Today's headlines can be depressing, particularly if you're having money problems. From the decline in the value of your home to the tightening of the credit market, the bad news can seem to be to much to deal with. It's at times like these that the slick operators and "scam-sites" crawl out from their hiding places like cockroaches.
There is any number of credit repair and debt consolidation scam artist that would like you to believe that you can't improve your bad credit without their help. Don't believe them. Particularly be wary of companies that want you to pay for credit repair before they provide any services, or if they suggest that you create a "new" credit identity. Some of these approaches can get you into deeper financial (and maybe even legal) trouble.
There are many, common sense steps you take yourself to repair most of your credit problems. Many will require discipline on your part, and some might be downright painful, but you can get your financial affairs back in order.
Credit card debt is one of the easiest debts to fall into because it's the easiest way to get credit. You'd be surprised how many people think of paying off their credit cards in terms of making the minimum payment each month. Are you one of them? That approach just keeps digging the debt hole deeper. You have to make progress in paying off the balance of your credit card debt before you can gain control again. This will mean developing a payment plan you can live with, and calling your bank or lender to get their buy-in.
How do you keep your credit card balance from creeping up again? How about putting away the plastic, and paying with cash. I know, easier said than done. If just cutting down on restaurant meals doesn't free up enough cash, that's when it starts getting painful. You might have to make drastic changes to your life in order to reach the goal of repairing your bad credit. Could you drive a used car instead of a new one? Sure. Could you take public transportation instead of owning a car? Let the pain begin.
Once you are able to make meaningful (and on-time) payments on all your monthly debt, you can turn your attention to your credit report with the goal of fixing your credit score. Request copies of your credit reports from the three major credit bureaus (Experian, Equifax, and TransUnion). Look for the negative information in your report. Some may be valid, but focus on inaccurate data. Maybe one of your creditors is reporting you have an outstanding, overdue balance, but you can prove that you have paid off that loan. Contact the credit bureau in writing, specifying the information you think is inaccurate. Include copies of documents that will prove your point, and request that the negative information be removed or corrected. Also contact the lender that originally provided the inaccurate, negative information. Request, in writing, that their records be corrected, and include the written proof of your point.
These are just a few of the steps you can take yourself to fix your bad credit. At the end of the process, you'll have your finances under control. And you didn't have to pay a credit repair scam artist to help.
for more info on raising your credit score visit my blog at http://http://bsjmarketing.com/csb
Showing posts with label bad credit. Show all posts
Showing posts with label bad credit. Show all posts
Wednesday, February 18, 2009
Saturday, December 6, 2008
What Bad Credit Lenders Don't Want You To Know
An increasing number of financial institutions are making a profitable business out of lending money to borrowers with a poor credit history. They range from the "pay-day loan" storefronts to well-known banks and mortgage lenders. They are taking advantage of an opportunity to charge interest rates that are much higher than what borrowers with good credit might pay. After all, bad credit doesn't mean you can not get credit; you just can't get credit at a reasonable cost. In this article, we will share with you some information that the "bad credit lenders" do not want you to know.
These lenders-of-last-resort want you to believe you are very lucky that they are willing to do business with you. They would love to be viewed as your financial savior; the banker on a white horse that is willing to loan you money when no one else will. The truth is quite the opposite. They are charging you such high interest rates that it may become impossible for you to ever dig yourself out of debt. You might be struggling every month just to make the minimum payments. Meanwhile the debt is piling on.
The bad credit lenders certainly do not want you to know that you could get a decent interest rate on a loan elsewhere. But can you? An honest answer is "Maybe not today, but soon." It all depends on how fast you can repair your bad credit and raise your credit score.
It is possible to fix your credit problems yourself, for free. It will take a determined effort on your part. Start by cutting back on expenses where ever you can. This should give you some extra cash that you can apply toward your loan balances. If you are stuck in an un-winnable situation, try negotiating with your lenders to forgive some of the debt.
Get copies of your credit reports, and go over them carefully to make sure there is not outdated or inaccurate information in them. Work with the credit bureaus to delete the wrong information. Maybe one of your creditors is reporting that you have an outstanding, overdue balance, but you can prove that you have paid off that loan. Contact both the credit bureau and the lender in writing, and be sure to include copies of any documents that back up your claim.
Build some good credit references that will be reported to the credit bureaus. This may mean obtaining alternative sources of credit, such as a secured credit card or sub-prime merchandise card. They help raise your high credit limit while lowering your debt to credit ratio.
These are all techniques that your current high-interest lenders do not want you to know about. If you really work at lowering your bad debt, and increasing your credit limits, your credit reports and FICO score will reflect your efforts. It won't happen over night, but in time you can start getting loans and even a mortgage at reasonable interest rates from lenders who value your business.
get your credit secrets bible now!
These lenders-of-last-resort want you to believe you are very lucky that they are willing to do business with you. They would love to be viewed as your financial savior; the banker on a white horse that is willing to loan you money when no one else will. The truth is quite the opposite. They are charging you such high interest rates that it may become impossible for you to ever dig yourself out of debt. You might be struggling every month just to make the minimum payments. Meanwhile the debt is piling on.
The bad credit lenders certainly do not want you to know that you could get a decent interest rate on a loan elsewhere. But can you? An honest answer is "Maybe not today, but soon." It all depends on how fast you can repair your bad credit and raise your credit score.
It is possible to fix your credit problems yourself, for free. It will take a determined effort on your part. Start by cutting back on expenses where ever you can. This should give you some extra cash that you can apply toward your loan balances. If you are stuck in an un-winnable situation, try negotiating with your lenders to forgive some of the debt.
Get copies of your credit reports, and go over them carefully to make sure there is not outdated or inaccurate information in them. Work with the credit bureaus to delete the wrong information. Maybe one of your creditors is reporting that you have an outstanding, overdue balance, but you can prove that you have paid off that loan. Contact both the credit bureau and the lender in writing, and be sure to include copies of any documents that back up your claim.
Build some good credit references that will be reported to the credit bureaus. This may mean obtaining alternative sources of credit, such as a secured credit card or sub-prime merchandise card. They help raise your high credit limit while lowering your debt to credit ratio.
These are all techniques that your current high-interest lenders do not want you to know about. If you really work at lowering your bad debt, and increasing your credit limits, your credit reports and FICO score will reflect your efforts. It won't happen over night, but in time you can start getting loans and even a mortgage at reasonable interest rates from lenders who value your business.
get your credit secrets bible now!
Thursday, December 4, 2008
Three Common Credit Problems And How To Fix Them
Bad credit doesn't necessarily mean you can't get credit; you just can't get credit at a reasonable cost. The interest rates you are charged are sky high because you had some financial difficulties in the past. In this article we will give you three methods for repairing your credit. The method that is best for you will depend on the severity of your financial problems.
Problem: Incorrect information on your credit report.
Method #1: Contact the credit bureaus.
Let's say you've requested a copy of your credit report from the three credit bureaus, and you find that there is a negative entry or two from your past lenders. It could be the negative information is just, plain wrong. The lender reported you still had an outstanding balance, when in fact, you have proof you have paid off the loan. This is an easy problem to fix. Well-written letters to the credit bureaus, with proof of your claim, should correct the problem.
Problem: Multiple overdraft fees.
Method #2: Pick your bank carefully.
As if it's not painful enough to be hit by multiple overdraft fees for your checking account, if your bank reports them to the credit bureau your credit score suffers too. Unfortunately, it's all too easy to withdraw more money from an ATM than you have in your checking account. Most banks encourage it by including "bounce protection" in their terms and conditions. After all, the bank gets another $20 to $35 overdraft fee each time.
You could stop and check your balance at the ATM before making the withdrawal, but when you're in a hurry that often doesn't happen. A fail-safe method is to just pick a bank that doesn't automatically include bounce protection with all their accounts. That way, if you're low on funds, the ATM won't dispense, and you'll avoid yet another overdraft fee.
Problem: Low ceiling on your line of credit
Method #3: Sub-prime merchandise cards.
Maybe you're having trouble getting credit because of some past financial difficulties. You want to build up your line of credit, but new lenders are keeping their distance from you.
An easy way to increase your line of credit without getting into a financial bind is to get a sub-prime merchandise card. This is nothing more than a card attached to a line of credit that allows you to buy merchandise from a specific vendor (usually the company that sold you the card). You're required to put down a deposit on whatever you purchase, and the remaining balance is financed on the card.
The advantage of the sub-prime merchandise card is that this new credit line will be reported to the major credit bureaus, and your credit report will reflect this good news. For example, if you get a $5,000 card and you finance a $500 purchase, your high credit limit will be increased by $5,000 almost overnight. And the small outstanding balance on the sub-prime merchandise card will also positively impact your credit report by showing potential lenders that you are credit worthy once again.
Pick the method that is best suited for your bad credit problem, and enjoy the financial advantages that an improved credit report will bring.
get your copy of credit secrets bible now
Problem: Incorrect information on your credit report.
Method #1: Contact the credit bureaus.
Let's say you've requested a copy of your credit report from the three credit bureaus, and you find that there is a negative entry or two from your past lenders. It could be the negative information is just, plain wrong. The lender reported you still had an outstanding balance, when in fact, you have proof you have paid off the loan. This is an easy problem to fix. Well-written letters to the credit bureaus, with proof of your claim, should correct the problem.
Problem: Multiple overdraft fees.
Method #2: Pick your bank carefully.
As if it's not painful enough to be hit by multiple overdraft fees for your checking account, if your bank reports them to the credit bureau your credit score suffers too. Unfortunately, it's all too easy to withdraw more money from an ATM than you have in your checking account. Most banks encourage it by including "bounce protection" in their terms and conditions. After all, the bank gets another $20 to $35 overdraft fee each time.
You could stop and check your balance at the ATM before making the withdrawal, but when you're in a hurry that often doesn't happen. A fail-safe method is to just pick a bank that doesn't automatically include bounce protection with all their accounts. That way, if you're low on funds, the ATM won't dispense, and you'll avoid yet another overdraft fee.
Problem: Low ceiling on your line of credit
Method #3: Sub-prime merchandise cards.
Maybe you're having trouble getting credit because of some past financial difficulties. You want to build up your line of credit, but new lenders are keeping their distance from you.
An easy way to increase your line of credit without getting into a financial bind is to get a sub-prime merchandise card. This is nothing more than a card attached to a line of credit that allows you to buy merchandise from a specific vendor (usually the company that sold you the card). You're required to put down a deposit on whatever you purchase, and the remaining balance is financed on the card.
The advantage of the sub-prime merchandise card is that this new credit line will be reported to the major credit bureaus, and your credit report will reflect this good news. For example, if you get a $5,000 card and you finance a $500 purchase, your high credit limit will be increased by $5,000 almost overnight. And the small outstanding balance on the sub-prime merchandise card will also positively impact your credit report by showing potential lenders that you are credit worthy once again.
Pick the method that is best suited for your bad credit problem, and enjoy the financial advantages that an improved credit report will bring.
get your copy of credit secrets bible now
Subscribe to:
Posts (Atom)