During economic down times, many consumers encounter problems with debt, and typically seek relief from this problem. While effective methods do exist to provide an available solution, more people still seem to find themselves in this particular mess. A lot of these cases are based upon charge offs reported on their credit statement; which can cause a lot of related issues. This includes problems with loan applications and any other type of loan where the credit score plays a large role.
This is one area where information can be skewed, causing a bigger problem than was originally had. But resolving this situation is in the best interest of the consumer, since almost every financial area is affected by the credit score number. Although many of the methods for credit repair can be brutal, they are effective in repairing an individual's rating. A good place to start is with credit cards, because once they are at the spending limit, it is virtually impossible to pay off the balance. This is because only the interest is being paid on every installment, and the principal is not touched. Some individuals have even resorted to paying cash for anything they could until the cards are paid off. charge offs
For those that still have some room, it is a good idea to stay within an allotted budget. By paying this back every month, the credit card companies will see this as a sign of good faith. It is a most positive step to increasing a credit score slowly. As a consequence, lenders will be more likely to view this as a constructive sign as well. It is so important to know the rules when applying for a new credit card. Some consumers don't bother to learn them at all, and are trapped in a desperate financial state. However, even the lending companies will be inclined to help if there is money to be paid back.
Often times, debtors can pay back a large sum in smaller parts. This makes it easier to solve this dilemma, and will not have a negative influence on the consumer's credit rating. It will also help to get rid of that charge off on the credit report. Lenders who see a borrower making an honest effort can be persuaded to remove this entry following the last payment installment. This is probably the best way to eliminate charge offs, and restore that good credit rating.
Thursday, October 14, 2010
3 Ways to Manage Charge-Offs
Although they sound harmless, charge offs are probably one of the worst things you could have on your credit report. These records mean that you are high risk and creditors should stay clear of you because you do not pay your debts.
Having charge offs is a serious matter if you want to enjoy the privileges that come with financial credibility. charge offs can actually be avoided if you are religious in paying your bills or speaking to your creditor if you missed payments. If you have not managed to avoid these charge offs and have them on your credit report, there are actually three ways that you can manage them.
* Wait for 7 Years: all charge offs are cleared from credit reports every seven years. If you are trying to settle an old debt that has been incurred almost this long, then it would probably be best that you wait. In some states, any partial payments on old debts re-set the statute of limitations period and it would permit the creditors or collection agency to file a lawsuit against you or harass you into payment. If the debt is relatively recent then you should consider other options. You would not want to be inconvenienced for seven years with transactions that require a good credit report.
* Pay a Smaller Amount: there are cases that the creditor will accept payment of an amount that is smaller than the original amount of debt owed. Unfortunately, this option is not advised as it will only get the creditor off your back. The charge-off will now be reported as "settled" instead of "paid in full". Many banks and financial institutions consider this as bad as having a charge-off but for people who have tight budgets, this option is good enough. If you are willing to endure having "settled" on your credit report in exchange for not being harassed anymore, then this could be the option for you.
* Pay Your Old Debt in Full: the best way you can remove the charge-off record on your credit report is by paying your old debt in full. Before doing so, make sure that you have negotiated the removal of the charge-off with the creditor or collection agency. You should also consider putting everything in writing as it would be hard to demand a removal if the creditor suddenly refused to do so even after payment was made.
Once the charge-off has been successfully removed from your credit report, you will now be able to restore your financial credibility and enjoy the privileges of a good credit score. After such experience, you must make sure that you will not be in the same situation again by being more financially responsible and more pro-active.
Having charge offs is a serious matter if you want to enjoy the privileges that come with financial credibility. charge offs can actually be avoided if you are religious in paying your bills or speaking to your creditor if you missed payments. If you have not managed to avoid these charge offs and have them on your credit report, there are actually three ways that you can manage them.
* Wait for 7 Years: all charge offs are cleared from credit reports every seven years. If you are trying to settle an old debt that has been incurred almost this long, then it would probably be best that you wait. In some states, any partial payments on old debts re-set the statute of limitations period and it would permit the creditors or collection agency to file a lawsuit against you or harass you into payment. If the debt is relatively recent then you should consider other options. You would not want to be inconvenienced for seven years with transactions that require a good credit report.
* Pay a Smaller Amount: there are cases that the creditor will accept payment of an amount that is smaller than the original amount of debt owed. Unfortunately, this option is not advised as it will only get the creditor off your back. The charge-off will now be reported as "settled" instead of "paid in full". Many banks and financial institutions consider this as bad as having a charge-off but for people who have tight budgets, this option is good enough. If you are willing to endure having "settled" on your credit report in exchange for not being harassed anymore, then this could be the option for you.
* Pay Your Old Debt in Full: the best way you can remove the charge-off record on your credit report is by paying your old debt in full. Before doing so, make sure that you have negotiated the removal of the charge-off with the creditor or collection agency. You should also consider putting everything in writing as it would be hard to demand a removal if the creditor suddenly refused to do so even after payment was made.
Once the charge-off has been successfully removed from your credit report, you will now be able to restore your financial credibility and enjoy the privileges of a good credit score. After such experience, you must make sure that you will not be in the same situation again by being more financially responsible and more pro-active.
Tuesday, October 12, 2010
Getting a Free Credit Score Report
In today's economy, knowing your credit score can go a long way in terms of saving you a lot of money, specially when making big purchases such as a car, a house and getting different kinds of loans. Lending money to people you don't know much about is a risky business. That is why FICO scoring system was created.
FICO scoring system allows Lenders such as credit card companies and banks to lower the risk by providing a simple way to know how trustworthy the consumer is. FICO score is simply the most fair way to determine someone's eligibility to receive a loan, because it doesn't have anything to do with sex, race, ethnicity or religion. So, its a perfect tool for financial institutions to evaluate consumers who are seeking loans.
The basic formula for calculating credit scores is based mostly on a few items, such as payment history, credit utilization, length of credit history, types of credit used and recent search for credit. A FICO score runs from 300, all the way to 850. The higher the number is, the better your credit score is.
In 2003,United stats passed a law known as the Fair and Accurate Credit Transactions Act. According to This law, credit reporting bureaus are required to give you one free credit report per year, if you request it. That's why there are a lot of companies out there who offer credit score reports. credit repair services Of course, your credit score will be the same, no matter what company you get it from. These companies can afford to give you free reports, because, they offer other services related to your credit, such as fraud protection, credit monitoring, credit repair and more. That's how they make their money. But, its not mandatory to subscribe to their services, in order to get your credit score. Getting your fico score is totally free.
Fico score impacts your life in a verity of ways. Knowing your credit score helps you evaluate yourself just like a bank or any other finical institutions would do, if you were trying to get a loan or what have you from them. It gives you an edge over the lender, when trying to get a loan, buy a car, buy a house or making any other big purchases. credit repair services You can make sure you are always in good standing by knowing your score. If the number is low, you can work on it and improve your score. That's why it is important to know your FICO score.
FICO scoring system allows Lenders such as credit card companies and banks to lower the risk by providing a simple way to know how trustworthy the consumer is. FICO score is simply the most fair way to determine someone's eligibility to receive a loan, because it doesn't have anything to do with sex, race, ethnicity or religion. So, its a perfect tool for financial institutions to evaluate consumers who are seeking loans.
The basic formula for calculating credit scores is based mostly on a few items, such as payment history, credit utilization, length of credit history, types of credit used and recent search for credit. A FICO score runs from 300, all the way to 850. The higher the number is, the better your credit score is.
In 2003,United stats passed a law known as the Fair and Accurate Credit Transactions Act. According to This law, credit reporting bureaus are required to give you one free credit report per year, if you request it. That's why there are a lot of companies out there who offer credit score reports. credit repair services Of course, your credit score will be the same, no matter what company you get it from. These companies can afford to give you free reports, because, they offer other services related to your credit, such as fraud protection, credit monitoring, credit repair and more. That's how they make their money. But, its not mandatory to subscribe to their services, in order to get your credit score. Getting your fico score is totally free.
Fico score impacts your life in a verity of ways. Knowing your credit score helps you evaluate yourself just like a bank or any other finical institutions would do, if you were trying to get a loan or what have you from them. It gives you an edge over the lender, when trying to get a loan, buy a car, buy a house or making any other big purchases. credit repair services You can make sure you are always in good standing by knowing your score. If the number is low, you can work on it and improve your score. That's why it is important to know your FICO score.
Credit Restoration Services
One of the best ways to repair your credit and finally become free from that big dark cloud of financial dread hanging over your head is to consult with credit restoration services. People who want to repair their generally have two options. They can choose to do it themselves, or seek the help of a professional credit restoration agency.
The entire goal behind seeking credit restoration services is to better an individual's credit score and restore overall good credit. Consulting with a professional agency is best for individual's who do not know where to begin. A complete evaluation of the client's current financial situation is carried out along with close analysis of how to repair their overall credit score.
The most common reason why people end up with bad credit is due to their failure to pay bills on time. Taking out loans, failure to make house payments, and failure to keep up with current debts often results in a lengthier time period in relation to repairing the consumer's overall credit score. credit repair services Many individuals can become ten's of thousand's of dollars in debt, simply by not paying their bills.
Another circumstance that causes people to seek credit restoration services is an unforeseen financial crisis caused by either a sudden loss of employment, divorce, or other similar situation. Fortunately, due to the specific type of circumstance under which these instances occur, it is usually a lot easier to obtain credit restoration. It is best to seek the help of a professional when these specific circumstances occur because the reasons for debt accumulation are usually not entirely the client's fault.
The third reason why people find the need to seek credit restoration services is because several individuals have fallen victim to identity theft, which is when someone else obtains the information of the consumer and uses it as their own. From there, purchases are made with the owner's credit card and ultimate end up unpaid and result in a lower credit score. Once the individual has gained knowledge that the theft has occurred, action should be taken immediately in order to restore their credit score.
If it is the individual themselves who at fault, professional credit restoration services are not always needed. credit repair services All debts need to be paid in full, beginning with those which are pending (in order to avoid any further items on their credit report). After paying off all current bills, the first negative item should be removed from the individual's credit report until all items have been successfully removed.
Situations in which the debt is not entirely the consumer's fault may require a more professional credit restoration approach. Depending on the amount of debt accumulation, the restoration process can take years to complete. In any event, a professional credit restoration service has the ability to develop an approach that focuses on repairing as many credit issues as possible until the client's score is fully restored and their credit is repaired.
The entire goal behind seeking credit restoration services is to better an individual's credit score and restore overall good credit. Consulting with a professional agency is best for individual's who do not know where to begin. A complete evaluation of the client's current financial situation is carried out along with close analysis of how to repair their overall credit score.
The most common reason why people end up with bad credit is due to their failure to pay bills on time. Taking out loans, failure to make house payments, and failure to keep up with current debts often results in a lengthier time period in relation to repairing the consumer's overall credit score. credit repair services Many individuals can become ten's of thousand's of dollars in debt, simply by not paying their bills.
Another circumstance that causes people to seek credit restoration services is an unforeseen financial crisis caused by either a sudden loss of employment, divorce, or other similar situation. Fortunately, due to the specific type of circumstance under which these instances occur, it is usually a lot easier to obtain credit restoration. It is best to seek the help of a professional when these specific circumstances occur because the reasons for debt accumulation are usually not entirely the client's fault.
The third reason why people find the need to seek credit restoration services is because several individuals have fallen victim to identity theft, which is when someone else obtains the information of the consumer and uses it as their own. From there, purchases are made with the owner's credit card and ultimate end up unpaid and result in a lower credit score. Once the individual has gained knowledge that the theft has occurred, action should be taken immediately in order to restore their credit score.
If it is the individual themselves who at fault, professional credit restoration services are not always needed. credit repair services All debts need to be paid in full, beginning with those which are pending (in order to avoid any further items on their credit report). After paying off all current bills, the first negative item should be removed from the individual's credit report until all items have been successfully removed.
Situations in which the debt is not entirely the consumer's fault may require a more professional credit restoration approach. Depending on the amount of debt accumulation, the restoration process can take years to complete. In any event, a professional credit restoration service has the ability to develop an approach that focuses on repairing as many credit issues as possible until the client's score is fully restored and their credit is repaired.
Tuesday, September 28, 2010
Bad Credit Repair Advice - Help to Get You Back on Track
Repairing bad credit is not difficult, but it does take time. There are many legitimate credit repair firms and they do help. They deliver, but they cannot guarantee results in twenty-four hours. There is no overnight fix and it could take years to completely turn your credit around. You can, however, work with one of these firms and get yourself on the road once again to financial betterment. Here is some advice you can follow before meeting with the local firm you have chosen to help you. credit repair advice
Your credit report
The first thing you should do is order a copy of your credit report from each of the three crediting bureaus - Experian, Equifax and Trans Union. Go to each one carefully and identify any inconsistencies or errors so that you may bring them to the attention of the firm you are working with to repair your bad credit. From there, they will ask you for supporting documentation to back up your claim and they will help you prepare appropriate correspondence to send back to the credit bureau to have the item verified or removed from your report. The credit bureau has thirty days to comply.
If you have negative information on your credit report that is due to a previous marriage, identity theft or similar scenario, the credit repair company you are working with can help you prepare a letter explaining your side of the story. This is called a 'consumer's statement' and the credit bureau will re-open that item in lieu of new information. Make sure that you get a copy of your new credit report. If you do not receive one, your credit repair firm can request one for you. credit repair advice
A little known fact
Many people do not know that they can have the repaired credit report resent to anyone that turned you down for credit. The credit repair firm will help you determine which companies pulled your credit report over the last six months - that's as far back as you can go - and help you submit the request demanding that they send the corrected report. If you were turned down for a job over the last two years because of credit report problems, you can have it sent to them as well. It probably won't get you that job, but it is the principle of the matter.
Things to watch out for
Some credit repair firms will ask you to prepay them for their services. The law states that they must wait for payment until they have completed the services you contracted them for. That means you will see results before you turn any money over to them. This is one of the many scams that have been reported to the Better Business Bureau of the years. credit repair advice
Also, never allow your credit repair company to use any tricks to fix your credit. This includes swamping the credit bureaus with letters and requests on the same day about the same individual. This technique does not work. In fact, this may actually cause the credit bureau to slow down and take their sweet time or ignore your request all together.
There are some things on your credit report that you simply will not be able to remove until the statute of limitations is up, such as bankruptcy which cannot come off your credit report for ten years.
Source......
Link Building Service
Your credit report
The first thing you should do is order a copy of your credit report from each of the three crediting bureaus - Experian, Equifax and Trans Union. Go to each one carefully and identify any inconsistencies or errors so that you may bring them to the attention of the firm you are working with to repair your bad credit. From there, they will ask you for supporting documentation to back up your claim and they will help you prepare appropriate correspondence to send back to the credit bureau to have the item verified or removed from your report. The credit bureau has thirty days to comply.
If you have negative information on your credit report that is due to a previous marriage, identity theft or similar scenario, the credit repair company you are working with can help you prepare a letter explaining your side of the story. This is called a 'consumer's statement' and the credit bureau will re-open that item in lieu of new information. Make sure that you get a copy of your new credit report. If you do not receive one, your credit repair firm can request one for you. credit repair advice
A little known fact
Many people do not know that they can have the repaired credit report resent to anyone that turned you down for credit. The credit repair firm will help you determine which companies pulled your credit report over the last six months - that's as far back as you can go - and help you submit the request demanding that they send the corrected report. If you were turned down for a job over the last two years because of credit report problems, you can have it sent to them as well. It probably won't get you that job, but it is the principle of the matter.
Things to watch out for
Some credit repair firms will ask you to prepay them for their services. The law states that they must wait for payment until they have completed the services you contracted them for. That means you will see results before you turn any money over to them. This is one of the many scams that have been reported to the Better Business Bureau of the years. credit repair advice
Also, never allow your credit repair company to use any tricks to fix your credit. This includes swamping the credit bureaus with letters and requests on the same day about the same individual. This technique does not work. In fact, this may actually cause the credit bureau to slow down and take their sweet time or ignore your request all together.
There are some things on your credit report that you simply will not be able to remove until the statute of limitations is up, such as bankruptcy which cannot come off your credit report for ten years.
Source......
Link Building Service
Free Credit Repair Advice - Find the Right Credit Repair Kit
Since the market for credit repair is so large, it is saturated with credit repair products, each of them claiming to be the best product available. Credit repair products can come in many forms including books, CD-ROM/DVD, or computer software, books being the most common form of credit repair product. These kits can be very helpful to those with poor credit scores. They helped individuals face bad credit scores and bad credit reports
John Ventura wrote a great book called "The Credit Repair Kit" that is widely read. If you search on the Amazon website, you will find the book for $15 if you buy it new or for $1 if you buy a used copy. This book has received very good reviews and has been called one of the best references for those who are interested in improving their credit and credit score. credit repair advice
The book includes many references on the basics of credit It tells the consumer ways to solve credit troubles, explains credit exposure agencies, and provide information on obtaining and reading your own credit report. There is a lot of information provided in this kit that will help you fix your credit and it is an easy read since the majority of readers are not experts. They are average people who are just interested in fixing their credit.
The World Wide Web has numerous resources for credit repair and there are hundreds of electronic books available that could be very useful tools for repairing credit A great thing about an electronic book is that you can download them onto your computer and read it on your computer screen at your leisure. The information contained in the electronic book is similar to the information you would get in a paper book but the e-book is much more convenient. credit repair advice
Apart from books there are software tools available to you that you can use for credit repair. You can use and view the application on your PC screen. Some software has tools built in that connect you straight to credit reporting agencies and verify the information contained in your credit report. Over time, the software can help you keep track of your credit status.
When you decide to buy a credit repair kit, remember a few things that should help you and you're your purchase decision. The kit should:
· Teach you how to read a credit report
· Explain how agencies asses and collect your credit report information
· Teach you the different ways to find out your credit score
· Tell you how to approach the credit reporting agency if there are any discrepancies that you notice on your credit report
· Teach you how to handle identity theft
· Show you how to raise you credit score and improve your credit rating
· Have tools that help you steer away from credit problems after you have fully repaired your credit.
Credit repair kits are a must for those who want to repair their credit as well as their finances
Source......
Link Building Service
John Ventura wrote a great book called "The Credit Repair Kit" that is widely read. If you search on the Amazon website, you will find the book for $15 if you buy it new or for $1 if you buy a used copy. This book has received very good reviews and has been called one of the best references for those who are interested in improving their credit and credit score. credit repair advice
The book includes many references on the basics of credit It tells the consumer ways to solve credit troubles, explains credit exposure agencies, and provide information on obtaining and reading your own credit report. There is a lot of information provided in this kit that will help you fix your credit and it is an easy read since the majority of readers are not experts. They are average people who are just interested in fixing their credit.
The World Wide Web has numerous resources for credit repair and there are hundreds of electronic books available that could be very useful tools for repairing credit A great thing about an electronic book is that you can download them onto your computer and read it on your computer screen at your leisure. The information contained in the electronic book is similar to the information you would get in a paper book but the e-book is much more convenient. credit repair advice
Apart from books there are software tools available to you that you can use for credit repair. You can use and view the application on your PC screen. Some software has tools built in that connect you straight to credit reporting agencies and verify the information contained in your credit report. Over time, the software can help you keep track of your credit status.
When you decide to buy a credit repair kit, remember a few things that should help you and you're your purchase decision. The kit should:
· Teach you how to read a credit report
· Explain how agencies asses and collect your credit report information
· Teach you the different ways to find out your credit score
· Tell you how to approach the credit reporting agency if there are any discrepancies that you notice on your credit report
· Teach you how to handle identity theft
· Show you how to raise you credit score and improve your credit rating
· Have tools that help you steer away from credit problems after you have fully repaired your credit.
Credit repair kits are a must for those who want to repair their credit as well as their finances
Source......
Link Building Service
Friday, September 17, 2010
Credit Repair Services Six Month Plan
Start From Where You Are
Regardless of your starting point you can transform your credit in six months by employing a reputable credit repair services company. If your credit is decent, it can be awesome. If your credit is poor, you can emerge from your six month plan with an infinitely better looking report, and a smile on your face. Are you ready?
The Examination
All credit repair services will undoubtedly start your program with an examination of your credit report. Each of the three bureaus is equally important. The goal is to identify every single dispute candidate. The advantage to using a professional for the job is that they should be able to spot even the most subtle legal reporting problems.
The Dispute Process Month by Month
The dispute process is in the hands of your credit repair company, and the best of the services will schedule the dispute cycle as closely to the 30 day limit that the bureaus are allowed for processing letters. This process should be efficient and quick. When a dispute is sent out, the bureaus will send the responses to you in the mail, so you will be able to track the outcome month by month.
Pushing for Success
Most credit repair services will ask you to forward the response letters to them so they can monitor your progress. This is critical for a very special reason. The better services will use these responses in a special way. If the item disputed is verified they will immediately send a reply back to the bureau acknowledging the verification and demanding further research.
Your Credit Repair Homework
While the dispute process is underway you will surely be given some homework of your own. To get the results you want it is crucial to have at least two open, active credit cards, and to manage them very carefully. Credit repair will not deliver the results you want without your participation, so open those accounts promptly. If you are concerned about getting denied, there is an easy solution.
Starting the Rebuilding
If your credit is too poor to get normal credit cards, secured cards are the perfect credit repair tool. They are inexpensive, easy to get (you will not get turned down), and the best of these cards will report to all three bureaus, and will not include a notation that they are secured. You will have to deposit a small amount (usually 300 dollars) as collateral for these cards, but will get your money back when the accounts are closed.
Other Optimization Opportunities
In addition, most good credit repair services will examine your reports for other credit score optimization opportunities and advise you accordingly. There are many cases where reducing balances, transferring balances, or even closing accounts can provide the extra score benefit you need to reach your six month goal.
Finding the Right Company
Looking for the right credit repair services company? There are a number of perfectly excellent choices, but you should do your homework before choosing. Check the Better Business Bureau record first. An occasional complaint may not be indicative of a problem, but there should not be a pattern of trouble. And, as important, give them a call. You should be comfortable with them on the phone. Make a list of questions in advance and ask away! The right company will feel right to you! Good luck!
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