Credit Counseling Services - 3 Tips to Finding Good Ones

Many of us make mistakes when it comes to managing our finances that lead us to trouble. Credit scores go down, collection agents start to hound you, and other nasty stuff brought about by debt. Those are indications that you should probably look for credit counseling services and weigh down your options.

There are many companies that offer credit counseling; and many of them actually care about your situation and deliver good results. But there are still no-good companies that offer the same kind of service so you should be careful in choosing who to trust your finances with.

A good company will start out by studying your finances such as your current debt, monthly amortizations, overdue debts, your monthly income, etc… and will work out a plan for you to pay off your debts without starving yourself to death. That was the only way I knew how to save extra money before I studied debt management.

Effective credit counseling services will often lay out a plan for you and it is up to you to follow it to the letter. These are well thought out plan that will fix your problem so having the discipline to stick to it is really important. If you think of things to even make it better, then discuss it with you credit counselor.

Finding companies that offer counseling is easy. Do a Google search and you’ll be presented with pages and pages of choices. But the question is “how do you find a company that delivers real results?” Here are some tips.

Research and ask around – If a company offers credit counseling services, chances are many people have used their services already. Look for reviews online, ask around in forums, ask at Yahoo Answers, whatever… as long as you can find real feedback about the services of the company.

Check with BBB – The Better Business Bureau is a very good place to look for complaints and feedback. If the company is good with BBB then they should be good.

Call customer service – Find out how they treat customers by calling them and asking some questions. Get a feel of how they assist customers and see whether they are good enough. Prepare some questions before hand and see if they can effectively answer your questions.

Credit counseling services are invaluable tools that can literally change your life and get you back on track when used correctly. Work with your credit counselor and consider all your options. And once you have a working plan, make sure to follow them.

Lack of discipline will be your worst enemy on your quest to effectively managing your finances and in raising your credit score.

Credit Counseling Services - 3 Tips to Finding Good Ones

Read more!

5 Credit Solutions That Work

When talking about credit and credit solutions, some people think that once you’ve made the mistake of pulling your credit score down, you are doomed to have a low score for life. Or that you will have to spend a lot of money in order to raise your score up.

Though there is some truth to that, but it’s far from being the end of the world. It may take some time and probably a little money, but raising your score up is definitely doable. You just have to have the right strategy and follow credit solutions that work.

If you have been browsing the net looking for information about raising your credit score, then you probably noticed that experts suggest different methods and strategies to raise a bad credit. This is because not all cases are the same. What worked for somebody may not work perfectly well for you.

What I will be talking about in this article are 5 strategies that work perfectly well in fixing a bad score. I believe these credit solutions can be effectively applied by anyone. But then again, consider your situation first before doing anything.

Review you credit report – This is the first step that you need take. You have to know why your score is down before you can take appropriate action. Most of the time, you will find inaccuracies in the report and simply having them removed can raise your score.

Pay up on time – Late payments and defaulted loans damage your credit score so much. Some people have a bad habit of paying bills on the due date or a few days late. This is a very bad habit that you need to avoid. Plus, you’ll get an X mark from lenders if they see that you have poor payment practices.

This is absurdly simple but is one of the best credit solutions there is.

Pay down your debts – Having too much debt makes you a risk. Lenders will shy away from you, as well as a good credit score, since you at risk of overextending your credit. And it’s only a matter time until you start missing payments.

Cut your credit cards – If you have six credit cards in your wallet, then do yourself a favor and cut four of them in half. Juggling debts will get you nowhere and will eventually get the best of you. You’ll only need two credit cards in order to survive, and make sure not to exceed 50% of your credit limit.

Be consistent – This is probably the most important out of the five credit solutions listed in this article. You have to be patient and stick to your plan. Your credit score will not dramatically change overnight, not even after a month. So consistency and discipline is key.

Your score tells a lot about you and how you behave when it comes to debt. Lenders give a lot of importance to it so making sure that your score is good is critical. Apply credit solutions that work in case your score stumbles.

Most importantly, you have to safe guard your credit score and make sure that nobody ruins it. Not even you.

5 Credit Solutions That Work

Read more!

10 Safe Offline and Online Banking Tips

Nowadays, where identity theft is really rampant and one can never be too safe from identity thieves who prowl the country, it is always good to keep our guards high up. And one of the best ways to avoid identity theft is by educating ourselves and by being alert. It is no secret that the internet has revolutionized the way we do banking, but; with these advancement also comes the threat of having to lose your identity and money to ruthless people who care less about other people's well being.

To help you avoid being victimized by thieves here are 10 safe offline and online banking tips that could save you a lot of money and a great deal of headache. Whether you prefer online banking or the conventional one, these tips will help you a lot.

10 Safe Offline and Online Banking Tips

1. Keep account numbers and PIN numbers safe. Cover your account and PIN numbers when using debit at the store and refuse to give your PIN number to anyone. Avoid writing down your PIN and account numbers - you never know when this information could fall into the wrong hands.


2. Only do business with businesses you trust.


3. If you get applications for credit cards in the mail that are “pre-approved” rip up the applications and enclosed letters before discarding them. No, this is not paranoid. Identity thieves sometimes go through garbage in order to find these forms so that they can fill them out and steal your identity.


4. If you use a computer, install a good firewall and anti-virus protection system and update it religiously. Better yet, take a course in safe computing at your local college or community center. You will learn many good tips for keeping all your information safe while you are online.


5. Never buy anything online from a company you do not trust or from a company that does not have encryption technology and a good privacy policy. Online banking is convenient but it wouldn't hurt to take the extra step to check the reliability of their services.


6. Even with all computer precautions, avoid providing private information through email or your computer. Be especially cautious if you get an email from your bank asking you to verify your information by clicking on a link - this is a popular scam that comes not from your bank but from criminals posing as your bank. Ignore the email and phone your bank about the message.


7. Be wary of unsolicited emails, phone calls, or mail advertisements. Most are from legitimate companies but there are companies who promise you a credit card over the telephone only to charge your existing credit card without sending you anything. Similarly, letters will sometimes promise you specific items or services. Once you send in your credit card information (usually to a post office box) you hear no more from the company. If you need or want to buy something from a company, be sure to check the company’s standing with the Better Business Bureau first.
   
   Send a money order instead of a check (which has your account number) or your credit card information. If you do use a credit card, report any unusual charges or any payments you made for a product that you did not purchase.In some cases, they can stop payment or refund your money as well as take steps to keep your credit card number safe.


8. Be wary of offers that seem too good to be true. If you get an offer for a ten million dollar check - for which you need to put down $5000 as a “sign of good faith”...if you get an offer for a free state-of-the art computer - if only you provide your account information... take a deep breath and consider before sending in your money and your information.
   
   Offers that are too good to be true always are. Scam artists often rely on your belief in others and your trust to make money. They depend on the fact that you will be so excited about a product or service that you will throw good judgment out the window. Prove them wrong.
   
   When faced with an offer that seems too good to be true, do some research on the web, through the Better Business Bureau, or ask the person making the offer some questions. Never take someone up on an offer that you have been given unless the company and the offer both check out.


9. Read the fine print. Some services or companies will have tiny print in their contract or agreement that allows them to charge you extra hidden fees or that allows them to retract certain offers. If you get an offer through email or the mail, make it a habit to read the fine print. A lot of people just click on "read terms and conditions" when banking online. This could really hurt you.


10. Be wary of sudden disruption in your mail service. If you do not get mail for some time, contact your local post office and ask whether your address was recently submitted for a “change of address” service. It sounds strange, but it’s true. One way that criminals steal identities is to change your address at the local post office. They redirect your mail to a post office box number and steal your mail looking for personal information such as bank statements, pre-approved credit card applications, and other pieces of mail they can use to steal your identity.
    
    They use this information to pose as you with lenders and run up huge charges in your name. Simply keeping an eye out on your mail can help you keep your credit score safe.

Sometimes we get too comfortable specially if nothing is going wrong. Millions of Americans fall victim to identity theft every year, that fact alone should make us all worry and be very careful when giving information online. Online banking is great but let's not forget the danger associated with it.

There you go! If you have other tips that you can share or if you have experienced something that will be helpful to everybody please share them through the comments field.

10 Safe Offline and Online Banking Tips

Read more!

Credit Repair - Explained

By having a credit, you are using someone else’s money as payment for your purchases. In addition, it also indicates that you are swearing to repay the money to the agency or person that loaned you the amount.

If you are applying for a loan, credit card or mortgage, it is normal for the agency to check your credit worthiness. This is essentially based on the assessment of your credit history, thus helping them determine the possible risks of the deal and decide the terms of the loan. Positive assessment means good financial background, which increases your chances of applying a credit.

Credit Repair

The process wherein consumers with poor credit histories try to reestablish their worthiness is called credit repair. It involves procuring the credit report from agencies and taking careful and appropriate steps in addressing apparent issues, including omissions, misreporting, misinterpretation or other inaccuracies.

If there are any discrepancies found in the credit report, the consumer is entitled to dispute the errors that unjustly harm their financial healthiness and credit worthiness. There are several laws and regulations that are designed to guarantee fair and legal undertaking of the credit report process. These laws can be used to legally and formally start the process of credit repair.

Every consumer is entitled to one free copy of their credit report each year from each credit reporting agency.Investigations with regards to the real nature of the inaccuracies and errors are possible and necessary for a successful credit repair.

What influences your purchasing power and eligibility of availing any credit facilities in the future is your credit record. You should keep in mind that a good credit score can help in several purposes, such as: mortgaging a home, buying a car or applying for a job. On the other hand, a bad credit score can make you vulnerable to exorbitant interest rates and unnecessary loan terms from several companies. These two facts are important in helping you understand why maintaining a good credit score is vital.

How to Repair Your Credit

The process of credit repair can be achieved through hard work and discipline. Easy methods, which can help you get out of poor credit history, can be quite tempting. However, these easy way outs can only lead to further difficulties in the future especially if they are done illegally.

In case your poor credit history is caused by circumstances beyond your control, you can always request for an upgrade in your credit rating to your creditor. However, this can only be done if you were able to make amends to your credit records after the circumstances.

Creditors do not normally trust consumers who default on their payments. This can pose a difficulty to you in obtaining a new credit; However, once you are able to demonstrate enduring stability in your income and prompt patterns in your payments, the situation can improve in the span of two to three years. This way, even though there is a case of bankruptcy, you are likely to be eligible for credit cards within two years if the steady income is maintained.

Keep in mind that there are no quick fixes in repairing your credit. By contacting credit bureaus, creating your own corrections, budgeting and consolidating your debts can improve your own score.

Credit Repair - Explained

Read more!

Fast Credit Repair – Is there such a thing?

The thought of having a lightning fast credit repair is brilliant. Wouldn’t it be great if you can repair a bad credit in just a month? But if that is the case, I don’t think the phrase “Bad Credit” will ever be invented, because everybody will be able to fix a bad credit in a flash.

So how can we consider a credit repair, a fast credit repair? I guess it depends on how bad your current situation is and what factor is making your credit ratings low. To give you a better idea, lets take a look at 2 of the factors that affect your credit score and you decide whether a fast credit repair is a myth or fact.

First is your payment history, which accounts to 35% of your credit score. Just by the word “History”, I bet you know that it means time. Now, if you had a year long of bad payment practices, I don’t think the credit bureaus will give you a higher score just because you paid your bills on time this month, not even for 2 or 3 months. Your current behavior will be observed first and if the credit bureaus are convinced that you are getting better in managing your debts then your score will go up.

Next is the length of your credit history, which accounts to 15% of your credit score. Again, you have the word “history”; your attitude towards debt in the past will affect your credit score in the future. I bet that alone proves that fast credit repair is nothing but a bait used by some companies to lure potential customers. You first have to prove that your bad actions in the past are a thing of the past, and that can be done through consistently paying your bills on time.

So whenever you are having problems with your credit score and somebody offers you a fast credit repair, ask them “how fast is fast?” Because you now know for a fact that instant credit score fixes are just not doable, maybe what they are offering you is the fastest way to fix your bad credit but that does not necessarily mean that it will be as fast as you might think.

That is why self discipline is such an important factor when fixing a bad credit, you could wait for months for a little increase in you score. And this is where some people get frustrated and eventually give up. You would not want that to happen to you because if you give up, it only means that you will have to start the process all over again.

Fast Credit Repair – Is there such a thing?

Read more!

How To Fix A Battered Credit Score

Credit repair takes time, discipline, and a lot of hard work. I know sometimes when unexpected things happen, our credit scores take a nose dive. The good news is, it is repairable, and having an action plan helps a lot. Here are a few questions that you need to ask yourself in order to start credit repair.

• How much debt do I have?. If you have a lot, then please, pay them down.

• How many of my bills are unpaid? I guess you know what I’ll say here. Yes, pay em!

• Have I recently faced a major financial challenge such as bankruptcy?

• Have I defaulted on a loan, failed to pay taxes, or recently got reported to a collections agency?

• Do I have enough credit history to be able to establish a good credit score?

Once you've identified the factors that are making your credit score low, then you can make up a credit repair action plan that will address those factors. You might want to seek help from experts when developing your credit repair action plan since this is not something that you want to be making a mistake on. It’s always better to have someone that “knows” on your side.

How To Fix A Battered Credit Score

Read more!

3 Simple Steps To Break A Credit Card Habit

You wake up one morning and you realize that your credit card debt is rising…FAST! But still, you can’t avoid using you credit card to get yourself some fancy items or dine at expensive restaurants. A tried and tested recipe for disaster, if credit scores could reach 0, I know many fellow citizens would get that big O.

Many people get easily addicted with credit card purchases, they’re like gonna die if they don’t get to swipe that card even for 1 day, and what’s sad, is if you look at their credit card purchases you’ll notice that most of them are unnecessary expenses. People get lured to the illusion of an expanded buying power. I say illusion because with credit cards you are merely borrowing money, and you get charged an interest rate that’s over the roof!

So, if you think of it, you are actually reducing your buying power everytime you use your credit card. You are spending money that you don’t actually have yet. Many people, including me at one point, are literally broke because of monthly credit card payments, they’re just juggling debt. Not funds but debt.

And what happens when you are unable to settle you credit card bills on time? You get bombarded with malicious letters and threatening calls.

So if you think you have the potential to become addicted to credit cards, better follow these 3 simple steps to break a credit card habit…NOW!

• Close - This is easiest and most effective way to prevent yourself from spending money that you don’t have.

• Cut - From the very first day that you come to your senses, cut your credit card in half so you can’t use it, then call to have it canceled.

• Forget - Turn your back to credit cards completely! No matter how good the offer is, say no.

It might be a bit difficult at first, specially if you’ve become deeply dependent on your credit card. Sounds like drug addiction, huh? All addictions are basically the same, you develop a habit that is hard to break, only the consequences are a little different but they’re all devastating one way or another.

Ok, so now you gotta be disciplined enough keep your spending within your limits. If you want to buy something, save for it. It feels great to buy something without ever worrying about payments.

And if you happened to screw your credit score, then that’s a different story. It will take some work to beef up your credit ratings, but the good news, is that it is doable and it’s not as difficult as you might think.

Click here for a FREE debt consultation

3 Simple Steps To Break A Credit Card Habit

Read more!

Repair Bad Credit - Pay Your Bills On Time

One of the best ways to improve your credit score is simply to pay your bills on time. This is absurdly simple but it works very well, because nothing shows lenders that you take debts seriously as much as a history of paying promptly. Every lender wants to be paid in full and on time.

If you pay all your bills on time then the odds are good that you will make the payments on a new debt on time, too, and that is certainly something every lender wants to see. Experts think that up to 35% of your credit score is based on your paying of bills on time, so this simple step is one of the easiest ways to boost your credit score.

Paying your bills on time also ensures that you don’t get hit with late fees and other financial penalties that make paying your bills off harder. Paying your bills in a timely manner makes it easier to keep making payments on time.

Of course, if you have had problems making your payments on time in the past, your current credit score will reflect this. It will take a number of months of repaying your bills on time to improve your credit score again, but the effort will be well worth it when your credit risk rating rebounds!

Repair Bad Credit - Pay Your Bills On Time

Read more!

Credit Management Tip – Close out credit accounts you don’t use.

If you want to repair your bad credit or simply want to improve your already good credit score then you will want to take a look at your credit report and check out any credits that you have and are not using. Nowadays, it is easy to apply for a store credit card that you forget all about in a matter of months.

Store credit cards are enticing, but they’re only useful if you are a regular on that store, if you’re not, you’re bound to forget about it and it will affect your score as long as it is open.

Having credit lines and credit cards you don’t need makes you seem like a worse credit risk because you run the risk of “overextending” your credit. Keenly checking your credit report is essential to be able to repair bad credit.

Also, having lots of accounts you don’t use increases the odds that you will forget about an old account and stop making payments on it - resulting in a lowered credit score and in an immediate need to repair bad credit.

Keep only your used accounts and make sure that all other accounts are closed. Having fewer accounts will make it easier for you to keep track of your debts and will increase the chances of you having a good credit score.

However, realize that when you close an account, the record of the closed account remains on your credit report and can affect your credit score for a while. In fact, closing unused credit accounts may actually cause your credit score to drop in the short term, as you will have higher credit balances spread out over a smaller overall credit account base.

For example, if your unused accounts amounted to $2000 and you owe $1000 on accounts that you have now (let’s say on two credit cards that total $2000) you have gone from using one fourth of your credit ($1000 owed on a possible $4000 you could have borrowed) to using one half of your credit (you owe $1000 from a possible $2000).

This will actually cause your credit risk rating to drop. But don’t be alarmed, it’s all part of the process. After a while you’ll notice that your credit score will start shooting up and you won’t be googling “how to repair bad credit” anymore.

Credit Management Tip – Close out credit accounts you don’t use.

Read more!

Fix my Credit, Help!

Does this sound like you? I don’t even know how many times I’ve heard that phrase. Friends, relatives, colleagues, all have the same question. “How do I fix my credit”?

There are no shortcuts in credit repair, if somebody tells you that you can significantly increase your credit score by doing just one thing, then he’s probably just hyping you up so he can get a couple of hundreds or more from you. Remember credit scores are calculated based on different factors so you have to be doing different things religiously so you can get to that well sought after 720 and above credit score.

Now, don’t be alarmed by the “doing different thing religiously”, it really is easy but you need to be very disciplined and you have to have a plan. Without a plan, you won’t know whether you are achieving something or not.

Here’s what you need to do.

• First and foremost you have to know where you stand. Know what your credit score is.


• Study your credit report and find out what is causing your credit score to drop. Ask yourself these questions.

• How much debt do I have?
• How many unpaid bills?
• Did somebody give a negative report?
• Have I defaulted on a loan?
• Have I failed to pay taxes?
• Have I been recently reported to a collections agency and other factors that will obviously affect your score?

Once you know what is causing your credit problem, then you can work up a plan and decide how you want to go about in boosting your credit score. That way you won’t hear yourself say “fix my credit please!” anymore.

When you seek professional credit counseling or credit help, counselors will generally work with you to help you develop a personalized strategy that expressly addresses your credit problems and financial history.

Seeking professional help is wise. It’s always better to have somebody who “knows” to guide you in the process. But you have to be careful on whom to trust, sadly, there are companies out there who are charging an arm and a leg for services that you can get at half the price.

For a trusted and affordable credit repair service, click here.

Or, you can do it yourself. Just follow these simple steps and I guarantee that your score will go up. Not overnight, of course.

• Start paying your obligations on time.

• Pay down your debts. Excessive debt is alarming! You’ll have a high risk of over extending your credit.

• Make sure that you don’t reach your credit limit. Maintain 50% credit. Example if your credit card’s credit limit is $2000, make sure that you don’t use up more than $1000 of it

• Manage different types of credit. Lenders like it when they see that you can effectively manage various types of credit. Having a car loan, mortgage, and credit cards that you are not defaulting on is a gem.

The secret is following through your plan and not rushing things, you probably won’t see any significant changes in a few months, but as long as you remain a responsible debtor, your credit score will surely increase and creditors will be lining up to get your business.

Fix my Credit, Help!

Read more!

Credit Score – Where does it come from?

Understanding where your credit score comes from is very important, this way you will know how to keep your credit score high or you can work on repairing them in case you have a low score.

Credit scores are based on research, much like your insurance premium. Your insurance company likely asks you questions about your health, your lifestyle choices (such as whether you are a smoker) because these bits of information can tell the insurance company how much of a risk you are and how likely you are to make large claims later on.

Credit bureaus do the same thing; they gather information from banks, credit card companies, utility companies, other financial institutions, and even from your landlord. They will then look at how well you’ve been managing your financial responsibilities. And based on these, your credit score is arrived at.

Experts agree that these factors make up your credit score;

• Your credit history - Whether or not you have been a good credit risk in the past is considered the best indicator of how you will react to debt in the future. For this reason, late payment, loan defaults, unpaid taxes, bankruptcies, and other unmet debt responsibilities will count against you the most. You can’t do much about your financial past now, but starting to pay your bills on time - starting today - can help boost your credit score in the future.

• How long you have had credit - If you have not had credit accounts for very long, you may not have enough of a history to let lenders know whether you make a good credit risk. Not having had credit for a long time can affect your credit score. You can counter this by keeping your accounts open rather than closing them off as you pay them off.

• Your current debts - If you have lots of current debt, it may indicate that you are stretching yourself financially thin and so will have trouble paying back debts in the future. If you have a lot of money owing right now - and especially if you have borrowed a great deal recently - this fact will bring down your credit score. You can boost your credit score by paying down your debts as far as you can.

• The types of credit you have - Lenders like to see a mix of financial responsibilities that you handle well. Having bills that you pay as well as one or two types of loans can actually improve your credit score. Having at least one credit card that you manage well can also help your credit score.

Plus other factors that I might not know about. I know new credit also affect your credit score, they make up about 10% of your total score. It might look like there are a lot to look out for but if you just remain disciplined and responsible in settling your debts, your credit score will be A-OK!

Credit Score – Where does it come from?

Read more!