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Good Money Management Builds Credit and Protects Assets

Good Money Management Builds Credit and Protects Assets

You should consider how to build credit using good money management skills today. Your first step is to keep a record of outgoings and use a strict budget that you can stick to. Bankruptcy and debt consolidation may add more costs to an already bad situation. You will have to deal with more expenses, high interest, and repayments that may not be enough to satisfy your creditors. This can be stressful and worrying.

The best remedy is to start saving money.

“Do not save what is left after spending; instead spend what is left after saving.” ― Warren Buffett

 

Ways for Building Your Money Management Skills

Firstly, try purchasing accounting and budgeting software that enables you to save. It may seem like just another added expense, but the cost will benefit you in the end. Part of this process will be to track your outgoings and incorporate them into a monthly budget plan. The software will assist you by making the task much easier, but if you prefer you can set up a manual table with paper and pen.

Next, label your table with the heading of Daily (or weekly) Spending – Week of ________. Make sure that you list all your spending requirements, savings, income, taxes, banking fees, food, rent, etc. Each week, when bill payments are due, spend as much as you can on the first, leaving a minimal amount of money for the following week’s essentials. For example, if your telephone bill is $114, your utility bill is $59, and your cell bill is $180 and you get paid only $300 then it will be obvious that you do not have enough to cover this. It is now time to cut down on unessential items. Do you really need two phones?

Forget going to the cinema, budget on rentals, but unfortunately, you may simply have to do without this week. Listen to the radio or watch t.v.

Try to also develop a table that includes your estimated monthly repayments and your living expenses. List your gross income, pensions, bonuses, child support, retirements, and other deductions. Then work out what can be saved and put it towards paying down your debts. Sadly, you will have to reduce your groceries, medicinal, personal, pet, holiday, and gifts costs. Are there any assets that you don’t really need? Do you need that second car? Why not sell it and clear some more debts?

These simple little tips, along with good record-keeping, will help you to gradually reduce debt, fix your credit score and rating, and help re-establish your credit. You may want to think about getting a higher-paid job if your current one offers measly wages. In fact, taking on another job part-time on top of your regular employment can pool in more money. Always remember that there is always a way to rebuild your credit and repair the damage done.

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 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 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.

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.

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.