Archive for Bad credit and/or credit repair cards
Fix Your Credit Report And Score Now With These 7 Best Tips And One Secret!
Posted by: | CommentsFor some of my best tips on how to fix your credit report and score I’m listing a few of them below.
1. Get a copy of your absolutely free credit report instantly online – then make sure the information is correct. You can get your credit report for free online each year for all three credit bureaus – Equifax, Esperian and Trans Union. You’ll find the credit report easy to read. You’ll be able to determine which accounts are actually listed on your credit report and which are correctly listed. Check closely for any errors – go through again. Check all of your information so that you can be sure there are no errors. Any errors can be devastating to your FICO or credit score. Dispute and resolve any errors as soon as possible.
Free credit score? Your credit score at the time of this writing is not free. There is a small fee through credit report services. However you can usually talk a lender into giving it to you if you have applied for a loan or auto loan through a credit union, bank or other lender.
2. Make sure to pay your bills by the due date. This is one of the most important things you can do to improve your credit score. If you have paid any of your bills late, have had any of your accounts referred to a collection agency, or have declared bankruptcy in the past this credit history will show up on your credit report if its been in the past few years.
3. You can easily set up online automatic payments from your checking account to help you pay your bills on time. .Figure out the average minimum payment for each credit card you have. Make sure you have enough money in your account to avoid any bank charges or overdraft fees.
3. How much money do you owe now or in other words what is your outstanding debt? Many of the models used for scoring compare the amount of the debt you have to your credit limits. If the amount of your current debt is anywhere near your credit limit, it’s apt to have a bad effect on your credit score.
4. How long have you had a credit history? A short credit history may actually have a negative or bad effect on your credit score, but you can offset a short history with timely payments and low credit balances.
5. Have you applied for any new credit cards or loans recently? If you’ve applied for too many new credit card accounts or loans it may have a negative affect on your credit score (FICO) and credit history. These inquiries are always reported and affect the credit score whether you’re approved or not. However when you request a copy of your personal credit report, or any creditors are watching your accounts these inquiries are not counted as applications for credit.
6. What types of credit card accounts and other credit accounts do you have now? Many of the credit-scoring models take into consideration the number and type of credit accounts you have. A healthy mix of installment loans and credit cards may actually improve your score. But too many loan or finance company accounts or credit cards may hurt your credit score.
One secret tip – make sure to check your credit limits. If more than 50% of your total available credit limits are used you may want to know this tip. There is a little-known quick way to fix or increase your credit score and that is to bring down your debt ratio. You can try calling your credit card company and requesting a credit line increase. If you can get your credit line increased so that it makes your debt ratio less than 50% you may be able to increase your credit score by several points in next month’s report if it’s your only account. Of course you can try doing this with others too. You must keep in mind how much your total credit availability will affect your score also.
7. Be fully aware there are many credit-repair scams out there. The best way to repair your credit is to sit down and do it yourself. Use a credit repair ebook or other manual. It is actually pretty simple and involves only writing a simple dispute letter. You want to do this as soon as possible to remove any negative credit marks.
When following these best tips to fix your credit report and score and credit repair tips make sure to always do your best to take care of the credit you have and you’ll build a good credit history.
Raise Your Credit Score Fast with Proven Insider Secrets
Posted by: | CommentsIf you want to increase your credit score from 580 to 650, you’ll need a different strategy than if you want to go from 670 to 725.
Also keep in mind that while removing negative items from your report will usually increase your score, it’s a basic concept at best. In this article, we’ll discuss “inside secrets” known by very few that will help you get your credit score where you want it.
Your Debt-to-Credit Ratio
For years I’ve been hearing the same thing from people who listen to credit card services: “I pay off my balance on my business credit card every month, so I have excellent credit,” or “My personal credit card has no balance – I’m in great shape.” These mistaken beliefs immediately change when you know the facts.
Your debt-to-credit ratio compares your amount of debt to total available credit extended to you (through revolving accounts only). For example, let’s say you have $10,000 in total unsecured revolving credit accounts with a debt of $2,500. Your debt-to-credit ratio is 25 percent.
Lenders make money through interest, not annual fees, so a key element of the credit scoring model is based on your maintaining balances and paying over time. This shows lenders your true long-term credit-worthiness. If you pay off your card every month, the best credit repair services in the world will not help you, because this is not how you build good credit.
Over the years we’ve discovered the best way to build credit-worthiness and repair bad credit is to carry the proper debt-to-credit ratio. It boosts your score much more quickly than paying off your cards each month. I have argued this fact with the Better Business Bureau, and they still disagree, despite my having sent them proof from Fair Isaac, the organization that invented the credit scoring software used by credit bureaus.
So how do you use debt-to-credit ratio to lower your credit score? If you have $10,000 in unsecured revolving accounts with a debt of $8,500, how do you bring your score down without selling everything you own? The answer is amazingly simple.
Sub-prime Merchandise Cards – the cards that actually work for you
Sub-prime merchandise cards are the most cost-effective and powerful tools to increase your credit limit and decrease your debt-to-credit ratio. Like with “traditional” credit cards, these versatile cards report to one or more of the major credit bureaus each month.
A sub-prime merchandise card account is simply a line of credit that allows you to buy merchandise from a specific vendor, usually the company that sold you the card. In most cases, you’ll purchase the merchandise through a catalog or online mall.
Virtually anyone can be approved for $5,000 to $10,000 in credit attached to a sub-prime card with NO credit check and NO cosigner. The difference between a sub-prime account and a typical credit account is that the card is good only for merchandise through the issuing company’s website or catalogs, and the consumer is required to pay a deposit on whatever they purchase. After the deposit is paid, the remaining balance is financed on the card.
Maybe you’re thinking it sounds like a scam. If so, you’re missing the point. Big time.
Four Instant Benefits
With a legitimate sub-prime merchandise card, your credit line WILL be reported to one or more of the major credit bureaus. This means if you get a $7,500 card and you finance $500, on your credit report it will look like any other credit card and will do four extremely important things for you.
1. It will immediately increase your current high credit limit by $7,500, because it “looks” like any other unsecured revolving account.
2. It will immediately improve your debt-to-credit ratio.
3. By carrying a small outstanding balance, it will positively impact your credit report by building credit and showing potential lenders your credit-worthiness.
4. With a good payment history, you’re virtually guaranteed to receive “legitimate” pre-approved credit offers in the future.
This technique can’t be beat for both cost and effectiveness. The key is knowing which cards report to the credit bureau and offer a zero-percent interest rate.
In the world of credit repair services, a lot of companies promise to help but can end up costing you more than their help is worth. With a sub-prime merchandise card, you’re in control of restoring your credit-worthiness.
You can improve your debt-to-credit ratio and increase your credit limit, starting today. Look for the best credit cards to help you raise your credit score and get back on the right track.
Avoid Rejection – Know the Score Before you Apply for a Credit Card
Posted by: | CommentsBefore you go searching for the perfect deal, make sure you are prepared. The most important factor in getting what you want is your credit score. Also known as a FICO score, your credit score is a number in the range of 500 to 800 that tells lenders how safe or risky it will be to lend you money. This translates directly to the interest rate, perks, and credit limit you can get when applying for a credit card.
What is my credit score?
If you don’t know your credit score, there are several websites that can provide you with a report. Typically the charge is around $15 dollars, and some do it for free. Be careful when choosing a free credit report provider, have you ever heard of the term “nothing is free”? That free report might just cost you a lifetime’s worth of spam, so consider this alternative:
Next time you are at the bank, tell them you are applying for a credit card and ask what your score is. You might just get an instant answer that doesn’t cost you a thing.
If you do opt for a free online credit report, choose a trusted site like Experian.com
Is that a good number?
If you know your credit score, check this list to find out how it will affect your chances of applying and getting approved for a credit card with a good rate:
The Good – 650 and Up: Congratulations, you have great credit. Be sure to keep it that way by paying bills on time and keeping your balance low. You can skip the rest of this article and start shopping for the best deals!
The Bad – 550 to 650: You may be thinking “wait a minute, I thought this was an average score?”. Well average credit is fine by itself, and you can probably get approved for most cards. However the end result will probably be a lousy rate, and that’s bad. Consider spending a little time to improve your score before applying for a major credit card.
The Ugly – Below 550: Ouch! Don’t apply for a credit card with this score. Even if you are approved you could end up paying outrageous rates which could cause further damage to your credit. Don’t worry, you can fix it.
How Do I Repair My Credit?
Repairing credit can be done, it just takes a little time. Plan on spending at least a few months to make a difference. Here are a few suggestions:
Monitor Your Credit Score: Bite the bullet and sign up for a credit report and monitoring service from a trusted site like Equifax.com. In addition to tracking your score as you improve, you will be able to pinpoint problem areas.
Dispute Errors: Your credit report may contain errors which are affecting your score. You can file a dispute and sometimes get those bad marks erased.
Fix the problems: Identify which areas are hurting your score and fix them. Late payments on bills? Pay them on time. Outstanding collection notice from 1995? Pay it and make sure your report gets updated. Fixing your credit is like any other repair project – figure out what’s wrong and fix it brick by brick.
What if I have no credit?
Having no credit can be frustrating, but everyone has to start somewhere. First make sure that you continue to pay your bills on time. Next you need to start building credit:
Secured Credit Cards: The most common option is to get a secured credit card from your bank.This means you will have to make a cash deposit which will also be your credit limit. Then you will need to use the card and make regular payments. After many months when you have built enough credit history you re-apply.
Department Store Credit Cards: This is a great way to start building credit. Apply for a card at a department store like Macy’s or JC Penney. You will almost always be approved, even with no credit history. Make a small purchase right away, and pay the bills as soon as they come in.
Knowing your credit score is critical to getting the best deal when you apply for a credit card. Follow the advice in this article and you will have great credit history before you say “send me junk mail!”
Tips for Repairing Bad Credit
Posted by: | CommentsA strong credit history is important for a variety of reasons. If you want to buy a home, a good credit history enables you to get a lower interest rate and even put less money down. Many apartment rentals check credit history as a routine part of the application process. Even many job applicants have their credit history checked as a matter of routine. If you have poor credit, it may seem like there is little that you can do, but nothing is further from the truth. There is nothing mysterious about the credit process, and there are some basic steps that you can take to improve your credit score easily.
Before you begin the process of repairing your credit, it is important to make sure that you and your family members are serious about change. It does no good to improve your credit score only to find yourself in debt again and again. The most important first step to improving your credit score is committing to changes in the way that you live your life. No more buying things that you cannot afford or using credit to maintain a lifestyle. Instead, use credit wisely, and to your advantage. Don’t feel pressured to spend money you do not have on entertainment or shopping. Use the tips below to begin improving your credit today.
Check your credit history. If you know that you have poor credit, checking your credit history may seem redundant, you know what is there, right? But checking your credit history is just as important for those that have poor credit as it is for those with stellar credit. Mistakes can happen on anyone’s report. You are entitled to one free copy of your credit report each year from each of the credit reporting agencies. It makes sense to review your credit report annually, and, if you notice any errors, contact the credit reporting agency immediately and sort out the problem.
Make payments on time. There is little that you can do to erase previous black marks on your credit, but you can improve it from this point on. Make payments on time, taking into account mail time so that payments arrive at the payment office before they are due. If you consistently have trouble remembering to make payments on time, it makes sense to take the time to sit down and arrange for your payments to be automatically deducted from your checking account each month. This ensures that you never face a late payment penalty again. Each month that you make your credit card and utility payments on time improves your credit history.
Use credit. If you do not have a credit card, it may make sense to apply for one. If you believe that your credit is too poor to qualify for a credit card, look into a secured card. A secured credit card allows you to deposit a certain amount of money into a savings account. This money is then used as security for the credit card. You can use the credit card anywhere that you would normally use credit, to buy fuel, go shopping or order online, and you make payments, just like a traditional credit card. The credit card company reports to the credit agencies, so you are able to develop a history of prompt payment. Of course, it is important to properly utilize these credit cards, and not overspend, your goal is to use it just enough to build your credit worthiness.
Do not use all of your credit. Whether you have traditional credit cards or a secured card, pay down the balance. Credit agencies get nervous when an individual uses near the credit limit of their card. Aim to pay any credit cards down so that at least 50% of the balance is available, although 65% is even better. While you want to use your credit to improve your credit score, overusing is can cause problems as well, even if you are able to pay the minimum payment each month.
Be patient. Credit repair takes time. However, credit is a revolving process. Each month that you make timely payments your credit history improves. Each month that you bring your outstanding balances lower, your credit history improves. Commit to the time that it takes to improve your history, and you will be rewarded down the road.
How Long Does it Take to See Results?
Once you dedicate yourself to improving your credit, you should begin to see results soon. Problems such as foreclosures and bankruptcies take years to fully disappear from your credit history, but slow payments and collections accounts can disappear much quicker. Even if you have a major red flag on your credit report, such as a foreclosure, follow the steps above to repair your credit. That way, when the foreclosure is finally removed from your credit report, you will have a strong history of credit worthiness already in place.
How To Build Good Credit Scores
Posted by: | CommentsHow To Build Good Credit Scores
Credit repair, credit history, and credit scores will point out some interesting facts. Your situation will dictate if you can find a way out of any debt problem. Debt reduction can become very stressful leading to depression caused by your situation. Our current economic enviornment is very tough and daily lives are stressing enough, we don’t need to add anymore. When confronted, and you admit there are problems you need to find workable alternatives.
A thorough evaluation of your current credit situation is needed start to plan the important tasks ahead with rebuilding your credit and repairing your credit file. You must also realize these same steps need to be evaluated to reduce credit debt. Be serious about repairing your credit and watch out for internet rip-offs “They’re Everywhere“. As complicated as the problem already is, as bad a situation you are in, you don’t want to make a mistake and get further into debt.
Anyone that tells you they can repair your credit in 3 easy steps or fix your credit report in 24 hours “PLEASE RUN”! Your decision for solutions have to be researched and find a method that will work for you, let’s begin with some basics avenues for repairing, and rebuilding your credit.
Look at the first thing “How your credit score is generated”:
Credit scores are generated by assigning weighting models to different components.
35 % is based on your credit history (more than 30 days late)
30 % is based on amounts owed compared to total credit limit (debt ratio)
15 % is based on length of credit history ( history and paying accounts on time means better scores)
10 % is based in number of new accounts, inquiries ( looking for new credit could mean financial trouble)
10 % is based on types of credit revolving, installment, consumer (a good mix of the 3 is great)
Each of these criteria depending on how good you handle them will generate a scoring range for you, and the risk level the lenders will take.
Ok, here is a pretty straightforward plan to build good credit scores, you need to remind yourself the bad credit situation didn’t “just happen”, when you accept this fact you are on your way to building GOOD credit. Patience, documentation, and following up on everything is important.
Let’s get started…
Let’s clean up your credit report. Request your free reports http://www.annualcreditreports.com review the reports thoroughly and file disputes for each reporting error, with the respective agency for inaccurate information.
Look for some of the following:
Missing accounts paid on time, prepare documentation of these accounts, and tell the agency or agencies to add theses accounts.
Work information is wrong
Never lived at address showing
Wrong names, and aliases show up as you
Possible identity theft
Accounts not belonging to you (a biggie, name or city, state wrong (also SS number) etc…
If you find any of these errors dispute the errors with all three credit bureau’s Experian, Equifax, and TransUnion. It could take from 30 to 45 days to correct but be consistant and follow up.
Now, on to “Your Debt”, and “Building Good Credit”.
A budget outling spending will be needed:
Write down all expenses, track spending and charges.
Excel or word can create a spreadsheet for you to use in tracking, plain or graph paper works too
Start on the 1st of the month to follow expenditures for the month
Track every day seperately, carry a pad for notes if you are out
Record payments by cash, atm, credit card, electronic bank withdrawal
List the items paid for food, utilities, clothes, gas, etc…
Do this for at least 3 months
Add all items to establish your monthly expenses.
Continue to track expenses for 3 months, this will show where the money is going, monthly, and quarterly expenses will be shown here like car insurance, taxes, vacations, professional services etc…
Next make a list of all income use a seperate spreadsheet to show all sources of income as it flows in:
Salaries
Bonuses
Interest income
Pension or social security
Alimony or child support
Public Assistance (Food stamps, welfare, unemployment)
List net amounts coming in, receipt of the income(weekly, monthly etc), total these number to produce monthly income.
Subtract expenses, from income, the results will show what is left is spendable cash, look to see if your spending more than your taking in. If the latter is true you need to make some tough decisions either cut down on expenses or secure more income.
“Credit Card Debt Reduction”
From having many credit cards to only one. This is a process I have done a few times when my own spending got a bit out of control.
List all credit card accounts with credit limts, balance due, and monthly payment on a sheet of paper or in a spreadsheet. Pick the card with the highest rate of interest or the one you owe the least amount on (whichever is best for you). I just started with the lowest balance due, it let me achieve a goal sooner rather than later.
Pick which card to start with, and increase the monthly payments ( plan when you will pay it off)
Maintain the minimum payments due on all other accounts (On time)
Pay more than the minimum due on the selected card
Prepare to payoff the next highest card balance ( project a pay-off date)
Continue to due this until you are either paid in full or you’re happy with the progress, and balances
Remember the above on debt ratio to available credit, by maintaining a 30 to 35 % balance due vs total credit limit an increase in credit scores should result by following these steps.
A different tactic you can use is to call each credit card company and ask for a reduced interest rate, inform them of your plans, some might lower the interest rate.
One very important lesson to be learned concerning the financial crisis, your credit score is the financial projection of your good name.
Good scores will save you money in the long haul, but you need to maintain, because a small slip up can be very costly.