or negotiating a lower interest rate on your credit cards.

If you make your payments when they are due, the bad credit history personal loan will work for you. Without this, you cannot benefit from any major purchases you wish to make, like buying a car. This loan will work if you make it work.

Again, bad credit report history is fixable and not the end of the line for you. Most people have experienced bad credit at least one or more times in their life. Now is the time to rebuild and create your positive credit future by considering the benefits to you by using a bad credit history, personal loan, and the workable interest rates they provide. Need to learn more important benefits of consolidating debt? We can help!

How To Avoid Credit-Related Scams

How To Avoid Credit-Related Scams

In recent years, our televisions and email inboxes have been inundated with advertisements from companies promising to help consumers improve their credit. Many of these companies offer a quick fix for people who have a high rate of debt or bad credit, and the promises made often seem too good to be true. Many offer extended lines of credit, immediate debt relief, and easy access to cash. Unfortunately, the fact of the matter is that many of these offers are too good to be true, and consumers must read carefully to be aware of possible credit scams and protect themselves from compounding their money troubles.

The Federal Trade Commission (FTC) cautions consumers against many forms of credit scams that consumers face today. Two of the most prevalent scams against consumers include offers for advance-fee loans and credit repair services.

Advance-fee loan scams often target consumers with credit problems or consumers who have difficulty getting credit. In exchange for an up-front fee, these companies guarantee that applicants get the credit they want – usually a credit card or personal loan. Below are some points to keep in mind before responding to ads that promise easy credit regardless of credit history:

Most legitimate lenders will not “guarantee” a loan or credit card before a formal application process is followed, especially if the applicant has bad credit or a bankruptcy. It is an accepted and common practice for reputable lenders to require payment for a credit report or appraisal. A processing or application fee is also an accepted practice. Never give a credit card account number, bank account information, or Social Security number out over the telephone unless the company is familiar and it is explained clearly why the information is necessary.

Credit repair scams are some of the most common credit scams today. They are in ads in newspapers, on television, and on the Internet. Consumers receive fliers in the mail and calls from telemarketers offering easy and immediate credit repair services. Consumers should be very cautious in answering advertisements for these services. The FTC advises consumers to be aware of any credit repair companies that:

  • ask for payment for credit repair services before any services are provided
  • do not advise a consumer of his or her legal rights and what can be done independently by a consumer – for free – to improve credit
  • recommend against contacting a credit bureau directly
  • suggest inventing a “new” credit report by applying for an Employer Identification Number to use instead of a Social Security number; or
  • advise disputing all information on a credit report or taking any action that seems illegal, such as creating a new credit identity. If a consumer follows illegal advice and commits fraud, he or she may be subject to prosecution.

Consumers who feel they may have been a victim of a credit scam such as the two described above should contact their local consumer protection agency, state Attorney General, or Better Business Bureau. For additional information on credit-related scams, or to file a formal complaint against a fraudulent company, visit the Federal Trade Commission’s web site.

How To Build Up Your Credit

How To Build Up Your Credit

There are many effective ways to build credit. In order to keep creditors from bothering you, and in order for you to get a loan with a reasonable interest rate, you need to learn how to build your credit. The best place to start is to not buy things that you don’t need. If you always make impulse buys, you will find yourself in deeper debt very quickly. And if you have no credit history at all, you must keep that in mind.

Build a good credit if you have bad credit

If you have bad credit, consult one of the many books available written by qualified financial advisors in order to get started on the right path. You can find books like these at your local library. In these books, you will find checklists and step-by-step advice that will help you turn your credit around. There are also guides available at the library that can instruct those in debt on how to write letters to their creditors. Letters are probably a more effective avenue to take rather than communicating by phone since most creditors will not be sympathetic to your situation.

Another value of written communication is that if you should end up in court, the written documentation will be easier to submit. Verbal commitments can be easily denied without written documentation. Any documentation that is relevant to your credit issues should be stored in a secure place. Make copies of any communication with credit agencies (both to and from you), and keep it under lock and key. If you notice any errors on your bills or credit, be sure to contact the correct agencies and dispute and resolve the charges right away.

If you have used your credit card to purchase an item or service and the item you bought was defective, you DO NOT have to make a payment on the charges. You do need to dispute the charges with the service provider that sold you the product. If the proprietor does not exchange the item or reimburse you for it, you have the right to deny payment. Once you have disputed the charges with the proprietor it is then your responsibility to contact your credit card company to dispute the charge.

If you have bad credit and have a credit card, you can use the card to repay your other debts and then make monthly payments on the credit card. Ironically, you are getting out of debt while remaining in debt. In other words, if you use your credit cards to pay other debts, your debt on your credit card will continue to increase. Since credit cards charge significant interest rates, your debt will continue to increase unless you can make significant monthly payments.

No Credit, No problem?

If you think that you do not need credit at all, that is simply not the case.

In today’s world, in order to make any major purchases, it is often a requirement that you have at least one major line of credit. Most lenders will not consider lending money or give credit to someone that has no established credit history. We are expected to establish a credit history when we are young, and if we do not lenders often wonder why, which makes you look like a high risk.

They have no way of knowing your payment record, or if you are able to pay off the debt at all. There are several reasons that lenders will refuse you a loan if you have not established a credit history. The best way to establish good credit is to have a credit card, make your monthly payments on time, and keep your spending under control. Good credit means managing your money each month and paying your bills on time.

How To Improve Your Credit Record Legally

How To Improve Your Credit Record Legally

If you have a history of late payments, unpaid bills, or accounts sent for collection, your credit record will suffer. A bad credit record gives you a low credit score and makes it difficult for you to get needed credit or loans for things you really need. It’s time for you to improve your credit record legally to get needed credit or loans for things you really need. Here are some tips!

Your credit history

Almost everything you do with credit, both good and bad, is reported to a credit reporting agency. A history of paying late, or not paying at all, is sent to credit reporting agencies. Bankruptcies, judgments, and liens also find their way to your credit report and hurt your credit rating.

The good news is that positive information is also sent to credit reporting agencies. To keep track of your credit standing, you should review your credit report at least once each year. You can correct errors and clean up any wrong information that might be on your report. Review your credit report and correct errors to improve your credit record.

How to improve your credit rating

Here are some of the best ways to improve your credit rating:

Pay bills on time. Late payments really hurt your credit standing. It is best to pay the entire balance on your credit cards each month. If you can’t, be sure to at least be paid the minimum payment on time. The more you pay each month, the less interest you’ll be charged.

Don’t go over your credit limit. Some credit cards allow you to go over your credit limit. They usually charge you extra in penalties for doing so. In addition to paying penalties, going over the limit hurts your credit score. It tells companies that get your credit report that you aren’t paying attention to the limits of your account. If you don’t exceed your credit limit, you won’t have to pay penalties. This allows you to pay your balance down sooner.

Cancel some of your credit cards. Having lots of credit cards can hurt your credit score. When you apply for new credit, the company checks your credit report. One of the things they look for is how much your combined credit limits are and how much you owe. As you get closer to your credit limits, your credit score goes down. Applying for lots of credit cards lowers your credit score. One bank card and a department store or gasoline credit card are all you really need. Cancel the others.

Deal directly with creditors. Some businesses (creditors) you owe money to may be willing to take negative information they reported off of your credit report if you pay some or all of the money you owe them. Creditors must report payments you make, but they are not required to take negative information off your report unless they agree to do so. You will have to speak with each creditor individually to see what, if anything, they are willing to do.

If a creditor agrees to take information off of your report in exchange for a full or a part payment, get their promise in writing before you pay. If you pay the balance, even without an agreement, they must update your credit report to reflect a paid-in-full status. If you discharged debts in bankruptcy, those items can still be included in your credit report.

Avoid Scams

Credit repair companies promise to improve your credit. They may also promise to get you a loan or a credit card. They lead you to believe that they have special ways to get negative information off your credit report. They don’t.

Credit repair companies have no special powers to improve your credit record. There is nothing they can do for you that you cannot do yourself. Paying them leaves you less money to pay your current bills and past debts.

Because of the problems with credit repair companies, strict laws were passed to regulate their activities. For example, they must provide a written contract that you can cancel within five days. They can’t require payment in advance and all promised services must be completed in 90 days. They must also register with the Department of Justice and file a $100,000 bond with the Secretary of State. Be aware that very few credit repair companies follow the law.

Maintaining A Good Credit Rating

Maintaining A Good Credit Rating

Nowadays, availing a credit card is truly a difficult task. You need to have a good credit history in order for the bank to see that you are fully capable of acquiring debt and later on paying it off. Aside from this, you also need to have a stable monthly income wherein the bank can generally rely on to decide if you are truly a creditworthy individual. However, not all people possess such good credit history and high monthly incomes, and because of these reasons, they get rejected in their application for a credit card.

Maintaining Good Credit Standing

In the world of credit and banking, it is extremely important that you maintain a good credit history or rating for you to be considered as a credible person; and of course, regarded as a person who is truly capable of owning a credit card. During the initial periods, especially if you are only starting off building your life and future, it is easy to maintain a good history with regards to finances.

Increasing Debt History

However, as circumstances may differ in the long run and you avail all sorts of assets, properties, and services, your debt history starts to increase. This in turn may lead you to have a negative implication on your credit history. And in addition, in any case, that you may acquire such a huge amount of debt, it naturally makes it more difficult for you to pay it off. Basically, you have acquired more debt than you can actually pay for.

Thus, even in the early stages, you must remember that having a good credit rating is very important if you intend to acquire another credit card in the future. Having a good credit rating not only entails you of receiving a credit card but also receiving a good deal out of it. Moreover, if you have a very good history, such as nonexistent late payments and non-violation of terms and conditions, then it means that you can have a better deal for your credit card. It means that the bank can give you a higher offer on your credit line. It will give you more opportunities to purchase much more expensive items and can even give you more offers such as bonuses and discounts.

Be A Responsible Credit Owner

In order to maintain a good credit history, you generally have to be a responsible person in terms of your finances. If you are responsible for your finances, then you can be a much more credible person to avail of a credit card. You have to make sure that you do not overspend beyond your budget and that you pay off your debt at the specified time.

Having a credit card truly can give you limitless opportunities especially if you are insistent on buying items every now and then. However, as you have such opportunities, always remember that in the end, the amount that you are spending today is accumulated for you to pay in the future. If you do not want your future to be spent on debts, then perhaps you may want to have a second thought in what you are going to spend on today. All you have to remember is that you should maintain a good credit history so that you can provide yourself with a lot more opportunities in the credit world.