Financial and Credit Blog

How to Obtain Cards with Poor Credit History

August 1st, 2009 at 11:49pm Under Credit Line

Obtaining credit cards with poor credit history is not as difficult as you think. The options may be limited, but there are financial institutions that offer products specially designed for people with bad credit history. Terms and conditions may be a lot stiffer, but this is necessary in rebuilding your credit worthiness. Credit card companies regard poor credit history as a high credit risk. Thus, higher APR and lower credit limit are imposed on cards with poor credit history. Membership fee may also be required to open a credit card if you have a low credit score. Once a new account is approved, be sure to keep it in good standing. Your overall credit profile and account history will increase the likelihood of getting the APR reduced, credit line increased and the next membership fee waived.Pay-off your balance monthly. This will decrease the risk of getting into more financial trouble, creates a good payment pattern and shows future creditors a good payment history. These are primary considerations creditors take before extending new credits to a person with poor credit history.Aside from credit history, financial institutions consider annual earnings, time at residence and length of employment. Usually, they would require $12,000 annual revenue, minimum of six months for employment and residence history. These conditions are stated on the fine print. Take time to read it before applying for an account. Know what you’re getting into before signing up. Another option available for someone with poor credit history is a secured card. This is where you put a security deposit as collateral before you get approved for a new credit card account. The credit line is based on your security deposit. This will work best for people who are trying to re-establish their credit history. This pretty much works like a debit card, except that APR will be applied on any balances left on the account. This also has annual membership fee attached to it.Pre-paid credit cards are also available for people with bad credit history. Unlike the secured card, this doesn’t require any membership fee. Banks who offer this type of credit card will not check your credit or employment history. Because of the lax approval process, this doesn’t get reported to the credit bureaus. If your intention is to re-establish your credit worthiness, this is not the best option for you.The internet is the best tool in checking your options in obtaining cards with poor credit history. Review all available offers and choose the one that will work best for you. Thoroughly go over the terms and conditions before submitting an application. This is to avoid putting yourself in deeper financial bondage.It may be easy to obtain cards with poor credit history, but rebuilding the financial community’s trust on your credit worthiness is solely dependent on you. Start with a low credit line, develop a good spending and payment habit. Have a feel on how to responsibly handle your finances. Then, gradually increase your credit line and credit score.

Credit Repair Services

July 12th, 2009 at 09:02am Under Credit Repair

Credit Repair Services

With the influx of people who are worrying about their credit scores and their finances in general, it comes as no surprise that there are companies out there who are offering exclusive services to clean up or repair your damaged credit. While it may seem like such a simple solution to your credit woes, be warned – some of these companies are not what they claim to be.

Credit repair services claim to repair bad credit marks on your credit history. What you need to find out before committing to a service is how the company goes about making such repairs. There is a big difference between the items on your credit reports that make up a poor credit score and then there are items on the report that are genuine mistakes. If the company tells you then can remove all bad marks – walk away now. No one can remove information that show poor credit activities. To do so would be illegal.

On the other hand, you have the right to look at your credit report and file a request to remove any misinformation. If the credit reporting agency claims they can repair inaccurate information for you, know this – you too can do the same thing for free. All that is involved in this procedure is analyzing your credit report and noting all mistakes. You then have a right to file a complaint with the credit bureau that provided the report. The credit reporting bureau is then obligated to investigate the information from the original creditor within a reasonable period of time. If the creditor responds that the information is indeed correct, your report will not change. If the credit reporting agency gets no reply from the creditor, the incorrect information will be removed from your credit report.

While you cannot remove poor credit activity from your credit report, you can ask your creditors to work with you to improve the information being reported to the credit reporting agencies. They may not all be cooperative but it is worth a try in order to improve your credit score.

For those people who simply do not want to go through the trouble of repairing their own credit reports, there are reputable companies who can do the repair work for you. Be sure before you commit to any one company, be sure they are a company in good standing with the Better Business Bureau and will work with you to truly help you repair your credit score and not just take your money. A good first red flag – if the credit repair agency denies you can do the above-mentioned steps on your own – know that they may not have your best interests at heart as they are not being honest with you. Also be aware and clear of how much it will cost to work with a credit repair company before signing on the dotted line.

Here are some other points that may raise some alert flags:

· Speak to you in terms that seem confusing and “over your head” with no real concern if you understand

· Do not tell you honestly about what your obligations or rights are concerning your credit.

· Tell you that they can repair all bad credit marks on your report.

· Last, but not least, if a credit repair company tries to convince you to apply for a new identity using an EIN number for credit purposes. This is very illegal and is not repairing anything.

Credit Repair – Prepare, Know How, And Get Results

July 10th, 2009 at 03:00am Under Credit Repair

Credit repair is almost an essential tool for credit survival. In recenet years, credit repair companies have experienced a surge in business that amounted to billions of dollars in annual revenue. A Consumer needs his or her credit repaired and a new credit repair companyopens up in hopes capturing a fraction of this bilion dollar industry. Keep in mind, that you do not need any professional license to start a credit repair company. All you need is a simple credit repair eBook or credit repair software and you can call yourself a qualified “Credit Repair Representative”. With that in mind, think about why you would hire someone to perform credit repair services on your behalf? It boils down to only two simple answers; Knowledge and Tme. We will discuss how to overcome these two obsticles in more depth as we illustarate to you how easy and timelesss this process can be.
By definition credit repair is the right of a consumer, under the fair credit reporting act, to dispute any credit negative or positive history items appearing in their credit reports. A credit bureau must investigate, and delete any errors at the request of the consumer. However if an item in dispute is found to be correct, though negative, then the information shall remain on their credit report. Negative items and judgements taken against the consumer shall remain on their credit report for 7 years while bankruptcies shall remain for 10 years. Sounds scary right? Well it is true. However, we are cretain that as you have read the definition of credit repair you missed some major yet hidden loopholes that can only be translated as an “advantage to you”.
The first advantage we have found is “Your right to Credit Repair”. By that we mean your right to dispute any item appearing on your credit report whether it’s a known error or unknown. Your right to credit repair is your right to understand your credit and correct the items that youthat you FEEL are inaccrate. Get the phrase “credit repair” out of your head and look at it from this angle: you are not perfroming credit repair; instead you are simply trying to better UNDERSTAND YOUR CREDIT. With that in mind, who is to tell you what you can or cannot understand? You have every right to NOT understand any if not all the items on your credit report. As a matter of fact, we want you to not understand every single negative item on your credit report. The more naïve you become about these items the sweeter the outcome. Noone mentioned that you have to be a wiz at reading credit reports, credit scores, and specifically where a negative item came from or how it showed up on your credir report. Now, that is your right as a consumer.
Now that you understand your rights, we will move on to the second loophole in the under the fair credit reporting act and that is the credit bureaus duties towrds you as the consumber. Thses laws are intended to protect the consumer against fraudulent activites and/or innacurate information plcaed on theirr credit report. Since you are “naïve” about your accounts, especially the negative ones, you now have upperhand that will enable you to overpower the strong arms of any creditor. You, the consumer, have the right to repair your credit at any given time or any given point as frequently as you please. When you dispute an item, the law clearly states that the credit bureau has 30 days to respond to your dispute as well as the million of other disputes that other folks like you are sending. Do you really believe that every dispute will be investigated and responded to in a reasonable amount of time? The answer to that is a big NO. You and many others just like you are sending disputes left and right and these credit bureus and creidotrs are overwhelmed with credit repair inquiries (disputes). There is no way on that any credit bureau can keep up with everything sent to them. This is where you win. No response means deleted negative items.
Let’s suppose you know nothing about credit repair. How do you know what to do and what resources to use? You may also ask yourself, where do I get the credit repair letters? and how do I mail them out and when??? Follow the following exmaple and you will find all the answers to your questions. Let’s suppose you have a 60 day late on your credit report from xyz credit card Company. Yoy mail out a dispute letter to the credit bureaus and day 31 comes by and no response confirming the accuracy of that late payement. Gues what, you have just cleared that negative item by sending a request back to the credit bureau demanding its removal from your credit report. Yes, it is that easy and it is almost guranteed to happen to you. This example was just the beginning of many ways you can accomplish fantastic credit repair results. Credit repair does not require massive knowledge or even any software. It can be performed with a simple how to guide which you can obtain at no cost to you at www.restoremyowncredit.com . Using their credit repair instructions you have become more efective and efficient than 99% of the credit repair companies out there. That is truve because repairing bad credit is more effective you do the credit repair yourself. Noone can accompish better results than you, and not to mention how much money you have saved this way.
Now that youknow how to do your own credit repair, let’s talk about the time it takes. Credit repair is a commitment. Tto accomplish great results you will have to spend a little time cleaning your credit. You may be fooled into thinking that you don’t have the time, but if we told you that you will have to spend a maimum of 2 hours a month on credit repair would you hire someone at a credit repair company to do the work for you? No matter how many items you want to dispute on your credit report, you will never have to spend more than a couple of hours a month working on your credit. All you need is a PC, prionter and a book of stamps. Just follow the credit repair instruction at “Restore My Own Credit . com” and you are on your way.

FREE CREDIT REPAIR

July 9th, 2009 at 02:59pm Under Credit Repair

Free Credit Repair

Every consumer who uses credit has a credit record — and is it ever powerful.

Every time you apply for credit or a loan, creditors obtain your credit record to verify your worthiness. But, the use of these reports has broadened. Insurance companies have begun to use them to determine premiums or deny coverage. Potential employers may even want to check out your credit worthiness.

If you are hampered by a low credit score, you may do well to make use of credit repair service to improve your credit score.

Rising interest in credit scores

Today, a credit record is more than just a dry report on how many credit cards you have and whether you made every auto payment on time. Credit recording agencies often distill consumers’ reports into a three-digit number called a credit score — and that number alone can determine whether you get easy monthly payments or loan-shark rates. It’s not surprising that as credit scores become more important, consumers are taking more interest in these three-digit numbers. A high score saves you money, a low score costs you. This fascination with credit scores has led to more interest in repairing credit to increase scores.

Unfortunately, as the demand for credit repair rises, the opportunity for scams becomes more prevalent, says Marta Moakley, an assistant attorney general in Florida.

“As our economy becomes sluggish and debt levels rise, more people turn to companies that specialize in credit repair for help. Consumers need to be aware that there is potential for fraud.”

The need for such a service is obvious. Practically every consumer has inaccurate or outdated information on a credit report from one of the three major credit bureaus, says Steve Rhode, president and co-founder of Myvesta.org, a nonprofit agency that counsels people in financial crisis.

These errors can be costly, and it’s up to the consumer to get them corrected. The credit bureaus are not obligated to root out errors and provide accurate information. Their job is to record the information presented to them by creditors.

Call for help?

So, if your score is low or your credit report is inaccurate, what are your options? It’s like hanging wallpaper — do you call a professional paperhanger, or tackle it yourself?

The Fair Credit Reporting Act says consumers can dispute mistakes in their credit files for free. But it will take time. Correcting one error may average four hours, says Rhode. That includes applying for your credit reports, reviewing and highlighting errors, documenting the mistake, typing up your letter and mailing it.

Credit repair services offer, for a fee, to do this daunting legwork. They pull credit reports, review for errors and send out dispute letters along with documentation. They add professionalism. They save you time. Some promise to erase bad credit — 100 percent guaranteed. Others advertise they can remove bankruptcies from your credit file forever.

These repair services, however, don’t have any secret remedies for erasing bad credit. Neither you nor the credit repair service has the right to remove accurate and current information from your credit report. The bottom line is: Credit repair services can’t do anything for you that you can’t do for yourself, free.

The mysterious repair shops

Are credit repair clinics fulfilling their promises to improve credit scores? It’s hard to say. We contacted five credit repair clinics to learn about their guarantees and success stories, but not one was willing to talk.

The consumer service agencies were more than willing to talk.

Steve Baker, Director of the Federal Trade Commission in Chicago, says a prevailing myth about credit repair is that there are loopholes in the federal law that allows poor credit to be erased. It doesn’t exist.

He says that in the past four years the FTC has not seen a legitimate credit repair clinic. “It’s possible that these clinics are providing legitimate services to customers, but I’ve not seen it yet. When the law says that bankruptcy remains on your credit report for 10 years, just how can it be legally removed?” questions Baker. “And, later when you’re asked in a credit application if you’ve ever filed for bankruptcy, will you lie?”

He cites an example of one consumer who was told to steal his bankruptcy record from the county courthouse, so that the credit bureau could not verify its accuracy.

Dramatic? Yes. But it poses a good question — how are credit repair services removing bad credit?

“If the credit repair service offers guarantees within the Fair Credit Reporting Act,” says Steve Rhode of Myvesta.org, “then it’s doing the job. Credit repair services get sleazy when they promise to do a job that’s just not possible. They promise to remove accurate, but negative information.”

“Scams occur,” says Marta Moakley, “when consumers pay fees for services that are never performed, or the consumer is misled on the services provided. Too often the consumer can’t afford to lose this money.”

Worse yet, consumers have paid money upfront — and the company disappears.

“Credit protection and credit repair” scams are one of the top consumer complaints reported to the FTC. The actual dollar amount lost by consumers to these scams is difficult to calculate, says Baker, because many people are too embarrassed to complain. But, the FTC estimates the loss to consumers is easily in the millions.

“This is an equal opportunity scam. Everyone has a credit report; anyone can suffer from a poor credit history,” says Baker.

Steve Rhode knows of consumers who paid $400 to $2,000 for credit repair services. Do-it-yourselfers can expect to pay $30 for a consolidated credit report — a report that provides your credit history from the three major credit bureaus — plus the value of their time.

Finding a reputable company

You may still decide to go the credit repair service route. Here’s how to let your fingers cautiously do the walking through the yellow pages.

Do your homework. Research the company before your first visit. Contact the Better Business Bureau to see if the firm has had any consumer complaints. Check with your state attorney general’s office or other state consumer agencies to find out if there are any pending legal investigations. The FTC warns against relying on chambers of commerce or other trade associations where membership is based solely on a fee.

Know your rights. Credit repair services must follow specific guidelines from the Credit Repair Organizations Act, which are intended to protect consumers. You should receive an explanation of these rights before signing a written contract. Read them.

You should receive a contract with all of the following information:

The payment terms for services, including their total cost A detailed description of the services to be performed How long it will take to achieve the results Any guarantees they offer The company’s name and business address Remember the grace period. The credit repair company cannot perform any services for you until you’ve signed a written contract and completed a three-day waiting period. You may cancel the contract without paying any fees during this period.

“There are no quick fixes in credit repair,” insists Moakley. “Common sense tells you that a third party doesn’t know your credit history better than you. Through contacting credit bureaus, making your own corrections, consolidating your debts and budgeting, you can improve your own score. You don’t need to pay someone to fix it for you. Apply that money toward your debt.”

Credit Repair Software

July 8th, 2009 at 09:04pm Under Credit Repair

Credit Repair Software

Some people believe that credit repair software is a great way to help a person get organized in a journey to a debt-free life. They might also believe that these computer programs offer ways to get organized with bill paying and valuable information for reaching financial goals. But in reality, only an experienced credit repair service can factually improve your credit score.

Selecting a credit repair company to help you improve your credit score is a big decision. A typical credit repair service will cost you a few hundred dollars and will take up to a year to complete their service. Choosing the wrong credit repair company can end up wasting money and perhaps more importantly, your time. Choosing the right credit repair company, however, may be one of the best things you can possibly do for your financial future.

What do you need a credit repair company to do for you?

A good place to start when determining which credit repair company is best for you is to figure out what needs to be done to improve your credit. The process of repairing your credit can involve much more than simply disputing your credit with the credit bureaus.  You should make sure to use a credit repair company that can fulfill all of your credit needs.

When most people think of credit repair they think of a process that has become known as credit report repair. When working to repair your credit using credit report repair, a credit repair company is using your rights under the Fair Credit Reporting Act to dispute certain items in your credit reports directly with the credit bureaus. This element of credit repair has helped many people with erroneous, incomplete, or unverifiable information on their credit reports improve their credit scores.

While credit report repair is a good start, many people find that it is not enough. Many leading credit repair companies will also work directly with your creditors using a variety of tactics to get them to stop reporting the negative accounts to the credit bureaus. They may also work with collections agencies and others to get them to stop reporting negative accounts or change the way the accounts are reported. A credit repair company may even go so far as to challenge the legitimacy of a reported debt.

Depending on your current credit situation, you may be best served by a credit repair company specializing solely in credit report repair or one that can also provide a full catalog of credit repair services.

How can I tell if a credit repair company should be trusted?

Unfortunately, credit repair is an industry that has received a bad reputation because of the publicity afforded to credit repair scams. While fraudulent credit repair firms tend to be shut down quickly, it is still in your best interest to learn how to identify the differences between a legitimate credit repair service and a credit repair scam.

An easy way to do this is to know a few of the laws that govern credit repair companies. These laws as defined in the Credit Repair Organizations Act were designed to protect you from credit repair scams while also protecting your right to get help with repairing your credit reports. 

Another way you can find out about a specific credit repair company is to look up their BBB (Better Business Bureau) reports. The BBB keeps notes on complaints made against companies. If the BBB report for a credit repair company lists multiple unresolved complaints or an overall low rating, you should be wary of the company. In addition, beware of any credit repair company that does not list credit repair services as one of their offerings in their BBB filing. The BBB has very strict standards for credit repair companies so many fraudulent companies will not report to the BBB that they offer credit repair.

Debt-free living is definitely the goal. A Christian must be wise in the choice he makes concerning his financial history and his ongoing financial dealings. Every financial decision needs to be a well-researched, well-thought-out decision. As Christians, we have additional resources for dealing with our bad spending habits. He can consult a local pastor or a trusted friend. Becoming debt free will not happen overnight so patience and perseverance are keys to success. Romans 15:5 says, “God of patience grant you be like-minded.” God will help us gain the patience and perseverance we need to follow through with our plans to be debt free, and that may entail credit repair software programs.