Credit Bureau And Credit Cards
Posted in Judgment Against on 01/02/2011 12:33 pm by
Posts Tagged ‘Credit Cards’
Rebuilding Poor Credit: What Not to Do and What to Do
Posted in Finance on 09/09/2010 04:26 pm by
Jeanette Joy Fisher asked:
Many Americans continue to find themselves in a credit muddle. For a variety of reasons, they can’t obtain credit while they try to rebuild a ruined credit rating. Here are some things that lenders look at, and some suggestions for how you can make yourself appear more creditworthy to potential creditors.
What Not to Do
Although many people think that the best way to begin rebuilding credit is to apply for many new credit cards, that practice may actually hurt your chances. The reason is that credit card companies may assume that since you’ve applied for many cards, you may have been issued a number of them, which could mean a potentially higher debt load in the future. On the other hand, they might look at the fact that many of the cards weren’t issued, which could mean the other companies didn’t trust you to make your payments. Either way, you lose, so be selective in applying for cards, and space out your requests rather than making a bunch of them in a short time.
Of course, creditors also look at the types of black marks that show up in your credit history. From best to worst, the things that will hurt you most are: payments that were late by 90 days, IRS liens, court judgments, accounts that were turned over to collection agencies, accounts that were charged off as uncollectible, repossessed goods or merchandise, real estate foreclosures, and bankruptcies.
What to Do
Creditors such as banks also look favorably at things like having a savings and/or a checking account with their institution, having a telephone in your own name, whether or not you own your home, and how long you’ve been at your current address. They’re looking for stability before extending credit.
Lenders also calculate your present debt ratio to see if you can take on more debt. They’ll generally add up all your monthly bills (not including rent/mortgage or utilities) and divide that number by your gross monthly income. If your ratio is more than 35%, they probably won’t extend you credit. You can help lower that figure by consolidating your debts, which will lower your monthly payment and decrease your debt ratio, which will give you a better chance to qualify for credit, even though it won’t reduce your actual overall indebtedness.
If you’re turned down for credit, you have the right to know why. The law says that creditors must provide specific reasons and the name and address of the credit bureau they used to make their decision. If the reasons your rejection doesn’t sound right, obtain a copy of your credit report from the bureau that the creditor used and check it for errors. You have the right to request a free copy of the report that caused you to be rejected. If you find errors, there are ways you can have them changed. Then contact the creditor again and explain the error. You just might be extended credit the next time.
Remember, lenders are in business to make a profit, so they must screen all potential borrowers carefully. However, once you know what they look for, you can make an effort to address those things in order to make yourself appear more creditworthy. Take one step at a time to rebuild poor credit.
Copyright
Many Americans continue to find themselves in a credit muddle. For a variety of reasons, they can’t obtain credit while they try to rebuild a ruined credit rating. Here are some things that lenders look at, and some suggestions for how you can make yourself appear more creditworthy to potential creditors.
What Not to Do
Although many people think that the best way to begin rebuilding credit is to apply for many new credit cards, that practice may actually hurt your chances. The reason is that credit card companies may assume that since you’ve applied for many cards, you may have been issued a number of them, which could mean a potentially higher debt load in the future. On the other hand, they might look at the fact that many of the cards weren’t issued, which could mean the other companies didn’t trust you to make your payments. Either way, you lose, so be selective in applying for cards, and space out your requests rather than making a bunch of them in a short time.
Of course, creditors also look at the types of black marks that show up in your credit history. From best to worst, the things that will hurt you most are: payments that were late by 90 days, IRS liens, court judgments, accounts that were turned over to collection agencies, accounts that were charged off as uncollectible, repossessed goods or merchandise, real estate foreclosures, and bankruptcies.
What to Do
Creditors such as banks also look favorably at things like having a savings and/or a checking account with their institution, having a telephone in your own name, whether or not you own your home, and how long you’ve been at your current address. They’re looking for stability before extending credit.
Lenders also calculate your present debt ratio to see if you can take on more debt. They’ll generally add up all your monthly bills (not including rent/mortgage or utilities) and divide that number by your gross monthly income. If your ratio is more than 35%, they probably won’t extend you credit. You can help lower that figure by consolidating your debts, which will lower your monthly payment and decrease your debt ratio, which will give you a better chance to qualify for credit, even though it won’t reduce your actual overall indebtedness.
If you’re turned down for credit, you have the right to know why. The law says that creditors must provide specific reasons and the name and address of the credit bureau they used to make their decision. If the reasons your rejection doesn’t sound right, obtain a copy of your credit report from the bureau that the creditor used and check it for errors. You have the right to request a free copy of the report that caused you to be rejected. If you find errors, there are ways you can have them changed. Then contact the creditor again and explain the error. You just might be extended credit the next time.
Remember, lenders are in business to make a profit, so they must screen all potential borrowers carefully. However, once you know what they look for, you can make an effort to address those things in order to make yourself appear more creditworthy. Take one step at a time to rebuild poor credit.
Copyright
7 Surefire Ways To Repair Bad Credit
Posted in Finance on 07/06/2010 01:40 am by
Wesley Atkins asked:
Do you have a poor credit rating? If so, you are one of tens of thousands of Americans with the same problem. In fact, it seems that this has become a national ‘disease.’ And just what do people need that have a disease? They need a cure.
Here are some sure-fire solutions to ‘ repair bad credit ‘. Keep in mind, like most ‘diseases,’ credit repair can take some time, but complete healing is possible.
The First Step
The first thing you need to do is find out what is being reported about you. This is easy and inexpensive. For under $10, you can get your credit report from one of the three main credit reporting companies: Equifax, Experian, or TransUnion. Keep in mind however, that if you have recently been denied credit, you can get a free report from the same credit bureau the lender used to reject you as long as you do so within 30 days.
What You Don’t Need
You don’t need a repair clinic. Why? There is no legal way to ‘repair’ your credit. Those that claim to know loopholes and shortcuts are merely out for your money. They may even get you into legal trouble by having you fudge the facts or creating a whole new file for you. Anything legal that a clinic can do, you can do just as easily and without the cost of ‘professional’ help.
Further Steps to Take
1. Stop using your credit cards immediately. Put them somewhere where they will not tempt you. You may consider keeping at least one card for emergency purposes. Additionally, with poor credit, you may find it more difficult to get a credit card in the future. If you keep at least one account open, then you won’t have to worry about applying.
2. Be Honest With Yourself. Taking a good hard look at your financial situation, particularly if it isn’t good, can be very difficult. Yet, to get out debt you have to fully understand what the situation is.
3. Find the Errors. Believe it or not, up to 40% of all credit reports have errors in them. If you find that your credit report shows something that is not true, you need to write to them with all the details. Be sure to use certified mail so that you can keep track of who you wrote to, when you wrote, and who received the mail on the credit bureau’s end. Then ask the credit bureau to send a corrected report to anyone who has requested a report on you in the last 6 months.
4. Find the Omissions. By law, you are allowed to add information to your report that you believe will help your rating. This might be additional information about a repayment of a loan, good credit you have with companies that do not report to the credit bureau, or salary increases.
5. You Must Have a Plan. Whether you determine to pay your bills down little at a time, take a second job, go to credit counseling, or file bankruptcy, you need to make a plan and stick to it. In order for your credit to be improved, you have to have a plan and then take action!
6. Talk to those that you owe. Creditors want their money. They do not want you to default (quit paying). In fact, most creditors will work with you to get a reduced payment schedule. If you can keep them from reporting you to the credit bureau, then it won’t hurt your credit. The catch here is this: be sure to stick to the new negotiated plan – they won’t renegotiate if you fail to comply.
7. The Best Cure is Time. Have you ever heard the saying ‘time heals all wounds’? It also heals your credit. After 7 years, most items will be dropped. This is good news if you are working to correct your credit. As each year passes, more and more bad items will drop off and more and more good items will be included. Eventually, the disease will be cured.
Follow these steps and you will find that your credit looks healthier and healthier each day. Eventually this path will lead you to full recovery. Good Luck!
Juan
Do you have a poor credit rating? If so, you are one of tens of thousands of Americans with the same problem. In fact, it seems that this has become a national ‘disease.’ And just what do people need that have a disease? They need a cure.
Here are some sure-fire solutions to ‘ repair bad credit ‘. Keep in mind, like most ‘diseases,’ credit repair can take some time, but complete healing is possible.
The First Step
The first thing you need to do is find out what is being reported about you. This is easy and inexpensive. For under $10, you can get your credit report from one of the three main credit reporting companies: Equifax, Experian, or TransUnion. Keep in mind however, that if you have recently been denied credit, you can get a free report from the same credit bureau the lender used to reject you as long as you do so within 30 days.
What You Don’t Need
You don’t need a repair clinic. Why? There is no legal way to ‘repair’ your credit. Those that claim to know loopholes and shortcuts are merely out for your money. They may even get you into legal trouble by having you fudge the facts or creating a whole new file for you. Anything legal that a clinic can do, you can do just as easily and without the cost of ‘professional’ help.
Further Steps to Take
1. Stop using your credit cards immediately. Put them somewhere where they will not tempt you. You may consider keeping at least one card for emergency purposes. Additionally, with poor credit, you may find it more difficult to get a credit card in the future. If you keep at least one account open, then you won’t have to worry about applying.
2. Be Honest With Yourself. Taking a good hard look at your financial situation, particularly if it isn’t good, can be very difficult. Yet, to get out debt you have to fully understand what the situation is.
3. Find the Errors. Believe it or not, up to 40% of all credit reports have errors in them. If you find that your credit report shows something that is not true, you need to write to them with all the details. Be sure to use certified mail so that you can keep track of who you wrote to, when you wrote, and who received the mail on the credit bureau’s end. Then ask the credit bureau to send a corrected report to anyone who has requested a report on you in the last 6 months.
4. Find the Omissions. By law, you are allowed to add information to your report that you believe will help your rating. This might be additional information about a repayment of a loan, good credit you have with companies that do not report to the credit bureau, or salary increases.
5. You Must Have a Plan. Whether you determine to pay your bills down little at a time, take a second job, go to credit counseling, or file bankruptcy, you need to make a plan and stick to it. In order for your credit to be improved, you have to have a plan and then take action!
6. Talk to those that you owe. Creditors want their money. They do not want you to default (quit paying). In fact, most creditors will work with you to get a reduced payment schedule. If you can keep them from reporting you to the credit bureau, then it won’t hurt your credit. The catch here is this: be sure to stick to the new negotiated plan – they won’t renegotiate if you fail to comply.
7. The Best Cure is Time. Have you ever heard the saying ‘time heals all wounds’? It also heals your credit. After 7 years, most items will be dropped. This is good news if you are working to correct your credit. As each year passes, more and more bad items will drop off and more and more good items will be included. Eventually, the disease will be cured.
Follow these steps and you will find that your credit looks healthier and healthier each day. Eventually this path will lead you to full recovery. Good Luck!
Juan
How To Dispute Negative Information On Your Credit Report
Posted in Finance on 07/04/2010 06:52 pm by
Conleth Onu asked:
Disputing negative entries on your credit report is the most effective method to delete unfavorable information and improve your credit rating.
Many people in America have negative information on their credit report. These derogatory items can be detrimental to your ability to obtain loans, credit cards and other financial services.
You have the right to dispute any inaccurate or incomplete information that is contained in your credit report. There is no charge for this.
If an account is not being reported 100% accurately, by law the credit bureau must remove it from your report.
Here’s How The Process Works.
1. You get a copy of your credit report from the credit bureaus.
2. When you get your reports you carefully review them and note any negative accounts and inaccuracies.
3. You then dispute the negative accounts. Submit the dispute in writing, along with any supporting documentation. If the credit bureau cannot verify the accuracy of any item you dispute, they must remove the item within the alloted time.
4. When the investigation is complete, the credit bureau must send you a free copy of your report if the dispute results in a change.
You can continue this process until you are satisfied with the outcome. Remember, if the negative item is not 100% accurate the credit bureau must remove it from your file.
Before you begin the process, it is essential that you have good information on how to go about restoring your credit.
Do you want to learn more about how to do it? I have written the ultimate guide to credit repair, “How To Clean Up Bad Credit And Establish AAA-1 credit Rating.” For free details, click the link below to visit my website.
Jimmy
Disputing negative entries on your credit report is the most effective method to delete unfavorable information and improve your credit rating.
Many people in America have negative information on their credit report. These derogatory items can be detrimental to your ability to obtain loans, credit cards and other financial services.
You have the right to dispute any inaccurate or incomplete information that is contained in your credit report. There is no charge for this.
If an account is not being reported 100% accurately, by law the credit bureau must remove it from your report.
Here’s How The Process Works.
1. You get a copy of your credit report from the credit bureaus.
2. When you get your reports you carefully review them and note any negative accounts and inaccuracies.
3. You then dispute the negative accounts. Submit the dispute in writing, along with any supporting documentation. If the credit bureau cannot verify the accuracy of any item you dispute, they must remove the item within the alloted time.
4. When the investigation is complete, the credit bureau must send you a free copy of your report if the dispute results in a change.
You can continue this process until you are satisfied with the outcome. Remember, if the negative item is not 100% accurate the credit bureau must remove it from your file.
Before you begin the process, it is essential that you have good information on how to go about restoring your credit.
Do you want to learn more about how to do it? I have written the ultimate guide to credit repair, “How To Clean Up Bad Credit And Establish AAA-1 credit Rating.” For free details, click the link below to visit my website.
Jimmy