credit repair

7 Common Credit Rating Myths Debunked

Having a good credit score is one of the most valuable things you can have. It can help you to secure financial assistance and save you thousands of pounds on the cost of credit in the process. On the other hand, if you have a bad credit rating, it can really limit your ability to borrow altogether. This is the simple truth regarding credit scores, but hidden in the middle is a wealth of speculation and untruths. There are countless myths that are bandied about, and below we reveal more about the hearsay that you definitely shouldn’t be listening to.

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You can hide outstanding debt by moving credit card balances around – A lot of people try to mask their debt by simply moving their balances around, so it looks like they are making regular payments. At the end of the day, the full total is going to appear on your credit score, so this really won’t make any difference. You can’t hide your debt, but you can pay it off. Here are some simple changes you can make to dig yourself out of debt.

People with more money have better credit scores – How much money you have does not impact your credit score. It is all about keeping up to date with payments. If someone rich misses payments on their account, their score will be negatively impacted too.

You should have as many credit cards as possible – There is a common assumption that the more credit cards you have, the better, as you can show you are good at paying back debts. This isn’t wise, as you are simply putting too much pressure on yourself by having too many financial commitments. There is no definitive number of accounts that will lead to the perfect credit score; you simply need to show that you can keep up with all payments and manage your credit well.

A poor credit score is stuck with you for life – It does not matter how bad your credit rating is, you can improve it. There are numerous ways to do so, including joining the electoral role, taking out a credit card for bad credit, and keeping your address information up to date. You should also check out USL4U guaranteed loans for bad credit – by making regular payments on time, your score will improve.

Your education will impact your credit score – This is simply not true. Education has no bearing on your credit rating, and it is not part of the report. Also, a creditor’s scoring system cannot use religion, national origin, marital status, gender or race under the Equal Credit Opportunity Act.

Old debts don’t matter – In fact, old credit agreements will stay on file for approximately six years, so they do matter. If you genuinely did not realise you had an old debt, you do have the option to request to put a ‘notice of correction’ on your file, i.e. you can explain the circumstances surrounding the mark.

There is a credit blacklist – Lastly, perhaps the biggest myth of them all! There is no credit backlist. Lenders use an array of information to make their decision, combining any details you supply on your application form with data from credit reference agencies.


The Three Steps to Fixing Your Credit

There are a couple of things that you need to know about having less than perfect credit  The first is that there are more people out there whose credit profiles are not nearly as awesome as they’d like them to be—so there is no reason to feel embarrassed about your score or situation. The second is that credit scores change all the time. The credit you have now is not the credit you’ll have next month or next year. This means that you can fix your situation.

Step One: Finding Your Starting Place

The first thing that you need to do is get copies of your credit reports. You are entitled to at least one free credit report every year from each of the three major credit bureaus: Equifax, Experian and TransUnion.

It’s important to understand that accessing your credit reports does not necessarily mean learning your credit score.

Once you have your credit reports, you’ll want to make sure they are absolutely accurate. This means going over every detail and making sure that it is correct. If you see something that is even a little bit off, you need to dispute that detail with the reporting bureau. In addition to raising your credit score, it is important to get a clear and accurate idea of how much work you are going to need to do.

building-creditStep Two: Fixing Bad Credit

Most of the time, the key to fixing bad credit is getting back on track with your bills. Don’t worry about the payments you’ve missed in the past. You can’t do anything about those now. What matters is that you create a positive and steady payment plan for your future. It is also important that you work very hard to reduce your debt to income ratio. Your debt to income ratio is a big factor in your overall credit score. It is what lenders look at when you apply for loans or financing.

The best way to reduce your debt to income ratio is to increase the amount of money you send in to your creditors each month. By now you already know that you need to pay more than the minimum amount due if you ever want to get out of debt. Even $5 more toward that balance is a good thing. A better way to do it though, is to take your minimum amount due, add however much you are charged in interest every month and then tack at least $10 (though 10% is better).

If you have a lot of bills or if you’re worried that you won’t be able to afford to make even your monthly payments each month, don’t panic. Many creditors are willing to work with clients when it comes to things like interest rates and minimum amounts due. They’d rather reduce your interest rate than lose you as a customer. If this process intimidates you (or if you don’t have time to call and haggle with all of your creditors), a credit repair service can reduce the stress of the process. These companies negotiate with creditors on your behalf and help you set up budgets and payment plans that you can afford to keep.

Step Three: Building Good Credit

Don’t wait until you are out of debt to work on building good credit for yourself. You need to work on both simultaneously. Yes, paying down your debt and creating a positive repayment history will accomplish part of this goal. The other part, though, is proving that you can handle credit responsibly. The easiest way to do this is to open a secured line of credit with your bank.

If you are willing to work hard, you can fix your credit. It won’t happen overnight. It might take a few years—but it will happen.


What to Do If You Have Credit Issues?

Credit issues can impact just about every aspect of your life. Why? If you do not have a good credit score, it is harder to qualify for mortgage loans, auto loans and other types of financing. In addition, a bad credit score can result in higher insurance premiums, and you may not be able to secure certain types of employment.

Fortunately, there are effective ways to deal with credit issues. Since you didn’t get into this situation in one day, you can’t repair your credit overnight. Therefore, you should not expect a better credit score after only a few days or weeks. Even so, if you take the necessary steps to get your personal finances on track, your credit score will gradually improve and you’ll be a step closer to achieving A+ credit.

Credit_Card1. Check your credit report each year

Many consumers do not check their credit reports on an annual basis. Your credit report provides a detailed account of your credit history. It includes your most recent accounts, balances, older accounts, as well as your account statuses.

When you apply for new credit, creditors review your credit report to see if you qualify for financing. But unfortunately, your credit report may not be accurate. A creditor may report information in error, or someone may steal your personal information and open accounts in your name.

Checking your credit report regularly is the best way to identify mistakes early and each consumer is entitled to one free report from each of the bureaus every 12 months.

2. Seek professional help

If you notice errors on your credit report, you can notify the reporting creditor to clear up any mistakes. In many instances, this is all it takes to improve the accuracy of your report. But sometimes, repairing serious credit report errors requires professional help.

Credit repair agencies have experience fixing mistakes on consumer credit reports. They’ll investigate a claim and work with your creditors to remove any information that’s inaccurate. Negative information on your reports can drop your credit score by several points. However, once this information is deleted from your report, your credit score will improve.

3. Understand how credit works

If you do not understand how credit works, you may not make wise credit decisions. Several factors influence your credit score, such as your payment history, the amounts you owe, the length of your credit history, the types of credit, and new accounts.

Since your payment history and the amounts you owe make up 35% and 30% of your credit score, respectively, it is important that you pay creditors on time and maintain low balances.

This is much easier to say than do. However, if you only charge what you can afford to pay, and if you pay your balances in full each month, you can improve a low credit score.

4. Get rid of your credit cards

Canceling a credit card may reduce the length of your credit history, thus lowering your credit score. Rather than get rid of credit cards, destroy your cards and only use cash. The less you use a credit card for purchases, the less debt you’ll accumulate.

In addition, do not splurge when applying for a loan. Oftentimes, consumers overspend when buying a house or car. As a result, a larger percentage of their income goes toward paying off these debts. They end up living paycheck to paycheck; and if unable to make ends meet, they might rely on a credit card. This complicates a financial situation. Therefore, know your limitations and be reasonable.

5. Establish new payment terms with your creditors

Defaulting on a credit card or loan, and then ignoring your creditors will not make the debt go away. The credit card company or bank may send your account to collections or seek a judgment. Both moves can damage your credit score, and this negative activity can stay on your report for up to seven years.

To avoid any collection accounts or legal action, always communicate with your creditors. Explain your situation and ask the creditor for a new payment arrangement. Based on your economic situation, the creditor may lower your monthly payment to an affordable amount, or temporarily suspend payments until your finances improve.

Realizing that you have credit issues might keep you awake at night. However, credit problems are not permanent. There are ways to rise above a low credit score. However, you need to be proactive and make wise credit decisions.

 


5 Reasons Credit Cards Make Financial Sense

It’s easy to vilify credit cards as a means of racking up huge amounts of debt. Whilst it’s definitely true that UK consumers are often heavily indebted to their cards, they can still be useful tools to protect your finances and manage cash flow:

They Protect Your Cash

Fraudulent transactions and identity theft are rampant in this electronic age. Using a credit card to make online transactions makes a lot of financial sense: If the website is fraudulent, or your details are stolen and used to make a transaction, you’ll almost certainly be covered for anything coming out of your account. The same thing isn’t true with a bank debit card, and certainly not any kind of money order or cash payment.

Likewise, if a company goes bankrupt before you’ve received your goods, you should be covered. As long as you quickly pay off the purchase, it makes sense to use a credit card for most online and distance purchases.

iStock_000004652423Small-280x0They’re Convenient

So long as your credit card is part of a sound financial plan, and you’ve budgeted properly, it makes sense to use it instead of carrying vast amounts of cash. If you’re faced with an ATM outage, a credit card might well be the only way of paying for goods and services. It makes sense to have one for backup if nothing else.

They’re Great For The Traveller

These days, credit cards are the number one way of carrying money to overseas destinations. The same reasons that make credit cards a safe way to pay for goods and services at home make even more sense on holiday where you can’t always be sure about the security of an ATM or the honesty of a shop owner. Credit cards also mean that you don’t have to worry about carrying vast sums of foreign currency with you either. The exchange rate is often more favourable than an exchange service at home.

They’re Good For Your Credit Rating

If you have a credit card, or even several, and always pay them back on time, it can be a good way of demonstrating your financial stability. Often, a lending company is more willing to give a loan or mortgage to an individual that has a credit history but makes timely repayments, than one with no credit history at all. Lenders keep detailed records about your credit limit as well as what you’ve repaid and when, so a clean credit card history is a great way of improving your score. Remember though: despite what you might have read in a credit cleaner review, it’s very difficult, if not impossible to remove a bad credit record, so make sure you make prompt repayments

They Come With Some Useful Extras

Credit cards often come with a useful interest free period on both balance transfers and purchases, so they can be used as an effective way of managing debt, as long as that’s part of a properly planned budget. In addition, many cards often come with some enticing bonus offers that give you things like air miles, money off vouchers and even entrance into the business class lounges of airports. Shop around, and you could save a substantial amount of money just by using your card.

Proceed With Caution

Credit cards can be a great way to not only manage your finances, but also to protect them. Just make sure your credit card use is part of a sound financial budget.

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By Harry Price

Harry Price returned to his love for writing after leaving his job as an interior designer. He is enjoying his new entrepreneur life and the freedom it gives for him to travel and move around the world.


Raise Your Credit Score Fast -Add 100 Points By 18 Months!

Today let’s focus on the best ways to increase your credit score. Without wasting time lets jump right into it.

1. Improve the “Utilization Rate” on your Credit Cards and Unsecured Loans. Then continue to use your credit cards, pay them off in full each month and consistently increase your credit limits.

Your credit score will increase as you reduce the balances on your credit cards.  Your credit score is based on a number of different factors, but one of the most important aspects of your credit score is the utilization rate factor. In other words, how much of your credit limit are you using on each of your credit cards?

It is a best practice rule to use no more than 30% of your credit limit.  If you use more than 30% of your credit limit on any one of your cards, that could lower your credit score. An example would be if you had a $10,000 limit on one of your credit cards, you would want to always keep the balance on that card below $3,000.

After paying each of your credit cards off in full, now you must continue to use them, but only charge what you can afford to pay off when the bill arrives.

Don’t leave any balance on your credit cards. This will also save you money in interest!

After practicing this perfect payment pattern for 9 months straight, it is now time to ask that your creditors raise your credit limit by 20% of whatever it is now.

 

Example:

If you have a $10,000 credit limit today, after 9 months of using your cards and paying the bill off in full each month, ask that the bank increase your limit to $12,000. Your long-term goal should be to have high credit limits on all of your accounts.

2. Eliminate debt collection marks that are showing up on your credit report.

This next tip will clear 50% of your debt collection marks that are over 2 years old. So if you have more than 10 old collection marks on your credit report, this will get rid of at least 5 of them right away. A professional debt relief company can assist you with any remaining debts that you are unable to clear up on your own.

Here is how you eliminate debts or remove them from your credit report on your own.

Get your free credit report. For less than $10 you can get a membership at freecreditreport.com. Review your credit report and score there.

Anything negative on your credit report that is more than 2 years old, simply dispute. With freecreditreport.com they give you the ability to dispute marks on your own. Just go to the membership section and click on where it says “dispute center”. Select the reason that best fits your situation, in regards to why you are disputing the mark, and then click submit! Like magic, you will notice that most of the old marks that you have remaining on your credit report, disappear after disputing them.

After you dispute the mark, now the debt collection company has only 30 days to verify and validate that the debt is yours. Most of the time if you have a debt collection mark on your credit report that is more than 2 years old, the debt collection agency who owns that account, will no longer have all the documentation necessary to prove the debt is yours.

If they cannot prove that the debt is yours, then it cannot stay on your credit report, according to the Fair Credit Reporting Act.

3. Ask your mom, dad, husband, brother, friend or anyone that trusts you, to add you to their best credit card as a favor. What you will be doing is piggy backing on their perfect payment history, and this will raise your credit score fast!

Make sure that they add you as a “joint user”. This way you will be credited for their perfect payment history. Sometimes if you get added as only an authorized user, they will not report the payment history. Obviously make sure that you trust this person, and make sure that whatever card they add you to, has less than 30% of the credit limit used. This means that if they have a $10,000 credit limit, and a $5,000 balance, don’t get added to that card.

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Paul Paquin is the CEO at Golden Financial Services, a credit card debt relief company.


How Your Credit Score Is Determined

credit scoreLike income taxes and 401Ks, credit scores can be mysteriously difficult to understand. With the overwhelming majority of the population being affected by them, one would hope there would be a simple method for individuals and families to calculate their own scores. Of course, the same could be said for taxes and retirement plans, but we know how that story goes…

Although the specific calculations are convoluted, and typically hidden from the public, the commonly accepted and standardized scores used by lenders are made up of five primary factors listed below, in order of highest percentage of impact to lowest:

35%:  History of Payment

If there is one question lenders want answered, that question is: Will payments be made on time, and in full? Above all else, this single fact determines worthiness and reliability in lending. More than how much money is in an account, more than how much income a household makes in a year, this is the key: if a history of paying the proper amounts on time can be shown, the most important base has been covered.

Although an occasional late payment is a rather common accident amongst American families, credit scores don’t react nearly as badly to one late payment as it does consecutive or patterned late or non-payments. Do not panic if a single payment was accidentally missed; the scores looks for repetition.

30%:  Amounts Owed

This factor can be initially misleading, in that people tend to assume that the higher amount one owes, the lower their score must automatically drop. However, there is a critical difference to be made: the significant amount is the ratio of available credit that is being used. Simply put, the lower the percentage of available credit, the lower the score.

The reason creditors care more about percentages and ratios than raw amounts is that when an individual is using a large percentage of their available credit, they are considered financially over-extended, and carry a higher risk of not paying on time. Again, paying on time and in full is so important, that not only is payment history the strongest credit score factor, but the next strongest is simply trying to show lenders if people will pay on time in the future.

15%:  Length of Credit History

Another factor that is commonly misinterpreted, having a longer credit history does not necessarily translate to a higher score. If poor credit is shown over a long period of time, that will have a proportionately negative effect on a score as having good credit for the same length of time would yield a positive effect.

Yes, lenders are certainly more leery of rookie or inexperienced credit users, but a score is not automatically low just because an individual or family is new to credit. In fact, only a few months of reliable credit payments actually yield quite a high score, but to get a score to prime levels, it does require good behavior shown over a longer duration.

10%:  Types of Credit

With the wide variety of credit cards, loans, installments (monthly payments), mortgages, and other types of credit available, more is not always better. Results seem to show that the two most noteworthy conclusions to draw from this section are 1) lenders prefer users who have managed credit cards properly, to those who have not managed them at all (meaning using a card is probably worth your while), but 2) do not open a credit card or other form of credit unless you intend to use it.

Paying monthly installments, a mortgage if one is in use, and a responsible credit card is more than enough to boost this portion of the credit score.

10%:  New Credit

The myth that simply opening a line of credit will drop your credit has been exposed; this is simply not the case. However, a dangerous red flag to lenders is when a household opens up multiple forms of credit in a very short amount of time, particularly if that household is not already an established, trusted credit user. When getting started, avoid rapidly opening multiple accounts.

Written by Clif, a freelance writer for SereniCare Corporate Marketing, a Phoenix-area franchise opportunist. For further questions about credit scores, you can find more in-depth explanations at myfico.com. I hope this post was an enjoyable and worthwhile read for you.


How to Make Money through Credit Cards

How to Make Money through Credit Cards

Credit cards are rather helpful for those who are able to understand how to use them. It is even possible for credit card owners to earn money while spending money with their credit cards. While this may sound a bit daunting, it is possible to pocket extra cash while buying ones basic everyday needs.

Credit card companies have been known to send out multiple cards to families; offering to make their lives easier. True, credit cards can help with paying off bills and purchasing personal belongings. Some people keep a credit card just for emergencies. However, there have been cases of families going into debt because they could not keep up with their credit card payments.

Pick the Right Card

Cash Back credit cards reward the buyer with a percentage amount made from purchases in the form of cash, instead of rewarding high flyer miles or store credit points. The best way to make money with a cash back credit cards is by picking a card with the least amount of fees that offers the best possible reward rates.

Some banks and credit card companies suggest owning more than one cash back credit card per family. By doing so, it is possible to get more cash back with great discounts on commonly purchased items.

Always Use It

Sometimes the fine print doesn’t cover all of the items that can pay owners back, so wherever shopping is done the bill should always be paid with the card. Cash back credit cards will not only pay back the user for their basic purchases, they can also help centralize a balanced check book.

Be warned, for if one has a history of not being able to keep a budget, the credit card debt will build up. When earning cash back for shopping it is almost impossible to compete against building interest. More money will be lost than gained if credit cards cannot be paid off in a timely manner.

Know the Fine Print

Big spenders who use their cash back credit cards bundling up on their cash back rewards need to know when their rewards expire. Another important rule to know is if there is a cap for how much cash can be rewarded for shoppers. To maximize the amount of money earned from using credit cards the owners should only use cards that have no reward limit.

More than half of the cash back credit cards have a maximized cap for how much the users can earn. This can hurt some owners who have a trigger finger for spending. If the point is to make money with their credit cards, why bother owning card that puts a limit to how much can be used?

There are many ways to fall into debt using credit cards, but there are more ways to earn money while shopping with a credit card. Credit card owners should speak to banks and card companies and learn the policy of their cards so they can benefit from the best cash rewards possible. So get out there and start making money while paying off bills.

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The post is shared by George Martin. George is well aware of types of credit cards available in the market. He has great knowledge of low interest credit card that proffer best low interest, rewards and cash back guarantee.

 


Check Your Credit Rating – Poor Fico Credit Scores Cost

Check Your Credit Rating – Poor Fico Credit Scores Cost

There have been good signs that the economy has bounced back but this should not keep you from protecting a good name and reputation within the community. The creditors these days are implementing more strict policies that more and more Americans Canadians are being disqualified from getting loans and financial credit. This may well be from their banks , credit unions , credit cards or third party financial sources and institutions such as auto dealers and their car lot auto financing services and divisions.

What is Good Reasonable Fico Score:

All loan providers that include credit card issuers, banks, mortgage lenders and auto finance companies have revamped the FICO score in screening their loan applicants. Individuals with low scores are typically not allowed to loan or are given mark up rates that are very high. The then 620 FICO score that served as the baseline for enjoying credit, benefits, goods and employment has been raised to 740. That means the individuals with credit score lower than this baseline cannot engage with loans. There are even individuals who score high in their credit standing but still experienced reduced credit line and there are even individuals who failed to maintain their credit card accounts and equity lines.

Improve Your Fico Score It’s to Your Credit History Benefit:

People are aware of the vitality of FICO score in today’s dealing so more and more individuals are looking to improve their credit score. And these have greatly contributed to the rise of credit repair, credit rehabilitation or credit restoration services.

Credit Profiles Profiling:

Credit profiles in the US mostly contain erroneous entries or omissions that have gone against the credit standing of seventy eight percent of the individuals. People who are not able to fix these errors might go for credit service organization (CSO) to help them out.

Standard Rules Regulations in the Credit Credit Reporting Industries:

Various CSO’s have been focusing in repairing credit standings in the same manner as making out thieveries. Typically these organizations look into laws endorsed by the congress to argue negative, erroneous, obsolete and fraudulent details in the credit profile of their clients. The common acts used are the Fair and Accurate Credit Transactions Act, Fair Credit Reporting Act, the Fair Debt Collection Practices Act, and the Fair Credit Billing Act. Then disputes will be submitted to the consumer reporting agencies namely Equifax, Trans Union and Experian as well as to the state, federal, private and local regulatory authorities, creditors, collection agencies, and third-party record providers via electronic, verbal and written means. CSO’s are able to send the dispute letters via the various means (electronic, verbal and written) to the different credit reporting agencies, creditors, collectors and third-party record providers in a much extended period of time as compared to other credit repair clinics that can only do the submission in a monthly basis.

Why Business Utilize the Skills Processes of Credit Reporting Agencies:

Although it is possible for an ordinary person to engage with the same activities performed by CSOs to make things more economical, CSOs are equipped with more knowledge, skills and resources which give these organizations an edge. A decent and sound CSO should have a verifiable track record of their capability to contest and change any flawed or imprecise judgments, liens, foreclosures, bankruptcies, short-sales, student loans, inquiries, derogatory tradelines, personal identifiers and other fleeting data from their client’s credit profile. The typical time frame for credit repair result ranges from thirty days up to six months. However developments should be apparent by forty fifth to sixtieth day upon initiation of the repair process.

Are Credit Reports Reporting 100 % Accurate? Appealing Inaccurate Reports Reporting:

The process of restoring the credit standing of individual is lawful. However CSOs are not run by legal attorneys. That means the advice that can be derived from these organizations may not necessarily be according to law and in case you need to appear in court these organizations cannot represent you unless they hire a licensed law practitioner.

Thomas I. Canmore

It never can be easy to obtain auto financing if your credit report and FICO score are not 100 %
Many “good” and “responsible” people seem to have unfortunate issues in their credit past

Yet you may need a vehicle for your job

You need a car for your employment but have trouble obtaining auto financing in Edmonton or Fort mcMurray ?

If you have a job in Alberta Western Canada require reliable transportation fill out a confidential credit app at Canadian Custom Credit


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