For those who have a bad credit history there are new options available for getting finance. You may have heard of Bad Credit Bank Accounts; these accounts are specially designed for those who have less than perfect credit and need a way to obtain finance.
Bad Credit Accounts explained
These accounts have basically two purposes, they provide finance through pre-agreed personal Loans and they also help improve credit score. In order to make good use of these tools, you need to know exactly how they work and how to get access to them. Following are a couple of tips on this subject that you may find useful.
Bad Credit Bank Accounts are just like any bank account, the only difference is that certain banks, smaller ones, have fewer requirements than others and thus make available this kind of account packages for people with bad credit. What makes these accounts good news is even better news for those with a bad credit history who are unable to get finance.
These accounts are savings or checking accounts that also include the possibility to retrieve money from the account even if there is not enough money on it. The bank automatically lends the money and charges an interest on it. However, the amount you can retrieve is small, usually around $1500.
Pre-agreed Personal Loans
What makes these accounts special is that they come with a pre-agreed Personal Loan. This means that whenever you need to, you can borrow a larger amount of money, usually up to $10000 or more without doing any paperwork. This is possible because the bank has already done all the credit verifications when you obtained the bank account. In fact, you can even obtain the money via the ATM.
When you obtain the account you’ll get all the information regarding these loans. Usually to keep it simple, they’ll show you the monthly installment amount you’ll have to pay every $1000. This amount includes everything: principal, interest, administrative fees, insurance, etc.
Pre-Agreed personal loans are unsecured loans, but the interest rate associated with them is lower than stand-alone personal loans, mainly because many fees are already being charged with the maintenance of the account. Thus, you are getting more services for the same or less money.
Credit Repair
Another benefit that comes attached with these accounts is that both the account and the pre-agreed personal loan contribute to rebuild your credit. A regular use of both will slowly raise your credit score and improve your credit history. You may even get a good credit score in a small period of time, as the banks always inform credit agencies of your credit performance.
As a plus, some of these accounts will grant you either a secured credit card or an unsecured credit card depending on your credit score and history. But if you have bad credit, a secured credit card is not that bad as you’ll be able to improve your credit faster because each time you pay the balance in full it get’s recorded into your credit history. You’ll then have three financial products regularly being reported: The account, the pre-agreed personal loan and the unsecured or secured credit card. It’s a single combo with many benefits.
Wednesday, June 27, 2007
Would You Like To Find Out How To Repair Your Credit Today Starting From Scratch?
If you’re searching online to find ways to repair your credit, whatever your current financial situation is right now, you need to take the first step and clear your mind, and start using a common sense approach to your financial issues
I would like to warn you that you’re going to come across many web sites offering you information that will express to you that they can offer magical solutions to get you out of your credit troubles quickly, and I’m hoping after you read my article, you will take the common sense steps to repairing your credit, and becoming debt free without getting sucked in to all the hype that’s floating out there
When it comes to determining what type of credit repair is required, you have to first understand how you got into debt in the first place. Is it because you dont know how to control your compulsive and excess spending? Did you over-extend your credit due to an unexpected circumstance, which forced you to use your credit limits beyond your financial means to survive until you can rectify the situation?
The questions above are important to answer, and they need to be answered before you can move forward to seek the help you truly need. You should know where you stand in your spending and financial situation. If you know you have a compulsive spending habit that’s currently spiralling out of your control, you will need different services than if your financial problems are a once in lifetime occurrence that was totally out of your control, but you are responsible enough fix the problem, but need some guidance. When you come to terms of your present situation, you can then start working towards a repair plan, and determine whether you’re going to need a specialized credit repair company, or a debt management service to get you back on track.
b What You Need To Do And Know When Youre Applying For The Credit Report /b
Creditors and financial institutions always seem to show compassion and full interest in your life when they’re giving you a credit card or loan, but when you start missing payments, you will quickly find out how harsh and uncompassionate they can be towards your monetary situation, and in most cases they will not care how you got into debt, because they run a business and youre either an asset, or you are a deficit to their financial bottom line.
With that in mind, you need to contact a credit bureau, (recommended once every six months), and get them to submit to you a free credit report, and the reason I say free is because there should be no charge for your report, and the only costs (if any) should be postage and maybe a small processing fee. However, you may opt use a professional reporting service that will do this on your behalf, and we can talk about your options later.
To obtain your personal credit report, you need to submit a request in writing, and provide the credit bureau your personal information to prove your identity, and when everything checks out ok, they will send you a report to your home via mail. When you receive your credit information, normally in 2-3 weeks, you may be overwhelmed if you have never seen a credit report before You’ll be asking yourself, how do they get all this information on me, and who sends all this detailed information to them?
The process is like this: When you sign-up for a credit card, get a loan, or obtain cards from retail stores, you’re automatically placed in the bureaus database, and when you make payments, pay off loans, or miss a payment, it’s all recorded with the bureau, and this information is what they use to determine your credit rating and develop a score on your current and past activities.
You need to extensively check your credit and debt history on your report, and also understand the credit score they issue you to see where you stand in regards to your credit rating. These scores and ratings are updated when credit card companies, banking institutions, and retail stores submit information on your activity, which could be weekly, monthly, and even quarterly. Lending institutions and credit card companies can access this personal information of yours, and they will use this information to calculate your overall credit worthiness to make a final decision on your acceptance or rejection of loans and credit cards you may be applying for at the time.
b If you’re not sure whether your credit rating is in an ugly position or not, the first thing you need to do is go over your report with a fine-tooth comb, and see if there are any Report Errors /b
i You would be amazed how many times a card company or retail business accidentally submitted wrong reporting information that would negatively affect your credit history. If you don’t check often, you may never catch them in time, and when you go to apply for a car loan or mortgage, you’ll be in shock and disbelief when they turn your application down /i
Many people end up being extremely embarrassed when they walk into their local bank for a personal loan or mortgage, or fill out an application for a credit card, because they didn’t keep on top of their bureau reports. Unfortunately you found out the bad news about your credit history from these 3rd party sources, that you currently have a delinquent account, or missed payments, and it may not be wrongdoing Once you receive this information and get over the shock, it can take several weeks if not months to fix these errors listed, and your application will surely be delayed.
If you’re having problems knowing what steps to take to fix your errors, you do have options to contact professional repair companies in your local neighbourhood, and even online, you can easily find qualified companies that can help you clean up your reports. Keep in mind that you would be paying them a fee for their services, and it would be determined by how extensively you want theme to get involved. The benefits of having expert people are that they know exactly what necessary steps to take, and they can fully assist you in cleaning your credit errors in a timely manner. There are never any guarantees, but at least you have someone that knows what theyre doing, and this type of service may be to your advantage.
I hope you understand that the final decision is always yours at the end of the day. Never feel pressured to use any company that youre not sure about, and I recommend that you view all your options and see what suits your needs best under your current situation. In the end, if you determine you’re beyond the scope of repairing your credit history, then the next steps will be to contact a non-profit or government debt counseling service, or you can seek some online non-profit debt service companies that can help you determine the next steps to your financial recovery. If it’s truly too late, and you possibly have to declare bankruptcy, they will help you in making the necessary decisions on what to do next.
I would like for you to understand one thing after reading this article, and that is no matter what you’re going through today, your HEALTH is the most important to you So please promise me that you will take care of yourself, because in the end nothing else matters if you’re allowing your current credit situation to deplete your well-being physically and mentally due to an accumulation of bad stress. Now that you’re on the right path to repairing the bad credit listed on your reports, I encourage you to follow my Part II of this article find out the next steps to take in repairing your credit or debt situation:
I would like to warn you that you’re going to come across many web sites offering you information that will express to you that they can offer magical solutions to get you out of your credit troubles quickly, and I’m hoping after you read my article, you will take the common sense steps to repairing your credit, and becoming debt free without getting sucked in to all the hype that’s floating out there
When it comes to determining what type of credit repair is required, you have to first understand how you got into debt in the first place. Is it because you dont know how to control your compulsive and excess spending? Did you over-extend your credit due to an unexpected circumstance, which forced you to use your credit limits beyond your financial means to survive until you can rectify the situation?
The questions above are important to answer, and they need to be answered before you can move forward to seek the help you truly need. You should know where you stand in your spending and financial situation. If you know you have a compulsive spending habit that’s currently spiralling out of your control, you will need different services than if your financial problems are a once in lifetime occurrence that was totally out of your control, but you are responsible enough fix the problem, but need some guidance. When you come to terms of your present situation, you can then start working towards a repair plan, and determine whether you’re going to need a specialized credit repair company, or a debt management service to get you back on track.
b What You Need To Do And Know When Youre Applying For The Credit Report /b
Creditors and financial institutions always seem to show compassion and full interest in your life when they’re giving you a credit card or loan, but when you start missing payments, you will quickly find out how harsh and uncompassionate they can be towards your monetary situation, and in most cases they will not care how you got into debt, because they run a business and youre either an asset, or you are a deficit to their financial bottom line.
With that in mind, you need to contact a credit bureau, (recommended once every six months), and get them to submit to you a free credit report, and the reason I say free is because there should be no charge for your report, and the only costs (if any) should be postage and maybe a small processing fee. However, you may opt use a professional reporting service that will do this on your behalf, and we can talk about your options later.
To obtain your personal credit report, you need to submit a request in writing, and provide the credit bureau your personal information to prove your identity, and when everything checks out ok, they will send you a report to your home via mail. When you receive your credit information, normally in 2-3 weeks, you may be overwhelmed if you have never seen a credit report before You’ll be asking yourself, how do they get all this information on me, and who sends all this detailed information to them?
The process is like this: When you sign-up for a credit card, get a loan, or obtain cards from retail stores, you’re automatically placed in the bureaus database, and when you make payments, pay off loans, or miss a payment, it’s all recorded with the bureau, and this information is what they use to determine your credit rating and develop a score on your current and past activities.
You need to extensively check your credit and debt history on your report, and also understand the credit score they issue you to see where you stand in regards to your credit rating. These scores and ratings are updated when credit card companies, banking institutions, and retail stores submit information on your activity, which could be weekly, monthly, and even quarterly. Lending institutions and credit card companies can access this personal information of yours, and they will use this information to calculate your overall credit worthiness to make a final decision on your acceptance or rejection of loans and credit cards you may be applying for at the time.
b If you’re not sure whether your credit rating is in an ugly position or not, the first thing you need to do is go over your report with a fine-tooth comb, and see if there are any Report Errors /b
i You would be amazed how many times a card company or retail business accidentally submitted wrong reporting information that would negatively affect your credit history. If you don’t check often, you may never catch them in time, and when you go to apply for a car loan or mortgage, you’ll be in shock and disbelief when they turn your application down /i
Many people end up being extremely embarrassed when they walk into their local bank for a personal loan or mortgage, or fill out an application for a credit card, because they didn’t keep on top of their bureau reports. Unfortunately you found out the bad news about your credit history from these 3rd party sources, that you currently have a delinquent account, or missed payments, and it may not be wrongdoing Once you receive this information and get over the shock, it can take several weeks if not months to fix these errors listed, and your application will surely be delayed.
If you’re having problems knowing what steps to take to fix your errors, you do have options to contact professional repair companies in your local neighbourhood, and even online, you can easily find qualified companies that can help you clean up your reports. Keep in mind that you would be paying them a fee for their services, and it would be determined by how extensively you want theme to get involved. The benefits of having expert people are that they know exactly what necessary steps to take, and they can fully assist you in cleaning your credit errors in a timely manner. There are never any guarantees, but at least you have someone that knows what theyre doing, and this type of service may be to your advantage.
I hope you understand that the final decision is always yours at the end of the day. Never feel pressured to use any company that youre not sure about, and I recommend that you view all your options and see what suits your needs best under your current situation. In the end, if you determine you’re beyond the scope of repairing your credit history, then the next steps will be to contact a non-profit or government debt counseling service, or you can seek some online non-profit debt service companies that can help you determine the next steps to your financial recovery. If it’s truly too late, and you possibly have to declare bankruptcy, they will help you in making the necessary decisions on what to do next.
I would like for you to understand one thing after reading this article, and that is no matter what you’re going through today, your HEALTH is the most important to you So please promise me that you will take care of yourself, because in the end nothing else matters if you’re allowing your current credit situation to deplete your well-being physically and mentally due to an accumulation of bad stress. Now that you’re on the right path to repairing the bad credit listed on your reports, I encourage you to follow my Part II of this article find out the next steps to take in repairing your credit or debt situation:
Cards For People With Bad Credit Helps You Spend Within Your Financial Means
Cards for people with bad credit is a convenient way to help you control your current spending and get your life back on financial track
Depending on how bad your credit is, people need to understand that debt can cause not only major financial trouble, but it could easily damage relationships with family and friends, and your bad credit could also be a good indicator that you have an addiction to spending.
In my opinion, there’s no need to have more than two credit cards, and for many, three cards should be the maximum. The issue with having a MasterCard, Visa, American Express, and every other credit card under the sun is the difficulty in tracking each credit card’s spending limit, and because the statements may come in at different times during the month, you can easily lose track of the overall amount being spent on each one.
Now with access to online cards, many individuals that are maxing out their credit limits are going to an online cards site that claim they will repair or consolidate their debt with their unsecured cards. But when you look at the interest they will end up charging, you may be getting in deeper than you may be in right now
b Checking Your Credit History With Bureaus Will Indicate Where Your Finance Stands /b
Once you contact your local bureau to get your credit report, you can then take a deep breath and see how good or bad your current financial situation is, and if your credit score is beyond repair, then you have to make decisions on what type of debt repair you need.
Your bank may be willing to offer you an unsecured credit card with a lower interest rate or a consolidation card, and if you’re financially capable of paying down your credit limits without having to borrow money from existing cards, then you should consider these options first before taking any other actions.
If your credit problems are beyond your control, and the interest on each card is turning into an emergency situation, then your next step is to talk to your financial institution, or a debt consolidation company to apply for a consolidation loan, and either hide your cards for a long time, or better yet, cut them up for good
Remember, it’s never the end of the world even if you happen to declare personal bankruptcy. While you’re taking the necessary steps to improve your rating again, and doing what’s required to establish a better relationship with your creditor or creditors, you can look into other options such as prepaid credit cards to get you through your troubled times.
Depending on how bad your credit is, people need to understand that debt can cause not only major financial trouble, but it could easily damage relationships with family and friends, and your bad credit could also be a good indicator that you have an addiction to spending.
In my opinion, there’s no need to have more than two credit cards, and for many, three cards should be the maximum. The issue with having a MasterCard, Visa, American Express, and every other credit card under the sun is the difficulty in tracking each credit card’s spending limit, and because the statements may come in at different times during the month, you can easily lose track of the overall amount being spent on each one.
Now with access to online cards, many individuals that are maxing out their credit limits are going to an online cards site that claim they will repair or consolidate their debt with their unsecured cards. But when you look at the interest they will end up charging, you may be getting in deeper than you may be in right now
b Checking Your Credit History With Bureaus Will Indicate Where Your Finance Stands /b
Once you contact your local bureau to get your credit report, you can then take a deep breath and see how good or bad your current financial situation is, and if your credit score is beyond repair, then you have to make decisions on what type of debt repair you need.
Your bank may be willing to offer you an unsecured credit card with a lower interest rate or a consolidation card, and if you’re financially capable of paying down your credit limits without having to borrow money from existing cards, then you should consider these options first before taking any other actions.
If your credit problems are beyond your control, and the interest on each card is turning into an emergency situation, then your next step is to talk to your financial institution, or a debt consolidation company to apply for a consolidation loan, and either hide your cards for a long time, or better yet, cut them up for good
Remember, it’s never the end of the world even if you happen to declare personal bankruptcy. While you’re taking the necessary steps to improve your rating again, and doing what’s required to establish a better relationship with your creditor or creditors, you can look into other options such as prepaid credit cards to get you through your troubled times.
Three Simple Ways To Use My Credit Repair Tips And Save Thousands
My credit repair tips are simple yet they provide ways to help you repair your credit without having to give up your lifestyle
Before I offer you my credit repair information though, I must tell you that not knowing your current debt situation, this solution may not work for everyone. I’m not a professional credit counsellor or financial advisor, so by saying this, I wish that you take my tips as a stepping stone, however, please make sure you research and get all the facts before attempting any of my ideas.
I highly recommend that you contact your local credit bureau, and have them provide you a history of your credit reports. By contacting Equifax, which is one of the report bureaus that will have your information, they will give you a good understanding where you stand if you know you have credit problems.
Depending on how good or bad your credit reports indicate will be the stepping stone to your debt recovery process. Now I will provide you more information on how to repair your credit score another time, because this article is more for the person searching to reduce their credit debt. I will provide you ways to maintain your current lifestyle without having to give up the things you WANT, and that word is the key to controlling your debt
b Purchase What You Need, And Negotiate The Things You Want /b
When you understand the major difference between needing and wanting something, you will be on your way to a debt-free life. The reason so many Americans, and people worldwide, are in such financial debt is because they purchase too many items that they want, and not enough of what they need. Combine the two and you have a financial tornado that never stops spinning.
I consider items that fall under the “need” category such as food, shelter, and clothing. You may come up with a different list, but the important message here is that you have to understand which are the basic necessities that you can’t live without before you can improve your credit.
A good example is purchasing a vehicle, which seems to be a large contributor for many that get into financial trouble quickly. You have to look at this purchase and ask yourself if you really NEED a vehicle. Many of you will probably say yes, because having to admit that a car or truck for most of you is a want and not a need, and to answer this question, you simply have to realize whether it really supports your transportation goals.
Go back and ask the question in the terms of “Transportation Needs”. Do you really need a vehicle to get from point A to point B, or do you only want a car or truck for the convenience it provides you? Compare the monthly lease or finance payments, maintenance, and gas expenses versus bus transportation, and using a taxicab service for emergency and last minute situations. Do the math and see which solution will save you money each month, and focus on achieving that goal to savings.
It’s a loaded question and solution, but if you answered truthfully and realistically, it can save you hundreds, if not thousands of dollars each year You will have more equity in your pocket for all the other things that you need, and when you control your personal expenses, the savings turn into equity that you can reward yourself with from time to time.
If you still don’t agree with me on the transportation example, that’s ok, because I only wanted to use that as an example of how our minds have a hard time differentiating the need and want concept. I’m going to offer you tips that you may not have exercised in the past, and these simple tips could easily save you money.
Many of you might be borderline in debt, and are slowly increasing your chance of becoming a creditors nightmare, however, even though you may be aware of your financial situation, you just can’t stop the shopping itch for all the latest trendy items that you don’t need, but want.
b Follow My Repair Tip Strategies, And You Don’t Have To Compromise Your Lifestyle /b
Each credit repair tip that I offer you is in no way guaranteed, and I highly recommend that you do all the research possible to make it work for you. Not understanding the consequences will only get you deeper into debt, and that’s not my intention.
Many items that you buy that fall under the want category, which normally have what I call an “enjoyment cycle”. What I mean by this is that when you make the purchase, how long does it take for you to lose the enjoyment of that item, and how long does it take for it to finally end up in the back of your closet or the corner of your garage. Let’s say on average it takes only one month for the appeal of the item wears off, and if you agree with me, I can offer you some great tips that can work where you can actually enjoy the trendy items, but save tons of money in the process.
b These tips will take a bit of research and networking, but if you have the motivation to repair your debt and enjoy your favorite products at the same time, this will be worth the effort: /b
b Tip #1: /b Research as many of your popular shopping venues that offer 30 day no question return policies, or have a deferral program that allows you to test the products with no financial obligation. Keep in mind that you must make sure that you know exactly what their policies allow, so you don’t get stuck with the product you may not want to keep.
Having a period of time to try the items at no cost to you is an advantage to you, and prior to the 30 days or longer is completed, ask yourself the important question; do you need it, or did you only want it because of all the hype it gave you? This is your opportunity to see if it is something you will use for a long time, or will be another dust collector. If you send it back, you get a credit back on your card, and voila, you gave yourself an opportunity to get the want feeling out of your system, and really find out if you needed it or not
b Tip #2: /b There are so many retail and online stores that offer monthly specials such as a “Two For One Deal” With your savvy and creative mind, compile a list of all your favorite shops that provide these monthly specials of your desired items, and find out on average how many of your closest friends and family members purchase from these shops. You can provide a shopping service for them as a convenience; tell them that you expect nothing in return other than the second item that is offered for free.
This tip is a little more work, but once you establish your services, they will become invaluable and rewarding for you and your recipients. First, start with your friends and family, because they will be understanding with your current financial situation and will support you on your venture. From there you can let the word of mouth expand your service, and who knows, you may develop this service into a little business that may turn your life around in a positive direction.
b Tip #3: /b If you have friends, family members, or associates that don’t own a credit card, but want to experience the savings of many items offered online, or discounts that are only given to certain credit card purchases, let these people know that you can help them save money by using your card.
This is very b “IMPORTANT” /b to remember Do not under any circumstances use your card without receiving payment up-front. You will get further into financial trouble if you don’t establish rules in your service, and always ask for payment prior to any charges.
If done properly, you will be able to accumulate a great number of points for free items, and in the process you will be helping many of your recipients get their favorite items at a reduced cost, plus any perks that go with using a credit card online or in their select retail store.
These are just a couple of tips that I can offer that may be a solution to helping you pay down your credit debt, while taking advantage of all the free services to test and enjoy items at no cost to you. Do your homework, and when you implement these programs successfully, you will achieve in enjoying your want items, and use your extra equity to pay down your bills.
However, if you feel that you’re beyond credit repair on your own and you need to find repair information from professional sources, I recommend that you read my article on “Credit Repair Companies”, by clicking on the link in my Author Bio below, and see if they can provide you necessary strategies and repair steps to get you back on track.
Before I offer you my credit repair information though, I must tell you that not knowing your current debt situation, this solution may not work for everyone. I’m not a professional credit counsellor or financial advisor, so by saying this, I wish that you take my tips as a stepping stone, however, please make sure you research and get all the facts before attempting any of my ideas.
I highly recommend that you contact your local credit bureau, and have them provide you a history of your credit reports. By contacting Equifax, which is one of the report bureaus that will have your information, they will give you a good understanding where you stand if you know you have credit problems.
Depending on how good or bad your credit reports indicate will be the stepping stone to your debt recovery process. Now I will provide you more information on how to repair your credit score another time, because this article is more for the person searching to reduce their credit debt. I will provide you ways to maintain your current lifestyle without having to give up the things you WANT, and that word is the key to controlling your debt
b Purchase What You Need, And Negotiate The Things You Want /b
When you understand the major difference between needing and wanting something, you will be on your way to a debt-free life. The reason so many Americans, and people worldwide, are in such financial debt is because they purchase too many items that they want, and not enough of what they need. Combine the two and you have a financial tornado that never stops spinning.
I consider items that fall under the “need” category such as food, shelter, and clothing. You may come up with a different list, but the important message here is that you have to understand which are the basic necessities that you can’t live without before you can improve your credit.
A good example is purchasing a vehicle, which seems to be a large contributor for many that get into financial trouble quickly. You have to look at this purchase and ask yourself if you really NEED a vehicle. Many of you will probably say yes, because having to admit that a car or truck for most of you is a want and not a need, and to answer this question, you simply have to realize whether it really supports your transportation goals.
Go back and ask the question in the terms of “Transportation Needs”. Do you really need a vehicle to get from point A to point B, or do you only want a car or truck for the convenience it provides you? Compare the monthly lease or finance payments, maintenance, and gas expenses versus bus transportation, and using a taxicab service for emergency and last minute situations. Do the math and see which solution will save you money each month, and focus on achieving that goal to savings.
It’s a loaded question and solution, but if you answered truthfully and realistically, it can save you hundreds, if not thousands of dollars each year You will have more equity in your pocket for all the other things that you need, and when you control your personal expenses, the savings turn into equity that you can reward yourself with from time to time.
If you still don’t agree with me on the transportation example, that’s ok, because I only wanted to use that as an example of how our minds have a hard time differentiating the need and want concept. I’m going to offer you tips that you may not have exercised in the past, and these simple tips could easily save you money.
Many of you might be borderline in debt, and are slowly increasing your chance of becoming a creditors nightmare, however, even though you may be aware of your financial situation, you just can’t stop the shopping itch for all the latest trendy items that you don’t need, but want.
b Follow My Repair Tip Strategies, And You Don’t Have To Compromise Your Lifestyle /b
Each credit repair tip that I offer you is in no way guaranteed, and I highly recommend that you do all the research possible to make it work for you. Not understanding the consequences will only get you deeper into debt, and that’s not my intention.
Many items that you buy that fall under the want category, which normally have what I call an “enjoyment cycle”. What I mean by this is that when you make the purchase, how long does it take for you to lose the enjoyment of that item, and how long does it take for it to finally end up in the back of your closet or the corner of your garage. Let’s say on average it takes only one month for the appeal of the item wears off, and if you agree with me, I can offer you some great tips that can work where you can actually enjoy the trendy items, but save tons of money in the process.
b These tips will take a bit of research and networking, but if you have the motivation to repair your debt and enjoy your favorite products at the same time, this will be worth the effort: /b
b Tip #1: /b Research as many of your popular shopping venues that offer 30 day no question return policies, or have a deferral program that allows you to test the products with no financial obligation. Keep in mind that you must make sure that you know exactly what their policies allow, so you don’t get stuck with the product you may not want to keep.
Having a period of time to try the items at no cost to you is an advantage to you, and prior to the 30 days or longer is completed, ask yourself the important question; do you need it, or did you only want it because of all the hype it gave you? This is your opportunity to see if it is something you will use for a long time, or will be another dust collector. If you send it back, you get a credit back on your card, and voila, you gave yourself an opportunity to get the want feeling out of your system, and really find out if you needed it or not
b Tip #2: /b There are so many retail and online stores that offer monthly specials such as a “Two For One Deal” With your savvy and creative mind, compile a list of all your favorite shops that provide these monthly specials of your desired items, and find out on average how many of your closest friends and family members purchase from these shops. You can provide a shopping service for them as a convenience; tell them that you expect nothing in return other than the second item that is offered for free.
This tip is a little more work, but once you establish your services, they will become invaluable and rewarding for you and your recipients. First, start with your friends and family, because they will be understanding with your current financial situation and will support you on your venture. From there you can let the word of mouth expand your service, and who knows, you may develop this service into a little business that may turn your life around in a positive direction.
b Tip #3: /b If you have friends, family members, or associates that don’t own a credit card, but want to experience the savings of many items offered online, or discounts that are only given to certain credit card purchases, let these people know that you can help them save money by using your card.
This is very b “IMPORTANT” /b to remember Do not under any circumstances use your card without receiving payment up-front. You will get further into financial trouble if you don’t establish rules in your service, and always ask for payment prior to any charges.
If done properly, you will be able to accumulate a great number of points for free items, and in the process you will be helping many of your recipients get their favorite items at a reduced cost, plus any perks that go with using a credit card online or in their select retail store.
These are just a couple of tips that I can offer that may be a solution to helping you pay down your credit debt, while taking advantage of all the free services to test and enjoy items at no cost to you. Do your homework, and when you implement these programs successfully, you will achieve in enjoying your want items, and use your extra equity to pay down your bills.
However, if you feel that you’re beyond credit repair on your own and you need to find repair information from professional sources, I recommend that you read my article on “Credit Repair Companies”, by clicking on the link in my Author Bio below, and see if they can provide you necessary strategies and repair steps to get you back on track.
Wednesday, June 6, 2007
Credit Repair Business Opportunity
If you are in the credit repair business and you are looking for a credit repair business opportunity, you may want to consider purchasing credit repair leads.
Credit repair leads are considered a good business opportunity because normally people who go to specific sites and fill out forms specific to credit repair have committed themselves to finding a company and a person to help them.
With a credit repair lead, you will have a potential customer who is serious about having repair work done to their credit report. Otherwise, they never would have come as far as putting a phone number or e-mail out there for contact purposes.
These potential customers are not merely thinking about it, or just playing with the idea, they are truly serious and they are waiting on a phone call.
Of all the credit repair business opportunities available, purchasing credit repair leads is perhaps one of the best. Basically, the potential customer has come to you, and provided you with their information before you have even made contact.
Keep in mind, like all business opportunities, credit repair business opportunities need to be researched before any kind of commitment or investment is involved.
If you are considering purchasing credit repair leads, be sure to research the company you are purchasing them from.
Call and speak with one of their customer service rep’s and find out how they obtain their credit repair leads and what the process is for obtaining them in a timely fashion.
Jay Conners is the owner of two mortgage related lead sites where he obtains leads from people looking for credit repair. Please visit his sites at http://www.callprospect.com/credit_repair_leads.html And http://www.callprospect.com
Credit repair leads are considered a good business opportunity because normally people who go to specific sites and fill out forms specific to credit repair have committed themselves to finding a company and a person to help them.
With a credit repair lead, you will have a potential customer who is serious about having repair work done to their credit report. Otherwise, they never would have come as far as putting a phone number or e-mail out there for contact purposes.
These potential customers are not merely thinking about it, or just playing with the idea, they are truly serious and they are waiting on a phone call.
Of all the credit repair business opportunities available, purchasing credit repair leads is perhaps one of the best. Basically, the potential customer has come to you, and provided you with their information before you have even made contact.
Keep in mind, like all business opportunities, credit repair business opportunities need to be researched before any kind of commitment or investment is involved.
If you are considering purchasing credit repair leads, be sure to research the company you are purchasing them from.
Call and speak with one of their customer service rep’s and find out how they obtain their credit repair leads and what the process is for obtaining them in a timely fashion.
Jay Conners is the owner of two mortgage related lead sites where he obtains leads from people looking for credit repair. Please visit his sites at http://www.callprospect.com/credit_repair_leads.html And http://www.callprospect.com
Monday, June 4, 2007
Monday, May 28, 2007
Rebuilding Credit and Avoiding Bad Debt after Bankruptcy
After you’ve filed bankruptcy, you’ll want to start building new credit. This time, you’ll want to make sure that the credit you build is good; if anything is worse than a bankruptcy, it’s a bankruptcy followed by bad credit. There are ways to rebuild credit after bankruptcy, and there are companies willing to offer credit and loans to those who’ve filed bankruptcy. However, before applying for the first offer that comes in the mail, read this article to find out how to rebuild credit after bankruptcy without also building bad debt:
Apply for a Secured Credit Card
The best way to avoid bad debt is to gain credit from your own money. A secured credit card allows you to deposit money into an account and then withdraw it just like you would with a regular credit card. The difference between an unsecured credit card and a secured credit card is that you deposit the amount of money that makes your maximum balance into an account before you begin using it. This means that, if you become unable to pay the bill, you can simply close the account and withdraw the remainder of your balance.
Apply for a Gas Station/Grocery Store Credit Card
Gas station and grocery store credit cards are not hard to get approved for; in fact, they’re probably the easiest to get of all unsecured credit cards. The best thing about applying for a grocery store or gas station card is the lowered temptation to make an unnecessary purchase. Most likely, you shop at these places every week and pay with either cash, check, or a debit card. Instead, you can pay with your store credit card, and then, at the end of the month, you can take the money you would have spent at the store and use it to pay down the balance on the card. Here is a list of recommended Credit Repair Lenders online. It's important to use a reputable lender online to make sure your personal information is secure.
Wait Before Making Large Purchases
As soon as your bankruptcy is final, you will start receiving letters from loan companies offering you credit cards, car loans, and even mortgages. These lenders do this because they know you cannot file bankruptcy for another seven years, so you have to pay them back. However, there’s a benefit to waiting a few years before making large purchases. After two years, you will qualify for better loan terms and interest rates. Additionally, since you’ve just become debt-free, you should probably stay that way for a while. Allow yourself time to adjust, learn to budget your money, and speak with a financial advisor before jumping into debt again.
If you want more information about Self Help Credit Repair, check out ABC Loan Guide. They have lists of reputable credit lenders that can provide Debt Reduction Services online.
Apply for a Secured Credit Card
The best way to avoid bad debt is to gain credit from your own money. A secured credit card allows you to deposit money into an account and then withdraw it just like you would with a regular credit card. The difference between an unsecured credit card and a secured credit card is that you deposit the amount of money that makes your maximum balance into an account before you begin using it. This means that, if you become unable to pay the bill, you can simply close the account and withdraw the remainder of your balance.
Apply for a Gas Station/Grocery Store Credit Card
Gas station and grocery store credit cards are not hard to get approved for; in fact, they’re probably the easiest to get of all unsecured credit cards. The best thing about applying for a grocery store or gas station card is the lowered temptation to make an unnecessary purchase. Most likely, you shop at these places every week and pay with either cash, check, or a debit card. Instead, you can pay with your store credit card, and then, at the end of the month, you can take the money you would have spent at the store and use it to pay down the balance on the card. Here is a list of recommended Credit Repair Lenders online. It's important to use a reputable lender online to make sure your personal information is secure.
Wait Before Making Large Purchases
As soon as your bankruptcy is final, you will start receiving letters from loan companies offering you credit cards, car loans, and even mortgages. These lenders do this because they know you cannot file bankruptcy for another seven years, so you have to pay them back. However, there’s a benefit to waiting a few years before making large purchases. After two years, you will qualify for better loan terms and interest rates. Additionally, since you’ve just become debt-free, you should probably stay that way for a while. Allow yourself time to adjust, learn to budget your money, and speak with a financial advisor before jumping into debt again.
If you want more information about Self Help Credit Repair, check out ABC Loan Guide. They have lists of reputable credit lenders that can provide Debt Reduction Services online.
Getting A Credit Card After Bankruptcy - 3 Things You Should Know
Declaring bankruptcy doesn't mean that you'll never be able to get credit again. In fact, you may find that credit card companies are still sending you offers and applications in the mail! But before you decide to sign up for another piece of plastic, there are some things you should know.
YOU MAY HAVE TO PAY A HIGHER INTEREST RATE
Super low interest rates and zero percent offers are for the best customers with the best credit. Since you've declared bankruptcy, you're a higher risk for the credit card company. And because of that, chances are you'll have to pay a higher interest rate than the average customer. In fact, it's possible your rate will be as much as 5% higher! However, if you remember to pay off your balance each month, the higher rate shouldn't affect your finances.
YOU MAY HAVE TO SECURE THE CARD
A secured credit card requires you to pay a lump sum of cash--typically $250, $500 or more--to the credit card company. This cash is then used as collateral, and is usually the maximum limit on your card. However, if you pay regularly over time, your limit may get raised as you prove yourself a worthy customer. If you don't make payments, the credit card company will use that deposit as payment on your account.
YOU MAY HAVE TO PAY HIGHER FEES
Another way of protecting themselves against the higher risk of a post-bankruptcy customer is by charging a higher annual fee. In most cases, expect to pay about $30 or $40 a year for the privilege of having your credit card. Your over-the-limit fees, late fees and other charges are likely to be higher than average, too. Your terms may also be more stringent, and you may have a shorter grace period (or none at all!). Here is a list of recommended Credit Repair Lenders online. It's important to use a reputable lender online to make sure your personal information is secure.
It is possible to get a credit card after bankruptcy. However, chances are you'll have more costs associated with it, such as higher fees and a higher interest rate. However, if you regularly make your payments on-time, and you pay off the balance every month, your costs should be minimal.
For more information regarding your credit, or for an Absolutely Free Credit Report, ABC Loan Guide can assist you. Also, they have more resources about life after bankruptcy and about Buying a Home and Bankruptcy.
YOU MAY HAVE TO PAY A HIGHER INTEREST RATE
Super low interest rates and zero percent offers are for the best customers with the best credit. Since you've declared bankruptcy, you're a higher risk for the credit card company. And because of that, chances are you'll have to pay a higher interest rate than the average customer. In fact, it's possible your rate will be as much as 5% higher! However, if you remember to pay off your balance each month, the higher rate shouldn't affect your finances.
YOU MAY HAVE TO SECURE THE CARD
A secured credit card requires you to pay a lump sum of cash--typically $250, $500 or more--to the credit card company. This cash is then used as collateral, and is usually the maximum limit on your card. However, if you pay regularly over time, your limit may get raised as you prove yourself a worthy customer. If you don't make payments, the credit card company will use that deposit as payment on your account.
YOU MAY HAVE TO PAY HIGHER FEES
Another way of protecting themselves against the higher risk of a post-bankruptcy customer is by charging a higher annual fee. In most cases, expect to pay about $30 or $40 a year for the privilege of having your credit card. Your over-the-limit fees, late fees and other charges are likely to be higher than average, too. Your terms may also be more stringent, and you may have a shorter grace period (or none at all!). Here is a list of recommended Credit Repair Lenders online. It's important to use a reputable lender online to make sure your personal information is secure.
It is possible to get a credit card after bankruptcy. However, chances are you'll have more costs associated with it, such as higher fees and a higher interest rate. However, if you regularly make your payments on-time, and you pay off the balance every month, your costs should be minimal.
For more information regarding your credit, or for an Absolutely Free Credit Report, ABC Loan Guide can assist you. Also, they have more resources about life after bankruptcy and about Buying a Home and Bankruptcy.
CONSUMERS BEWARE OF CREDIT SCAMS
The advertisements for credit repair are all over. You see them on tv, in newspapers, online, and hear them on the radio. But there are facts that you need to know that they do not include in those advertisements. Behind those advertisements can be scammers.
Your credit score is an important statistic of your financial scorecard. It's important that it be in good shape or you will not be in good shape. And you can set yourself back even further if you let the wrong people help you. Making mistakes with scammers can cost you tons of money. Here's some information from the FTC to help you understand this better.
The Scam
Everyday, companies nationwide appeal to consumers with poor credit histories. They promise, for a fee, to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job. The truth is, they can’t deliver. After you pay them hundreds or thousands of dollars in fees, these companies do nothing to improve your credit report; most simply vanish with your money.
The Warning Signs
If you decide to respond to a credit repair offer, look for these tell-tale signs of a scam:
companies that want you to pay for credit repair services before they provide any services.
companies that do not tell you your legal rights and what you can do for yourself for free.
companies that recommend that you not contact a credit reporting company directly.
companies that suggest that you try to invent a “new” credit identity – and then, a new credit report – by applying for an Employer Identification Number to use instead of your Social Security number. companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.
You could be charged and prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit and provide false information. It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.
Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.
The Truth
No one can legally remove accurate and timely negative information from a credit report. The law allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete. There is no charge for this. Everything a credit repair clinic can do for you legally, you can do for yourself at little or no cost. According to the Fair Credit Reporting Act (FCRA):
You’re entitled to a free report if a company takes adverse action against you, like denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You’re also entitled to one free report a year if you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your report is inaccurate because of fraud, including identity theft.
Each of the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – is required to provide you with a free copy of your credit report, at your request, once every 12 months. The companies are rolling this out across the country during a nine-month period. By September 2005, consumers from coast to coast will have access to a free annual credit report if they ask for it. For details, see Your Access to Free Credit Reports at ftc.gov/credit. Otherwise, a consumer reporting company may charge you up to $9.50 for another copy of your report within a 12-month period.
You can dispute mistakes or outdated items for free. Under the FCRA, both the consumer reporting company and the information provider (that is, the person, company, or organization that provides information about you to a consumer reporting company) are responsible for correcting inaccurate or incomplete information in your report. To take advantage of all your rights under this law, contact the consumer reporting company and the information provider.
Your credit score is an important statistic of your financial scorecard. It's important that it be in good shape or you will not be in good shape. And you can set yourself back even further if you let the wrong people help you. Making mistakes with scammers can cost you tons of money. Here's some information from the FTC to help you understand this better.
The Scam
Everyday, companies nationwide appeal to consumers with poor credit histories. They promise, for a fee, to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job. The truth is, they can’t deliver. After you pay them hundreds or thousands of dollars in fees, these companies do nothing to improve your credit report; most simply vanish with your money.
The Warning Signs
If you decide to respond to a credit repair offer, look for these tell-tale signs of a scam:
companies that want you to pay for credit repair services before they provide any services.
companies that do not tell you your legal rights and what you can do for yourself for free.
companies that recommend that you not contact a credit reporting company directly.
companies that suggest that you try to invent a “new” credit identity – and then, a new credit report – by applying for an Employer Identification Number to use instead of your Social Security number. companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.
You could be charged and prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit and provide false information. It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.
Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.
The Truth
No one can legally remove accurate and timely negative information from a credit report. The law allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete. There is no charge for this. Everything a credit repair clinic can do for you legally, you can do for yourself at little or no cost. According to the Fair Credit Reporting Act (FCRA):
You’re entitled to a free report if a company takes adverse action against you, like denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You’re also entitled to one free report a year if you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your report is inaccurate because of fraud, including identity theft.
Each of the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – is required to provide you with a free copy of your credit report, at your request, once every 12 months. The companies are rolling this out across the country during a nine-month period. By September 2005, consumers from coast to coast will have access to a free annual credit report if they ask for it. For details, see Your Access to Free Credit Reports at ftc.gov/credit. Otherwise, a consumer reporting company may charge you up to $9.50 for another copy of your report within a 12-month period.
You can dispute mistakes or outdated items for free. Under the FCRA, both the consumer reporting company and the information provider (that is, the person, company, or organization that provides information about you to a consumer reporting company) are responsible for correcting inaccurate or incomplete information in your report. To take advantage of all your rights under this law, contact the consumer reporting company and the information provider.
CREDIT REPAIR YOU MAY HAVE A BAD CREDIT RATING AND NOT EVEN KNOWING IT
When we talk about credit repair, most of us believe that repairing our credit rating is directly related to our mismanagement of our finances, and in most cases that is true However, many of us don’t realize that thousands of men and women every year find out they have bad credit due to credit fraud, and if you’re not 100% sure on how this happens, it’s a method by criminal organizations that are stealing your identity and using it for financial criminal activities. Criminals do this by obtaining your credit information which can be as simple as getting their hands on your credit card or debit card numbers and your security access codes. Now you may be wondering how they do this, and some methods that are common are as simple as getting a duplicate copy of your credit card copies out of your home or business garbage bin, or another method that is taking the Internet by storm, called Phishing. This is where they send you an email to visit their site, and it looks exactly like your financial institution or membership’s website. They request that you enter your personal data to update your credit accounts, and when you try to sign into the site by entering your personal information, the site will come up with error messages, but in the backend they captured all the personal information from you to start doing some financial damage Yes, mistakes with accounts do happen on occasion, but if you don’t already know this, there are absolutely no companies that I know of out there that will contact you via your email address to correct personal information. Talk to any banking institution or reputable online business that holds your personal data, and they will tell you they never contact customers for personal updates via the Internet. What they do in this case is contact you with a written letter, and have you contact them directly to verify personal information before making any updates or changes. b Why Are So Many People Trying To Repair Negative Score Reports When They Shouldn’t Have To? /b Many individuals that never had their identity stolen before probably scratch their heads and wonder how this can happen, and it occurs more often than you actually think. What it comes down to is that many people don’t monitor all their credit cards, and they don’t check their statement balances for errors as often as they should. Also you can believe this or not, but when you move, how many times have you forgotten to forward your new mailing addresses to the credit card companies? Even if you do contact credit and banking institutions after you move into your new home, your card statements or new credit cards may already be sent out without you knowing, and you may not catch them in time. I see it all the time, and in my home I still get old mail from the previous owners I shake my head, because this is what the criminal organizations target every day, and you heard right, EVERY DAY This is their livelihood, and they check for this type of mismanaged mail every day just like when you go to your office and check your work emails. Once they come across an envelope that is sitting on your condo or apartment counter, as well as your home mailbox that is addressed “Return to Sender”, or “Recipient has Moved”, the thieves target this type of mail quickly, and they know what the credit card and debit card envelopes look like. Before you know it, they have all your information, and they have won half the battle by stealing your personal identity, and eventually destroying your credit rating. Even though many credit companies, banks, and retail stores have security procedures, they’re not always prepared for criminal activities such as phishing, and it is becoming a real concern, because this method can fool even the smartest people out there b What Happens Once My Identity Has Been Stolen, And My Credit Is Abused? /b When your identity has been taken by thieves and used for criminal activity, it will all come down to how you monitor your credit spending, and also how you often you check your “Bureau Reports” from companies like Equifax. If it’s not caught in time, your credit can be abused, and you may have accounts cancelled without you even knowing it’s happening until it’s too late b If You Don’t Periodically Check Your Credit Bureau Reports, You May Find A Surprise /b One of the major reasons why many people are surprised about their bad credit rating when they know they didn’t do anything wrong, is when you don’t check your credit activity reports periodically with your credit bureaus, this is why serious financial situations are not caught in time. You are responsible in checking often with these bureaus, because if there are any reported credit issues, this is where you will find them. If you happen to detect any fraudulent activity, you must report it immediately. The quicker you catch the problems, the better chance you will be fixing them, rather than repairing your credit with creditors down the line. At least every 6 to 12 months you should request by letter a complete report so you can go through it thoroughly, and not only catch fraud discrepancies, but also any errors that may have been issued by past creditors. If you feel you just don’t have the time to monitor your reports, then there are many reputable credit-monitoring services out there that will do this for you for a monthly, or annual fee. b What Are The Main Steps To Prevent Me From Becoming An Identity Fraud Victim? /b There are many steps to take to prevent yourself from becoming a victim of Identity Fraud, and the chance of having your credit rating damaged. Below I will list some of the most important ones, but there are many more steps that you should look into by contacting the local credit bureaus and government fraud protection agencies. · Make sure you destroy all carbon copies of credit card and debit card transactions. · Do not respond to any suspicious emails claiming to be your banking institution, or credit card companies. Even if you feel it’s a legitimate email, contact the company by phone, and make sure they follow all security features, and then find out if there were any updates or personal information corrections. · If you’re planning to move, ensure that you contact all your banking and credit/debit card institutions you have an account with and change your address. It’s also recommended to contact the mail service to have them re-route all your mail for a period of time they allow, so you will have enough time to contact everyone on your list. · When you make your phone calls to change addresses, if any institution claims they have already sent out a card statement, or a new card, it may be your best interest to have them cancel that card, and re-issue a new one with a different card number. This is your choice if you feel that your information and credit is in jeopardy. · Last point that I would like to express is that you should always be on top of your monthly transactions, and have a complete inventory of all your cards on when they expire. If you have several credit cards that you don’t use, but you keep for certain reasons, then please make certain you check with the companies on occasion to see if there has been any activity without your authorization. The end result is that you are responsible for all transactions on every card issued in your name, and if you happen to be a victim of credit theft or identity fraud, the bottom line is that you will have to prove to each company that you have outstanding debt with that it was not you making these transactions. You may eventually get cleared of the problem accounts, but it could take years of your valuable time and frustrating effort. So be careful, and remember that preventative maintenance on your credit rating is far less stressful and time consuming than damage control after the fact
THREE SIMPLE WAYS TO USE MY CREDIT REPAIR TIPS AND SAVE THOUSANDS
My credit repair tips are simple yet they provide ways to help you repair your credit without having to give up your lifestyle Before I offer you my credit repair information though, I must tell you that not knowing your current debt situation, this solution may not work for everyone. I’m not a professional credit counsellor or financial advisor, so by saying this, I wish that you take my tips as a stepping stone, however, please make sure you research and get all the facts before attempting any of my ideas. I highly recommend that you contact your local credit bureau, and have them provide you a history of your credit reports. By contacting Equifax, which is one of the report bureaus that will have your information, they will give you a good understanding where you stand if you know you have credit problems. Depending on how good or bad your credit reports indicate will be the stepping stone to your debt recovery process. Now I will provide you more information on how to repair your credit score another time, because this article is more for the person searching to reduce their credit debt. I will provide you ways to maintain your current lifestyle without having to give up the things you WANT, and that word is the key to controlling your debt b Purchase What You Need, And Negotiate The Things You Want /b When you understand the major difference between needing and wanting something, you will be on your way to a debt-free life. The reason so many Americans, and people worldwide, are in such financial debt is because they purchase too many items that they want, and not enough of what they need. Combine the two and you have a financial tornado that never stops spinning. I consider items that fall under the “need” category such as food, shelter, and clothing. You may come up with a different list, but the important message here is that you have to understand which are the basic necessities that you can’t live without before you can improve your credit. A good example is purchasing a vehicle, which seems to be a large contributor for many that get into financial trouble quickly. You have to look at this purchase and ask yourself if you really NEED a vehicle. Many of you will probably say yes, because having to admit that a car or truck for most of you is a want and not a need, and to answer this question, you simply have to realize whether it really supports your transportation goals. Go back and ask the question in the terms of “Transportation Needs”. Do you really need a vehicle to get from point A to point B, or do you only want a car or truck for the convenience it provides you? Compare the monthly lease or finance payments, maintenance, and gas expenses versus bus transportation, and using a taxicab service for emergency and last minute situations. Do the math and see which solution will save you money each month, and focus on achieving that goal to savings. It’s a loaded question and solution, but if you answered truthfully and realistically, it can save you hundreds, if not thousands of dollars each year You will have more equity in your pocket for all the other things that you need, and when you control your personal expenses, the savings turn into equity that you can reward yourself with from time to time. If you still don’t agree with me on the transportation example, that’s ok, because I only wanted to use that as an example of how our minds have a hard time differentiating the need and want concept. I’m going to offer you tips that you may not have exercised in the past, and these simple tips could easily save you money. Many of you might be borderline in debt, and are slowly increasing your chance of becoming a creditors nightmare, however, even though you may be aware of your financial situation, you just can’t stop the shopping itch for all the latest trendy items that you don’t need, but want. b Follow My Repair Tip Strategies, And You Don’t Have To Compromise Your Lifestyle /b Each credit repair tip that I offer you is in no way guaranteed, and I highly recommend that you do all the research possible to make it work for you. Not understanding the consequences will only get you deeper into debt, and that’s not my intention. Many items that you buy that fall under the want category, which normally have what I call an “enjoyment cycle”. What I mean by this is that when you make the purchase, how long does it take for you to lose the enjoyment of that item, and how long does it take for it to finally end up in the back of your closet or the corner of your garage. Let’s say on average it takes only one month for the appeal of the item wears off, and if you agree with me, I can offer you some great tips that can work where you can actually enjoy the trendy items, but save tons of money in the process. b These tips will take a bit of research and networking, but if you have the motivation to repair your debt and enjoy your favorite products at the same time, this will be worth the effort: /b b Tip #1: /b Research as many of your popular shopping venues that offer 30 day no question return policies, or have a deferral program that allows you to test the products with no financial obligation. Keep in mind that you must make sure that you know exactly what their policies allow, so you don’t get stuck with the product you may not want to keep. Having a period of time to try the items at no cost to you is an advantage to you, and prior to the 30 days or longer is completed, ask yourself the important question; do you need it, or did you only want it because of all the hype it gave you? This is your opportunity to see if it is something you will use for a long time, or will be another dust collector. If you send it back, you get a credit back on your card, and voila, you gave yourself an opportunity to get the want feeling out of your system, and really find out if you needed it or not b Tip #2: /b There are so many retail and online stores that offer monthly specials such as a “Two For One Deal” With your savvy and creative mind, compile a list of all your favorite shops that provide these monthly specials of your desired items, and find out on average how many of your closest friends and family members purchase from these shops. You can provide a shopping service for them as a convenience; tell them that you expect nothing in return other than the second item that is offered for free. This tip is a little more work, but once you establish your services, they will become invaluable and rewarding for you and your recipients. First, start with your friends and family, because they will be understanding with your current financial situation and will support you on your venture. From there you can let the word of mouth expand your service, and who knows, you may develop this service into a little business that may turn your life around in a positive direction. b Tip #3: /b If you have friends, family members, or associates that don’t own a credit card, but want to experience the savings of many items offered online, or discounts that are only given to certain credit card purchases, let these people know that you can help them save money by using your card. This is very b “IMPORTANT” /b to remember Do not under any circumstances use your card without receiving payment up-front. You will get further into financial trouble if you don’t establish rules in your service, and always ask for payment prior to any charges. If done properly, you will be able to accumulate a great number of points for free items, and in the process you will be helping many of your recipients get their favorite items at a reduced cost, plus any perks that go with using a credit card online or in their select retail store. These are just a couple of tips that I can offer that may be a solution to helping you pay down your credit debt, while taking advantage of all the free services to test and enjoy items at no cost to you. Do your homework, and when you implement these programs successfully, you will achieve in enjoying your want items, and use your extra equity to pay down your bills. However, if you feel that you’re beyond credit repair on your own and you need to find repair information from professional sources, I recommend that you read my article on “Credit Repair Companies”, by clicking on the link in my Author Bio below, and see if they can provide you necessary strategies and repair steps to get you back on track.
Credit Repair Scheme Promises Fast Score Increases But May Be IllegalID: 519Category: FinanceAuthor: Article:Establishing a good FICO credit score isnt all that difficult; all you have to do is pay your bills on time. But if you have a bad credit score from a history of not paying your bills promptly, repairing your score and building it up to a level where you can get competitive loan rates can take time. It can take several years of paying your bills on time to build up your score and it can take seven years to wipe out a judgment or a bankruptcy from your credit report. Most consumers, understandably, would rather not wait that long and there is not shortage of companies that promise to repair credit quickly. Several companies are offering dramatic increases in credit scores of up to 200 points in as little as 60 days using something known as seasoned credit. The concept is simple - if you are added to the credit account of someone with good credit as a cosigner, that good credit will add to your own credit score. What these companies do, for fees ranging up to $5000, is arrange to add your name as a cosigner to the accounts of willing participants who have good credit of their own. Adding a cosigner to an account isnt illegal; husbands and wives add each other to their own accounts all the time. What is illegal about this scheme is that it is a deliberate effort to manipulate credit reports and credit scores. If it is done for purposes of qualifying for a loan for which the borrower otherwise wouldnt qualify, such as for a mortgage, it constitutes fraud. In addition to the questionable legality of the practice, there are some other reasons why this sort of credit repair should not be attempted. The idea of having someone elses credit rub off on you works both ways. Customers of these companies have no idea whose accounts their names are being attached to, and if those customers stop paying their bills, then their credit score will go down along with yours. None of this is under your control; you are stuck with whomever they stick you with. Since these companies advertise that once your score increases, you can become part of their good credit network , it only stands to reason that you may have your name attached to that of a person who only recently had a bad payment history, too. Increasing your credit score by 200 or more points in 60 days time sounds like a great idea. But the risks of paying someone thousands of dollars to do it for you are great. It is better to build your credit the old fashioned way by taking your time. ©Copyright 2006 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.End-Your-Debt.com, a site devoted to debt consolidation, credit counseling, payday loans and personal bankruptcy.
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