Credit Repair: What Not To Do!

Beware of Store Cards

And third, store cards tend to give a low credit line, often just above your purchase amount. First, your score will be reduced because of the new account that will soon appear on your report. But it is handy to know that store cards create triple trouble on your credit report. This can be a good deal.

And third, store cards tend to give a low credit line, often just above your purchase amount. Second, your score will be reduced because of the new account that will soon appear on your report. First, your score will be reduced because of the inquiry. But it is handy to know that store cards create triple trouble on your credit report.

This can be a good deal. And third, store cards tend to give a low credit line, often just above your purchase amount. First, your score will be reduced because of the new account that will soon appear on your report. But it is handy to know that store cards create triple trouble on your credit report.

This can be a good deal. Department stores love to push their credit cards by offering a discount on your purchase if you sign up on the spot.

Watch That High Limit

I run a national credit repair company and speak to people all day long about their credit reports. One of the bits of advice that we like to offer our customers is to pretend they only have half the limit on their credit card that they really have. It takes some discipline to do this but it can make a big difference on your credit score. As soon as your balance exceeds fifty percent of your available limit your credit score will start to suffer. If your credit balances are currently close to your credit limits you might consider calling the credit card companies and asking them to increase your limit. You will be amazed at how fast this can make your score go up!

The Auto Shopping Credit Trap

I can???t tell you the number of times that we have looked at a credit report and seen multiple auto credit inquiries. When we ask our customer they inform us that they only went to two different dealers. Auto dealers will often shop for the best interest rate for you. If they shop with three auto finance companies you will have three credit inquiries. These multiple inquiries can have a significant impact on your score. This is not the auto dealers fault. After all, they are acting your best interest, but it is best to be aware of the possibilities. If you are shopping for a car I would suggest not providing your Social Security number until you are settled on the car you want.

No More Mr. (or Mrs.) Nice Guy

Just about every day in the credit repair business we come across someone that was nice enough to co-sign for someone on a car loan. I???m sorry to say this, but chances are that if they need you to co-sign they will not make their payments on time. And this will kill your credit scores. I know that this is a tough call. It is hard to say ???no???. If this situation arises in your life I suggest an alternative approach. Go ahead and co-sign. But when the payment book arrives ask them to give it to you. Have them pay you instead of the auto finance company. You will make the payments on time. And maybe they will feel some extra obligation to make their payments to you on time as opposed to some anonymous auto finance company.

Don???t get complacent

Check your credit from time to time. In December of 2003 Congress passed the Fair and Accurate Credit Transactions Act (FACT Act) which, among other things gives you the right to get a free credit report from each bureau one time per year. This law was passed to protect you from the credit reporting errors that occur far too frequently. Don???t imagine that because you are doing everything right that the credit bureaus are reporting everything correctly. Get your reports and proof read them carefully. It???s your right.

No explanations needed

It???s your money Make sure you are comfortable. Before you hire someone pick up the phone and talk to them. You should never have to commit for a predetermined period of time.

A good credit repair company should be affordable and efficient. They have the experience and knowledge to get the job done for you. If you don???t feel up to the challenge of dealing with the credit bureaus hire a reputable credit repair company. Whatever you do please don???t write an explanation for the credit bureaus to include on your credit report you should dispute it! Are there errors on your report?

All Rights Reserved. All Content. Kemish.

2007 James W. Copyright ??

Consolidation Loans: Get The Best Interest Rates

This is more convenient than making minimum payments to your creditor or missing payments altogether. If you're looking for a smart way to get out of debt, a consolidation loan is to consolidate your credit card, car loan, or other debts and make just one payment a month.

Finance Charges

When you choose the right consolidation loan, you will save money in the long run. Creditors expect you to pay interest on your balance each month; these finance charges can add up. This makes it more difficult to eliminate your debts. As long as the consolidation loan interest is reasonable, you will save from having to pay high interest rates.

Those with good credit can easily secure consolidation loans with a great interest rate. The lender will usually issue a check so you can pay off remaining balances. Your obligation from that point on is to repay the consolidation loan once a month until your loan is paid off in full.

If your credit is modest, you may have a difficult time finding a lender who will give you a good interest rate. However, if your interest rate on credit cards and other debts is high, it still might be better to take on a high interest consolidation loan. As long as the consolidation loan interest is lower than your current rates, you will be saving money.

Collateral

Sometimes, your lender will require you to have collateral as a backup, just in case you fail to pay your consolidation loan. When collateral is required, the loan is considered to be a secured loan. Collaterals may come in the form of a home, car, or other personal property. It is used as extra assurance for the lender, knowing that they will somehow be paid, even if you fail to make your payments. Those with less-than-perfect credit may have to opt for a secured consolidation loan.

When it comes to consolidation loans, you should shop around to ensure that you get the best interest rate possible. The lower your interest rate, the more money you'll save in the long run. These days, it is easy to get loan quotes. You can usually fill out an application online and receive a quote within a few minutes. Use your favorite search engine to search for consolidation loan specialists or lenders. Watch out for lenders who charge excessive application fees, or fees to receive a quote.

Low Interest Rate

You can go about it in many different ways, as long as the interest from the new loan is less than your current interest rates. In other instances, you can get a personal loan or a home equity loan to pay off credit cards and other bills. Some individuals with good credit can open a low interest rate credit card to transfer balances from high interest cards.

Consolidation loans don't always come with the title.

You can avoid bankruptcy, missed payments, or repossession by getting a consolidation loan early on. You can avoid bankruptcy, missed payments, or repossession by getting a consolidation loan can simplify your financial situation and get it under control. Taking out a consolidation loan can simplify your financial situation and get it under control.

Tips On How To Consolidate Bills So You Can Maintain Family Life And Get Rid Of Credit Card Debt

If you currently own a home, and there is some equity in it that you can use, there are actually several low-cost options for you to consider, that are straightforward such as a simple debt consolidation loan. If you currently own a home, and there is some equity in it that you can do to help consolidate bills, and many different steps to take. There are many things that you can do to help consolidate bills, and many different steps to take. This is not always the case, however, because not all lenders have your best interest in mind.

You may have been led to believe that taking out a single loan to pay off all of your debt is the answer.

A fixed rate loan, for example, generally carries a term of around 15 years, and will require an origination fee, an appraisal fee and a title insurance fee. You can take out a home equity loan is actually tax deductible. 1.

2. You can complete a "cash out" refinancing. This is another option for people who have some equity in their home. What you do, is you refinance your property for an amount which is greater than what you owe, then you use the extra cash that you have earned in order to consolidate bills. By using this method, you actually manage to obtain a very low interest rate, but in the process you are stretching your monthly payments out over a span of between fifteen and thirty years depending on the terms of your individual mortgage loan. This is really a one time ever option, however, because the interest cost really tends to add up over the years making it an expensive option over time.

3. You can refinance your vehicle. Any secured loan can be borrowed against, and this includes your vehicle. The biggest danger associated with this form of debt consolidation is that you may actually run out of car, before you end up running out of debt. When you owe more than what your car is worth, it is generally pretty tough to buy a new one.

4. You can obtain a personal loan. If your credit is reasonably undamaged, you may be able to qualify for a loan, which is unsecured. You will generally find lower interest rates at credit unions than what you will find at banks, but you should still expect an interest rate of at least 11 percent or more. Still, this can be a lot less than the 20-or-so percent that you are paying to your current credit card companies.

5. You can negotiate better terms. This is something that you can easily do for yourself, simply by calling your credit card issuers, and asking them to help you negotiate a better term. Many regular customer service operators are authorized to do what it takes to reduce your rates right there while you are on the phone with them.

In certain cases, bankruptcy might be your best option, but it is by far not your only option. The actual creditors pay these debt consolidators, like NFCC,, which means that it is in their best interest to help you work out a plan for repayment, rather than advising you to take other options such as declaring bankruptcy. It is even possible to consult with someone at NFCC over the phone. The NFCC is a not for profit organization which provides debt management advice which is free, confidential, and available to anyone in the country who needs it.

The NFCC has branches located all over the country. There are a lot of people out there who would love to help you, including organizations like the National Foundation for Credit Counseling, also known as the NFCC. You can seek other alternatives. 6.

A debt consolidation loan will make your monthly payments manageable and help provide the financial stability you need for your family. Don't let your credit card debt affect you any longer. You have many different options available to you to consolidate bills and put control back into your finances.