Repair Your Credit...The Right Way!
Copyright 2005 MHG Consulting
How to Repair a Bad Credit Rating.The Right Way!
If you have a bad credit rating, then you might find that
your ability to get financing, loans, and even some jobs is
greatly diminished.
Once you have a bad credit rating, it might seem like
there's nothing that you can do about it. but you don't
have to believe that. It's not as difficult as you might
think to get by with a bad credit rating; with a little
work and time you can even repair it! Of course, before you
do that it's important to realize exactly what a credit
rating is.
Every time a lender or other creditor makes a report
concerning your payment history to them, this report
affects your credit score.
Your credit score is a numerical indication of the positive
and negative reports that you've received from creditors
and lenders; if the number is high then you have a good
credit rating, and if it's low then you have a bad credit
rating.
Basic credit repair
Get organized! Make a folder for all your correspondence
offline and online. You will have to do some snail mailing
but in most cases you can work your repair online.
In the U.S. a 630 rating will qualify you for a mortgage.
You can still get credit with a lower score but not at a
premium interest rate.
The important thing to do is obtain your credit report and
study it. Mark all the negative items.
Most unsecured credit, mostly credit cards, can stay on
your report for 7 years. If you find any over that, write
to the credit bureau and ask them to remove it. They are
required by law to research and report back within 30 days.
If they don't, you can threaten them with a letter to the
Better Business Bureau or
Federal Trade Commission.
Find any other negative items and determine they are
correct. If not, write the bureau and tell them its not
your debt.
Even if you aren't sure, ask the credit bureaus to
investigate. Many times, they will not be able to verify
the debt because the credit card company, auto loan company
or other creditor won't get back them within 30 days
(required by Fair Credit Act).
About the Author:
Dan is the owner of Repair Your Credit...The Right Way!.
For the contact information on credit bureaus as well as
samples of letters to send to them, go to:
http://www.repair-credit-right.com
===========================================
For More Infomation Visit: Credit Repair Specialist For The Very Latest Tips On Complete Debt Elimination amd Credit Repair On Any Income!
Thursday, November 24, 2005
Repairing Your Credit
We live in a consumer society where it seems like more
attention is paid to your credit record than to your criminal
background. Credit has been elevated to a position where it
permeates every factor of a person's life and has even crossed
over into the realm of being a moral question. Have you ever
been made to feel guilty or embarrassed because you can't get a
loan? What about having your credit card rejected at a
restaurant or department store? It's not just that you don't
have money readily available, it's that you suddenly become a
pariah in the eyes of some cashier. And, of course, to everyone
that is standing around within hearing distance.
Nearly everyone has been in one of these situations one time or
another. And, it begins to weigh heavily on your psyche. Don't
despair! Having bad credit does not mean you are a disreputable
person AND there are very few credit situations that are beyond
repair. You just have to know what steps to take and what order
to take them in. If you are careful, payday loans can be an
excellent means of reestablishing your credit.
There are several ways you can go about clearing up your credit
situation.
Payday Loans
A payday loan may be able to help you re-establish your credit.
The way it works is like this. Get the best loan deal available,
with the least fees. Make it small, say for $100. If you can
find a lender who only charges $10 per hundred, you will owe
$110 on your next payday. Even if you have to pay a $25 charge
for the $100 borrowed, the total payment is still only $125.
Pay it off on the due date, in full. Do not be tempted to roll
the loan over because it will just cost additional fees. Don't
borrow unless you know you will be able to pay back the full
amount on the date due and do not borrow from multiple lenders.
Repeat this process several times to build a good reputation
with the company. Payday transactions are ones that may or may
not be reported to credit agencies, but you can generally add
good reports to your own credit profile. It may cost $2-$3 per
lender and you must ask the lender before proceeding.
Credit Cards
According to the Credit Repair Institute, a Visa or MasterCard
are the best credit references you can establish.
At first glance, this may not seem like a great solution
because you are thinking that you probably can't possibly get a
credit card. However, there are banks and other lenders out
there who will issue limited value credit cards to people with
bad credit, on a couple of conditions. First, you will probably
have to pay a fee to get the card in the first place. Then, it
will probably be limited to a small amount, say $200. Pay the
fee, get the card (making sure that it doesn't charge huge
interest) and use it very, very wisely. In other words, go make
a small purchase on the card instead of paying cash for
something that you already intend to buy and have money for.
Then, use the cash you already had set aside to pay the credit
bill, before the due date, so there are no additional interest
fees. Repeat the same process several times, over several
months. Always make sure you are not buying something extra
that you may not have money to pay for, just use the card to
establish good credit.
Other banks issue secured credit cards for which you deposit a
particular amount, for example $200. Make the deposit, get the
card, and then make several small charges on it - again ones
that you know for certain you can pay back in full before the
due date so that you don't accrue any extra interest fees. Shop
around for the card and make sure you get the best deal
available in terms of annual fees, annual percentage rates,
grace periods and any surcharges that may be attached. Secured
cards are nearly as good a means of bolstering credit as
unsecured ones.
Get a Loan
That sounds like crazy advice, but if handled the right way, it
can quickly rebuild your credit. According to the Credit Repair
Institute, this is a fast and reliable method, and can be done
with as little as $400. It involves opening a savings account
at a local bank with about $400. After the account is
established, ask the bank for a loan and tell them you want to
secure it with the savings account. They are likely to grant
you at least 70% of the money you have in savings and, in some
cases, up to 100%.
Take the money from the loan and deposit in a savings account
at a second bank, get a loan against that and deposit that in a
third bank. The money borrowed from the last bank can help pay
the first few payments on the others. Make certain that you
make payments on time and as agreed. Also make certain that the
banks report your payment history to the three major credit
bureaus, monthly.
According to the Credit Repair Institute, this is the quickest
way to rebuild credit quickly. In the meantime you will be
paying for it by paying interest, but the good news is that the
interest earned on the funds deposited in savings will partially
offset the interest payments you will be making back to the
bank.
About The Author: Max Hunter is the author of many credit
related articles. If you are looking for help with Payday loan
or any type of faxless loans please visit us at
http://www.PaydayLoanChoice.com
=========================================
For More Infomation Visit: Credit Repair
Specialist For The Very Latest Reviews, Articles And
Tips On Complete Debt Elimination amd Credit Repair On Any
Income!
attention is paid to your credit record than to your criminal
background. Credit has been elevated to a position where it
permeates every factor of a person's life and has even crossed
over into the realm of being a moral question. Have you ever
been made to feel guilty or embarrassed because you can't get a
loan? What about having your credit card rejected at a
restaurant or department store? It's not just that you don't
have money readily available, it's that you suddenly become a
pariah in the eyes of some cashier. And, of course, to everyone
that is standing around within hearing distance.
Nearly everyone has been in one of these situations one time or
another. And, it begins to weigh heavily on your psyche. Don't
despair! Having bad credit does not mean you are a disreputable
person AND there are very few credit situations that are beyond
repair. You just have to know what steps to take and what order
to take them in. If you are careful, payday loans can be an
excellent means of reestablishing your credit.
There are several ways you can go about clearing up your credit
situation.
Payday Loans
A payday loan may be able to help you re-establish your credit.
The way it works is like this. Get the best loan deal available,
with the least fees. Make it small, say for $100. If you can
find a lender who only charges $10 per hundred, you will owe
$110 on your next payday. Even if you have to pay a $25 charge
for the $100 borrowed, the total payment is still only $125.
Pay it off on the due date, in full. Do not be tempted to roll
the loan over because it will just cost additional fees. Don't
borrow unless you know you will be able to pay back the full
amount on the date due and do not borrow from multiple lenders.
Repeat this process several times to build a good reputation
with the company. Payday transactions are ones that may or may
not be reported to credit agencies, but you can generally add
good reports to your own credit profile. It may cost $2-$3 per
lender and you must ask the lender before proceeding.
Credit Cards
According to the Credit Repair Institute, a Visa or MasterCard
are the best credit references you can establish.
At first glance, this may not seem like a great solution
because you are thinking that you probably can't possibly get a
credit card. However, there are banks and other lenders out
there who will issue limited value credit cards to people with
bad credit, on a couple of conditions. First, you will probably
have to pay a fee to get the card in the first place. Then, it
will probably be limited to a small amount, say $200. Pay the
fee, get the card (making sure that it doesn't charge huge
interest) and use it very, very wisely. In other words, go make
a small purchase on the card instead of paying cash for
something that you already intend to buy and have money for.
Then, use the cash you already had set aside to pay the credit
bill, before the due date, so there are no additional interest
fees. Repeat the same process several times, over several
months. Always make sure you are not buying something extra
that you may not have money to pay for, just use the card to
establish good credit.
Other banks issue secured credit cards for which you deposit a
particular amount, for example $200. Make the deposit, get the
card, and then make several small charges on it - again ones
that you know for certain you can pay back in full before the
due date so that you don't accrue any extra interest fees. Shop
around for the card and make sure you get the best deal
available in terms of annual fees, annual percentage rates,
grace periods and any surcharges that may be attached. Secured
cards are nearly as good a means of bolstering credit as
unsecured ones.
Get a Loan
That sounds like crazy advice, but if handled the right way, it
can quickly rebuild your credit. According to the Credit Repair
Institute, this is a fast and reliable method, and can be done
with as little as $400. It involves opening a savings account
at a local bank with about $400. After the account is
established, ask the bank for a loan and tell them you want to
secure it with the savings account. They are likely to grant
you at least 70% of the money you have in savings and, in some
cases, up to 100%.
Take the money from the loan and deposit in a savings account
at a second bank, get a loan against that and deposit that in a
third bank. The money borrowed from the last bank can help pay
the first few payments on the others. Make certain that you
make payments on time and as agreed. Also make certain that the
banks report your payment history to the three major credit
bureaus, monthly.
According to the Credit Repair Institute, this is the quickest
way to rebuild credit quickly. In the meantime you will be
paying for it by paying interest, but the good news is that the
interest earned on the funds deposited in savings will partially
offset the interest payments you will be making back to the
bank.
About The Author: Max Hunter is the author of many credit
related articles. If you are looking for help with Payday loan
or any type of faxless loans please visit us at
http://www.PaydayLoanChoice.com
=========================================
For More Infomation Visit: Credit Repair
Specialist For The Very Latest Reviews, Articles And
Tips On Complete Debt Elimination amd Credit Repair On Any
Income!
Sunday, November 20, 2005
Are You Thinking About Filing For Bankruptcy Protection?
Bankruptcy Overview
Bankruptcy, when you come right down to it, is the process that
enables those who are unable to pay their debts get a fresh
start.
It allows for some or all of these debts to be discharged or
reorganized. Individuals or businesses may file bankruptcy.
This enables you to clean the slate and get a 2nd chance with
your finances. In most instances, bankruptcy provides a fair
method for compensating your creditors as well.
The bankruptcy process need not be your worst nightmare.
However, there are certain requirements that must be met. You
will be required to file a list of all of your outstanding
debts and a complete list of your
assets. This is done with the help of your lawyer thru the
Federal Courts.
To make this process easier to understand, your "Assets" fall
into two categories.
They are: Exempt and Non-Exempt
Exempt assets are the property or belongings that you do NOT
have to use to pay off the debts you have incurred.
In other words, exempt assets are off the table, (not in play)
and may not be touched by your creditors.
In most instances this includes a certain amount of equity in
your home, and some of the equity in a vehicle. For the most
part, your clothing, and other personal items are deemed
exempt. This does not include the expensive jewelry, furs and
the big boys toys.
Next, you will be assigned a "trustee" by the Federal
Bankruptcy Court to administer the payment of your debts.
Your debts also fall into two categories.
They are: Secured debts and Unsecured debts.
A Secured debt is one in which the creditor retains a "security
interest." Most often it is the same property that was purchased
with the credit that creditor extended.
Secured debts occupy the first position. This means they enjoy
priority over non-secured debts, and must be satisfied first.
If you are unable to pay off secured debts, the creditor has
the option to repossess that property and sell it. If there is
any "short fall", that remaining debt is now considered
unsecured. It doesn't go away, it has only changed from secured
to unsecured.
Once you have filed for protection, the court will issue an
"automatic stay". This stops your creditors in their tracks.
They may not take additional action against you beyond the
bankruptcy.
This allows you to avert impending repossessions and
foreclosures.
Chapter 7
In Chapter 7 Bankruptcy you are in fact liquidating your
assets. This means that you are only permitted to keep "exempt"
property. The remaining non-exempt property will be sold to the
highest bidder. The proceeds of the sale are applied to the
outstanding debt. The shortfall or amount left unpaid by the
sale is then discharged.
In Chapter 7 Bankruptcy there are a few debts that are not
dischargeable. They include taxes, back child support, DWI
fines and student loans.
Chapter 13
In Chapter 13 Bankruptcy you are trying to regroup, recoup and
get back on track. It is commonly known as the "reorganization
bankruptcy for individuals."
Individuals who want to pay off their debt over a period of
three to five years file Chapter 13 bankruptcy.
Chapter 11
Chapter 11 Bankruptcy is commonly used as the reorganization
tool for businesses. This kind of bankruptcy is attractive if
you own "non-exempt" property that you want to protect.
Chapter 11 will also help you to catch up on bills that have
fallen into arrears. It effectively blocks an impending
repossession or foreclosure.
Not everyone is eligible for a Chapter 13 bankruptcy. You must
have a reliable source of income that is sufficient to pay your
reasonable everyday expenses and still have an amount of
positive cash flow with which you begin paying off past due
bills.
If you file a Chapter 13 you are required to submit a plan to
repay your debts that includes a set timeframe and set amounts
to be repaid. Upon approval of the bankruptcy court, both
parties (debtors & creditors) are obliged to accept the terms
of the order
What To Do Now
Choosing your bankruptcy lawyer is an important decision.
This beginning process allows you to evaluate and determine
your best course of action. This discussion is also your
opportunity to satisfy yourself that the Jersey Justice
sponsoring attorney's fees are reasonable for your type of
case.
Am I Making The Right Decision?
In all likelihood you are stressed and feeling the pressure to
seek professional help with your finances.
Your decision to look for an experienced bankruptcy attorney
may be the best financial decision you have made in a long
time.
Even taking the beginning steps to consult with an attorney
takes enormous courage. You may even be thinking about
struggling through all the mess on your own. That could be a
very lonely path.
Before you make the decision to go it alone, ask yourself a few
questions. If two or more of these are you, then it could be the
perfect time to seek the services of a bankruptcy professional.
Are You:
receiving harassing or threatening phone calls from people you
owe?
paying the minimum payment possible on your credit cards?
taking out Payday Loans? (which by the way are illegal in NJ)
begging for loans from friends and family?
about to lose your job?
behind in your taxes?
receiving foreclosure notices?
behind in child support or alimony?
gambling to try and make ends meet?
sick and unable to even go to work?
If your answers indicate that you are in financial deep water,
bankruptcy may be your best solution, but you will never know
for sure until you get the advice of an attorney.
How Will Bankruptcy Effect My Life? Your Bankruptcy Attorney
will be able to explain some other very important
considerations.
What happens after bankruptcy?
What will my life be like?
Will I ever be able to get credit again?
How do I live within a budget?
How do I start all over?
How do I rebuild my credit?
If these nagging questions are on your mind, then a bankruptcy
attorney is right for you.
It is true. A bankruptcy can be a persistent source of
blemishes on your credit report for up to 10 years.
The good news is you are able to start re-establishing your
credit the moment your case is closed.
How good is your present report? It is probably already
suffering the consequences of late payments, delinquencies and
every other known credit report disorder.
Think about this. Your credit score could actually improve due
to the elimination of most of your debt. Lenders actually
believe that you are a better credit risk now since they know
that you may not file bankruptcy again for another six years.
At about 18 months to 24 months into your bankruptcy you will
even be able to qualify for a new home loan if you are able to
come up with a minimum down payment backed up with proof of
income that supports the debt service.
Auto loans are available to individuals upon discharge of your
existing debt. And believe it or not you will start receiving
offers for credit almost immediately. But "caution" is the
watchword at this critical point in time.
The offers of credit could have been what got you into trouble
in the first place.
About The Author: Tony Merlino is webmaster and legal marketing
consultant at http://www.JerseyJustice.com ,a legal information
and marketing portal for clients and their lawyers in New
Jersey.
Bankruptcy, when you come right down to it, is the process that
enables those who are unable to pay their debts get a fresh
start.
It allows for some or all of these debts to be discharged or
reorganized. Individuals or businesses may file bankruptcy.
This enables you to clean the slate and get a 2nd chance with
your finances. In most instances, bankruptcy provides a fair
method for compensating your creditors as well.
The bankruptcy process need not be your worst nightmare.
However, there are certain requirements that must be met. You
will be required to file a list of all of your outstanding
debts and a complete list of your
assets. This is done with the help of your lawyer thru the
Federal Courts.
To make this process easier to understand, your "Assets" fall
into two categories.
They are: Exempt and Non-Exempt
Exempt assets are the property or belongings that you do NOT
have to use to pay off the debts you have incurred.
In other words, exempt assets are off the table, (not in play)
and may not be touched by your creditors.
In most instances this includes a certain amount of equity in
your home, and some of the equity in a vehicle. For the most
part, your clothing, and other personal items are deemed
exempt. This does not include the expensive jewelry, furs and
the big boys toys.
Next, you will be assigned a "trustee" by the Federal
Bankruptcy Court to administer the payment of your debts.
Your debts also fall into two categories.
They are: Secured debts and Unsecured debts.
A Secured debt is one in which the creditor retains a "security
interest." Most often it is the same property that was purchased
with the credit that creditor extended.
Secured debts occupy the first position. This means they enjoy
priority over non-secured debts, and must be satisfied first.
If you are unable to pay off secured debts, the creditor has
the option to repossess that property and sell it. If there is
any "short fall", that remaining debt is now considered
unsecured. It doesn't go away, it has only changed from secured
to unsecured.
Once you have filed for protection, the court will issue an
"automatic stay". This stops your creditors in their tracks.
They may not take additional action against you beyond the
bankruptcy.
This allows you to avert impending repossessions and
foreclosures.
Chapter 7
In Chapter 7 Bankruptcy you are in fact liquidating your
assets. This means that you are only permitted to keep "exempt"
property. The remaining non-exempt property will be sold to the
highest bidder. The proceeds of the sale are applied to the
outstanding debt. The shortfall or amount left unpaid by the
sale is then discharged.
In Chapter 7 Bankruptcy there are a few debts that are not
dischargeable. They include taxes, back child support, DWI
fines and student loans.
Chapter 13
In Chapter 13 Bankruptcy you are trying to regroup, recoup and
get back on track. It is commonly known as the "reorganization
bankruptcy for individuals."
Individuals who want to pay off their debt over a period of
three to five years file Chapter 13 bankruptcy.
Chapter 11
Chapter 11 Bankruptcy is commonly used as the reorganization
tool for businesses. This kind of bankruptcy is attractive if
you own "non-exempt" property that you want to protect.
Chapter 11 will also help you to catch up on bills that have
fallen into arrears. It effectively blocks an impending
repossession or foreclosure.
Not everyone is eligible for a Chapter 13 bankruptcy. You must
have a reliable source of income that is sufficient to pay your
reasonable everyday expenses and still have an amount of
positive cash flow with which you begin paying off past due
bills.
If you file a Chapter 13 you are required to submit a plan to
repay your debts that includes a set timeframe and set amounts
to be repaid. Upon approval of the bankruptcy court, both
parties (debtors & creditors) are obliged to accept the terms
of the order
What To Do Now
Choosing your bankruptcy lawyer is an important decision.
This beginning process allows you to evaluate and determine
your best course of action. This discussion is also your
opportunity to satisfy yourself that the Jersey Justice
sponsoring attorney's fees are reasonable for your type of
case.
Am I Making The Right Decision?
In all likelihood you are stressed and feeling the pressure to
seek professional help with your finances.
Your decision to look for an experienced bankruptcy attorney
may be the best financial decision you have made in a long
time.
Even taking the beginning steps to consult with an attorney
takes enormous courage. You may even be thinking about
struggling through all the mess on your own. That could be a
very lonely path.
Before you make the decision to go it alone, ask yourself a few
questions. If two or more of these are you, then it could be the
perfect time to seek the services of a bankruptcy professional.
Are You:
receiving harassing or threatening phone calls from people you
owe?
paying the minimum payment possible on your credit cards?
taking out Payday Loans? (which by the way are illegal in NJ)
begging for loans from friends and family?
about to lose your job?
behind in your taxes?
receiving foreclosure notices?
behind in child support or alimony?
gambling to try and make ends meet?
sick and unable to even go to work?
If your answers indicate that you are in financial deep water,
bankruptcy may be your best solution, but you will never know
for sure until you get the advice of an attorney.
How Will Bankruptcy Effect My Life? Your Bankruptcy Attorney
will be able to explain some other very important
considerations.
What happens after bankruptcy?
What will my life be like?
Will I ever be able to get credit again?
How do I live within a budget?
How do I start all over?
How do I rebuild my credit?
If these nagging questions are on your mind, then a bankruptcy
attorney is right for you.
It is true. A bankruptcy can be a persistent source of
blemishes on your credit report for up to 10 years.
The good news is you are able to start re-establishing your
credit the moment your case is closed.
How good is your present report? It is probably already
suffering the consequences of late payments, delinquencies and
every other known credit report disorder.
Think about this. Your credit score could actually improve due
to the elimination of most of your debt. Lenders actually
believe that you are a better credit risk now since they know
that you may not file bankruptcy again for another six years.
At about 18 months to 24 months into your bankruptcy you will
even be able to qualify for a new home loan if you are able to
come up with a minimum down payment backed up with proof of
income that supports the debt service.
Auto loans are available to individuals upon discharge of your
existing debt. And believe it or not you will start receiving
offers for credit almost immediately. But "caution" is the
watchword at this critical point in time.
The offers of credit could have been what got you into trouble
in the first place.
About The Author: Tony Merlino is webmaster and legal marketing
consultant at http://www.JerseyJustice.com ,a legal information
and marketing portal for clients and their lawyers in New
Jersey.
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