How To Fix Your Credit Report

Importance Of Knowing What's In Your Credit Report When Shopping For New Car

2012-02-01T06:30:00.000-08:00

Buying a car? Steer clear of these wrong turns

At this time of year, many people are searching for the best deal for a new car. ARAContent offers up this excellent reminder of how important knowing what's in your credit report can be when choosing your next ride:
Buying a car is like an epic adventure. There are heroes (you), sidekicks (your wingmen who accompany you to the dealership), foes (the sales manager who just won't give up on the undercarriage rust-proofing) and even a prize at the end (your shiny new vehicle). And like any journey, buying a car can be fraught with perils and wrong turns.

Fortunately, a few simple steps can help ensure your car buying experience is a great adventure that doesn't turn into a detour to financial disaster. Here are some common wrong turns and how to avoid them:

1. Failing to check your credit before going to the dealership.

Unless you're paying cash - something many people cannot afford to do - you'll be financing your vehicle purchase. You need to know what's on your credit report and how strong your credit score is before you apply for financing. This will give you an idea of what loan terms you might qualify for. Websites like www.creditreport.com can help you understand your credit. A membership to CreditReport.com includes daily monitoring of your credit report to help you manage your credit, know your score, and catch potential fraud quickly.

2. Not having financing lined up before you shop.

Once you have a handle on your credit, it's important to explore your financing options before you ever set foot on a car lot. Yes, virtually every dealer can help you with financing, but there's no guarantee they will be able to offer you the best terms. You may be able to qualify for a lower interest rate through your bank. Having checked a couple financing options before you shop ensures you know exactly how much you can spend, and gives you more bargaining power at the dealership.

3. Not knowing what the actual price of the car should be.

There's the price the dealer puts on the car - the sticker price - and then there's the price you should actually pay. Most automotive experts agree, you should start your negotiations based on the invoice price, which is what the dealer paid for the vehicle, and pay only a few percentage points over that price. Fortunately, online resources like Edmunds.com and KBB.com can help provide an idea of what you can expect to pay for any vehicle you're thinking of purchasing.

4. Looking at the monthly payment, rather than the actual price.

When you're car shopping, it's easy to take the wrong turn and focus on how the monthly payment fits into your budget. But that doesn't give you an accurate picture of the true price of the car you're financing. You may think you're getting a good deal on the sale price, but if you're paying thousands in interest over the life of the loan, that deal may not be as good as you think. For example, if you finance a $25,000 vehicle with no money down and no trade at 7.5 percent interest over six years, you'll pay nearly $6,200 in interest, according to onlinecalculator.org. That means you haven't bought a $25,000 car, you've bought one that actually costs you more than $31,500.

5. Buying costly add-ons or features that you don't need.

Remember the sales manager who just won't take "no" for an answer when it comes to the rust-proofing? Add-ons - services or products that the dealership tries to sell you after you've chosen your vehicle - are a significant revenue stream for car sellers. Often, however, the items are ones you really don't need. For example, if you're buying a new car, do you really need the extended warranty plan? In most cases, the manufacturer's warranty should be sufficient. Be sure to read all the fine print on your sales contract before signing anything. If the dealer has included add-ons you don't want or need, ask to have them - and their costs - removed. If the dealer balks, threaten to walk; there are just too many car dealers out there to settle for less than the best deal possible.
(Article courtesy of ARAContent.com)
More free 'how-to' tips at FindHow2.com

Piggybacking For Better Credit Score

2012-01-10T09:27:00.000-08:00

Piggybacking To Raise Your Credit Score -- Is It Still Legal?

FICO (Fair Isaac Corp.), which developed the widely-used FICO® credit scoring model, warned 5 years ago in 2007 that it would end credit score piggybacking due to alleged abuses. The new scoring model labeled "FICO® 08" would put a stop to alleged abuses to the credit scoring system.

However, due to outcries from critics, the firm stepped back from the decision. Experts note that such a move would violate the Equal Credit Opportunity Act.

Some firms are still promoting and popularizing this method to boost a bad credit score.

"Piggybacking credit" refers to the practice of someone with a good credit score "renting out" their good score to someone else. Elsewhere, perhaps a parent or a spouse does the same thing to help a family member get better credit. Therefore, consumers who had no credit and people suffering from bad credit got a "credit boost" simply by being added to the accounts of credit cardholders who had legitimate good credit themselves. In effect they got to ride along 'piggyback' on the good credit account holder's account.

The website Boostmyscore.net details how this practice may still improve your credit score, though probably for a hefty price. (Note: we have NO affiliate relationship with this website; we merely link to it to give you an idea of the services available from them.)

More information on how an authorized user can get better credit is found in the forums here:http://www.fatwallet.com/forums

We're not certain it's worth the cost to piggyback onto someone else's credit, and it's definitely not ethical to do so if you're trying to hide poor credit from a lender, or worse, trying to scam the system in taking out a loan and destroying someone else's credit score in the process.

Bottomline, our opinion remains the same: Restoring good credit is a task you can do yourself, by yourself, without having to pay somebody else to do it for you.

How To Fix Your Credit Report After Foreclosure

2012-01-06T06:01:00.001-08:00

Homeowners who have gone through the gut-wrenching experience of foreclosure report that it takes quite a bit of time and effort on their part to correct their credit report after the foreclosure is completed.

They report that banks are slow to investigate and correct charge offs in their credit report, and derogatory entries are allowed to stand.

The best way to fix your credit is to get into action. Write letters. Make phone calls. Track your progress. Always take down names and phone numbers and phone extensions. Keep at it.

Tackle each of the 3 major credit bureaus in order, targeting the the single worst error on each credit report.

You can find their address, phone number and website information here: http://www.findhow2.com/how-to-contact-credit-bureaus.html

Eventually, these homeowners report, credit history is corrected, and with the passage of time and better credit habits, their good credit is restored.

Their advice: watch your credit report closely after foreclosure. Never hesitate to dispute questionable negative entries that you believe to be incorrect. It seems that workers at these banks show little initiative to do their job with your best interest in mind, and remember, there is no incentive, nothing in it for them, to report correctly to your credit report. It's up to you to ensure that they do their job.

It won't cost you anything but some time, a little postage and aggravation to keep checking back with thse credit bureaus that you have successfully disputed with. Keep in mind that your old creditor might not yet have responded to your official dispute -- worse yet, since credit reporting is controlled by an automated reporting computerized system, the creditor might report it inaccurately all over again.

This is the importance of keeping all paperwork you have which states your old loan is in foreclosure. It's not a bad idea to give the credit bureaus a copy (never the original) with your dispute letter to buck up your claim and speed up the process of correcting your credit report.

Understanding What A Charge Off Means To Your Credit Report and Credit Score

2012-01-04T06:42:00.000-08:00

If you find derogatory entries on your credit report listed as "charged off" you may wonder what this term means, and if you even have to repay these debts since the original creditor is no longer trying to collect from you.

Second question first: Yes, you still owe the debt.

First question: A charge off refers to a particular debt that a creditor has determined to be uncollectable, and has therefore written off the books. Generally this debt ultimately gets sold to a collection agency. They may buy the debt for pennies on the dollar and use every dirty trick in the book to shame you into paying up.

If a creditor hasn't received the payment you owe him after three months, the account is frequently charged off and sold. But sometimes the length of time taken before an account is charged off extends for much longer than three months, especially when it comes to medical debt.

And, as stated earlier, just because your credit report shows this debt as 'charged off' that fact does not relieve you of the legal responsibility to repay what you owe. Until the statue of limitations has run its course in the state you live in (sometimes in as little as five years), you will still be legally indebted to repay this debt.

This is why collection agencies are so quick to try and get you to confirm you owe the debt or get you to make even a token payment, as this reset the clock on your debt and the statute of limitations gets extended. You can learn more vital tips on how to fight collection agents trying to reage your debts.

Also, you may want to be aware of and avoid the 7 biggest lies told by collection agencies.

5 Simple Ways To Rebuild Your Credit Rating

2012-01-03T08:08:00.001-08:00

Can credit repair companies really fix bad credit for a fee?

It sounds so simple: you pay a fee to a company that promises they can fix your credit score. For a fee.

Watch out!

Credit repair companies promising to fix your bad credit are likely operating scams.

Removing legitimate negative items from your credit is not possible, not matter what they tell you. Yes, some key derogatory entries may get deleted from your credit report for awhile. But, sadly, legitimate bad debt and credit history boo-boo's will re-appear once an old debt gets sold to a new debt collector or your creditor updates credit reporting.

It's like flushing money down the drain. And you don't want to do that.

Be skeptical of "credit experts" who want to sell you advice. Most of what they offer can be found for free on FindHow2.com and other free credit and debt relief informational websites.

Fixing a bad credit score requires discipline, patience, and action to follow-through and get better credit.

Live within your means. Watch your credit utilization, don't exceed 25% of credit usage. Pay all your bills before they are due. Stop buying with plastic. Pay off debt. Save money.

The one and only way you can establish a good credit rating is to practice good credit habits for a long time, and use credit wisely.

Credit repair companies may like to trick you into thinking that what they do is complicated. It's not. You can do everything they can do, and probably better, by yourself for free.

And, some firms practice shady tactics which might do more harm than good for your credit!

If you do find outdated or incorrect information on your credit report, follow the credit bureau's website instructions on how you can then dispute those derogatory remarks yourself. It can be done. But wishful thinking is what credit repair scammers sell: If negative information on your credit reports is indeed correct, it cannot be legally removed. Only good credit habits going forward, prompt payment of credit obligations, and the passage of time can help you then.

5 simple ways to start rebuilding your credit rating yourself

Create and stick to a budget of your regular and every-so-often monthly expenses. Determine how much you will net each month, and plan how to spend it to reach your credit restoration goals. Some expenses that you can avoid should be deleted, or at least suspended, while you are in this credit recovery mode.

Pay all bills on time. Better yet: pay them early. Don't wait until the last minute to pay. It's a good idea to pay at least 3 days early, then check the firm's website to ensure your payment has been applied on time. Always keep copies of checks and online payments to dispute late payments.

Pay a little more on each credit card and installment loan you have. This will help you pay down your debts faster. At least pay what you've charged that month, plus a debt reduction amout (say, 5% of the total credit card balance due), and pay off all interest charged to your credit card that month.

Get a new credit card that has a low interest rate, if you qualify. Use it only to rebuild your credit score by making small charges every month, then paying off the total amount in full each month to demonstrate good credit habits. You may also need to use a secured credit card which is connected to your savings account. The value of this is that you will be able to start building a good credit history even if your credit is so bad that you cannot qualify for a regular, unsecured credit card account any longer.

If you are carrying a large balance on credit cards, consider selling a second car, property, jewelry, collectibles, items stacked away in the attic, to raise cash to pay-off your credit card debts in a big way. Once you've gotten that credit card balance paid down, don't resort to using it again and run up the balance. Stay in control of your spending.

By following these five simple tips, you can restore good credit and enjoy peach of mind when it comes to your monthly bills.

Find more ways you can restore good credit at FindHow2.com.

Ways College Students Can Get Credit Back On Track

2011-12-29T09:56:00.000-08:00

Fixing your credit is doable
If you find yourself with less-than-good credit, you are not alone. Business Insider, an online business news website, reports that one in 50 households owes more than $20,000 in credit card debt. Coinciding with this alarming figure, the site further states that more than 2 million Americans look to credit counselors each year to avoid bankruptcy.

Before your finances fall into the bankruptcy category, you can take steps to help turn your bad credit around. Just ask James Cheslek, dean of academic affairs at Brown Mackie College - Albuquerque. Cheslek is a retired corporate and trial law attorney who helps college students with bad credit get back on track.

"If you want to be successful, it is important to not let credit card debt get out of control," Cheslek says. "Many people get frustrated because their credit is not up to par. They don't realize how easy it is to fix. It may take some time, but it is doable."

Step one: Request a free copy of your credit report.
Every American is entitled to a free copy of their credit report under the Fair Credit Reporting Act (FCRA). Each of the three reporting agencies - Equifax, Experian, and TransUnion - is required to provide it once every 12 months, if you ask for it. To order your free copy, visit annualcreditreport.com, or call (877) 322-8228.

Step two: Read your credit report carefully for inaccuracies.
"Spend some time figuring out what all the symbols mean. Learn what's good and what's bad," Cheslek says. "Reporting companies get information from creditors. They simply take the information and add it to your report."

Step three: Dispute inaccuracies.
The FCRA further states that a reporting agency must correct any inaccuracies on your report. To dispute an item, notify the reporting agency of the inaccurate information. "They must investigate by forwarding your information to the company that provided the disputed item," says Cheslek. "When any information proves incorrect, the FCRA calls for all three reporting agencies to remove it from your credit report."

Step four: Request verification of debt.
The Fair Debt Collection Practices Act (FDCPA) gives consumers rights against debt collectors. "Here's the deal," Cheslek continues. "Debt collectors buy old debt for pennies on the dollar. They call and tell you they are collecting on behalf of another company. However, the company that originated the debt has written it off and retired the file."

This may be the best kept secret in America. The FDCPA entitles you to write to the original company and ask for verification of the debt. They have 30 days to complete the process. Usually, they can't find the file or verify the amount," says Cheslek . "You may need to send follow-up letter to the credit reporting agencies to say, 'Take this off.'"

Step five: Once your credit is fixed, keep it fixed.
Cheslek offers the following rules of thumb to follow in the interest of keeping a good credit score:

* Pay bills on time. Late payments add fees to the balance owed.
* Change the payment due date if the current one is inconvenient.
* Pay more than the minimum due, even if just a little.
* Do not skip any payments. Skipped payments lead to bad credit.
* Do not close old accounts. Creditors look at how long you've had credit.
* Keep one account with no balance.
* Do not apply for loans you don't need. Every loan request shows on your credit report for two years; a denial becomes a negative mark.

EDITOR'S NOTE:

With 27 school locations in 15 states, the Brown Mackie College system of schools (www.brownmackie.edu) is dedicated to providing educational programs that prepare students for entry-level positions in a competitive, rapidly changing workplace. Brown Mackie College schools offer bachelor's degree, associate degree, certificate, and diploma programs in health sciences, business, information technology, legal studies and design technologies. See bmcprograms.info for program duration, tuition, fees, and other costs, median debt, federal salary data, alumni success and other important info.

Article courtesy of ARAContent.com

Credit Reports Can Be Disputed To Correct Credit History

2011-12-09T05:38:00.001-08:00

Companies that consolidate information about your credit history are called Consumer Reporting Agencies (CRA's). The most common CRA is the credit bureau.
The information CRAs gather up about you and resell to creditors, employers, insurers, and other businesses is called a credit report. This report forms the basis of your credit score, which is so vital in providing lenders, employers and insurers a "financial snapshot" of your creditworthiness.
If you don't like the picture, then you must take action and learn how to correct credit report by writing and sending a credit report dispute letter to fix bad credit.
Once you are armed with the facts, you can begin the process of reviewing your credit reports and taking action to challenge inaccurate or outdated credit information contained in these credit reports.
Anyone can do this. Here is a free guide on how to do it yourself, correct your credit report and raise your credit score:
"How To Dispute Errors In Your Credit Report"

How To Re-Build Bad Credit, Restore Good Credit

2011-12-08T04:49:00.001-08:00

You will need to build credit if you do not have a credit history, and you will need to re-build your credit if you've got negative marks in your credit files.
The two things that will improve your credit score is (1) the passage of time, and (2) the practice of good credit habits -- that is, paying your bills and your debts as agreed.
Building or restoring credit is not all that hard. Here are two free articles to get you started correcting your credit report:
"Re-Building Bad Credit" --
http://www.findhow2.com/how-to-rebuild-bad-credit.html
"Restoring Good Credit" --
http://www.findhow2.com/restoring-good-credit.html

How To Make Yourself 'Identity Theft Proof'

2011-12-07T01:17:00.001-08:00

Ways to fix your credit report BEFORE it gets damaged by identity theft:

The FBI has called it "The fastest growing crime in America." Close to 10 million Americans every year are victimized by it and the costs are estimated at 50 billion dollars annually. Many criminals get off easy while the victims spend years working to restore their damaged credit reports and reputations. Worse yet, there seems to be no end in sight. "The popularity of the crime is simply growing faster than the solutions to stop it" many experts conclude. The task of recovery is so time consuming and tedious, multiple states have resorted to creating "Identity Theft Passports" for victims in an attempt to ease the pain for them as they endure the lengthy and frustrating clean up process. Learn secrets of making yourself virtually identity theft proof in 60 minutes or less (for free).

Expert Author Terry Price shares the secrets in "How to Make Yourself Virtually Identity Theft Proof in 60 Minutes or Less"

U.S. Consumers Turn To Credit Cards Again to Cover Cash Crunch

2011-12-05T03:59:00.001-08:00

Want proof that holiday season sales are not so much about the economy getting better, but, instead, about consumers opting for old ways to pay for their goodies?
Hey, who needs a good job or savings in the bank when you've got a shiny new credit card with a gib credit limit tempting you?
Bad credit habits are hard to break.

"Credit card use is on the rise"

Read it here at: http://money.cnn.com

Credit Crisis Far From Solved, More Bad News Coming

2011-12-01T06:56:00.001-08:00

We've been amused to watch all the hoopla breathlessly streaming through the media mouthpieces this past week as they breathlessly report record holiday shopping sales. Here's a report from Brett Arends at MarketWatch.com you need to read and pass along to everyone you know before you and your friends get swept up in the "Happy News" ...

The U.S. consumer is still broke... The numbers are not heartening. Despite the lies you read and hear, telling you that American consumers “are repairing their balance sheets,” the truth is total household debts in this country have fallen by a mere 4.5% from the record peak at the height of the bubble a few years ago. They are still 20% higher than they were as recently as 2005, and twice what they were in 1999. According to the Federal Reserve, consumer credit levels are rising. And according to the Commerce Department, households are saving less than 4% of their disposable incomes — a fraction of the levels seen decades ago, and well down even from 6% or more seen in 2008-9.

Read his full article here and be warned for bad news on the horizon: 10 reasons the crisis isn’t over

Contacting Creditors Helps Speed Up Credit Repair Process

2011-11-30T05:55:00.001-08:00

Svilen Andreev notes an important factor when you begin writing and mailing credit repair letters to fix your credit history:

Since credit reporting companies are the prime source of information for the lenders to judge your credit worthiness, it is important to send your credit repair dispute letters to these credit reporting companies/bureaus. However, this doesn’t mean that you should not send the dispute information to the erring creditors in question. In fact, it is a good practice to send all the dispute information and documents to the creditors as well… it might help speed up the process and the creditors cannot claim that they didn’t receive complete information on the dispute from credit bureaus.

Read his full credit repair letter article here:

http://www.smart-debt-solutions.com/credit-repair-letters-6-things-you-must-remember/

Are Your Credit Reports In Need Of A Good Cleaning?

2011-11-21T03:32:00.000-08:00

Need to spruce up your credit rating with a review for your credit reports? Here are some free tips help you get started the right way right now!

Now is a great time to get your finances - including your credit - in order. So, if you've been neglecting your credit like those old dusty boxes of clothes you can't quite part with yet, use the spirit of spring cleaning to spruce up your finances.

Experian has developed four tips to help you spring clean your credit:

1. Know your report and your score

Despite what you may have heard, accessing your own credit report does not affect your credit scores. Reviewing a credit report results in what is called a "soft pull," or "soft inquiry," meaning it will only be seen on a personal credit report, not the ones lenders use. Everyone should check their reports at least annually. It's part of good credit management. You can get your credit report at http://www.experian.com/. Purchasing a scored report will help you identify the factors in your report that are most influencing your credit risk.

2. Pay your bills on time

Paying your bills on time is the single most important contributor to a good credit score. If a bill is not paid in a timely manner, the delinquent payment may be reported as late to a credit bureau. Delinquent payments and collections can have a major negative impact on credit scores. Even if the debt you owe is a small amount, it is crucial that you make payments on time. In addition, you should minimize outstanding debt, avoid overextending yourself and refrain from applying for credit needlessly.

3. Start paying off your credit card debt and leave the account open

Paying down debts and paying off credit cards is always good for your credit, but closing a credit account could have a negative impact on your credit scores, at least for a short time. Some people start with their smallest debt. They can pay it off fairly quickly, which gives them a sense of accomplishment. That payment amount can then be added to the payments for a larger debt so that it can be paid off more quickly. Others start with a large debt and get it out of the way. Getting a big weight off your shoulders can help knock out the remaining debts faster. If one debt has a higher finance charge, it is always smart to pay the most toward the balance of that account. That's because so much of your money is going toward fees and interest and is not lowering the amount of the debt. When it is paid off, all the money you were paying in interest can be applied to the balance of another account.

4. Use credit wisely

Once you've paid down your debts, continue to use your credit cards and pay the bills on time each month, and keep your balances low. Credit scoring systems not only look at individual credit card balances, they also consider something called your utilization rate (or balance to credit limit ratio). Your utilization rate is the total of the balances on all of your credit cards compared to the total of the credit limits on all of your credit cards. For example, if your credit card's limit is $10,000 and you owe $2,500 - your credit utilization rate is 25 percent. According to Experian, consumers on average are utilizing more of their available credit. At the end of 2009, the average utilization was 22.1 percent compared to the same time last year when average utilization was at 19.1 percent. Closing accounts reduces your available credit, which can increase your utilization ratio or balance-to-limit ratio - a sign of risk that can negatively impact credit scores.

While there is no quick fix for bad credit scores, there are straightforward steps we can all take to help clean up and improve our financial well-being. So when you're clearing out the clutter in your living room, don't forget to review your finances and see what else you can do to get organized for the spring season. For answers to other financial questions and more information about Experian, visit www.experian.com/crediteducation.

Article courtesy of ARAcontent

Recommended reading:

BestCredit: How to Win the Credit Game, 2nd Edition
Living Well with Bad Credit: Buy a House, Start a Business, and Even Take a VacationNo Matter How Low Your Credit Score
The Road to 850: Proven Strategies for Increasing Your Credit Score
How You Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line

Are Student Loans Ruining Your Credit?

2011-11-18T10:20:00.000-08:00

Late payments on your student loans are one easy way to ruin your credit score, and the problem will only get worse if you choose to ignore the problem!
Learn how deferment of your student loans might be the best option to get some breathing room on your education loans, catch up on past due payments, and try to start fresh with a new budget.
You'll also learn what the difference is between deferment vs. forbearance. Good info you might want to share with others you know who are struggling to pay off student loans.

Professional Credit Repair Can Help Credit Dispute... But For A Price

2011-11-16T04:13:00.000-08:00

Are you interested in fixing your credit report, but afraid to do it yourself? You can do it. But if you'd rather pay someone else to do it for you, if you don't feel comfortable negotiating debt settlements or writing credit dispute letters, then hiring a reputable credit repair professional does make sense to get qualified, expert help to solve your credit problems.

No matter if your credit problems stem from your past poor credit habits or simple mistakes that the credit bureaus failed to correct, or even more serious issues like identity theft, turning to a professional credit repair attorney will give you immense peace of mind.

The secret is simple: you need to be selective, to shop around, ask lots of questions and hire the best you can afford.

It's said that professional legal credit repair law firms provide the best options for getting black marks erased from your credit report; however, be aware that oftentimes, getting entries removed from your credit report merely depend on the passage of time. Don't let anyone tell you that they can expunge entries for you that are accurate (they can't) and those who might advise you to open a new credit file, alleging "identity theft" (that's illegal).

Locate the best professional help you can afford using these helpful links. We are not affiliated in any financial arrangement with any of these links; we simply wish to provide you the reader with a selection of helpful websites to begin your search:

http://www.lawinfo.com/fuseaction/Client.lawarea/categoryid/1123
http://www.creditrestorationbureau.com/
http://www.creditrestorationbureau.com/
http://www.attorneycreditrepairguide.com/
http://ezinearticles.com/?Credit-Repair-Lawyers---Six-Reasons-For-Using-One&id=3545501
http://www.ftc.gov/opa/2010/02/facta.shtm

How Credit Debt Settlement Letters Can Help Settle Past Due Credit Account

2011-11-14T21:42:00.000-08:00

Credit debt problems can generally be resolved with just a few simple steps all by yourself. There's no need to hire professional credit repair to restore good credit. You can fix your own credit rating, and in time, improve your FICO credit score.

Here's what you need to keep in mind when you are preparing a credit report dispute:

Credit debt settlement is one way to settle past due balances on your oldest credit account. There are distinct steps to write a settlement letter that will lay out your plan to pay off your debts in exchange for favorable treatment of your credit rating.

Credit dispute options include phone calls and emails and entries in website forms... but the best option, in my opinion, is still writing a letter to fix your credit.

Your credit reference will be tested when you apply for a new loan, buy new auto insurance, and even, more often than not, when you apply for a new job... so you must take steps to fix your credit. Request credit report from each of the Big Three credit reporting agencies: TransUnion, Experian and Equifax. Identify every page of the reports. Take action to get rid of key derogatories that are outdated or untrue. If necessary, add your 100-word explanation to tell your side of the story (i.e., you were late on credit card payments three months due to being unemployed during that period, etc.)

Credit report service availability is available at no-cost from the truly free www.annualcreditreport.com -- so there's no need to pay to check your credit. (It is true, however, that if you want to get your FICO credit score, you must pay a fee for this.)

A credit repair company can indeed offer you professional credit repair services for a fee. But watch out. If you are required to pay for the service upfront or if you are not notified that you can do this yourself, then you may be dealing with a firm that is skirting the law. Stay clear.

So as you can see, it's simple to solve your credit debt problems by yourself. For free tips on how you can fix your own credit rating, and eventually raise your FICO credit score, visit www.FindHow2.com/repair-credit.html. For free sample credit dispute letters and templates to tailor to your own credit relief program, visit http://www.credit-letters.com/.

Should Credit Reports Be Ordered At Same Time Or Spread Out Over 12 Months?

2011-11-11T07:21:00.000-08:00

One good question found at the www.AnnualCreditReport.com website revolves around timing to pull all 3 credit scores:

Great question: I've always wanted to get a "snapshot" of my credit all at the same time to compare the different reports. There could be a blemish in one report which isn't showing up in the other two credit reports, and there's no way to know it until you've applied ... and gotten turned down ... for a new loan. Then it's a pain to tackle restoring that credit report. Wasted time.
My take: better to order all three major credit reports at the same time. Review the reports for accuracy. If you find errors or outdated entries, take steps to dispute the credit reports.
More free tips can be found at http://www.findhow2.com/repair-credit.html
Amazon.com has this unique title available:

Free Credit Report: Credit Reporting Agencies and Credit Repair

Q: Should I order all my credit reports at one time or space them out over 12 months?

A: You are entitled to receive one free credit report every 12 months from each of the nationwide consumer credit reporting companies through the Central Source. It is entirely your choice whether you order all three credit reports at the same time or order one now and others later. The advantage of ordering all three at the same time is that you can compare them. (However, you will not be eligible for another free credit report from the Central Source for 12 months.) On the other hand, the advantage of ordering one now and others later (for example, one credit report every four months) is that you can keep track of any changes or new information that may appear on your credit report. Remember, you are entitled to receive one free credit report through the Central Source every 12 months from each of the nationwide consumer credit reporting companies – Equifax, Experian and TransUnion – so if you order from only one company today you can still order from the other two companies at a later date.

Bad Credit Score Limits Job Prospects

2011-11-09T02:41:00.000-08:00

With millions of people on unemployment in this country during this Great Recession, struggling to make ends meet, perhaps falling behind on loan payments and mortgage debts, this article from Philly.com shows how bad credit is keeping the unemployed out of work even longer:
Read full article here

It's a shame employers don't consider all the factors in this. But it's the business. YOUR business is to fix your credit history by getting your credit report cleaned up and working diligently to improve your credit score.

Start today by visiting and bookmarking these free web resources:

http://www.findhow2.com/

http://blog.pay-off-credit-cards.com/

http://www.findhow2.com/restoring-good-credit.html

New credit card laws affect credit debt

2011-10-21T03:37:00.000-07:00

The Federal Reserve's newly adopted rules for credit card companies have been in place for nearly 2 years. Has this meant that new credit card protections are still in store for you?
Key changes are: more advance notice and real limits on changes, relief from fees, and simpler disclosure.

Credit card relief will best be felt by limits on credit card interest. Credit card apr and balance transfer credit cards will now have real value to you as you try to escape credit card debt.

Credit card offers may keep multiplying in your inbox and your mailbox as this new law keeps affecting us in every walk of life. Business credit card offers and 0 credit card offers might sound tempting. But it's important to select the credit card that's right for you.

You can visit our website for more free advice on credit cards at http://www.findhow2.com.

And check out these two helpful sites, that can help explain the new credit card laws in plain English:

CreditCards.com

FederalReserve.gov

Government cracking down on free credit report websites

2010-03-18T13:27:00.000-07:00

Government now demanding that 'free credit reports' must be just that: free.

New post at Credit.com to their affiliates warns that all websites offering such products must comply with FTC rules:

Effective April 1, 2010, the Federal Trade Commission's Free Credit Reports Rule will require new prominent disclosures in all online advertisements for "free credit reports." Any site marketing free credit reports will be required to include a disclosure across the top of each page stating:

THIS NOTICE IS REQUIRED BY LAW. Read more at FTC.GOV.
You have the right to a free credit report from AnnualCreditReport.com
or 877-322-8228, the ONLY authorized source under federal law.

The disclosures must also include a clickable button to "Take me to the authorized source" and clickable links to AnnualCreditReport.com and FTC.GOV.

This will help end the confusion, since consumers have complained that they log onto websites seeking a free credit report and/or credit score, and they must pay for 3-in-1 credit monitoring or pay for other services to actually GET the freebie adverised.

You can get free information on downloading, reading, disputing and cleaning up your credit reports from the Big 3 credit reporting agencies - TransUnion, Experian and Equifax -- by visiting our totally-free, no-fee website, http://www.findhow2.com

How to check your credit score for free

2010-03-18T04:08:00.000-07:00

There's a lot of questions you'll ask yourself when you are attempting to restore your credit score: What's my credit score? How to I check my credit report? Can you check your credit score at the free website like www.annualcreditreport.com?

Online credit scores can give you a ballpark credit rating. But the best way and the cheapest way to get a free credit score is simply to drive over to your local bank branch and apply for a home loan. No, you don't want to buy a new home; don't tell them this, but you simply want to get your free credit score in the real world.

Sometimes, your bank will charge you a fee to get your credit report and scores. It's often less than $50. If it's more than that, try another bank.

Is this free credit score check wrong? No. Look at it this way: in the event that you view credit report as your first step toward building your wealth portfolio, you could likely be back at this bank once you find a valuable investment property. The right deal could pop up next week. Since you now don't have to ask the bank "Check my credit" to see if you qualify for the deal, you can focus your time and energy on negotiating the best terms and the lowest price.

At that time, your bank will be more than happy you chose them to check your credit score when you did!

If you find you need to fix your credit score, learn the free tips on how to improve your credit yourself at http://www.findhow2.com.

Amazon.com offers more advice on how to improve your credit rating yourself:

How To Repair & Improve Your Credit Score In A Few Simple Steps Without Credit Repair Companies

101 Simple Ways to Easily Improve Your Credit Score: Quick and simple ways to get started immediately.

Your Credit Score, Your Money & What's at Stake (Updated Edition): How to Improve the 3-Digit Number that Shapes Your Financial Future

Good credit depends on proper credit reporting

2010-03-17T03:03:00.000-07:00

Don't think good credit is important? Wrong. Good credit is essential if you want to qualify for loans to buy a business, a new auto, a new home. Bad credit costs. Getting your free credit report is of little value if you don't know how important correct credit reporting methods are to your financial health.

Hear what these three credit expert resources are saying on the subject of credit reporting:

From www.Experian.com:

Credit Check: Why Should I Care?

Why is it important to check your Experian credit report regularly? Many people frequently pay attention to their credit scores when they buy big-ticket items such as a new car or a home. While these are some of the most familiar reasons consumers monitor their credit reports, credit scores and reports actually are used for many other reasons as well. A good credit score can get you better rates on common necessities such as car insurance premiums, cell phone contracts and apartment rental agreements. Some employers even check prospective employees’ credit reports before making final hiring decisions. In addition, despite increased public awareness of identity theft, the crime continues to grow. Therefore, monitoring your credit report and score has never been more important.

From the FTC:

Having a good credit report means it will be easier for you to get loans and lower interest rates. Lower interest rates usually translate into smaller monthly payments.
Information about you and your credit experiences, like your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts, is collected from your credit application and your credit report. Using a statistical formula, creditors compare this information to the credit performance of consumers with similar profiles. A credit scoring system awards points for each factor. A total number of points — a credit score — helps predict how creditworthy you are; that is, how likely it is that you will repay a loan and make the payments on time. Generally, consumers who are good credit risks have higher credit scores.

From the website www.debtworkout.com:

Many of those unfamiliar with credit reports share a mistaken belief that credit reports display a near perfect accuracy. In reality errors on a credit report occur with alarming frequency. Reporting agencies rarely verify or cross check information unless they have a specific reason to do so. Therefore it becomes the obligation of each individual to verify the accuracy of their own credit report and begin the process of correcting inaccuracies of the credit report.

Learn more with these resources available from Amazon.com and take action to fix credit and boost your credit score as soon as possible:

The Road to 850: Proven Strategies for Increasing Your Credit Score

You're Nothing but a Number - Why achieving great credit scores should be on your list of wealth building strategies

Credit Report and Score: Secrets of the Credit Reporting Agencies

Credit cards to rebuild credit

2010-03-16T16:19:00.000-07:00

If you want to restore your credit, rebuilding your credit rating using credit cards is perhaps the easiest way to accomplish your goal.

Secured credit cards offer convenience while at the same time an excellent opportunity to fix bad credit.

Credit comes to those who work hard to keep good credit, and a secured credit card will help anyone reestablish credit -- not by repairing credit history, but by demonstrating responsible use of credit now and in the future.

Two good reasons to seek out the best secured credit card for credit restoration:

Clean up your credit history -- Secured credit card accounts will allow anyone who manages his or her credit card balance with discipline and timely payments the seocnd chance to enjoy better credit scores and qualify for the things good credit can deliver: a new car loan, a new home loan, a new student loan when college is in your future.

Rebuilding credit after bankruptcy -- Following your discharge from bankruptcy, you will find the going rough unless you reestablish credit. A secured credit card from a reputable company could be your ticket to gaining the trust of other lenders. And, you will be in control this time to charge just enough to show up in the credit system, but not enough to make timely monthly payments impossible!

Establishing credit for the first time -- If you've never used credit before it will be hard to qualify for a loan. Having a solid history using a secured credit card will help you get credit and teach you responsible payment lessons for the real-world to boot!

Credit.com offers a wide selection of secured credit card offers for those with bad credit scores. Review these cards and apply for the secured credit card that makes you the best deal.

Importance of re-establishing credit

2010-03-16T06:49:00.000-07:00

After you've gone through a spell of bad credit, whether it was due to bankruptcy or divorce or a business failure or a failure of good, sound financial judgment, it's important to re-establish your credit. It won't happen overnight. But today you can take the first step down the path toward better credit. Here are a number of tips to help you get started:

Do some soul searching to discover what happened. Put your finger on what went wrong. Accept responsibility, even if you have proof that it wasn't all your fault. That doesn't matter. The only thing that matters is getting on with repairing your finances. Be a leader. Take the blame. Then move on.

Take out a legal pad and write down your credit goals: a new unsecured credit card within 6-12 months. A business loan within 6 months. A new car loan without exhorbinant interest rates within 6 months. Write the goals down and review them daily. They will keep you on track. They will guide you to what you must do next. They will give you focus.

On the next page, make an inventory of where your money comes from and where it goes. If you get paid every other week and your bills are scattered throughout the month, plan for that. You cannot afford late payments, so you will need to use this income-outgo data go plan when to make payments so that you are never late again. Repeat after me: "I will never be late again paying a bill. Ever." Now keep your word. Pay your bills before they are due.

On the third page of this legal pad, write down your own personal plan to become debt free of all high-interest consumer debt within a specific amount of time. This will require that you know how much you owe on all your department store charge accounts and all your credit and loan accounts. Make a list of the total balance, the minimum monthly, the date due and the interest rate you're being charged. Important tip: don't leave anything out. Yes, put your house payment in there even if you've decided to exclude that debt from your debt-elimination plan for the time being. Tackle the smaller, monthly, high-interest bills first. You can always come back to pay off your home loan later. For now, tally up what you owe, then take the charge and credit cards out of your wallet or purse, lock them away at home, and don't leave home WITH them! Stop the credit accumulation. You're on a quest to get rid of debt, not add to it.

Repair your credit. Do it yourself. We have all the free tips listed on our website: http://www.findhow2.com/repair-credit.html. Bookmark that page and refresh your mind with those free tips at least once a week to make sure you're staying on track to fix your own credit. You'll find the free sites to download your credit reports to seek out outdated key derogatory marks and any errors that might have crept into your credit history by mistake. Plus, you'll find links to free sample letters on how you can dispute these credit report errors.

Fifth step: don't let anyone stop you. And don't stop yourself. You'll find plenty of friends and strangers who will make the time to discourage you, and tell you this can't be done. That only the passage of time will help you improve your credit rating. While time does heal most credit wounds, you've still got to take a pro-active role in re-establishing your own better credit score. But seeking out new loans and unsecured credit cards after you've got your debt loan under control, you'll open up new financial options for yourself. You'll short-circuit the credit restoration period from several years to 6-12 months. You don't need to listen to naysayers or those who perhaps unintentionally are rooting for your failure; you do need, however, to keep taking daily steps to restore your credit as you re-establish your ability to apply for and get credit in the future.

Here's some of our favorite books available from Amazon.com to help you stay on track re-establishing credit:

The Total Money Makeover: A Proven Plan for Financial Fitness

How To Achieve A Better Credit Score

Living Well with Bad Credit: Buy a House, Start a Business, and Even Take a VacationNo Matter How Low Your Credit Score

BestCredit: How to Win the Credit Game, 2nd Edition

Choosing best balance transfer depends on circumstances

2010-03-15T06:02:00.000-07:00

It's obvious that there are huge differenes in credit card offers these days. Some offer a balance transfer rate of 0% ranging anywhere from 6-12 months at a time. Others will feature longer time to enjoy the lower rates if you agree to a higher interest rate,which is helpful because this rate is usually lower that what you are currently paying on credit card balances.
Consumers who contemplate a credit card balance transfer of a high dollar amount to help cut down interest that they owe will often decide that stretching out their repayment period at a higher interest intro rate makes sense over a short-term 0% offer.
You've got to get aware of what fees you will get charged too. Lately, balance transfer fees have risen. It wasn't long ago that common fees charges amounted to 3% of the total transferred; now, it seems many credit card companies are charging upwards of 5%.
You can find more information on this subject here:
http://www.creditcard-balance-transfer.com

Here's a book at Amazon.com that readers are raving about. It aims to help them learn ins and outs of credit cards. Take a look:

How You Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line

Free credit score and free credit report from Quizzle...what's the catch?

2010-03-12T08:46:00.000-08:00

Quizzle (www.Quizzle.com), bills itself as "the free and easy way to manage your home, money and credit all in one spot." It features a very unique "Credit Improvement Tool" you must check out that promises to help raise you credit rating in 4 months for the cheap price of $75, since you get credit reports and credit scores plus advice on how to improve both.

The site is run by Quicken Loans, so they likely will pitch you financial products like home loans and such that you can politely decline. Learning spending restraint is essential; maybe they are just testing you to see if your credit education has sunk in.

No it's not free but from the looks of the website, it's money well spent if you're prone to racking up late charges on credit cards or over-the-limit fees for buying more than your credit card company deems you should or piling up high credit card balances. It breaks down to less than $20 a month and still if you want free, there's plenty of good, quality how-to articles for the credit lurker to feast on! Here's what their press releases say to describe what you'll discover there:

"The new Credit Improvement Tool includes a "Credit Gauge" that shows a user for free how much he may potentially improve his credit score. If the user opts into the service for a low, one-time cost of $75, he will receive a personalized action plan each month for four months with step-by-step instructions on how to improve his credit based on his unique credit and financial situation.

"The reworked Quizzle site provides simplified navigation, faster load times and clearer explanations of users' important financial information all with a much cleaner look. This is the first major redesign for the consumer finance Web site since its launch in February 2008.

"For nearly two years, we've been listening to suggestions from Quizzle users, watching how they interact with the site and learning about the tools and information they need to better manage their home, money and credit," said Todd Albery, CEO of Quizzle. "The new design improvements come directly from the more than 300,000 people who use Quizzle and will be instrumental in our continued growth."

"Quizzle users consistently requested a personal finance site that doesn't feel like a personal finance site. The new Quizzle.com delivers with its clean and colorful design, simple to understand explanations of often confusing financial data and easy-to-use navigation.

"The new design also lends itself to the educational nature of the Web site. After logging in, visitors see a "My Grades" page - chalkboard and all - where they are graded on the Web site's three main subject areas: home, money and credit. If a Quizzle visitor receives poor marks, the site provides instructions about how to improve.

Looks like a good place to check out and utilize. They have a 'lite' version as of now, just $15 to tune-up your credit.

Check them out at http://www.quizzle.com

You can also spend a little money at Amazon.com and learn much of the same info:

BestCredit: How to Win the Credit Game, 2nd Edition

AP reports states may limit employers ability to check credit of new hires

2010-03-01T14:02:00.000-08:00

This Associated Press story could be good news for unemployed workers seeking jobs:

Sixty percent of employers recently surveyed by the Society for Human Resources Management said they run credit checks on at least some job applicants, compared with 42 percent in a somewhat similar survey in 2006.

Read the full story here...

More info on credit checks and credit ratings:

The Guerrilla Guide to Credit Repair: How to Find Out What's Wrong with Your Credit Rating--and How to Fix It

BestCredit: How to Win the Credit Game, 2nd Edition

Your Credit Score: How to Fix, Improve, and Protect the 3-Digit Number that Shapes Your Financial Future, 2nd Edition

How to navigate new credit card jungle

2010-02-22T20:38:00.000-08:00

Be smart when choosing and using a credit card. The Federal Reserve Board's public website -- whose stated goal is to protect the credit rights of consumers--provides a quick overview of navigating the credit card jungle out there.

Check out their website here....

Here's a link to the new credit card rules that took effect Feb. 22, 2010:

http://www.federalreserve.gov/consumerinfo/wyntk_creditcardrules.htm

Tired of being in debt? Here are some excellent titles from Amazon.com that can help you get out of the debt trap!

The Debt-Free Millionaire: Winning Strategies to Creating Great Credit and Retiring Rich

Debt-Free Forever: Take Control of Your Money and Your Life

Master Your Debt: Slash Your Monthly Payments and Become Debt Free (Lynn Sonberg Books)

Credit cards paid first, then home mortgage, new study reveals

2010-02-03T04:35:00.000-08:00

Consumers are staying current with credit card bills and letting their mortgage payment slide, according to new study by credit reporting agency, which believes this is a major shift in how consumers will pay debts in future...
-- TransUnion Reports: "New" Payment Hierarchy May Be Here to Stay

A new study developed by TransUnion confirms that the "new" payment hierarchy -- where consumers pay their credit cards prior to their mortgages -- is continuing, with the trend occurring more readily than ever before.

"Conventional wisdom has always been that, when faced with a financial crisis, consumers will pay their secured obligations first, specifically their mortgages," said Sean Reardon, the author of the study and a consultant in TransUnion's analytics and decisioning services business unit. "However, a recent TransUnion analysis has found that increasingly more consumers are paying their credit cards before making mortgage payments. This analysis reaffirms the results of a previous TransUnion study that examined data between the third quarter of 2006 and the first quarter of 2008."

How to eliminate collections from your credit report

2010-01-24T06:18:00.000-08:00

New advice on credit: never let the collectors get the upper hand!

Clean Up My Credit Report: How to Get Rid of Collections

By Irena Bocheva

"How to clean up my credit report?"-that's the question which bothers most of the 35 million Americans with less that perfect credit. According to the popular myths fixing credit takes years, financial effort and careful budget planning. There are, however, far easier and smarter ways to fix credit report. The only thing needed for fast credit repair is credit knowledge.

Here are 3 simple tips that will show you how credit knowledge can be useful in order to clean up your credit report.

1. Never pay collections in full. Always settle for less.

Collection agencies make a bank out of the huge crowd of misinformed people with bad credit. Debt collectors literally pay pennies for every dollar you owe. If the debt was recently charged off, they pay 5-6 cents a dollar. If it's an old debt-they pay 1, 5-2 cents a dollar. Old and out-of-state accounts are usually sold for less than a penny per dollar. If you do the math, you will realize that collection agencies still make a pretty handsome profit out of you even if you pay them 25 % or less. And this gives you pretty good leverage when negotiating.

2. Validation of debt.

Under FCRA( Fair Credit Reporting Act) all credit bureaus, collection agencies and original creditors are required to provide validation of debt upon the request of consumers. If they fail to provide proper documentation, they have to remove the negative item from your credit report. Since most of your debt gets resold to various agencies down the road, most of them don't have the right paperwork to validate your debt. Use this fact to pressure collection agencies to remove an item from your record.

3. Payment for deletion.

This is the best thing you can do in order to raise your credit score. A paid collection will not necessarily raise your score. Quite the opposite-it may lower it. A deleted collection, on the other hand, will boost your score instantly. Negotiate with collection agencies and promise to pay them only if they remove the item from your record. Make it sound like a business proposal and remind them of the handsome profit they would make out of you.

The answer to the question "how to clean up my credit report" is simple-learn more about the credit system and the various loopholes in it. Once you start thinking outside the box, you'll be surprised to find how easy credit repair actually is.

Author: Irena Bocheva
http://fix-credit-score.info/
Do you really think that fixing credit takes a long time? Click on the link above and learn about the fastest ways to raise credit score.

Article courtesy of: Irena Bocheva

This DVD available from Amazon.com promises to help guide you through the process:

Fix Your Credit DVD - How to Fix Mistakes on Your Credit Report and How to Improve Your Credit Score (Credit Repair)

Fixing credit report mistakes a DIY job

2010-01-22T07:03:00.000-08:00

From FTC.com:

Your Rights Regarding Credit Repair

"No one can legally remove accurate and timely negative information from a credit report. The law allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete. There is no charge for this. Some people hire a company to investigate on their behalf, but anything a credit repair clinic can do legally, you can do for yourself at little or no cost."

Fix your own bad credit yourself. Find how to do it at
www.findhow2.com/repair-credit.html

Favorite "credit repair" books available from Amazon.com:

BestCredit: How to Win the Credit Game, 2nd Edition

Credit Repair

Credit Repair Kit For Dummies (For Dummies (Business & Personal Finance))

The Insider's Guide to Credit Repair

"Bad Things Happen to Good People." "Your Credit = Your Life, Fix It Now!" The Complete Self-Help-Kit for Credit Repair and Money Management. The Insider's Solutions to all your Credit-Problems. w/CD.

How to get better credit

2010-01-18T19:31:00.000-08:00

Links to help you get a better credit score:

Google search results

This book could help you rebuild good credit:

Live Better, Spend Less, and Save More: Spending and Saving: How to Get Credit and Your Money to Work for You

New consumer credit protection rules coming in February 2010

2010-01-17T09:31:00.000-08:00

After 6 years of wrangling and delays, finally, the Federal Trade Commission and the Federal Reserve have instituted consumer credit protection rules, originally required by Congress way back in 2003. Both agencies published these important regulations, that they now claim will safeguard loan applicants from overcharges on interest rates stemming from errors and outdated information lurking in their credit bureau files.
We applaud these changes. They are late. But they are necessary. Now, hopefully, people will have better protection for their credit reports and will not be victimized by mistakes that get into the credit reports, mistakes which affect their credit score.

Here is a new article summarizing the changes: www.washingtonpost.com

More in-depth help here: www.findhow2.com/repair-credit.html

Helpful books from Amazon.com:

Credit Scores and Credit Reports 3rd ed: How The System Really Works, What You Can Do (Credit Scores & Credit Reports: How the System Really Works,)

The Road to 850: Proven Strategies for Increasing Your Credit Score

Credit report agencies carry big stick when it comes to getting credit

2010-01-14T06:45:00.000-08:00

Check out HowStuffWorks.com to learn how credit report agencies influence who gets and doesn't get credit in this credit-based society:

If you've ever owned a credit card or applied for a loan, then you have a credit history. Your credit history is compiled and maintained by companies called credit reporting agencies or credit bureaus. Credit reporting agencies collect your credit history from credit card companies, banks, mortgage companies and other creditors to create an in-depth credit report. The information in that report is also used to calculate a three-digit credit score.

Read the rest at: www.HowStuffWorks.com

Great book to read, available at Amazon.com:

Your Credit Score: How to Fix, Improve, and Protect the 3-Digit Number that Shapes Your Financial Future, 2nd Edition

Clearn credit card strategy helping consumers deal with high interest charges

2010-01-13T03:54:00.000-08:00

This article will help illustrate a novel way to use credit cards and not get burned by huge credit card balances. Offers a great way to use strategy in your credit spending habits.

Check it out at:http://consumerist.com

For more credit card reduction strategies, check out:

Talk Your Way Out of Credit Card Debt!: Phone Calls to Banks That Saved More Than $43,000 in Interest Charges and Fees

FICO reveals how credit scores are calculated

2010-01-12T03:55:00.000-08:00

When myFICO.com details what goes into a "credit score," they admit that it's not a simple numerical score used by all lenders:

They claim:

"In general, when people talk about "your score", they're talking about your current FICO score. However, there is no one credit score used to make decisions about you. This is true because:

Credit bureau scores are not the only scores used.

Many lenders use their own credit scores, which often will include the FICO score as well as other information about you.

FICO scores are not the only credit bureau scores. There are other credit bureau scores, although FICO scores are by far the most commonly used.

Other credit bureau scores may evaluate your credit report differently than FICO scores, and in some cases a higher score may mean more risk, not less risk as with FICO scores.

Your credit score may be different at each of the main credit reporting agencies."

Each credit reporting agency will wind up considering what that agency deems relevant to determine your "creditworthiness." This differs from Equifax, Experian and TransUnion, the Big 3 credit reporting agencies.

Most importantly -- your credit score changes all the time.

The reason for this goes as follows:

"As your data changes at the credit reporting agency, so will any new credit score based on your credit report. So your FICO score from a month ago is probably not the same score a lender would get from the credit reporting agency today."

Check out www.myFICO.com today and learn more about the ins-and-outs of credit scores, before you need to apply for a new home loan or new car.

More information is available in these books at Amazon.com:

Your Credit Score, Your Money & What's at Stake (Updated Edition): How to Improve the 3-Digit Number that Shapes Your Financial Future

The Road to 850: Proven Strategies for Increasing Your Credit Score

Fix My Credit Software 2009

The Credit Secrets Bible

Credit score estimator gives clues how bankers determine your creditworthiness

2010-01-11T05:31:00.000-08:00

Checking your FICO scores and finding out what is in your credit report will help you look behind the scenes to see the way lenders view your creditworthiness. Check out the credit score estimator at myFICO.com to estimate your own credit score. It's free at: www.myfico.com

P.S. -- Cleaning up your credit report is easy when you follow these free credit repair tips at FindHow.com.

Amazon.com also has this DVD available to help you on your quest to restore good credit:

The Secrets Credit Professionals Dont Want You To Know!

Govenment help to stop foreclosures comes with cost, as credit scores get hammered

2010-01-10T13:48:00.000-08:00

CNNMoney has been inundated with emails from its readers. They complain about how trial loan modifications are causing their credit reports to take an unexpected hit. Most of these homeowners who are facing bleak economic prospects, view federal government's pledge of foreclosure rescue their best way back to solvency. Yet many are seeing their credit score take a whack as they wait for their lender to modify their home mortgage.

The whole story is at: http://money.cnn.com/

To read more on loan modifications check these books:

Loan Modification For Dummies (For Dummies (Business & Personal Finance))

The Loan Modification Handbook

The Complete Loan Modification Guide (Home Edition Kit-Handbook, DVD, CD & Bonus Materials)

Saving Your Home through Loan Modification!

Revisit to my 'How to fix credit, reduce debt' guide online

2010-01-09T05:40:00.000-08:00

I wrote this several years ago in a guide that's been viewed over 800 times at Amazon.com. Not many, but hopefully people have been helped to take control of their credit history and grab the tools to fix their own credit rating.

I wrote then:

New changes to U.S. bankruptcy laws now means that unsecured credit card debt is much, much harder to flush away with a simple Chapter 13 wage-earners personal bankruptcy.

But this looming danger hasn't stopped the majority of Americans from applying for those "free" credit card offers that flood the mailbox. The problem, it seems to me, is that all too many people have either never learned or have forgotten how to manage credit card debt properly, and they are digging themselves a difficult hole to climb out of financially.

But it's never an IMPOSSIBLE climb! You CAN start taking control of your finances by learning how to track your monthly expenses, cut unneccessary ones, and start your own debt consolidation program.

Since the time I wrote it, the economy has only gotten worse. For the full free guide at Amazon.com, read:
"How To Get Better Credit" by Steve Johnson.

Other helpful books available at Amazon.com include:

Zero Debt: The Ultimate Guide to Financial Freedom (Includes "How to Improve Your Credit and Manage Credit Cards Well" Audio CD)

The New Bankruptcy: Will It Work for You?

How to File for Chapter 7 Bankruptcy

Credit After Bankruptcy: The easy-to-follow guide to a quick and lasting recovery from personal bankruptcy

New bankruptcy laws fail to stem new surge of bankruptcy filings

2010-01-08T04:11:00.000-08:00

The Wall Street Journal reports that the effectiveness of bankruptcy laws which were reformed about 4 years ago are at best dubious, as a growing number of middle-class Americans have filed for bankruptcy protection. The surge is blamed on rising joblessness and the depressed housing market. Says the newspaper:

"Overall, personal bankruptcy filings hit 1.41 million last year, up 32% from 2008, according to the National Bankruptcy Research Center, which compiles and analyzes bankruptcy data. It is the highest level of consumer-bankruptcy fillings since 2005. Consumers rushed to file in 2005 before the new bankruptcy laws took effect in October of that year.
"Chapter 7 filings were up more than 42% as of November 2009, compared with the same period a year earlier, according to the research center."

The whole story is at www.wsj.com

Related reading:

Personal Bankruptcy Laws For Dummies (For Dummies (Business & Personal Finance))

Bankruptcy, Foreclosure, Short Sales & Rebuilding your Credit - FINANCIAL RECOVERY

The New Bankruptcy: Will It Work for You?

When You Have to File for Bankruptcy: Step-by-Step Instructions to Take Control of Your Financial Future

Consumer Affiars: Banks Eye New Fees, Revenue In 2010

2010-01-07T03:21:00.000-08:00

New rules intended to protect consumers might reduce bank profits, so credit card companies are making up the slack with new fees.
According to an article written by Mark Huffman at ConsumerAffairs.com:

• Banks Eye New Fees, Revenue In 2010
• Despite Rules Changes, Banks Still Depend On Overdraft Fees
• Overdraft Fees Exploding, Study Finds
• Free Checking Isn't Always Free
• Do You Really Need A Bank?
• Fees For Unauthorized Overdraft Loans Keep Going Up
• Lawmakers Target Bank Overdraft Fees
• Consumers Want Opt-In Choice on Overdraft Coverage
• Checking Account Fees Set Records in 2008
• Bank Fees Rise, Disclosure Sinks
• Bank of America Takes Bigger Bite with $3 ATM Fee
• Bank, ATM Fees Continue To Rise
• Penalty Fees, Interest Rate Hikes, and Misleading Contracts Await Credit Card Shoppers
• We're Paying More Than Ever at the ATM

Huffman points out that even as the "Credit Card Act of 2009" goes into effect next month to protect the financial rights of debt-strapped consumers, lenders have spent the better part of 2009 jacking up interest rates and closing thousands of accounts.

Read more: http://www.consumeraffairs.com

Talk Your Way Out of Credit Card Debt!: Phone Calls to Banks That Saved More Than $43,000 in Interest Charges and Fees

How to Instantly Eliminate Credit Card Debt (Without Bankruptcy or Credit Counseling)

Insurance companies charge more to those with low credit scores

2010-01-06T04:36:00.000-08:00

Is bad credit making your insurance premiums go up?

Insurance companies routinely charge you more for home, auto and truck insurance if your credit score is low. They've been doing it for a long time. They maintain that people with poor credit make lots of insurance claims. Of course, with the current Great Recession driving millions into poverty, homelessness and despair, maybe it's time to reexamine the link between a low credit score and a tendency to file an insurance claim.

Think of it this way: the insurance companies are alleging that when a person lose a job, and their reduced living standards causes them to miss credit card payments and their credit rating suffers, this credit score now brands them as a derelict.

It's sad that the insurance industry operates like a Ponzi scheme, practically unregulated by the states where these companies operate. There ought to be investigations into the political contributions these insurance companies make to state and national politicians, and correlate this information with the voting records of those elected representatives.

Howver, since right now your credit history could be making your auto insurance and home insurance premiums higher than they should be, it's vital that you ensure that your credit reports from the Big 3 Bureaus -- Experian, Equifax and TransUnion -- are free of inaccurate data. It's time to clean them up. You deserve to pay a fair price on your auto and home insurance. Whether or not you believe that its right to charge more for a product or service due to a person's credit score, even though the resulting score might not be that person's fault, you still need to take steps to fix errors in your credit so you can save money.

Here is more information on dealing with auto insurance companies in books you'll find at Amazon.com:

Insurance Settlement Secrets: A Step by Step Guide to Get Thousands of Dollars More for Your Auto Accident Injury Without a Lawyer! (Volume 1)

This book provides a behind-the-scenes look at how insurance companies process automobile accident injury claims. Knowing how insurance companies process these claims can make the difference of receiving thousands of dollars more for your Insurance settlement! Written in plain English, the book gives readers all the tips they need to ensure they receive the settlement they deserve. Written by an insurance company insider who has worked in the industry for years and negotiated hundreds of injury settlements. Readers will learn: Steps to take if they are injured in a motor vehicle accident. How to deal with insurance companies when they call. How to take the advantage against the insurance company. What medical information is crucial to your claim. How to push the same buttons an experienced lawyer would push. When and how to negotiate for a fair settlement. "Insurance Settlement Secrets" shows readers how they can do all of this themselves without hiring an expensive lawyer.

Here is another book to help you when you are confronted by shenanigans by auto insurance companies:

Surviving the Auto Insurance Game: The Book Every Driver Must Read (Volume 1)

FTC offers solid guidance on fixing bad credit yourself

2010-01-05T04:15:00.000-08:00

Credit and Your Consumer Rights

The FTC makes it clear: they are standing by to help consumers fix their credit report because of how important having an accurate credit history can be:

A good credit rating is very important. Businesses inspect your credit history when they evaluate your applications for credit, insurance, employment, and even leases. They can use it when they choose to give or deny you credit or insurance, provided you receive fair and equal treatment. Sometimes, things happen that can cause credit problems: a temporary loss of income, an illness, even a computer error. Solving credit problems may take time and patience, but it doesn’t have to be an ordeal.

The Federal Trade Commission (FTC) enforces the credit laws that protect your right to get, use and maintain credit. These laws do not guarantee that everyone will receive credit. Instead, the credit laws protect your rights by requiring businesses to give all consumers a fair and equal opportunity to get credit and to resolve disputes over credit errors. This brochure explains your rights under these laws and offers practical tips to help you solve credit problems.

Check out the free information on their website for more updated information to help guide you through the process of fixing errors you find in your credit reports from the Big 3 credit bureaus. Their website address is: http://www.ftc.gov

Here's a helpful book from Amazon.com that can provide you with good, solid information from credit expert John Ventura:

The Credit Repair Handbook: Everything You Need to Know to Maintain, Rebuild, and Protect Your Credit

7 easy ways to hurt your credit score

2010-01-04T04:03:00.000-08:00

Here is a great article that details 7 things to avoid if you want to improve your credit rating this year:

"Seven Bad Assumptions That Hurt Your Credit Score"

By Curtis Hill

Many people make the wrong assumptions about how to improve credit rating and how to improve credit scores. Don't believe that your assumptions are correct.

Bad Assumption #1: Lower maximum card limits improves my credit score.

Credit scoring programs don't penalize you for having higher credit limits. However, they do penalize you for having high balance relative to your limits. A $2,000 balance on a card with a $2,500 limit greatly reduces your credit score. However, if you increase the limit to $10,000 on the same card, a higher credit score results because you look less "maxied out" on your credit cards. Moving that balance to a higher maximum limit card could also improve your score.

Bad Assumption #2: Always paying the minimum will result in a good credit score.

Of course not paying the minimum will negatively affect your credit score. However, paying that minimum will not usually result in a good score either. The key issue is keeping your reported outstanding balance low relative to the maximum credit limit. Keeping your balance at less that 10% of the maximum limit is good. A balance over 50% of the maximum could dramatically reduce your credit score.

Bad Assumption #3: Always paying by the due date will result in a good credit score.

Obviously paying late will reduce your credit score, but it takes more than timely payments to get a high credit rating. Why wait to get a paper copy of a bill. Go on line three times a month, review your credit charges, and make on line payments. Thus you are never late. There is less chance of successful identity theft since you see the charges earlier, more often, so you can take corrective action earlier.

But most importantly the reported balance to credit reporting agencies is reduced. What normally gets reported to the credit agencies is the balance on the paper bill. Reducing this balance by paying before the bill is generated will improve your debt ratio and your credit score.

Bad Assumption #4: Paying my bills the day the mail delivers results in a good credit score.

Waiting for the bill in the mail and paying by check through the mail is very 1970. Snap-out-of-it grandma! If you get 10 bills a month, that's 120 chances per year for the post office to mis-deliver or for you to lose the bill. Plus another 120 chances for your return check to get lost in the mail, taken for identity theft, or misdirected to the wrong account. Go on line to make your payments and get verified proof (a transaction confirmation number) that the payment was timely and correctly recorded to your account.

Bad Assumption #5: Closing old credit cards will improve my credit score.

Closing an old account will only reduce the average age of your credit, which will reduce your credit score. Try to keep your older credit lines open. If you need to close some credit lines, do this on your newer credit lines.

Bad Assumption #6: Moving balances to a lower interest rate card will improve my score.

Interest rate and minimum payments are not a factor in determining your credit score. However, opening new accounts, to take advantage of a lower interest rate can be very detrimental to your credit score in three ways. First, a new credit line always reduces you credit score. This reduction can be extreme if you open more than one new account within six months. Second, a new credit line normally requires a new credit inquiry, which will also reduce your credit rating. Third, a new credit line will reduce the average age of your credit, which also reduces your credit rating. Be very judicious in opening new credit accounts.

Bad Assumption #7: Shopping around for the best interest rates will improve my score.

Credit scoring programs do not like changes. Multiple credit inquiries and opening new accounts will reduce your credit rating. Waiting six months between credit inquiries will improve your score. If you are shopping (lets say shopping for a car) try to complete all the similar credit inquiries (car dealership credit inquiries) within 14 days so that they may all be counted as one inquiry by the credit scoring programs. Do not allow people to get your social security number or to run a credit check unless you are serious and ready to buy. Too many inquiries could prevent you from having the credit to buy what you want.

These issues are covered more thoroughly in the book Poor No More: Wealth Is Within Reach by Curtis Hill. http://www.Poor-No-More.com.

Curtis Hill is a Certified Financial Planner™ based in Beverly Hills, CA. Mr. Hill has been a successful financial advisor since 1994 after leading a thriving business management career. Mr. Hill has identified proven "wealth behaviors" to adopt and financial pitfalls to avoid in his book, Poor No More: Wealth is Within Reach.

Article courtesy of: Curtis Hill

Here are credit repair books to take you down the path toward better credit:

101 Ways To Improve Your Credit Score And Rating

Your Credit Score, Your Money & What's at Stake (Updated Edition): How to Improve the 3-Digit Number that Shapes Your Financial Future

How to Repair Your Credit Score Now: Simple No Cost Methods You Can Put to Use Today

Living Well with Bad Credit: Buy a House, Start a Business, and Even Take a VacationNo Matter How Low Your Credit Score

Stay away from bogus credit repair scams

2010-01-03T04:53:00.000-08:00

Getting better credit is so important, that people often fall victim to bogus credit repair scams just to get some relief. But beware. You might be putting yourself in jeopardy with these types of businesses.

The FTC puts it this way:

Recognizing a Credit Repair Scam
Everyday, companies target consumers who have poor credit histories with promises to clean up their credit report so they can get a car loan, a home mortgage, insurance, or even a job once they pay them a fee for the service. The truth is, these companies can’t deliver an improved credit report for you using the tactics they promote. It’s illegal: No one can remove accurate negative information from your credit report. So after you pay them hundreds or thousands of dollars in fees, you’re left with the same credit report and someone else has your money.

If you see a credit repair offer, here’s how to tell if the company behind it is up to no good:

The company wants you to pay for credit repair services before they provide any services. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.
The company doesn’t tell you your rights and what you can do for yourself for free.
The company recommends that you do not contact any of the three major national credit reporting companies directly.
The company tells you they can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.
The company suggests that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number.
The company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness.
If you follow illegal advice and commit fraud, you may find yourself in legal hot water, too: It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses. You could be charged and prosecuted for mail or wire fraud if you use the mail, telephone, or Internet to apply for credit and provide false information

Be aware of what is legal and what is not when you attempt to fix your credit report. You have every right to dispute inaccurate information in your credit history, but you can get yourself into hot water if you cross the line and use illegal tactics to get better credit.

Here is a helpful book that provides a wealth of legal, helpful steps you can take:

Credit Repair Kit For Dummies (For Dummies (Business & Personal Finance))

How to order your free credit report

2010-01-02T06:11:00.000-08:00

You are entitled once a year to order your free credit report to check for errors, have the option to fix inaccurate derogatory information you find after reviewing them, all to restore good credit.

You can get your free credit reports from the 3 major credit bureaus -- TransUnion, Experian, and Equifax -- once every 12 months. Why not start now?

You can order your credit reports and view them online, and you will even have the option to print it off on your home computer printer to review it offline.

Read more in this free how-to article at FindHow2.com:

http://www.findhow2.com/free-credit-report.html

Reminder: Identity theft is real, and information on identity theft protection is just a click away. Read this book to learn how to protect yourself from being an identity theft victim this coming year:

Identity Theft For Dummies (For Dummies (Business & Personal Finance))

Only passage of time can correct accurate negative information on your credit report

2010-01-01T05:32:00.000-08:00

Dealing with accurate negative information on your credit report is a topic which confuses a lot of people. In reality, it's guite simple. If what is in your credit report is true and accurate, it cannot be removed just because you dispute it.

When negative information in your credit report is accurate, only the passage of time can assure its removal. Accurate negative information generally can stay on your report for seven years. There are certain exceptions, though.

Read the following how-to article at FindHow2.com to learn more about what can and cannot be disputed on your credit report:

http://www.findhow2.com/dispute-credit-report-errors.html

Fix Your Credit DVD - How to Fix Mistakes on Your Credit Report and How to Improve Your Credit Score (Credit Repair)

Your Credit Score: How to Fix, Improve, and Protect the 3-Digit Number that Shapes Your Financial Future, 2nd Edition

Getting free credit report from Equifax

2009-12-31T04:23:00.000-08:00

You are entitled to get one free copy of your credit report once every 12 months. Equifax offers this guide on how to request your free credit report from them. This is what their website says on the matter:

You are entitled to one free report during any 12-month period no matter where you live, if you:

-- Are unemployed and intend to apply for employment in the next 60 days
-- Are on public welfare assistance
-- Believe your file contains inaccurate information due to fraud
-- You are also entitled to a free report if you have received notice of an adverse decision (such as denial of credit, insurance, or employment) within the past 60 days.

To receive your free Equifax credit report online, visit www.equifax.com/fcra (This is the quickest and easiest way to gain instant access to your credit report)
Call 800-685-1111 or write to:

Equifax Information Services

P.O. Box 740241

Atlanta, GA 30374

Here is a quick read from Quick Easy Guides that can provide additional information to help you:

How To Dispute Credit Report Errors

Why you should dispute derogatory listings with credit bureaus

2009-12-29T03:09:00.000-08:00

Derogatory items are required to be removed from your credit reports after seven years. This law is designed to help consumers recover from their own credit mistakes and give them the opportunity to rebuild their credit rating.

After checking your credit reports, it is important to know that if you find charged-off accounts appearing on your credit report after seven years, you will need to dispute that derogatory listing with the respective credit bureaus.

Debt purchasing firms have been known to report inaccurate charge-off dates so as to extend the amount of time an old account appears on your credit report. This keeps this derogatory information "in play" so to speak, allowing collection aagencies to hound you for money that rightly should not appear on your credit history.

Erroneous information such as this ought to be what you dispute first. Determine where to write your credit dispute letter and follow the free tips on our website: http://www.findhow2.com/credit-letters.

The Federal Trade Commission website offers a free how-to article called "How to Dispute Credit Report Errors" which provides solid steps to take to clean up your credit.

Check out this DVD on how to fix your credit:

Here's what one reader said about it: "...simple and easy. In the past I had gotten a book on the subject and could never get myself to finish reading it. With this, I just popped in the DVD, sat on the couch and in 30-min learned everything I needed to know. Great stuff!"

Learn more about it here:

Fix Your Credit DVD - How to Fix Mistakes on Your Credit Report and How to Improve Your Credit Score (Credit Repair)

Credit repair kit provides good tips to fix credit report errors

2009-12-24T09:10:00.000-08:00

Fixing your credit report can be helped by referring to helpful guides. I've used books on credit repair and debt consolidation, and I know from personal experience that some of these -- like the Complete Credit Repai Kit -- can help guide one through the process. This books is available at Amazon.com and it includes a CD too.
Get it today:
The Complete Credit Repair Kit with CD

How to write a credit report dispute letter

2009-12-23T07:17:00.000-08:00

Sometimes fixing your credit report requires that you put your complaint into writing. Follow this advice to write a credit dispute letter:

http://www.findhow2.com/how-you-can-dispute-credit-report-errors.html

How to check your credit report for free

2009-12-22T06:33:00.000-08:00

Now is the time to check your credit report, and the Federal Trade Commission offers these tips on how you can do it for free:

The three nationwide consumer reporting companies have set up a central website, a toll-free telephone number, and a mailing address through which you can order your free annual report.

To order, visit annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. The form is on the back of this brochure; or you can print it from ftc.gov/credit. Do not contact the three nationwide consumer reporting companies individually. They are providing free annual credit reports only through annualcreditreport.com, 1-877-322-8228, and Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

You may order your reports from each of the three nationwide consumer reporting companies at the same time, or you can order your report from each of the companies one at a time. The law allows you to order one free copy of your report from each of the nationwide consumer reporting companies every 12 months.

Updates on how to dispute errors in your credit report is found at:

http://www.findhow2.com/repair-credit.html

What Your Credit Rating Says About You

2009-08-02T15:40:00.000-07:00

Our readers ask: "What is my credit rating?"

Your credit rating is an estimate of your creditworthiness. It doesn't judge you. It factors in your past credit actions, your current circumstances and calculates how likely you are to repay a loan on time. Your credit history plays a big part in this, as do your credit habits. You can change your habits, so you can also change your credit rating for the better too!

The main credit rating you will need to deal with is the FICO credit score used by most lenders in the United States. This credit score provides a lender with a numberical 3-digit score that estimates how well you follow through on credit obligations in the past, and therefore, how likely you are to repay a loan on time in the future. creditors whom you have borrowed from in the past -- whether it's a department store charge card or a local furniture store or a car dealership -- report your payment history to the credit bureau. Your FICO score is then extracted from this data, along with other factors like income, history of credit inquiries, lines of credit and the amount you owe, and credit card balances compared with the credit line extended for each card.

It is important to remember that neither the credit bureaus or Fair Isaac Co., the corporation which developed the FICO scoring credit model, can rate your creditworthiness publicly. They can only report privately to their customers -- the banks and lenders who subscribe to the FICO scoring system -- and these lenders then make the evaluation as to how much risk they are willing to take when they decide to lend you money.

If you have defaulted on past loans, or if you have been slow to make on-time payments on past credit card accounts or business and/or personal loans, then your credit rating will be lower than someone who has regularly paid their debts on time without fail.

Free Guide Helps You Understand FICO Credit Score

2009-08-02T14:44:00.000-07:00

Direct from Fair Isaac Co. -- creators and marketers of the ubiquitous FICO credit score -- a very readable, very helpful free guide to help you understand and get control of your credit rating!

Understanding Your FICO Credit Score -

Free Credit Repair Guide Offers Overview of Credit Fix Process

2009-07-31T10:26:00.000-07:00

Here is a quick guide that helps lead you through the basics of credit repair.

If you want more detailed, step-by-step help, visit
the FindHow2.com Repair Credit page
or check out
Fix-Bad-Credit.com.

How to fix your credit guide online -

Credit Repair Reminders Help Clean Up Credit

2009-07-29T11:23:00.000-07:00

Bills.com put together this quick credit repair reminders guide that can help you stay on track as you clean up your credit in your effort to get a better credit score:

Bills.Com - Your Guide to Credit Report and Analysis -

You can find more step-by-step credit repair tips at http://www.findhow2.com/repair-credit.html

2009-07-27T06:22:00.000-07:00

Mortgage lenders are reporting loan modifications to credit bureaus. Adjustments to home loans are now lowering credit scores. In ironic twist, as the U.S. government urges banks to help struggling home owners keep their homes, the lower FICO scores resulting from this help is actually hurting their future ability to borrow more money!

5 Simple Tips To Fix Bad Credit Score

2009-07-26T21:44:00.000-07:00

Here are 5 simple tips direct from the Federal Reserve on how to improve your credit score:

fix your credit score -

Credit Score Trends Paint Ugly Picture

2009-07-26T21:15:00.000-07:00

There is a disturbing trend among credit card companies to charge all of their customers -- those with good credit and those with bad credit scores -- the same high interest charges that previously would have been unthinkable.
JQAdams notes 5 such trends in this article published at Helium.com:
http://www.helium.com/items/1505777-trends-in-the-credit-card-industry
Hopefully, once the current economic downturn has passed and people get back to work, they will remember the games these credit card issuers played dirty and kicked them when they were down.
New legislation aimed at reining in the exploitation done by credit card companies is looming next year.

Charge Off Sample Letter To Improve Credit Score

2009-07-19T09:43:00.000-07:00

Sometimes you'll find an error in your credit report that is so huge, it affects everything you do. If you find a charge off in your credit report that isn't yours, or it's incorrect (maybe a late charge, not a charge off) then you need to drop everything you're doing to get to work deleting this charge off asap!
We've put together a collection of helpful tools and articles that can help you challenge and dispute these charge offs, and give you step-by-step directions on how to remove them from your credit history.

Go check out:
www.Credit-Letters.com

today and learn how you can dispute derogatory entries and charge offs that are not yours as you uncover them in your credit report.

Top 5 Myths of Credit Repair

2009-07-13T10:12:00.000-07:00

Here's a great review of the Top 5 Myths of Credit Repair, courtesy of DocStoc.com....

Don't be afraid to take the first step in fixing your credit score. Your comments on your own credit repair experiences are always welcome!

10 Myths of Credit Repair -

Home equity lines of credit

2009-07-08T08:08:00.000-07:00

Home equity lines of credit are being tapped out to pay off out-of-control credit card debt. And banks aren't lending. The credit crisis has tamped down FICO scores at the same time banks are raising FICO credit score requirements. Two years ago, you could consolidate your loans with a home consolidation loan in a snap; today, it might take months to get your home refinanced to pay off credit card balances.
Check out simple tips to consolidate what you owe at:
http://www.Pay-Off-Debts.com

Credit Scores Getting Squeezed

2009-07-07T10:32:00.000-07:00

With the ongoing economic slump and the ensuing credit crisis facing those addicted to credit card usage, there's been a shift over the past 6-8 months that seems to only be getting worse: credit contraction.
People of all credit scores are seeing credit limits shrunk and credit card feed hiked.
Interest rates on credit card accounts are going through the roof.
Credit lines held in reserve are abruptly disappearing... sometimes without even notice to the account holder.
As a result, credit scores are taking a beating.
If you need help getting better credit, take heed of these changes credit card issuers are taking. Don't get caught off guard. Get credit help.
Check out http://www.FindHow2.com for free tips to help you dig out of debt.
We've put together a quick credit fix guide too at http://www.Fix-Bad-Credit.com that offers a handful of quick steps you must take to start repairing your own credit yourself.

Lowering debts help credit score

2009-03-18T02:11:00.000-07:00

Lowering debts and consolidating your bills can help you improve your credit score. We've been so busy creating new content and new website features to help our readers help restore good credit, that we're just now getting around to posting on this blog. Take a look at our new site to help everyone get a handle on how to pay down their debts:

http://www.Pay-Off-Debts.com

The credit scoring services like FICO use a variety of data to determine your credit score, which these days could cost you a home loan, higher auto insurance, even a job, if your credit score is low. High debt levels on your credit cards are one of the worst culprits in robbing you of a good credit score, and the free tips that can help you consolidate and pay off high-interest credit cards and adjustable home mortgages can be the first step to help you get yourself out of debt, by yourself!

Check it out now:

http:///www.Pay-Off-Debts.com

Free tips to restore credit score

2007-10-15T16:27:00.000-07:00

Findhow2.com offers free tips to help you fix your credit, and restore your credit score. You deserve better credit. We help you get it. There are federal laws to help you fix your own credit yourself. It's not hard. Even the FTC says so. Probably their most-visited webpage when it comes to credit repair is "Credit Repair: Self-Help May Be Best."

We share that sentiment. Do-it-yourself debt relief and do-it-yourself credit repair is within the reach of anyone. Follow the simple strategies and free tips at FindHow2.com, including sample letters for removing derogatory items on credit report, and you are bound to improve your credit. Go to: http://www.FindHow2.com/repair-credit.html

Fix your credit or dump debt ?

2007-10-09T04:54:00.000-07:00

What comes first? Fixing your credit? Or dumping old debt?
Our response: Do both at the same time.
You can get into action checking your credit score right now, and at the same time, you can make the decision to stop adding to past debt and start seeking ways to eliminate your debts.
Maybe you'll need to stop using your debit card several times a day.
Maybe you'll need to end automatic subsrciptions to magazines, mail order clubs, and similar "money drains" that you've forgotten you subscribed to.
Maybe you'll need the help of a professional consumer credit counselor to help get you back on track to get better credit now.
Whatever it takes, it can be done.
And it can be done at the same time.
Your FICO credit score is weighted very heavily on debt loads you carry on credit cards and the amounts you've piled up in installment loans, auto loans, etc. You credit score can be improved when you tackle paying down your debts and when you learn to consolidate debt without adding more debt.
The articles and links we've posted here will lead you to simple steps to reduce debt, fix credit, and get a better credit score.

Restoring good credit just 4 steps away

2007-09-22T12:43:00.000-07:00

Restoring good credit is simple. The national credit score is below 700 -- the FICO score lenders want to make a home mortgage loan or a home equity loan.
You can get a higher credit score yourself if you make the effort to follow these 4 simple rules:
1. Lower your debt -- your credit score will suffer if you carry too much debt. Cut it down.
2. Pay your bills on time. Late payments hurt your credit score. And they are easy to avoid with simple planning habits.
3. Keep your credit card, home equity loan and installment loan balances low in relation to available credit.
4. Dispute errors that crop up in your credit report.

For more free online advice, visit:

Credit repair tips -- Free tips on how to fix errors in your credit history yourself.
Improving your credit score -- How to improve your own FICO credit score.
How to get your free credit report -- How to get your free credit report online.
How to dispute and remove errors from your credit report -- How to dispute errors that you uncover in credit reports to restore your good credit.

Bonus: How to deal with debt....
Reducing debt helps you regain control of your life. You have more money to stay current on your monthly bills, plus you'll have more money to save and invest for your retirement. In any case, reducing your debt helps you have more money to have more fun!
Read our free report:
6 steps to get out of debt -- You can get out of debt yourself. This free report tells you how.

4 steps to raise FICO credit score

2007-09-13T05:26:00.000-07:00

Good credit is a goal each of us should aspire to. Having excellent credit gets you the best possible terms, such as lower interest rates or having to pay fewer points when you buy a home.
Good credit is not something best left to luck or chance. Getting good credit takes only concentration, commitment and good payment habits to fix bad credit scores, and you can raise your FICO score yourself by changing the way you deal with debt and credit.
And it's so important. If your FICO score these days is not 700 or higher, you will not qualify for the best terms.Getting the highest FICO score is not always in reach of every consumer, due to past credit habits.
Being continuously late making regularly scheduled payments on installment loans adds black marks to your credit rating.
But everyone can change their habits and get better credit. Four positive steps you can take to raise your FICO credit score are:
(1) Pay your bills BEFORE they are due,
(2) Stop taking on more debt,
(3) Reduce credit card balances every month, and
(4) Limit credit inquiries.
With the goal of getting a high FICO credit score of 700+, remember that it is essential to repay the loans you have taken out in a timely manner.
Late payments or payment defaults when your home is at risk is the fastest way to lower your credit score, and to delay getting better credit. So keep in mind, as you pay off loan installments over time, your credit score will start to rise.
Get more info on fixing your credit and getting better credit at http://www.findhow2.com/

Build better credit long before you need to borrow money

2007-09-11T03:23:00.000-07:00

It is a given that the responsible use of credit allows people to borrow money at reasonable terms and pay it back over a longer period of time, to allow them to buy a house or investment property today, live in it, and enjoy both a comfortable home and realize appreciation of real estate values.
But getting credit has not always been easy, and lately it's been harder than anytime this century to qualify for a new home loan.
It is easier to get credit if you have been a borrower in the past. So, with discipline and steady repayment habits, practically anyone can begin the process of qualifying for and having access to credit.
Young adults will find it advantageous to build good credit now to qualify for student loans, a new home, a car purchase in the future. Having better credit before you need to borrow money will give you more options.
Learn how to get better credit at http://www.findhow2.com/

How errors lower your credit score

2007-09-08T05:48:00.000-07:00

When you check your credit, you never know just what you'll find.
Probably the most frustrating thing you'll come across when you start fixing your credit is to find mistaken entries in your report. Somebody's credit boo-boo's wind up on your credit history.
It's bad enough if you yourself have racked up bad credit. It's quite another slap in the face if you're saddled with someone else's bad credit derogatory marks!
So just why DO errors show up on your credit report?
According to MyFICO.com, errors in a person's credit report might mean that their file is incomplete, contains information about another person, or any number of reasons.
Read some of the other reasons here:
http://www.findhow2.com/credit-report-errors-affect-fico-score.html

Paying bills online can boost credit score

2007-09-07T09:18:00.000-07:00

Want to boost your credit score?
Easy: Start paying your credit card bills online.
Timely payments are the best way to keep your credit reports clean, and keeping your credit score high.
Waiting for the U.S. post office to deliver your payment risks making your payment late, and it's much simpler and you are more in control to use credit card online payment web sites to make your credit card payment, whether you are paying off your balance in full or simply making the regular minimum monthly payment.
It's simple, it's convenient, and it's safe. These sites have implemented fantastic security systems to protect your financial privacy. Still, I wouldn't recommend using these services if you only have access to the Internet through public computers, like at your local library or coffeeshop. That's asking for trouble. In fact, I'd recommend that you not pay your online bills using a wi-fi connection if at all possible. I don't care what anyone says, it's still possible for thieves to intercept Blackberry or wireless laptop communications.
Final advice: pay your credit card bill online, from your home computer.
If you need help, simply turn your credit card over and call the toll-free number on the back and ask the company's customer service reps how to get started with making your credit card payments online.
For more details on fixing your credit score, read:
http://www.findhow2.com/repair-credit.html

Accurate negative credit info stays on report

2007-09-06T18:07:00.000-07:00

When negative information in your report is accurate, only the passage of time can assure its removal. Accurate negative information generally can stay on your credit report for seven years. There are certain exceptions:
Bankruptcy information may be reported for 10 years. Credit information reported in response to an application for a job with a salary of more than $75,000 has no time limit.
Information about criminal convictions has no time limit. Credit information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit.
Default information concerning U.S. Government insured or guaranteed student loans can be reported for seven years after certain guarantor actions.
Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations within your state runs out, whichever is longer.
For more detailed information read this:
http://www.findhow2.com/dispute-credit-report-errors.html

Free credit report can uncover errors

2007-09-05T15:09:00.000-07:00

People who take the time to check their credit reports on a regular basis with this instant service, are more likely to spot and fix potentially costly errors, as well as foiling the efforts of identity thieves.
Accessing your credit information could allow the credit bureaus the opportunity to market other services when you request their free credit report, as long as such advertising does not interfere with your ability to get the report.
To request your report, go to http://www.annualcreditreport.com/
You can also request a free report by calling (877) 322-8228 or mail your request to P.O. Box 105281, Atlanta, GA 30348-5281.
It is best to make the request from home, where you will have privacy and the documents you may need to verify your identity.
Read "How to improve your credit score" at
http://www.findhow2.com/improve-your-credit-score.html

How you can negotiate down debts

2007-09-05T07:30:00.000-07:00

It pays to not only challenge errors in your credit report, but also, to try and negotiate with credit card firms you deal with and with your other creditors to negotiate down what you owe them.
It takes practice, a thick skin, and organization, but the best part is that negotiating with your creditors is a skill that can be learned!
Here's free details on how to learn how you can negotiate down debts and negotiate with creditors:
http://www.findhow2.com/debt-settlement-negotiating-with-creditors.html

Credit freeze protects credit, thwarts ID thefts

2007-09-04T16:22:00.000-07:00

Hooray for Texas!
Texas joined 34 other states this past weekend giving consumers the right to freeze their reports without first having to be victims of identity theft.
The process is simple: when you freeze your credit report, an identity thief is shut out from getting hold of your credit because the creditor can't check your credit history. It's locked up tight.
Practically no lenders I know of will lend out money without first performing even a bery basic credit check. Thus, freezing your own credit has been proclaimed one of the best ways to protect yourself from identity theft at this time.
Before this legislation became effective at the first of September 2007, Texans could not freeze their credit reports unless they were already victims of identity theft, as they had to wait for a crime to occur before they could take steps to protect themselves.
As Texans might put it: Kind of like locking the barn after the horse has gotten out.
Read the full account in the online version of the Dallas Morning News:
http://www.dallasnews.com/sharedcontent/dws/bus/columnists/pyip/stories/DN-moneytalk_03bus.ART.State.Edition1.35aa55a.html
Now, if the other 16 states will just get onboard and allow ALL consumers the right to protect their credit.

Simple ways to get better credit

2007-08-31T06:01:00.000-07:00

One excellent tip for restoring good credit is to decide for yourself never to charge more than 50% of your credit limit on your credit cards, and don't ever allow yourself to build up a balance of more than 50% of your available credit at any one time.
Carrying a large balance in relation to your overall credit limit is the perfect way to lower your credit score. You want good credit. Here is a simple way to get better credit in the shortest possible time:
Charge a modest amount the first month, say $200. Pay about 20% over the minimum payment due from your first billing, and then the following month, pay the entire balance. Do the same thing for the next 5-6 months, and always, always, always be timely with your payment.
Our advice: pay your credit card bill online a few days BEFORE it is due, that way, you will have time to call the credit card company if your payment hasn't posted to your account due to technical reasons.
At the end of the six month period, take money from savings and pay off the entire balance. Keep the card open, maybe charging something every now and then and remember to always pay the card in full each month before the due date.
Within 18-24 months, you should be boasting a much higher credit score.
Restoring good credit requires time, commitment, organization and solid common sense. By cleaning up your credit when you don't need to borrow money, you will have a much better ability to get decent terms and access to money when you do indeed need to take out a loan or when you apply for new credit.

What's wrong with your credit?

2007-08-30T05:16:00.000-07:00

There are a few basic steps to cleaning up your credit reports to boost your ability to borrow money for investments, long-term beneficial purchases, college education, a new car or a new home. Follow our free tips for rebuilding credit scores by 60-90 points.
When something is wrong with your credit, then this info regarding repairing and raising your credit score will lead you step-by-step through these easy to learn procedures:
Step #1 -- Request credit report from each credit reporting agency in your area.
Step #2 -- Dispute all inaccurate entries in writing and mail to respective agencies.
Step #3 -- Review updated credit reports you'll receive in 60-90 days. Detect any items which were not removed into another letter (basically repeting Step #2 until erroneous entry has been removed.) Mail this letter 120 days from last updated report you receive.
Step #4 -- If all else fails, you can write a 100-word statement entry that explains your side of the story for entries you cannot get removed by any other means.
There is power in dispute letters when you send them to the credit bureaus. Learn how to write letters to fix bad credit scores at http://www.findhow2.com/repair-credit.html

Check credit report for free

2007-08-29T04:47:00.000-07:00

I've been sounding the alarm for years: your credit score is precious. It affects every part of your life. Why people don't pay more attention to fixing their credit is astounding.

Maybe they like paying more money for car insurance, or a higher interest rate on home , boat and auto loans, or worrying that their credit card company might jack up their interest rates anyday now.

Your credit score is much like the references that you post on your resume when you are looking for a new job, and when you apply for new credit, bad credit returns bad results.

Higher credit score, the lower the risk, so the argument goes with lenders.
Is it true? You may not like to hear this, but the statistics bear them out: Yes, people with high credit generally pay their bills on time.

But what we're focusing on here are the ERRORS lurking in your credit report, and it's still real simple to find them, dispute them, and get them deleted.

Can you recall the last time you checked your credit report? If not, don't despair, you an still get a free copy of your credit report from each of the major credit reporting bureaus from the web site annualcreditreport.com.

We've included some free sample dispute letters that you can copy and paste to challenge errors you may find in any of your credit reports. You'll find them at:

http://www.FindHow2.com/repair-credit.html

Do-it-yourself credit dispute letters

2007-08-28T05:02:00.000-07:00

One of the best ways to get derogatory marks deleted from your credit report is to learn how to write and submit a dispute letter. It's not hard, and now we've made it easy for you by providing free sample letters showing you how to do it yourself.
Unflattering information that is inaccurate, duplicated or outdated derogatory content appearing in your credit report should be removed promptly once you notify the CRA's (credit reporting agencies).
You can now get free sample dispute letters at http://www.findhow2.com/repair-credit.html
But don't think simply writing credit report dispute letters will get rid of any accurate and timely information.
Information that is true will stay on your credit report, no matter what you do or whichever scam credit report repair firm you pay money to. Our free sample letter formats work, but they are effective only when they are used to request inaccurate, outdated or erroneous entries appear in your credit. No matter what anyone else promises you, that's just the facts.
Incorrect information winds up hurting your credit score. We believe that as the current credit crunch evolves, your credit history will become your most important asset in gaining credit and you should be vigilant to keep it as clean as possible.
You have more rights today than anytime in history to fix your own credit yourself. These sample dispute letters and accompanying free credit repair information is an easy way to improve your credit rating yourself. Feel free to copy and paste our sample letters and customize them to fit your needs. Get yours today.
http://www.findhow2.com/repair-credit.html

Consistent payments improve credit score

2007-08-27T04:25:00.000-07:00

Some people think that if they pay off all their debts, then their credit score will magically shoot up and give them great credit.

Nope. Your credit score is the sum total of your past credit use, your past credit history, not current payments.

Sure, the fact that you PAY your bills is important. But TIMELY PAYMENTS each and every month are truly the biggie here. It's wise to use a bill-paying calendar -- any calendar will do -- and write in when your debts are due one full week before they are due.

This way, if you are a day or two delinquent in paying them according to your calendar, your payment arrives on time.

When it comes to credit card payments, there's no need to even mail payments anymore. Online bill payment systems actually can post your payment the same day you make it, so long as you do it early in the day.

I personally enter in my credit card payment due date into my cell phone's calendar function. The phone beeps, I look at the message, it says "Pay CC today," and I make time to log in to my credit company's website, authorize the correct payment due, and click "OK Payment." It's done in 5 minutes, and my payments have never been late due to slow mail delivery.

In fact, I usually make the next month's payment a few days AFTER my regular payment is due. So, if my credit card payment is due on the 5th of the month, I will log onto my online account on the 7th of the month, make the next month's minimum payment, and know that I can make another payment before the following month by the 5th to help pay down credit card debt. This way, I know I'm not late, and I can pay down credit card balances as my income allows.

If late payments have indeed damaged your credit score, you will need to make months of on-time payments consistently to repair the damage. Consistent payments each month by their due dates is what will improve your credit score, not one-time payments in full.

Raise Credit Score 30pts, Save $76 Year: Survey

2007-08-26T09:06:00.000-07:00

The Consumer Federation of America released a study July 19, 2007, stating that consumers could save more than $20 billion a year if they increased their credit score slightly.

On average, each consumer who increased his or her FICO credit score by just 30 points could reduce their credit finance charges by $76 a year.
The CFA claims that most Americans are clueless how their credit scores affect important areas of their lives.

Their report is found at:
http://www.consumerfed.org/pdfs/Credit_Score_Release_07_19_07.pdf

Solution? Paying all bills on time, refraining from using too much of their available credit on their credit cards, paying down debt instead of buying more things, and monitoring and disputing errors in their credit reports are the four best ways consumers can raise their credit scores, according to the report.

The FICO credit score, by Fair Issac Corp., is the benchmark credit score used by 9 out of 10 lenders. Fair Isaac's website (http://www.myfico.com/) details how consumers can lower the cost of loans simply by raisng their credit score by relatively small increments.

We've been compiling free tips on how to improve your credit scores at FindHow2.com since March 2006. We invite you to log on today to learn how to get better credit.

Credit Card Companies Crunch Credit

2007-08-24T04:18:00.000-07:00

In a new article: "Subprime may be hitting credit cards, too" Jeanne Sahadi, CNNMoney.com senior writer, writes that credit card companies have begun to take steps to protect themselves while subprime mortgage markets are in turmoil.
Credit card issuers are reportedly raising balance transfer fees and making introductory rates less appealing. They are reducing how long lower introductory rates are valid. And they are taking the onerous step of lowering credit limits on existing cardholders, including some prime customers. Customers might be shocked one month to find that their available credit has disappeared overnight.
Once a credit limit has been lowered it can lead to hefty over-the-limit charges. I know from personal experience that this practice can take a bite our of your budget if you use the credit card, thinking you still have available credit, and the next month you find out you went over your limit. Not only did I incur an over-the-limit fee of about $30 at the time, but I also knew instinctively that I'd just bruised my credit.
Having your credit card company decide you get a lower limit is very likely going to reduce your overall credit score. You will be tapping into more of your available credit, and carrying more than a 50% balance on credit cards tend to result in lower FICO scores.
The credit crunch is spreading to what's in your wallet....
(Read full article here...)

Tougher times to refinance at lower rates.
If you had a credit score of 650 points out
of a possible 850 in 2006, you could demand
much lower interest than those with bad
credit. But now it takes a FICO credit
score of at least 680 to be getting the best
deal.

Boosting your credit score takes commitment
to pay all your bills on time, lowering
outstanding balances on the credit cards you
already owe, and paying down overall debt.
Experts recommend that you keep your
balances below 50% of available credit card
limits, while others caution not to go use
more than 35% of available credit.

It's probably a good idea to follow the
advice of one-third of your credit balance,
and start making plans to pay off credit
card debt as soon as possible.

At this time, it's also not wise to open new
lines of credit. This could signal that
you're desperately in need of more credit to
maintain your lifestyle -- something that is
almost certain to cause concern from lenders.

For more free tips, visit our website FindHow2.com.

Free sample letters dispute credit

2007-08-23T05:42:00.000-07:00

We get a lot of requests for free sample letters people can use to dispute derogatory bad credit entries in their credit reports.
We've assembled some easy to use sample letters on our website:
http://www.findhow2.com/repair-credit.html
All you need to do is copy and paste into your favorite word processer this copy, customize the letter to fit your circumstances, and print off 2 copies -- one for yourself, one for the creditor or agency you are writing. It's best to keep a copy for yourself. Yes, I know, you can always print off a separate copy from the saved file on your computer. But my experience has shown me that if I do have a printed copy in a file, and I put ALL of my correspondence in that one file, with the notes of who I spoke to on the telephone, the date I mailed those letters, the dates I received updated credit reports, etc., then I can quickly track the credit repair progress.
I recommend that you send these letters to the CRA's and to your creditors registered return receipt mail, as then you will have a record of (1) the exact date you mailed the letters, and (2) the exact date of receipt and the signature of the person who signed for the letter.

Low credit scores, higher auto insurance bills

2007-08-08T15:18:00.000-07:00

You've probably been hearing how your low credit score could result in higher auto insurance premiums when your insurance company does an "insurance check" on you. As if insurance automobile and truck insurance isn't expensive enough, now you pay more if your insurance carrier finds out you have poor credit.

Just another reason to know what's in your credit files and taking the time to fix bad credit.
Today outdated derogatory entries in the files the 3 major credit reporting agencies have on you can cost you in many ways, including your auto insurance payments.

We've detailed additional information to help you lower your auto insurance by fixing your credit scores at
http://www.findhow2.com/how-to-save-money-on-auto-insurance.html

Free tips to fix your bad credit

2007-05-15T20:37:00.000-07:00

Knowing where to start to dispute errors in your credit report is easy
once you know how. Here are some websites to check out that offer helpful
credit repair information on disputing credit report errors and helping people
repair their own credit.

http://banking.about.com/b/a/256245.htm

How To Fix Your Credit Report, Banking / Loans, Got
errors on your credit report? Youll want to fix your
credit report to.

http://www.debthelp.com/guides/credit/credit-errors-corrections-repair.html

This means that you as a consumer should check your credit report for
errors and follow-up as necessary. You don’t want negative
credit to hurt your future.

http://www.oskie.com/equifaxtransunionexperiancredit.htm

Free credit help by a live human! Fix my free credit
report online. ... help and disputed errors on credit
report. ...

http://www.bankrate.com/brm/news/cc/20010906a.asp

Usually, consumers find out about errors in their credit reports
after they're denied credit. To fix mistakes in your credit
report, here's what to do:

"Fix
your credit in just 72 hours" - MSN Money

Anyone whos tried to fix an error in a credit report
knows that it can be a slow, tedious process. Yet some companies promise to
fix credit mistakes in 72 ...

http://www.creditinfocenter.com/repair/Repair.shtml

The whole key to the credit repair procedure is that if the
credit bureaus cannot verify information on your credit report
they must remove it.

http://www.FindHow2.com

Free articles and links to credit repair web sites to help you remove
errors in credit reports and raise your credit scores.

http://loan.yahoo.com/c/basics4.html

Improve Your Credit Profile To Get Better Credit Deals
... The better your credit history, the more likely you
are to qualify for the best credit deals.

How to check your credit report

2007-05-14T18:56:00.000-07:00

You never know when an emergency
will arise and you will have to borrow money. So it's important to know how to check your credit report for errors BEFORE you need to apply for a loan.
You might need an equity line of credit, and when you go to
refinance your home, your credit rating will be so low that you
won't even qualify for a bad credit mortgage!
Or a credit card application that arrives in the mail and after you fill it out, you get
turned down because you didn't check your credit to find
outdated, negative entries in your credit report.
Or you've had enough and you want to eliminate credit card
debt, but you can't be a credit consolidation loan even if you
promised to attend consumer credit counseling classes everyday!
It's important to remember that it's not that you're a bad person. It's just that you have bad
credit, and you've first got to understand this: Bad credit is
like bad body odor... it can be fixed!
But you'll need to do certain things in order, like: (1) check your credit, (2) carefully review your credit
report, (3) dispute mistakes in your credit report, (4) write
letters to fix your bad credit, and (5) check your credit again
and again by getting your free annual credit report online.
You can get better credit than you have today simply by making
a plan to fix your credit and sticking to it until your credit
score improves!
You can pay to get your current FICO credit score, but what's really important is knowing what's IN your credit files. For the time being, we'd recommend simply downloading the free credit report you
are entitled to from Equifax, Experian and TransUnion available
for free at http://www.annualcreditreport.com/ .
Once you have your credit reports, you must then take the time to read through
each once carefully, checking the codes and entries and
matching them up with what really happened when
you used credit in the past.
It you were late making payments, then you'll have to wait out
this negative information. You cannot have accurate negative
information removed from your credit files. You can only
dispute errors in your credit report. And errors are likely to
slip in from time to time, so eliminating these during your
credit check will be relatively easy.
Some errors might be that outdated information remains. For
instance, sometimes credit information from a person who shares
a similar name could appear in your credit report and do damage
to your credit score. Or maybe you disputed a bill with a
hosptial in your hometown, and even though you thought the bill
was waived, it winds up showing up as being turned over to a
collection agency, and you have to learn how to deal with a
collection agency all over again!
Reading your credit reports from the three reporting bureaus may seem overwhelming at first. But
reading them will help you start understanding what's in
your credit history that lenders are viewing when they are
making the decision of whether or not to loan money to you.
Armed with this knowledge, plus the effort you will put in to
eliminate any and all errors from your online credit report at
the three major credit bureaus (Equifax, Experian, and
TransUnion), you will go from being haunted with bad credit to
enjoying better credit and getting that loan you need, when you
need it, at favorable interest rates and terms that you
negotiate with your banker.
When you give your credit report a "check-up" you will need a
working knowledge of basic credit repair techniques, and we've
published a summary of these for you to use free at
http://www.findhow2.com/repair-credit.html .

Where to get help when filing dispute

2007-05-11T02:06:00.000-07:00

If you feel that you need help from your state Attorney General
when having a financial or business dispute, you can contact
them either by mail, by phone or via the Internet by visiting:
http://www.naag.org/ag/full_ag_table.php
There, you'll find a complete listing of contacts.
If you need to contact your state's Better Business Bureau, you
can locate the nearest office online at:
http://lookup.bbb.org/

Stop paying credit card late fees

2007-05-11T01:56:00.000-07:00

To stop paying credit card late fees, and in the process raise
your FICO credit score sustantially over time, you can simplify
the process by using a service your bank probably offers for free.
An automatic bill paying service offered by most banks for free can help make paying regular monthly bills a snap!
Your first step is to determine how much to pay. The easiest way to do this is to either pull out your last few credit card statements or log onto your online credit card account and check the past several months of payments.
We'd recommend setting your automatic monthly payment at about 20% over your minimum. This way, if you do add additional charges to your credit card debt, you will still be paying enough to make the monthly minimum on time every month... a surefire way to keep the credit card company happy and keep your credit score going up, up and away!
Getting started is easy. Simply check a few recent credit card statements to see what your usual minimum monthly payment is.
Then contact your bank. Register to use a free automatic bill paying services which allows you to make your recurring monthly payments whenever you choose. So if your payment is due the 10th of each month, set the automatic payment to be made midway through your billing cycle.
Just remember to keep enough in your checking account to cover this recurring amount. It'll be easy to do once you get in the habit of doing it, and if your bank does charge for this service, maybe it's time you shop around for a different bank!
Knowing when to pay the bill is important. For example, if your payment is due on the 1st of every month, set the payment to be made the 15th of every month. You won't be late. The payment made the 15th pays the payment due two weeks later (the 1st of the next month). So, when you do receive your statement online or in the mail, you can ignore it, or, if you want to further reduce credit card debt quicker, make an additional payment on your balance due and lower the debt yourself. This is optional.
So even if you never get your bill in the mail or you space it out and forget to mail your payment or log in to pay your credit card bill, you minimum payment will magically (well, automatically!) be made for you... all thanks to your automatic bill paying service.

Now, if you are the type to pay off all your credit cards in full each month, that's fine. This system will still work to your benefit if you are traveling for business or pleasure and you are away from home when you payment must be made. You can relax and know that your payments are being made in a timely fashion, and you can payoff the remaining balance amount you've charged up during your travels when you return.
As always, be sure to double check your monthly credit card statement so as to be certain that the minimum credit card payment you owe has not gone up above your scheduled recurring monthly payment. If it does, simply make the changes necessary for your automatic payment to more than cover the minimun due.

Credit counseling gets you back on track

2007-04-27T16:31:00.000-07:00

When you are trying to get credit help for your unsecured debt, you'll often turn to a credit counseling service. These firms help you with credit card debt that has spiraled out of control, and they can help advise you on setting up a workable budget.

Are you behind on student loans? Your automobile or truck payment late? Medical bills unpaid? Is the electric company about to turn out the lights?

It could be that you are needing the valued services on a good credit counseling service. We've written about this on our main web site: http://www.findhow2.com .

We urge you to visit that site and learn how you can get the help you need to get out of debt and fix your credit report. Sometimes you simply can't get it done yourself. We understand, so quit beating yourself up. Just start the process of learning what to do next and getting the credit help you need.

The main things a good credit counseling service can offer is the advice on managing money and keeping up with paying your debts. You might even have access to free or low-cost classes on managing your money. This could be the best thing you can take away from credit counseling, and will enable you to deal with similar financial difficulties in the future.

Can Bankruptcy Boost Your Credit Score?

2007-04-24T15:02:00.000-07:00

Here's a unique twist on credit scores found at SmartMoney.com:

"The decision of whether to file for bankruptcy protection is
not an easy one. Among the numerous concerns, one that is
typically front and center is the worry that your credit rating
will be so damaged that securing a loan — even at a lousy rate
— will be darn near impossible. "

True. Their editors have hit the credit score problem squarely on the head. We've been preaching that one needs to carefully protect their credit rating for years on this blog. But the following caught us by surprise, and we'd like to share this with our readers:

"But here's some surprising news: In many cases, the damage done
to one's credit score isn't nearly as bad as expected. Over the
long run, obtaining a score high enough to make you eligible
for very competitive rates isn't out of the question. "

That's good news when it comes to bad credit might not be ALL bad! You can read more of this interesting article at:

http://www.smartmoney.com/debt/advice/index.cfm?story=boostscore

Fighting Foreclosure With New HomeStay Program

2007-04-17T14:52:00.000-07:00

It's about time the two biggest government-sponsored loan
entities in America actually heard the pleas from cash-strapped
homeowners and did something worthwhile to ease their pain.

Fannie Mae unveiled a new program called "HomeStay,"
offering brand new options so that lenders can help subprime
borrowers wiggle out of high-interest adjustable-rate mortgages
or other onerous home loans, and into loans that are
"consumer-friendly" to save their home from foreclosure.

President and CEO Daniel Mudd said Fannie Mae plans to
stretch the term on subprime loans up to 40 years from the
current maximum of 30 years — which is anticipated to help
reduce monthly payments for borrowers by around 5 percent. Five
percent is not much, but it's better than a sharp stick in the
eye.

Richard Syron, Freddie Mac's chairman and chief executive,
said his company will be rolling out "more consumer-friendly
subprime products" to provide stable financing by midsummer
2007.

Freddie Mac's new products are reported to include 30-year
and possibly 40-year fixed-rate mortgages as well as
adjustable-rate mortgages with longer fixed-rate periods.

More on "HomeStay" can be found at: FannieMae.com -- HomeStay Announcement

In the press release, we read: "Fannie Mae has a history of working with lenders to serve families who don't have perfect financial profiles. 'Subprime' is, after all, simply the description of a borrower who doesn't have perfect credit."

So, the reason for out interest in this topic is clear: those who do not have a good credit score to show their lender might get screwed by getting stuck into an adjustable rate mortgage that very likely could rise to the point where the mortgage payments are simply unaffordable, and the home, equity and the homeowners sweat-equity in his or her place is lost forever.

We look forward to seeing Freddie Mac and Fannie Mae acting like a benevolent aunt and uncle to calm millions of distressed homeowners and worried housing investors in this country with this and similar actions.

Further, I expect scandals to erupt over this "loose-money" con that was conducted within the usually staid and stuffy world of mortgage banking. May the guilty parties be found out and spend some quality time under arrest.

Foreclosures may hammer credit scores

2007-04-16T20:00:00.000-07:00

There's foreclosure madness in the air.Neighborhoods are falling victim to foreclosure rates not seen
in years.People are not only losing their houses. They are losing the
investment they've made in their neighborhoods, in their
communities and schools and churches and businesses.There has been a tidal wave of foreclosures across the nation
as ARM's -- adjustable rate mortgages -- are readjusting as
lenders hike interest rates, and house payments are stretching
household budgets past the breaking point.The houses are going back to the bank in record numbers.USAToday recently reported that homes entering foreclosure hit
a record number in the final quarter of 2006.2007 doesn't seem to be faring any better.There's no quick fix, and the government, in true
Katrina-disaster-style-response, has been loathe to be
proactive. Foreclosures rise, and cities fall apart. I warned of the dangers of relying on interest-only loans over
the past two years, the the short-term benefits seemed sweet:
buy more house than you could really afford to buy, and pay
only a small amount at the beginning. The fairytale was that
by the time the interest rates reset, the housing market would
have pushed home prices up 15-20%, and the homeowners credit
would have magically improved, and a simple mortgage refi could
rescue the occupants and save the day.But that's far from what's actually happened.Burgeoning personal debt levels have stymied the ability to
borrow more. Now that home equity seems to be evaporating as
the housing bubble melts down, there's little wiggle-room to
dodge economic catastrophe.Need proof? Here's what USAToday reported: One Georgia
Institute of Technology associate professor of city and
regional planning, Dan Immergluck, said: "The foreclosure
trends are definitely acelerating in middle-income suburban
communities."Later, he's quoted as saying that the homes surrounding a
foreclosed-upon home drop an average of 1.5%. Each. So if you
have a neighborhood of $300,000 homes, and the home next door
goes back to the bank via Dr. Foreclosure, those home EACH lose
approximately $4,500.Start doing the math, and you'll start to see the tsunami
swells forming off on the horizon.The cluprit are the exotic loans marketed over the past 6-7
years. ARM's and interest-only loans. The hype is forgotten
when the bill comes due. More and more homeowners will find
themselves upside down and in over their heads as their home
payments strip their ability to pay.In the end, their credit will suffer. As they accept the fact
that they will lose their home to foreclosure, they will cease
being a homeowner and they will once again join the ranks of
renters. It is interesting to see large rental development
projects being built in major urban areas. The banks see the
need for these rentals because they helped create the new boom
in homeowners-turned-renters.And, once the credit reports of those former homeowners have
been trashed and ruined and their credit scores are hammered
down to new lows, it may take years to get through this mess.Yes, indeed, foreclosure madness wafts in the air. It was
avoidable once. But not now.

Some free credit reports not free

2007-03-27T11:57:00.000-07:00

Unscrupulous companies advertise “free credit reports” these days that aren’t really free.
Sometimes these firms require that you must purchase credit monitoring or other services they offer in order to obtain your free report. Or you are given a free 30-day trial of such-and-such credit monitoring service, then you get charged for it every month thereafter, unless you call to cancel the service.
In our opinion, that's just not fair. Consumers are entitled under federal laws to one free credit report per year from each of the three credit reporting agencies: Equifax, Experian and TransUnion.
Most importantly to keep in mind, there is only ONE official web site to access these free reports: www.annualcreditreport.com .
Or, you still have the option to call the central request phone number: toll free 877-322-8228.
Consumers are cautioned that a simple misspelling of the web site address or conducting an Internet search for phrases such as “free credit report”, “free credit history” or “free credit rating” could take them to a different web site that charges for credit services available to them for free (like the free information you'll find on this site, or on our sister site, http://www.FindHow2.com) .

Following is the current contact information of the three major credit bureaus:

Equifax Credit Information Services, Inc.
P.O. Box 740241
Atlanta, Georgia 30374
Toll Free: 800-685-1111

Experian National Consumer Assistance Center
P.O. Box 2002
Allen, Texas 75013
General inquiries: 888-397-3742
Additional free credit report: 866-200-6020www.experian.com/freestate www.experian.com/reportaccess (if you have been denied credit within the past 60 days)

TransUnion Consumer Relations
P.O. Box 2000
Chester, Pennsylvania 19022
General inquiries: 800-916-8800
Remember, when you are requesting your credit report, you will be asked to provide your full name, current address, your Social Security number, your date of birth, as well as your most recent address.
When requesting your credit report online, you may need to answer some specific questions that only you know, such as a previous mortgage amount.

Greed at root of risky lending practices

2007-03-23T08:41:00.000-07:00

An interesting web article published recently at SeaCoastOnline.com caught my eye today: "Greed is root of mortgage crisis issue." It was written by Joe Adamaitis, president of Direct Mortgage, which offices in Portsmouth, Naugatuck, Conn. and Bradenton, Fla. Read the full article here:
http://www.seacoastonline.com/news/03212007/business-b-subprime.column.html
His premise: sub-prime lenders were greedy and took advantage of people with poor credit scores.
He writes: "If we look carefully at the problems linked to this meltdown, we might begin at the root of all fiascoes -- "greed." Sure the (lending) guidelines were loose, but so are the laws that monitor mortgage marketing and advertising to the consumer. Consumers are fed 'bait and switch' ads on a daily basis."
It is important to hear this coming from a veteran in the mortgage business.
Adamaitis continues: "One other issue that can take blame for the subprime problem is today's credit scoring models. I will say that the credit industry has it's own share of blame because the 'scoring formulas' used to rate a borrower are far from as accurate as one would like to believe."
Well said! We too believe that the people who collect and report credit information need to be held to a higher standard, and the current system needs a tune-up. Those with "bad" credit -- as determined by scoring models -- were almost forced to accept higher risk loan programs to get the home loan they were needing.
According to Adamaitis' article: "The inaccuracy pushed many borrowers away from getting conventional financing and into the subprime market. Trying to correct a credit score is virtually impossible for an individual and, therefore, has created an entirely new business."
And he leaves the reader with one chilling warning: "If you're looking for the next subprime-type fiasco, watch the number of credit repair companies that pop up."
It's bad news, but don't blame the messenger. The lending system, perhaps the whole housing bubble, was obviously driven by greed, so Joe Adamaitis' article hits the nail on the head squarely and his observations need to be considered by those who are involved in the industry, as well as consumers who are affected by the fallout of the sub-prime bankruptcies and home foreclosures.
For those working diligently to fix their own credit report, this type of article underscores the need for constant monitoring of not only one's credit report, but also the influences in the markets which lead people down primrose paths to financial disaster.
You CAN fix your own credit and you CAN reduce debt and you CAN build a financial future others will envy, but you MUST be aware that there are constant dangers, and you MUST take steps to remain cautious about things "too good to be true." Again, we recommend that you read and pass along Joe Adamaitis' article link listed above. It could help educate those you love.

Good Credit = Organization + Good Habits + Time

2007-03-20T05:38:00.000-07:00

Lenders are now telling home loan applicants: Pay down your debt and improve your credit score. Refinancing is getting more difficult. Getting a mortgage now is a lot harder than it was just a month ago. That includes borrowers with marginal credit who will have to come up with larger down payments and cash-strapped borrowers who are trying to refinance their adjustable-rate mortgages.
"The source of the trouble is the same part of the mortgage industry that helped drive the biggest housing boom in history over the past five years, a corner of the market called "subprime lending" that offered financing to those who otherwise couldn't get a home loan," according to a very telling story in The Star Tribune.
Read the whole article at The Star Tribune
Our message here for more than a year is for people to protect themselves, to pay down personal and business debt, and work hard to improve their credit report.
Fixing your credit report is simple when you follow our free tips at FindHow2.com. There, we've assembled some of the best reports and articles on how to proceed and get your finances in order.
It will pay big dividends to follow our authors' free advice and shape up your spending and saving habits. In summary, the best plan of action to get a better credit score is this: Good Credit = Organization + Good Habits + Time. Organize your bills and your debt obligations. Practice paying your bills on time, all the time. And by doing this regularly, time will come to your aid and help improve your credit.
Try it. You'll be happily surprised at how well these simple free tips work!

Bad credit woes rocking mortgage markets

2007-03-13T23:44:00.000-07:00

Well, it's not like we didn't see it coming...
As noted on Associated Press reports, published on Yahoo.com March 13, 2007:
Headline: "Late mortgage payments reach high"
Summary:
++Late mortgage payments hitting record levels.
++Consumers feeling pinch, can't keep up with rising adjustable loan payments.
++Delinquency and foreclosure rates were considerably higher for higher-risk subprime borrowers, especially those with adjustable-rate mortgages.
++Nearly 5% of the 43.5 million loans that the Mortgage Bankers Association tracks could be headed for default.
++Wall Street investors' worried about troubles facing "subprime" lenders who make loans to people with poor credit rattle markets, send Dow Industrials plummeting.
++Fearing out-of-control defaults on high-risk mortgages, federal bank regulators were reported earlier this month to be twisting lenders' arms to use caution in making subprime loans and strictly evaluate borrowers' ability to repay them.
++Experts wring hands: "Unfortunately, it appears delinquency rates will likely worsen before they improve," said Gina Martin, economist at Wachovia Corp. Economics Group.
We've been predicting a shakeout in the housing market and the booming mortgage industry for some time now, and the high-risk loans made over the past several years are now proving to be unsustainable.
For readers of this column, they knew that adjustable and interest-only loans were not in their best interests over the long term.
Yes, for short-term financing, those loans did seem quite attractive. For a time. When rates were low and prices were going up.
Problem is, lenders put the wrong people into these loan programs, namely, people who had lousy credit. The folly of banking on people with poor credit to drive the economy always seemed slightly insane to us.
So what's next? It's going to be painful to watch this meltdown. People will get hurt. They will lose homes and banks will lose money.
But we doubt the scoundrels who foisted these loans onto the financial landscape will lose much or suffer. Most will probably manage to dodge penalties or justifiably appropriate prison time.
They will simply move on to their next scam... remember the S&L crisis in the first President Bush presidency? History may be repeating itself here. Stay tuned...

Re-aging credit offers fresh start

2007-02-18T15:54:00.000-08:00

Keeping tabs on your credit takes time, but it's worth it in the long run. Sometimes, you're likely to get in a bind when it comes to paying your bills on time. Making late payments is the fastest way to lower your credit score. But it's not always the end of the world.

One thing to keep in mind is that sometimes you can get a creditor to "re-age" your account.

There are limitations to this. Creditors can basically forgive past-due accounts, erasing any record of missed or late payments, by agreeing to re-age the past due account. The account that once was overdue is then current, and you can start fresh.

Yes, you still owe the same amount on your credit card. But your payment history is cleaned up.

As an example, if you are three months late making your minimum credit card payments and your credit card company agrees to re-age your credit card account, then you're in luck. Your record is cleared. All three of those payments are forgiven. The company will stop charging late fees, and, best of all, your credit report no longer shows you as being delinquent on this bill.

Your fresh start is not automatic, and don't expect all creditors to fall all over themselves to offer you this option. Many will only want their money, and you'd best pay them to keep your credit report from getting any more derogatory marks.

Guidelines were established in 2000 to standardize the practice of re-aging consumer credit card accounts.

For your account to be considered for re-aging, you must be able to demonstrate a renewed willingness and an apparent ability to pay your bills.

In most cases, your credit card account must have been open for at least nine months.
Three consecutive minimum monthly payments or the equivalent sum must have been made previously. And, as with all good things, there are limits on the number of times your credit card account can be re-aged.

Currently, your credit card company can only re-age your account once in a 12-month period, and they can only re-age your account two times in any 5-year period. So, it's imperative, that if you find yourself in credit card crisis, you've got a limited number of times to take advantage of this "free spin" to help you improve your credit.

12 Credit Mistakes To Avoid

2007-02-17T00:08:00.000-08:00

Guest Editorial:

Common Credit Mistakes Hurt Home Buyers

By Jeanette Joy Fisher

You can buy a home to live in with poor credit. However, you will save thousands in loan costs if you maintain good credit.

A bad credit report leaves home buyers with nonprime loans which cost more money because of:

high point charges
high loan processing fees
prepayment penalties
high interest rates

If you desire to buy your dream home or investment properties to build your future wealth, you must maintain good credit.

Avoid these 12 common credit mistakes to build strong credit and save money in mortgage loan costs.

1. Mortgage lenders often scrutinize the type of credit used. Consumer credit, the kind associated with department store credit cards and finance companies, has high interest charges and deducts points from your credit score.

2. "Too much consumer credit," a common remark in credit reports, is caused by too many lines of credit or too many credit cards.

3. High balances caused by only paying the minimum due or maxing out credit cards or lines of credit generate deep drops in scores.

4. Cash advances costs higher interest and extra fees. These extra charges accumulate and keep balances too high.

5. Charging over your limit and paying penalty fees causes negative "high proportional amounts owed" remarks on credit reports and deducts points from credit scores.

6. Late payments, sometimes even only by one day, cause unnecessary late fees. Late payments often increase account interest rates.

7. Some consumers charge more than they can afford. This causes a snowball effect of amassing debt with no easy way to pay it off.

8. Co-signing a loan raises debt-to-income ratio and possibly adds "too many consumer accounts" on your credit report, which lowers your score considerably.

9. Don't ignore credit problems. Talk to creditors before making late payments and make correction arrangements. This action heads off negative reporting to credit reporting agencies.

10. Report address changes to creditors to avoid misplaced bills and late payments.

11. Use your full legal name to protect yourself from confusion. Avoid partial names, different names, and initials. If appropriate, use Sr. or Jr. Report name changes to creditors to avoid confusion.

12. Check your credit report often for mistakes and protection from identity theft.

Avoid credit mistakes to build strong credit and keep your credit scores up. Understand the difference between good credit and the credit needed to obtain real estate financing. Finance your dream home or dream investment portfolio!

Jeanette Fisher offers Free ebook: "Credit Tips for Mortgage Financing" at Real Estate Credit Help

http://www.recredithelp.com

Article Source: Joy Fisher

How Impulse Spending Affects Credit

2007-02-04T08:16:00.000-08:00

Avoid Impulse Spending! -- This is important because if you want to fix your credit report, you've got to get a handle on your bills, and a tendency to overspend can undermine even the best budget.You know that you need to work on limiting your own impulse spending habits if:

1.) Your spouse complains that you spend too much money every month.
2.) You're surprised each month when your credit card bill arrives at how much more you charged than you thought you had.
3.) You have accumulated more shoes and outfits in your closet than you could ever possibly wear.
4.) You buy things you didn’t know you wanted until you saw them on display in a store.

Sadly, impulse spending will prevent you from saving for the important things like a house, a new car, a vacation or investing your money for retirement. To achieve your financial goals, you simply MUST resist spending money on things that really don’t matter in the long run.

Impulse spending will not only put a strain on your finances but on your relationships, as well. To overcome the problem, the first thing to do is learn to separate your needs from your wants. The best technique is to have a "cooling off" period in which to allow emotions to settle down and let logic take over.

Advertisers blitz us hawking their products at us 24/7. The trick is to give yourself a cooling-off period before you buy anything that you have not planned for. So try this: the next time you go shopping, pr-plan ahead. Make a list and take only enough cash to pay for what you have planned to buy. Leave your credit cards at home. When you pay in cash, you usually will be more hesitant to hand over greenbacks vs. paying with plastic.

On the other hand, if you spot a new item that you think you really do need, give yourself a few days to decide if it is really something you need or something you can easily do without. By following this simple solution, in time you will mend your financial fences and your relationships.

Avoiding impulse spending is a new habit that will take the place of your bad habit of overspending, or worse, of spending money you do not have! This can affect your credit, because you're more prone to be late on bills when you aren't careful with your money, and late payments will drastically lower your credit score.

Refinancing With Low FICO Credit Score

2007-02-02T21:59:00.000-08:00

Guest Editorial:

"Bad Credit Refinance Loans - Refinancing With A Low FICO Credit Score"

By Sharon Listner

Your financial situation may have changed for the worse since you first purchased your home. You may have had a great credit score, above 700, back then ... but now you find yourself with a low FICO score below 640 (be it 450, 500, 550, 600 or 620).

Now you need to refinance your existing mortgage loan to take cash out of your home for a home improvement project, credit card debt consolidation or other purposes.

The big question is this: "Can you get a mortgage refinance loan with a low credit score?

The answer is "yes".

Contrary to popular belief, life doesn't end, when your credit score dips below the magic 670 number.

Yes - it is a true that a person with a FICO credit score above 670 will find it easier to get a mortgage refinance loan than a person with a low credit score - but this is doesn't mean that you cannot find a loan.

How to find a poor credit refinance loan

1. The key to finding a lender, who specializes in low credit score refinance loans is to do your research. The power of the internet cannot be underestimated, when it comes to shopping for a poor credit refinance lender.

2. Once you find a lender, ensure that you complete their application form, thoroughly. Remember that you are competing with other applicants, who have excellent credit scores. Leave nothing to chance.

3. Be truthful on your loan application. Don't indicate a "fair" credit rating (620 and above), when you have a "poor" credit rating (any credit score below 600). A lender who specializes in low credit score loans is used to working with consumers with all credit scores and will not turn you down immediately, upon seeing a credit score like 500. Other details on your application form, will factor into the lender's final approval decision.

Research recommended bad credit refinance loan lenders and the various products, they offer at the loan resource guide: http://www.kstreetloans.com.

Sharon Listner writes about finance and conducts in-depth analysis on various consumer mortgage loan products.

Article Source: Sharon Listner