Everywhere You Go, Your Credit Report Will Follow

By Larry Guidi 

Ever write your name in freshly poured concrete? Years later you come back, and there it is etched for every one to read. Credit reports mark your financial history like initials cast in concrete. Credit reports are more fluid since information about you gets added through your entire life. Everywhere you go, your credit report will follow with information about:
* Your employment
* Your address (where you lived and how long you lived there)
* Your credit accounts (the ones you opened and the ones you closed)
* Your payment history (the ones you paid on time and the ones you did not)
* Your public records (liens, bankruptcy filings and judgments)
Keeping a clean credit history benefits you with the best rates when seeking a home mortgage, an apartment lease, an auto loan, or when asking for a higher credit limit. Your credit file tells creditors a lot about you and the way you manage your life. Keeping the information accurate and up to date saves you money and frustration.
Negative information could reduce your loan options because you do not look "credit worthy". A negative credit report means you pay higher rates on all loans and insurance. We all want the best paying jobs, but a negative report can limit your employment opportunities. Many Human Resources Departments rely on credit reports when evaluating applicants for employment.
Just because you pay all bills on time or ahead of time, you must review your credit file for accuracy. Studies reveal that credit files have error rates as high as 70%. Many of these errors are simple human or computer mistakes. For example:
* You pay on time, your credit report says you did not
* Your credit history or personal information may be out-of-date or wrong
* Your credit report may include negative information about someone else
* Your social security number, account number(s) may be wrong due to transposition errors
You can prevent errors by monitoring your personal credit file. You can get a free credit report every 12 months from the three major credit reporting agencies (Equifax, Experian, and TransUnion). All you have to do is sign up at Annual Credit Report.com - http://www.annualcreditreport.com. All states have a different rollout schedule set by federal law. You will need to check your state requirements when you enroll. Annual Credit Report.com is sponsored by the three major credit reporting agencies:
* Equifax
* Experian
* TransUnion
If you find mistakes, take action to remove them immediately. Do not procrastinate; be proactive. If you neglect your credit file, you will face some major financial inconveniences or setbacks. Be patient; errors take time to correct. Catching mistakes quickly resolves them faster. All of this effort improves your credit while letting you keep more of your hard-earned money! If your credit report is less than perfect, manage any lingering problems now. Your action is a step toward a sterling credit report.
Even if you think you have an unblemished past, check your report so that you know what a future lender or employer learns about you. A good credit rating puts more money in your checkbook and not a creditors bank account. If you need help, speak with a professional whose experience and expertise will guide you through the the credit maze. The results will amaze you. Just remember, everywhere you go, your credit report will follow you.

Larry Guidi is affiliated with Benchmark Literacy Group Credit Educational Services as an independent representative. He offers consumers a 12-month clean credit checkup through the three major credit bureaus: Experian, Equifax and, Trans Union. Larry is a well-known advocate of consumer reporting accuracy. You may call Larry Guidi (408)210-4035) and learn more about his services at Better Credit Guaranteed.com [http://bettercreditguaranteed.com/]. Copyright 2005 Larry Guidi

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Is There Such A Thing As A Free Credit Card?

By Ewen Chia 

A lot of people have been wondering how they could score a free credit card. They have been searching the World Wide Web for resources that would point them to free credit cards of any variety.
This interest in those things that many have labeled as plastic money should not come as a surprise. Credit cards have become a convenient alternative to carrying actual cash. And securing free credit cards would just add to their already popular appeal.
But the thing is, the term "free credit card" would be superfluous, and likewise a mixture of opposites. "Free" and "credit," after all, don't go together. And credit cards are hardly free.
What Is Meant By A Free Credit Card?
Perhaps what many interested parties mean by the term "free credit card" is a credit card freely procured. In which case, there should be no need for a search. All credit cards are free!
This is because you won't have to pay for the processing of your application for a credit card. You won't have to pay any burdensome application fees nor any documentary charges.
Simply submit all the information required, and once approved, you could start purchasing items and services and charging them to your plastic money. That's right...a free credit card for your needs!
Is There A Catch To Being Granted A Free Credit Card?
There are no catches whatsoever. However, you will have to choose one which does not charge an annual service and maintenance fee so that you could truly consider it as a free credit card. Some credit card companies do impose these charges. Others don't.
Free credit cards should be better off without the annual expenses. You are already encumbered with a 1% to 4% fee for every transaction anyway, and interests accrue for every month you're in default of payment. Surely, an annual charge would be a little too much, regardless of how minimal the amount is.
The usual requirements are also needed to be complied with. Before a free credit card can be granted, a thorough check of the applicant's credit history is essential. For this purpose, a good credit history is a must, something which the applicant should have worked for throughout the years.
Another Aspect Of The Term "Free" In A Free Credit Card
Perhaps, some people are referring to an entirely different matter whenever they refer to a "free credit card." Perhaps, they are talking about the interest-free repayment period, where the free credit card holder can pay the amount that has accrued without the accompanying interests for as long as it is paid in full within the period so stated. This would indeed save the free credit card holder a good amount of money, most especially if he has purchased items that total to a substantial amount.
Regardless of what is meant by a free credit card, the fact remains that anyone would be able to benefit from the convenience and flexibility offered by these modes of payment. For as long as the requirements are in order, and for as long as they would be used responsibly, free credit cards would introduce the user thereof to a whole new world of consumer empowerment.

Ewen Chia is the owner of Free-Credit-Card-Offer.com providing quality free information on credit cards. You can also apply for your free credit cards here: http://www.Free-Credit-Card-Offer.com

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No Credit Check Personal Loans - When Credit Weighs Heavy on Your Shoulders

By Amanda Thompson 

Credit problems can erupt at any time without any prompting. If you are searching for personal loans with bad credit, you will think that perhaps it might be difficult. To get through personal loans process easily with bad credit can be overwhelming for some people. For them no credit check personal loans are offered.
No credit check personal loans are a novel way to overcome credit problems. However, finding personal loans with no credit checks can be slightly difficult. With no credit check personal loans, borrowers must weigh their options. Personal loans with no credit checks are a way to get a loan even if you have bad credit. You won't be turned down due to bad credit. No credit check personal loans do not have high interest rates as are associated with bad credit.
Personal loans are the most searched keyword on the net. Consequently, there are hoards of alternatives and options to choose from. No credit check personal loans can be availed by banks or credit institutions. Once you start researching, you will come across many no credit check personal loans. Don't be in a hurry to sign no credit check personal loans. Take your time and look around carefully. Ask for free quotes. Compare the quotes and then decide which personal loan offer maximum benefits without credit checks. Don't forget to find out there policies and repayment terms before you make the decision.
No credit check personal loans are usually high interest rate than secured loans. This is because it is not dependent on your credit score and usually you do not place any collateral for the loan. While searching for no credit check personal loans, you should be taking a good look on the APR.
APR is the annual percentage rate. The total cost or finance charge for a loan per year, expressed as a percentage of the loan amount. It is the sum of the interest and any other fees, such as discount points, compared to the amount of the loan. While comparing no credit check personal loans, you would be required to concentrate on APR. It is a complex thing and you do not need to go to its details. All you need to know is that the no credit check personal loans with lower APR will cost lesser.
If you intend to borrow larger amounts on no credit check personal loans, then you would require to place a collateral. Usually personal loans with no credit check are accessible for any reason. Home improvement, debt consolidation, car purchase etc. The decision to take no credit check personal loans does not have any influence getting the loan approved. However, it has an influence on the loan term. Like a no credit check personal loan for home improvement or car purchase will have a loan term between 3-5 years. For other purposes loan term can extend to ten years or more. Do not take no credit check personal loans for a longer loan term. A longer loan term will cost you more in the long run.
In case you find difficulties in making repayments for no credit check personal loans, you must immediately contact your lender. If you are honest about your difficulties, it is possible that they will help. In fact they might even agree to take reduced payments till your condition improves.
No credit checks personal loans seem easy and hassle free. However, do not confuse easy. For no credit check personal loans are as liable towards deception. Read the fine print. There are many hidden costs with no credit check personal loans. No credit check personal loans usually necessitate a cosigner and exorbitant late fee. Ask questions, do not hesitate to clear any confusion. Take care before choosing your no credit check personal loan lender. Otherwise your no credit check personal loans will become a personal liability. Nevertheless, there will be a no credit check personal loan that satisfies all your financial specifications.

Amanda Thompson holds a Bachelor’s degree in Commerce from CPIT and has completed her master’s in Business Administration from IGNOU. She is as cautious about her finances as any person reading this is. She is working as financial consultant for chanceforloans .To find a Personal loans,bad credit loans,Debt consolidation,home equity loans at cheap rates that best suits your needs visit http://www.chanceforloans.co.uk

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What You Need To Know About Credit Cards

By Phil Edwards 

What is a credit card? A credit card is a card that allows you to borrow money to pay for things. There will be a limit to how much you can spend called your credit limit. At the end of each month you can either pay off the whole of the amount you owe or make a minimum repayment. Other kinds of cards include: 1) A cheque guarantee card, issued by your bank, that you can use to ensure that your cheque will be honoured up to a certain limit.
2) A chargecard where you have to repay the full amount at the end of each month.
3) A debit card, issued by your bank, where whatever you spend is immediately deducted from your bank account Do you need a credit card? Using a credit card is a useful way of making purchases: a) A credit card means you don't need to carry huge amounts of cash around and risk losing it.
b) A credit card means you can buy items over the internet.
c) A credit card means you can make purchases abroad without having to worry about local currency.
d) A credit card gives the opportunity to spread the cost of a large payment over several months.
e) A credit card is useful in an emergency. For example, an unexpected repair to your house or car.How do you choose a credit card? The main two UK credit card issuers are Visa and Mastercard. These are accepted in most places and in 130 countries worldwide. Beware of less well known brands that may not be accepted everywhere. Before you choose which credit card is the best for you, remember to read the terms and conditions carefully. Never sign up for a credit card without fully understanding what you are agreeing to. Remember that all the plus factors will be prominently displayed in large print. You may have to study the small print carefully to discover if there are any negative factors.
A list of the current cards on offer in summary is available on this credit card summary page. What You Need To Consider:1) APR (Annual Percentage Rate)
This is the rate of interest that you will pay on any outstanding balance. 2) Special Introductory Rates
You may be offered a low or 0% rate of interest for a limited time (Up to 6 months) when you sign up for a new card. A higher rate of interest may be charged for cash withdrawals. 3) Balance Transfer Rate
Card issuers may offer you a lower rate of interest if your swap your balance from another credit card to theirs. 4) Interest Free period
Remember to check when interest payments will begin. Will you pay interest from the day of the purchase? Or will you have a number of days interest free before you begin to pay? There is usually no interest free period for cash withdrawals. 5) Cashback and Rewards
Some cards over points or rewards for every pound spent on the credit card. Make sure that these are appropriate for you. For example, there&'s no use collecting airmiles if you never fly. 6) Minimum Repayment
Remember to check what the minimum monthly repayment will be. If you borrow £1000 on your credit card the monthly minimum repayment will probably be in the region of £25. But if you only pay this amount each month it will take a long time to pay off the balance and cost a lot in total when you include the interest payments. 7) Annual Fees
This is the fee that the issuer will charge you every year for using their credit card. Not all credit cards have an annual fee, so remember to consider this when you are choosing which one is right for you. 8) Late Payments
There will be an extra charge, as well as the interest owed, if your payment is late. This charge may even be more than the amount you owe so be very careful to check what the charge is, and to ensure that all your payments are made on time. A good way of doing this is to set up a direct debit from your current account. 9) Exceeding Your Limit
You may also be charged a fee if you exceed your credit limit. Will Your Application Be Accepted? Whether or not your application is successful will depend on your credit rating. Your credit rating depends on your credit history (a record of your use of credit) and is based on the record of your ability to repay debt. You can obtain a copy of your credit file by contacting a credit reference agency. There may be a small fee for this service. When you application has been accepted you will be given a credit limit. The credit limit will be fixed when you first apply for your card (although you can ask for it to be increased or decreased later) and the limit, including the amount you have left available to spend, will be shown on your monthly statement. Insurances and Protection. What You Can Do: 1) Take good care of your credit card to ensure that it isn't lost or stolen. 2) To prevent misuse of your card you must report any loss or theft of your card to the issuer immediately. Many issuers allow you to register all your cards with them so that in the event of you losing a purse, handbag or wallet they can all be cancelled with just one phone call. 3) You must keep all your receipts and also check your statement carefully and report any suspicious transactions. For example payments that you have no record of making. 4) Credit card companies are now issuing cards with PIN (Personal identification numbers) which are known as Chip and PIN cards. Rather than signing your name you will be asked to enter your PIN onto a keypad. You must ensure that you keep this number secret. What The Issuer Will Do 1) The issuer should insure you against loss, misuse or theft of your card. 2) The issuer may also insure your purchases for up to 100 days. 3) Your issuer may also provide protection against you being sold unsuitable or shoddy goods. Important Points To Remember:a) Credit cards can be a very useful tool to help you to manage your finances.
b) Choose your card carefully, remembering to read and understand all the terms and conditions before you sign up.
c) Remember to set yourself a budget and decide how much you will pay off each month.
d) Check your statements carefully each month.
e) Look after your card to prevent it being lost or stolen.For a glossary of the terms mentioned in this article please visit the credit card glossary page.

Phil Edwards is a Business analyst in the city of London, freelance writer for several finance magazines and websites and co-owner of 1st UK credit cards and 1st UK bank accounts

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Some Truth About Credit

By Darrin Coe 

Credit is currently and has been historically an integral component of our economy. Credit contribute a person's net worth, and financial power. No matter who you are or what type of business you are considering, credit is a vital component to be considered when developing your business idea and business plan.
Your credit history and status will always be a factor when lenders consider financing your entrepreneurial endeavor. No matter what type of loan, even loans for those who may struggle to acquire traditional financing, such as the SBA funded micro loan, will consider credit as one of the underwriting factors.
Because your credit history and status greatly impact your bankability and ability to acquire business funding, it behooves you to spend a significant amount of time developing and creating positive credit status and repairing poor credit history.
== personal note ==
When I got married I gifted my wife with a huge debt load and a toilet level credit status. Through diligence, patience, and time, I've been able to repair my history and develop credit status that has allowed us to finance vehicles, mortgage and refinance homes, and acquire construction financing. So I know you can repair your credit history and develop positive credit status but it takes patience, diligence, and a willingness to reprioritize your financial outlook.
== personal note ==
Now, here is the not-so-secret formula for developing good credit and repairing poor credit.
1. Time
-- You will need to plan ahead if you want to acquire business financing. It takes time for bad spots in your credit file to be removed. It also takes time to engage in the process of having them removed. You must also spend some time engaging in positive credit behavior.
2. Diligence
-- You will need to pay very careful attention to your financial details. If you want to start a business in two years, you'll need to begin keeping very careful and detail files concerning all of your credit practices. You'll need to be on top of payments and purchases you make and always be alert to avoid behavior that could be detrimental to your credit status.
3. Patience
-- Developing and repairing credit is a process that does not happen over night. Every time you challenge an item on your credit report it involves a process that requires patience. Every time you apply for credit, the application process will require patience. This goes hand in hand with time; developing good credit that you can invest in a business idea takes time and won't happen overnight so be patient. That's why you need to be passionate about your business idea. It must be able to stand the test of the financing and credit process.
4. Financial Wisdom
-- You must begin to start making sound financial decisions. Consider every financial decision you make as if it were contributing to you becoming a millionaire. Be wary of high interest commercial credit and instead attempt to acquire lower interest banking credit such as vehicle loans, mortgages, or home improvement loans. Consider each purchase you make in light of it's impact on your credit. If you make a give purchase will it inhibit you from making a loan payment and reducing debt. Begin to think in terms of debt reduction and expense reduction as ways to increase your wealth and credit status. Having less debt is just as important and financially beneficial as having extra spendable cash.
In the end, you need to take a long term view concerning funding and credit as you begin preparing to make your business dreams come true. It won't happen overnight but if you do it right and pay attention to the details, such as building sound credit, it will happen and you'll increase your wealth and power.

Darrin Coe is a weekly columnist and author of the ebook "Micro Loans: Finance your dreams available at [http://dcoe1.tripod.com/microfinance] contact him at coe@ris.net

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14 Common Credit Mistakes

By Jeanette Joy Fisher 

Establishing credit and wisely managing your credit becomes easier when you know how. You'll feel empowered by taking knowledgeable steps towards good credit, and you'll be on your way to purchasing real estate and greater financial freedom.
If you plan to finance real estate, either as a home buyer or an investor, avoiding these common credit mistakes will help you with your credit score and save you money in loan costs.
14 Common Credit Mistakes
1. Using expensive or undesirable types of credit costs too much and is negatively scored.
2. Accumulating too many lines of credit or too many credit cards causes credit report remarks like "too much consumer credit."
3. Only paying the minimum due keeps balances too high.
4. Being maxed out on any credit card or line of credit causes deep drops in scores.
5. Taking cash advances costs higher interest and extra fees.
6. Exceeding limit and having to pay over-limit fees is a negative with creditors and causes "high proportional amounts owed" remarks on credit reports and subtracts credit score points.
7. Paying a day or more late causes unnecessary late fees and often increases interest rates.
8. Charging more than you can afford causes a snowball effect of amassing debt with no easy way to pay it off.
9. Letting someone else use your credit, such as co-signing a loan, raises your debt-to-income ratio and possibly adds "too many consumer accounts" on your credit report, which lowers your score.
10. Ignoring credit problems causes unnecessary negative impact. Talk to creditors before being late and make arrangements. This action heads off negative reporting to credit bureaus.
11. Failure to report address changes to creditors causes misplaced bills and late payments.
12. Using partial name, different names, initials instead of whole name, or forgetting Sr. or Jr. causes mix-ups. Use your full legal name to protect you from confusion with similarly named borrowers.
13. Failure to report name changes to creditors also causes confusion.
14. Not checking credit report frequently is one of the most common mistakes consumers make.
You can buy real estate with poor credit, but you will save thousands in loan costs if you maintain good credit. A bad credit report leaves home buyers with sub-prime loans which have higher point charges, prepayment penalties, and higher interest charges, which therefore cost more money.
For instance, a mortgage loan of $150,000, 30-year, fixed interest rate of about 5.72 percent costs around $870 a month. Poor credit scores raise the interest rate over 9 percent and the payments over $1,200.
As you see from these payment differences, good credit means that you can finance a more expensive house with the same income, or save $330 each month.
Credit Requirements for Mortgages
Credit needed to buy real estate is not the same as good credit. Besides your credit score, mortgage lenders consider your debt-to-income ratio and other credit matters, unlike other credit grantors. Your debt-to-income ratio is the comparison of mortgage payment, including taxes, interest, and insurance to your total gross monthly income. Real estate lenders also consider your employment qualifications and your overall debt ratios. Understanding the difference between good credit and the credit needed to obtain real estate financing helps you buy houses!
Avoiding credit mistakes helps you get strong credit and keeps your credit scores up.
Copyright © 2005 Jeanette J. Fisher. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)

Jeanette Fisher helps first-time home buyers and beginning real estate investors build strong credit for mortgage financing. Get your free "Credit Tips for Mortgage Financing" report at http://www.recredithelp.com

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What's a Good Credit Score?

By Trisha Dingillo 

In today's current economy, its much harder to qualify for a loan. Now you need a very good credit score to qualify for most types of credit. So what's a good credit score rating?
850 is perfect credit and the highest credit score rating possible, though I've never personally seen anyone with an 850. A good credit score starts in the 670 range. Scores lower than 670 are not considered good credit.
How to Get a Good Credit Score:
There are 5 criteria that your credit is scored upon, and they're rather simple to follow.
1. Payment History accounts for 35% of your credit score.
Do you pay your bills on time? If you do nothing else but make timely payments, you will have a good credit score in two years. Obviously, avoiding new collections, court actions, and most easily late pays will help your credit.
Past delinquency plays the largest role in hurting your credit score. One recent 30 day late payment will lower your credit score, most likely by 20 points! A couple of late payments, and your score will drop very far, very fast. 60 day lates hurt your score even more and 90 day lates are a real issue. It is important to know that the more recent the delinquency, the more negative the effect on your score. One 30 day late last month will hurt more than even a 90 day late 4-5 years ago (5-10 points).
Make sure to stay on top of your debt. Take caution to make timely payments and take care of accounts before they are late or go to collection. Do not overextend yourself in such a way that it hurts your chances of making timely payments. If you have old late pays that cannot be disputed off your credit report, know that time does heal old wounds and your score will increase given that no new delinquencies are reporting.
Pay before the Grace Period on your Credit Cards. Creditors charge additional fees for late payments. This is a very large profit center for a bank. Now, not only is there a due date, but there is also a due time. A bank may charge a $30-$35 fee for being 2 hours late on your payments! (make sure to look at the fine print of all agreements) Also, many banks have implemented under 20 day grace periods, shortened from 30 days, to increase overdue charges. Don't wait for the due date! Get your payments in fast or sign up for automatic debit payments online.
2. Amount Owed accounts for 30% of your credit score.
The credit scoring model calculates credit balance against your high credit limit. This is calculated in percentages. It's important to keep your balances as low as possible. If you have a card with a $5,000 credit limit, keeping your balance below $500 puts you in the 10% range of available credit. There are thresholds in debt ratio that will make your credit score jump higher. These thresholds are 70%, 50%, 30% and 10%. If you can't pay off your credit cards all the way, pay them down BELOW the next possible threshold. Calculate your credit limits in this way.
If you have a card with a $5,000 limit, multiply 5000 x.10 (or.30,.50,.70) You will want to pay your balance below these amounts. In this case - less than $500 (or $1500, $2500 or $3500).
Remember, the first thing to do is to check your credit report for credit limits. If your high limit is not reporting, the scoring model will use your balance as your credit limit. This means you're using 100% of your availability. Call your creditor and make sure they correct it. Distribution of debt is an easy way to make sure you maintain a strong score. Try to have a good spread of debt with lower balance to limit ratio. For example, its better to have $2,000 on five cards than it is to have $10,000 on one card with four others paid off.
If you're bumping up towards your credit limits, apply for more credit, or ask for an increase in credit from your existing accounts. This criteria is based on total availability, not size of availability. It doesn't matter if you borrow $500 or $50,000. It's how you handle it that matters. Distributing debt onto additional cards or credit lines can help you raise your score quickly.
3. Length of Credit History accounts for 15% of your credit score.
Length of credit history means how long you've had your credit accounts. If you've had an account for 15 years, it is stronger than a having a new account open for only two months. An important tip here is to never close your credit cards. Keep your old accounts open if they are in good standing, even if you don't use them and there's a zero balance. Remember though, you do need to use your credit lines at least every 6 months.
Accounts unused for 6 months become inactive and are ignored by the credit bureaus, unless there is a delinquent activity attached to that account. Keeping your credit lines open also aids in improving your credit availability, explained in the previous section.
If seeking to add credit, ask your card company to increase your credit limit. The best place to increase your credit lines, aside from getting a new card, is to extend your line on an old account with a good long history. Make sure they report the credit amount increase to the bureaus accurately.
One common factor of extremely good credit scores are long credit histories. Credit reports that have old accounts with a 15-20 year history are likely to have much higher scores. It is, however, possible to add an old tradelines to your credit report.
4. Amount of New Credit accounts for 10% of your credit score.
New credit means brand new accounts recently open. You do have to start somewhere, but build slowly. If you have just applied for 10 credit cards, banks tend to assume the possibility that maybe you've lost your job and are in need of a back up plan. Try to start with one small line of credit and build from there. Make sure that you can handle the payments consistently, are never late, and keep your balances as low as possible, or completely paid off.
5. Type of Credit used accounts for 10% of your credit score.
The credit scoring model likes to see that you have a variety of types of credit in your file. The very best placement of credit is to have a loan on a home, a car payment and a few credit cards. This credit is spread across different types of lenders and type of credit extended to you. There are a few types of credit to stay away from. Payday loans are very bad places to have credit with and your scores take a hit for having these types of high risk loans. Other very bad types of credit are the offers that allow you to have no payments for a year. These are dangerous, because the terms of the agreement may include that if you do not pay the loan off in a year, on day 366 you will owe the entire years worth of payments at typically 20% interest. This is a disaster waiting to happen. People who repeatedly go for these offers, are people who get into credit trouble. You should not have that kind of credit on your credit report.

Trisha Dingillo's experience stems from 5 years in the mortgage industry helping clients with credit problems. She is the author of a very popular website about credit recovery, and has helped thousands of people find out whats a good credit score. Visit her site right now for more information on credit recovery.

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Credit and Mortgages: What First Time Home Buyers Need to Know

By Dan Moyle 

What Makes Up a Credit Score?
If you're looking for financing, your credit score will affect several factors including the amount you can borrow and the interest rate you will pay. That credit score will give you access to financing for a house, a car, college tuition, store credit and more. A higher score will put you in a lower risk category of borrowers. A lower score will lead to higher interest rates and fees. So it's important to understand what goes into a credit score.

• On-Time Payments: 35% Paying bills on time has the biggest effect on credit scores. Late payments and judgments have a major negative impact. Recent delinquencies (in the last 2 years) carry more weight than older items. During the mortgage process, every point can affect your interest rate. Be sure to discuss any financial move, like paying off debt, with your mortgage consultant.
• Capacity Used: 30% Also called a debt ratio, this is the outstanding balances on your credit lines. It marks the difference between your available credit and how much you've used. Keeping the outstanding balance below 30% of the maximum is key when considering a mortgage in the next 6 months or less.
• Length of Credit History: 15% Lenders want to see a track record of credit history. A longer history of solid payments and credit makes you a stronger borrower.
• Types of Credit Used: 10% Just like you want a diverse investment portfolio, a mix of credit is desirable. A mix of auto, credit cards and mortgages is better than just credit card debt.
• Past Credit Applications: 10% Inquiring on your credit report often can impact your score. In the span of a year, each inquiry (up to 10) can impact your score as much as 5-to-30 points, depending on the credit reporting service. So it's good to wait on pulling credit until you're ready to act.

Credit Reports and Your Rights
Your credit report is yours, and you have the right to know what's on it. Thanks to the government, you actually have the legal right to get your credit report once a year from each of the 3 credit bureaus. That means you can actually check your credit report 3 times per year.
Stagger Reports
While you're entitled to one report from each of the credit bureaus every year, it's a good idea to space them out over the course of that year. For instance, start the year with a report from Equifax. Four months later you could check in with Experian. Wait another 4 months and check in with TransUnion for the latest on your credit history. This way you're keeping a constant watch over your credit history and the safety of your identity (This is simply an example. You can check with any of those credit bureaus in any order you'd like).
Don't Pay For It
Getting your credit report should be free. Quite often, the commercials you see and hear talk about free credit reports, but many of these actually require a fee or enrollment in order to see what's yours: your credit history. Instead, the government helped set up the website Annual Credit Report so getting your report is actually free.
It's Your History, Not Your Score
Checking with Annual Credit Report will give you your credit history. It does not give you your FICO score. If you want to find out your actual credit score, you will need to pay a service fee. However, you have an option. Talk to a trusted mortgage advisor. They should be able to explain the report and help you determine your score. It's typically part of the service a lender will offer.
I Paid My Bills. Why Did My Score Drop?
Seemingly innocent actions by a consumer can have unintended consequences on a credit score. Working with someone who has experience in the world of credit and finance can help keep your FICO score on solid footing. Even when you're working hard to keep your score up, you may inadvertently drop your score. Let's look at 4 reasons your actions could negatively impact your credit.

1. One Day Late. Paying a bill even one day late could get you slapped with a 30-day late notice. Creditors generally don't distinguish between one day and 30 days. Late is late in many financial company's eyes.
2. Paying Off Old Collections. An old collection on your credit report may not affect your credit score. Paying it off might actually bring the account "recent" and punish you with a lower credit score. While it may seem unfair, the credit scoring model puts more emphasis on your recent activity than your past. Paying off an old debt makes it look like it's new. Hold off on these until you talk to your mortgage professional.
3. Paying Off a "Maxed Out" Balance. If you max out a credit card, but pay it off at the end of the month, your score could still suffer. Maxing out an account adjusts your credit ratio. So even paying it off in the same month could end up showing your current status as "at the limit." This raises your debt-to-income level and lowers your credit score.
4. Paying Off and Closing an Account. Paying off debt is a good thing. But hold off on closing the account. Remember, there are 5 factors that go into determining your credit score. This means credit history and "types of credit" you could suffer a score drop if you close your account. After all, some of your biggest debt load could be your oldest.

Because credit is one of the most valuable tools you have at your disposal when it comes to the mortgage process, consider working closely with someone to make sure your credit score is stable and viewed as a good score. Let us know what other questions you have, and how we can help.
4 Steps to Rebuilding Credit Now
You've heard the stand-by advice that negative credit stays on your "record" for 7 years. While it is true that credit reports go back 7 years or more - public records like bankruptcy, judgments or tax liens can last up to 10 years - it doesn't mean that all is lost when it comes to rebuilding your credit. You have several options when it comes to making a positive impact over the next year. In fact it's possible that you could even qualify for a purchase or refinance in the next 6-to-12 months. Below is a look at 4 steps to get you on the road to recovery.

1. Monitor your credit. Get your credit report and look it over. Dispute any discrepancies. Then work with a professional to take the next step in improving your credit standing. Working with a mortgage consultant will get you started. Ask if your advisor knows a professional credit repair company they trust if you need more in-depth help on your credit history.
2. Use credit cards sparingly. Long-term credit cards show a good credit history (long history), which is 15% of your credit score. But use credit sparingly. Keep debt at least 30% below the limit in order to keep your debt-to-income levels manageable. Use your cards for items you can pay off at the end of the month, and make the payments on time. This can help build a strong credit history.
3. Open a secured credit card if you don't have one. The key to this step is secured. This means you deposit funds (often less than $500) into the account to begin with. It puts you in a low-risk category since you have skin in the game. Be sure to pay the bill on time every month, to show a stabile credit history. {Another option for some borrowers would include opening a credit account with a co-signer. Just remember, you and the co-signer are responsible for the debt. So if your partner makes bad decisions, you get punished as well. Also, "authorized user" doe not equal co-signer. Simply authorizing someone on an account in good standing has no impact on that users credit history.}
4. Talk to a mortgage consultant before making any debt decision. In the months leading up to signing into a mortgage, any major credit activity should stop. This includes new debt, paying off old collections or closing accounts. It's important to talk to a mortgage consultant to make sure any activity you're considering will not negatively affect your credit score.

Getting ready for a mortgage - whether it's a refinance, your first home or a "next-step" house - can take time and effort. Talking to a mortgage consultant with experience in the world of credit will help get you avoid credit mistakes.
Free credit report: Annual Credit Report
As the Multimedia Marketing & Communications Specialist at AmeriFirst Home Mortgage, Dan is responsible for creating and editing the content in the company blog. Concentrating on first time home buyers with several programs, and home improvement & renovation loans through the FHA 203k program, AmeriFirst Home Mortgage looks to bring the dream of home ownership to life in its communities.

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Find Out How Easy It Is To Improve Your Credit Score In 90 Days

By Alexandria Andersen 

Did you notice that when the economic crisis hit, acquiring loans, mortgages, and new credit cards were extremely difficult? Now that the crisis has ended, some lenders still demand impressive credit scores before approving your application. It's not only essential to get high credit scores - it's a must-have for each and everyone who wish to reap in more rewards in life.
In some cases, the 720 FICO credit score, which is the median between the 300-800 FICO score, is not enough to get the best loan, mortgage, insurance, and credit terms. In order to get the best interest rates and monthly installment plans, you have to get at least 740 score.
Before improving your credit score, you must remember that credit repair only happens if you are able to pay your debt. Otherwise, fixing your credit score will have to wait until you have enough income resources to pay all of your current debts. You can't expect overnight results but in as little as 30-90 days you can see significant improvement on your credit score once you strictly abide by the following steps.
- Pay attention to your credit reports
You should know that your credit scores are entirely based on the credit reports submitted to the major credit bureaus - Equifax, Experian, and TransUnion. Because of this, you must request your free annual credit reports from each bureau and review them religiously. Check for serious errors that are negatively affecting your credit scores such as accounts that you do not own, late payments posted when you have paid on time, bankruptcy reports older than 10 years that were fully paid but are still reflected as due, and other negative information such as delayed payments that are older than 7 years.
All of these have a negative impact on your credit score and you must dispute these entries immediately for proper action of the concerned lenders who submitted them.
- Get a highly-recognized credit card
You should get an internationally-accepted credit card such as Visa, MasterCard, Discover and American Express to boost your credit score. However, if you are unable to qualify for an unsecured card, go for a secured one from an issuing bank. In order to get approved, you must make a deposit on an account with the bank and acquire your secured major credit card.
- Pay on time by applying for automatic payments scheme for each loan and card
If you are constantly busy with work and travels, it can be hard to keep track of your payment schedule and sometimes this will lead to delayed payments, a black mark on your credit report. To avoid this, you should arrange an automatic payment scheme using your bank accounts to immediately pay off your credit card balance and loan installments each month.
- Don't let anything go into collections
If you have any disputes regarding your insurance, utilities, and other billing statements, you should not let any of these get escalated into a collections account. Once these have been turned over to collections, you will have a big black mark on your credit report thus rendering a major downfall for your credit score.
If you must dispute these, you should pay the balance and file a case against the company in a small claims court. But you must be careful about doing this action too and be 100% sure about your claims because the company might backfire and sue you instead, which leaves more negative black marks on your credit report.
- Distribute your debt
It would be better to have a small balance on each of your credit cards than to have a huge balance on a single card. In order to remedy this, you should use all of your cards and don't concentrate all your transactions on a single low-interest card. By using more credit cards, your credit report will have more information, thus rendering more computation of your credit score.
Also, you should bring out your older cards more often because these are much more valued by the FICO credit scoring system. By using your old credit cards, your older credit history will be updated more often thus making a huge positive impact on your scores.
- Know your credit utilization
About 30% of your total credit score is based on your credit utilization ratio. Credit utilization is the percentage of your used credit against your available credit limit. Say for example you have $10,000 credit limit for one card and you charged a $9,000 amount on it. When the statement arrives at the end of the month and you paid for the entire amount, the information on your credit report would look like you have used 90% of your credit limit. Why? Because the lenders submit your last billing statement to the bureaus, not the balance after you paid the bill.
By reflecting 90% credit utilization, your credit scores will take this negatively. In order to avoid such dilemma and improve your score, you must pay for the balance even before the monthly billing statement arrives. If possible pay down all your debt on each card to at least 10%-30% of the credit limit mark. By having smaller credit utilization ratio, you will increase your credit score significantly faster.
- Say no to closing accounts and lower limits
Because of the recent economic crisis, credit card issuers are reducing credit card limits of their consumers and sometimes close the inactive accounts. Don't let this happen to you because closed accounts and reduced credit limits mean that you're not worthy of credit and this will hurt your credit score.
If your limit has been reduced, try to request that the credit card limit be reverted back by the issuer or better yet, request a higher credit limit. If the issuer won't approve your request, transfer your balance to another account to get your credit utilization ratio to the recommended level of 10%-30%.

Do you want a 700+ Credit Score? Quite a few negative objects found on credit reports are disputable and can be completely erased legally. credit after bankruptcy and increase your scores 200 points. Click the following link for cost-free information and facts on tips on how to repair your credit promptly and legally. Obtain Out Much more collection accounts on credit report

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How to Improve Your Credit History and Credit Score

By Deepak Dutta 

As you know, the FICO (Fair Isaac Company) score is one of the most important things in obtaining loans of any type - be it personal loan, home loan, business loan or credit cards. Many times you could get a loan but the interest rates are higher if the credit score is low. Credit scores range from 300 to 850. A credit score of 850 is almost never heard of. These credit scores of individuals are checked from Experian, TransUnion and Equifax companies.
Credit score of 700 or higher means excellent credit.
Credit score of 680 to 699 is considered good credit.
Credit score of 620 to 679 is considered average or OK credit.
Credit score of 619 or below is considered poor credit.
Typically, for a credit score of below 619 may or may not get a loan but the terms will be very attractive. Creditors who provide loans for such scores usually make a lot of money from the borrower by offering higher interest rates, various fees like loan origination fees, closing fees and many such hidden fees.
Many lenders especially credit card providers monitor individual credit scores and whenever a cardholder's score drops below a certain level, they will decrease the credit limit drastically. While a credit score may not always indicate the individual's credit worthiness and ability to repay a loan, it is one of the indicators of the individual's responsibility. A person who pays the debt on time is considered to be a more responsible person.
First, you need to obtain a credit history. Once a year your credit history can be obtained for free from all the three companies at the following website: annualcreditreport dot com
At the time of this writing, this is the only legitimate website that will provide your credit history once a year for free without requiring you to give out your credit card details. If you need your credit score, then there will be a fee for that.
Credit scores can be increased easily unless there is a bankruptcy on your history. For removal of bankruptcy from credit file, you may have to talk to an attorney.
Here are 5 ways to increase your credit score:
1. After review of your credit history, go to the section, where it says items that may affect negatively. Normally, negative items on your credit history will remain there for 5 - 7 years. If there are items that are more than two years old, then you can request removal of that item by stating that the item is too old. Therefore, request removal of all negative items like late payment of credit cards, collection items, settlements, non-payment of bills etc. that are more than two years old by writing to Experian, TransUnion and Equifax.
2. If you ignored a payment because you were out of town or travelling and later it went into collection, then you can write to all the three companies (Experian, TransUnion and Equifax) requesting removal with an explanation. Lookup addresses of these companies online for writing to them. Many times, the credit card companies will oblige unless there are too many collection items. If you have legitimate explanation for a collection item other than that you simply did not want to pay the bill, then you can request removal. The companies that will help individuals increase their scores do this as well and claim that there is a specific format for writing these letters, special forms and also that it has to be written by a professional only otherwise they will get rejected. They also claim that they have very good relationship with these companies so their success rates are pretty good. The fact is that you can write an explanation to these three companies as if you were writing a letter to your boss! You do not need to be a professional to write these letters. They just need to know what explanation is and they do not care about the format. Of Course you have to respectful in the letter but there is no specific format or a special document or a form required for this.
3. If there is a collection item that has been falsely entered or if the amount is too small (below $100), then again you write some explanation to the three credit score companies requesting a removal. If the amounts are too small, then the chances of removing this from your credit file is greater.
4. If there is a credit card whose balance is more than the half of the credit limit, then pay off that credit card so the balance is less than the credit limit. Having balances more than half of the credit limit is viewed by credit card companies as bad and this will decrease the credit scores. Maintaining a credit balance less than half of the credit limit will greatly increase your credit score.
5. Setup automated payments of minimum amounts with all the credit card companies so if you forget, then at least the minimum amount is paid off on time. This will greatly increase your score. Later you can pay off as much as you can. If there are no late payments for more than a year, that will show some improvements in the credit score.
If there is a bankruptcy on your credit history, then it may be difficult to remove it although you may try to by writing to the three credit score companies. Alternatively, if your financial situation has improved considerably, then you can talk to a credit attorney to remove bankruptcy. While credit consolidation affects negatively on your credit score, you can still expect a reasonably good credit score. Changes to credit scores will take a few months to take affect so after you have made some changes for the better you have to wait for a few months to see the the results on your credit scores.

Using Dr. Deepak Dutta's web site, find out ways to consolidate credit card debt [http://www.billconsolidationdebt.com] and be debt free. Start an online business and make more money using his free classifieds site.

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Easy Credit Repair - How to Repair Your Credit in Three Simple Steps

By Curt Dillion 

A HOAX? Have you seen the commercials about identity theft wrecking a person's credit? Well, the truth is that if it happens to you, you can get a brand new social security number from the Social Security Administration. You can be sure that the people who make those commercials don't want you to know about that!
The following two quotes are from the Federal Trade Commission:
"Your credit repair: self help may be best."
"Credit repair services have been a big problem for consumers. Credit repair firms typically charge hundreds of dollars for their ongoing services, but don't deliver on their promises.
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."
End of Federal Trade Commission quotes.
You don't need to pay firms or attorneys to send out form letters once a month that get limited results. Credit reporting agencies recognize these form letters, and treat them accordingly. It's better, cheaper and faster if you do your own credit repair.
Below is a complete advanced strategy that anyone can use to repair their credit. It should be sufficient to for most credit repair situations.
Here are the three simple steps you will use to repair your credit. It's easy. I'll go into detail later in this article.
1. Obtain your three credit reports. Each credit bureau must furnish everyone with a credit report once a year, if it is requested.
2. Review the reports and locate the negative items. Reading the information on a credit report takes a little effort, but it's not hard.
3. Dispute the items that you want removed or corrected.
Repairing your credit is not as intimidating, or difficult, as it might seem. It's as easy as writing a few very simple letters. The best letters are short and direct. This point is very important, and I want you to remember it: "the best letters are short, simple, direct, AND DO NOT look like form letters." Never offer any explanations whatsoever, unless you are giving an explanation of a negative entry in a credit bureau file that you have been unable to repair.
Your BIG GUN is "Debt Validation." It is the primary tool you will use when repairing your credit. If a credit reporting agency does not properly validate a debt within thirty (30) days of your request, they must remove the entry from your file. "The time limit is often the key to success for repairing your credit."
Credit bureaus are merely big filing cabinets that take in vast amounts of information every day. They don't have the time or resources to check all of the information which comes in on a daily basis. Frequently, the information is wrong, and they never question it!
Here are some things that they would rather you don't know.
- Credit reporting agencies are subject to the Fair Credit Reporting Act of 1971 and the Consumer Credit Reporting Reform Act of 1996.
- Each item in your credit file must be proven or it cannot remain in the file. If the credit bureau cannot validate the item, it must be removed from your file, whether it's true, or not. Validation is not simply, "yep, they said it's yours." It takes some actual effort.
- Every negative entry on your report can be denied or challenged at any time. The bureau must reinvestigate and if that item cannot be verified within a "reasonable amount of time", (30 days) it must be removed from the file. However, they do have an option to deem your request "frivolous" under certain conditions.
- Many times the creditor does not re-validate in the time allowed, or the credit bureau is busy and does not handle your dispute properly. The disputed entry must then be deleted.
- The older an item is, the more difficult validation is. It is possible it cannot be validated because records may no longer exist after a year or two.
- As of September of 2005, all credit reporting agencies must provide one copy of each individual's credit report every year, upon request. The three major nationwide consumer reporting companies have set up one central website and a toll-free telephone number, through which you can order your free annual report.
To order your free credit reports, go to http://www.annualcreditreport.com or call 877-322-8228. You must obtain copies of your credit report from all three of these major credit reporting agencies. You should do this every year.
NOTE: These companies ARE ALLOWED to charge you for your "credit score." They don't like doing anything for free. But, you DO NOT need your credit score.
A free report is all you need. You only need to see the entries that other people have put in your file. Remove negative entries, and your credit scores will automatically improve.
The Credit Bureaus want you to do everything online. Other than getting your reports online from http://www.annualcreditreport.com, DO NOT contact the Credit Bureaus online at any time. You must use the postal service for ANY credit repair strategy to work.
When you have received and reviewed your credit report, follow these instructions for any negative entries. Send a very brief letter by certified mail with the following information."I am disputing this item (or these items) on my credit report. (insert a sentence here which explains why you are disputing the items, ie "you are mis-reporting the information," or "this account is not mine," etc.) Please verify and validate it (them)."
NOTE: the word "verify" is a very special and strong legal word. In Black's Law Dictionary, fifth edition, it is defined, "To confirm or substantiate by oath or affidavit."
Always use the word verify, in any type of dispute letter. You will probably never go to court over a credit dispute, but if you do, it may be important that you have used the word "verify" in your letters. You will need to make it part of the court record that you asked for verification, and that you know its legal definition.
VALIDATION: A COPY of the original contract with your signature on it is NOT validation. It is no more valid than a copy of a $100 bill, or a copy of one of your checks. Anyone can copy your signature.
There is case law involving The Fair Debt Collections Practices Act, which states that validation of the debt can either be a signed judgment order, or an accounting which is signed and dated by the person responsible for maintaining the account general ledger. Credit reporting agencies should be held to the same rules for validation. I've never had to go to court for this, but I have successfully used these validation standards for my own clients.
Back to your own credit repair. When the credit reporting agencies receive your dispute letters, they will check the item, or items, that you dispute, and give a brief reply. They have a total of 30 days from the receipt of the original certified mail you sent to them, asking for verification. Wait until there are only 10 days left, and send another certified letter stating: Your alleged validation is not sufficient to show that I am a debtor to that creditor. Remove the entry from my file.
They will have insufficient time to check it out, and they must remove it from your file. If for some odd reason they do provide sufficient validation, it must be 100% accurate, or they must remove that information from your file.
ALWAYS, ALWAYS, ALWAYS - only communicate with these people in writing through the mail. An old axiom is "if it isn't written, it wasn't said."
1. Always send certified letters that make them sign a card when they receive your letter.
2. Always keep copies of everything in a special folder, just in case you ever need to go to court.
3. Always demand an updated copy of your file after the negative items have been removed.
About dispute letters:
- You want to make your letters to look "unprofessional," so that you don't raise any Red Flags with the credit bureaus.
- Do not use dispute forms or file numbers provided by the bureau.
- Do not use a "fill in the blanks" form letter.
- Do not use a letterhead.
- Instead, send a simple handwritten letter, or a letter printed from your computer.
WARNING: Do not dispute more than three (3) items on your credit report at any one time. Also, wait sixty (60) days before disputing any other items on your report. There are laws in place which allow the credit reporting agencies to deem your disputes as frivolous if they detect that you are trying to eliminate all negative information on your file.
A word about bankruptcy and other legal items in the public records on your credit report. These items are almost impossible to get off your report without using more advanced strategies.
It is unlikely that you will vastly improve your credit score in thirty days as some promise, but you should see some solid improvement in thirty days. Everyone's situation is different. In some cases that need only two or three corrections, thirty days might do it.

Curt Dillion has been successfully helping people with credit repair and debt collection problems for many years. His site at Secrets Of The Credit Industry offers advanced strategies and solutions, as well as credit repair writing services.

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Bad Credit Tips - Credit After Bankruptcy

By Tim J Lalonde 

Bad Credit Tips For After Bankruptcy
When your bankruptcy has at last been discharged by the federal courts and you have the papers in your hands, then what? How can you go about repairing your credit? The first thing is to keep in mind why you filed bankruptcy in the first place. You don't want to end up in another bankruptcy situation. The first step is to begin to re-establish your bad credit after bankruptcy, but where to start.
Your Credit Report
Ordering your credit report from the big three credit bureaus (TransUnion, Equifax and Experian) so you can find out exactly what's on your credit report and why.
To start you must learn about your credit rating, even if your credit score is lower than you'd like it to be, it is much nicer to now it than being in the dark about it. If you in no way keep track of your credit report, you can't know what's on there that shouldn't be, and if it isn't supposed to be there, that may well be bringing down your score. You have the right to have anything that is inaccurate investigated and if found inaccurate, removed. That's the first thing, getting your credit reports cleaned up so that they reflect correct information.
You Must Pay Your Bills
Most people think, "I've got a bankruptcy, I have no credit and it just doesn't matter." This is not the case, it really does matter. Repairing your credit after bankruptcy isn't that hard and you can probably do it quicker than you think. But you have to pay your bills, on time every time. Do not start taking on any more debt that you cannot repay. This is the first step to rebuild your credit.
Applying For Credit After Bankruptcy
By no means should you do it, applying for any kind of credit, but especially with an already low credit score. The reason being, every time a lender makes an inquiry to the credit bureaus on your behalf it will lower your credit score even further. You really can't afford that at this point in the game.
Know this, applying for any one loan can spawn many inquiries to the credit bureaus. A lot of businesses will present your credit application to many different lenders generating many more uncalled for inquiries. With each one lowers your credit score.
Credit Card - Yep Get One
Are you nuts get a credit card? Credit cards are what got me into this mess.
Not entirely true, the credit card just sits unless you use it, so really you got yourself into this mess not the card. There are several types of credit cards for people with bad credit and you can be qualified for one. Now at this point in trying to repair your credit it will in all likelihood be a secured card but that's ok.
The point is to get some helpful information on your credit report. If you want to rebuild your credit after bankruptcy, getting a credit card even secured, is not so you can go crazy shopping. (Don't forget why you're here) Use your new card easy and pay it off in full on or even before the due date. If you can't make that happen in any given month don't use it.
Get A Car Loan - Easy and Smart
Are you out of your mind? A credit card now a car loan. If you want to rebuild your credit this is a great way for you to do it. You must get as much good information on your credit report as possible. Get a car loan. You may need a little money for a down payment but know you can get a car loan right after your bankruptcy has been discharged.
Bear in mind the part I said paying your bills on time every time. Start small get a car you know you can make the payments on without any problem. Don't go to a buy here pay here auto dealer though, they commonly do not report to the credit bureaus. There are auto dealers that use lenders that specialize in getting loans for people with a discharged bankruptcy or bad credit. Find a dealer and buy a car you can pay for every month on time. Don't be embarrassed to tell the dealer about your state of affairs, this will make buying a car a lot easier in the end. Ask the dealer so you know if the lender they use reports to the bureaus.
The interest rate is going to be high. But you making payments on time every time will show good on your credit report. If you have extra cash flow in any given month to make extra payments you'd be wise to do so. Paying your car off early, if you can, will only help you out in repairing your bad credit. Then and only then trade it in and do it again. By now you're well on your way to reestablishing your credit
In Closing
Filing Chapter 7 or 13 bankruptcies is not the end of your good credit, it only appears that way. You can pull through but you must be disciplined and patient. You didn't get here in a couple year and you can't fix it in a couple years either. If you pursue these steps you will be well on your way to better credit. It just takes effort on your behalf and some time to repair your credit after bankruptcy.

At http://autocreditafterbankruptcy.com/, you will find the answers to the questions you need answered most along with some Bad Credit Tips. Because we want you to make an informed decision so you can get your credit back on track.

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Your Credit and Credit Card Rating

By GK Kanner 

How to Improve Your Credit Rating
As a consumer and potential borrower in Singapore, there is no lack of choices when it comes to lenders and loans. But there is one factor that could limit your loan options: your credit score or rating.
Your credit score shows your capacity and history as a borrower. A good rating means you have the capacity to pay debt and the discipline to pay them on time. Good rating also speaks well of your financial status. A good credit rating gives you better interest rates for your loans, mainly because your credit history indicates that you are not an investment and financial risk for your lender.
A bad credit score can mean a lot of things. It could mean you've had a number of defaults and late loan payments, for instance. Bad rating leads to equally bad interest rates, since your lender is compensating the investment risk by charging you higher interest rates. While there are still credit and loan options for people with not so impressive rating, it is ideal for you as a borrower to work on your rating in order to get better interest rates.
Credit report assessment
Every interested borrower should assess their credit reports before taking out a loan. This is to ensure that the reports contain accurate financial information. Your report could contain discrepancies, fraudulent applications, and late payment updates. If your credit rating does not accurately reflect your credit history, you can engage a credit repair service.
A Credit repair service will assess your financial information through your credit reports, and check for discrepancies. If there are inconsistencies, the repair service provider will forward your corrected information to the Credit Bureau of Singapore. Once the bureau approved the corrections, it will automatically update your credit rating.
Before getting this service, consider whether you really need credit repair. Credit repair does not automatically mean your credit rating will be improved. Assess your reports for any possible discrepancies. Only if you believe there's a discrepancy should you get credit repair service.
Be careful of credit
Your rating isn't entirely dependent on your financial capacity and your credit history. Most of the time, your number of open credit can affect your credit rating and credit capacity.
Banks, lenders, and even credit bureaus usually assess how many credit lines you have available. This means that the number of credit cards and charge cards you have will be checked. Even if you have been paying your bills on time, lenders and banks could deny your loan application if you have too many credit cards. The more credit lines you have, the higher the chance you could get other loans and incur more debts, making you a financial risk. This may only slightly affect your credit rating, but it will greatly affect your capacity to borrow or get loans and credit.
Cancel cards you don't use and pay off credit card debts you have incurred over the years. In fact, when trying to improve your credit rating, you need to avoid using credit cards at all cost. This goes for charge cards as well, which are inherently worse than credit cards.
But credit bureaus do not merely check your loan and credit payments. All of your debts and unpaid balances are taken into account when bureaus and lending agencies compute your credit rating. This includes mobile phone contracts as well as other similar contracts. Your credit rating is a reflection of your overall financial and credit capacity.
Build your credit
The best way to improve your credit rating is to build it. This works both for individuals with extremely bad credit ratings and for those with no credit history yet.
Even with a bad credit rating, you can probably still get a loan, but with a high interest rate. Proving that you are capable of handling financial responsibilities is a good way to up your credit rating. Take out a small personal loan or a home equity line of credit if you need the money, and make sure your payments are always on time. This is very important because late payments can adversely affect your credit rating.
If you think that you will be late in making payments, inform your lender or your bank right away. Banks and lenders will be more than willing to renegotiate your loan terms. They would rather change your loan terms in order to avoid default. Many borrowers think banks and lenders prefer defaults, especially with secured loans. But lending institutions would prefer cash rather than non-monetary, non-liquid assets. Lending institutions are more likely to renegotiate your loan terms if you inform them of your possible financial difficulty beforehand.
Take the time to make yourself look financially stable. When in the process of building credit rating or fixing credit rating, do not apply for loans frequently. Financial institutions have means to know if you have previously applied for loans. You would not want a bank or lender to know that you have been denied a loan 10 times in the last 12 months. This gives the impression that you are in dire need of money, making you look financial unstable and even desperate. Check your credit rating at least once every year to see any changes and, hopefully, improvements.

In order to compare credit cards you should go to www.Moneyline.sg to get the best options for you.

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Using a Credit Card For Rebuilding Credit

By Aubrey Clark 

How often have you seen the advertisement online or in your mailbox telling you how you should apply for their credit card to repair your credit? The advertisements are right to some extent; credit cards can help you when you are trying to repair your credit, if used correctly. The problem is that most people try to repair their credit with horrible credit cards while using the same spending habits that caused their bad credit to begin with.
A large majority of the people who set out to repair their credit, with the aid of a credit card, do so with the wrong credit cards. There is a right way, and a wrong way to repair your credit and using a credit card is only one small part of the process. We monitor the applications and approvals of credit cards across the web that are designed and marketed for those seeking to repair their credit. The overwhelming majority of the cards that people are applying for are going to hurt their credit, not help it.
The correct way to use a credit card to repair your credit is not to use it. People that are recovering from bankruptcy or other credit problems need to face the fact that they aren't going to get a good credit card right out of the gate. Conceding this fact, we must now begin to pick the best of the worst credit cards in which we can use to re-establish our credit. The main thing to be aware of is that you are getting a credit card to help to restore your credit, not necessarily to use it. This leaves us with two options: secured credit cards and unsecured credit cards.
Most people opt for the unsecured variety, which in my opinion is a mistake. Most unsecured credit cards for bad credit are going to hit you with a lot of front loaded fees in lieu of making you put down a deposit. You can expect to pay anywhere from 50$ to $75 up front for your annual fee for starters. Then, some cards have other up-front fees like a monthly maintenance fee, account processing fees and some even charge an application fee. All in all, up front fees could be around $150 on a card that only gives you a $300 limit.
If you know you are going to have high fees and a low credit limit you should give serious thought to getting a secured credit card with lower rates and fees. Think about it, if you have to pony-up $300 for a deposit, at least all of the money would be yours and you would still have the $300 limit. Also, using a secured credit card gives you the ability to raise your own credit limit, which strengthens your credit. Used correctly, a secured credit card will cost you less, save you on fees and act as a savings account for you.
As you may know, secured credit cards allow you to raise your credit limit by making additional deposits. If you get your secured card, never use it, and make a $100 a month payment to that card for one year you will have a credit card with a $1500 credit limit. This looks a lot better to someone who looks at your credit than a $300 limit. Loan officers and underwriters have no way of knowing whether a credit card on your credit report is secured or not, unless it has a $300 balance.
What you definitely do not want to do is use your credit card. Most people are unaware that it makes no difference in your credit score whether you use the credit card or not. In fact, if you do use your credit card and exceed 35% of your credit limit, your credit score will begin to deteriorate. The best credit reference on a credit bureau is the one that never has to be touched, it shows restraint. Think about it, having a secured card allows you to pay fewer fees, dictate your own credit limit, build a savings account and helps you to rebuild your credit. This is definitely the best, and least expensive, way to go in my opinion.

Aubrey Clark is an Author and editor for Direct Banc, a directory of low interest rate cards, specializing in credit cards for fair credit. Aubrey is a native of Destin, Florida but now lives in Atlanta Georgia since 1999 with his wife and four children. This article may be reprinted without permission as long as the author credits and links remain in place.

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Credit Repair Tips

By Jordan Feross 

There are many methods to credit repair and if you have poor credit scores then you should consider restoring your credit. You will enjoy an increase in your financial freedom when you take steps toward bad credit repair.
Bad credit can be detrimental to your financial well being. You might have constant phone calls to your home from bill collectors and the battle may seem impossible. You might make less money than you can financially afford to pay toward your monthly bills. This is called being "upside down in your bills". It is possible to get on the path toward credit repair even though it might seem impossible.
You might have bad credit for many reasons. You could have medical bills, credit card bills, and many more bills that are overwhelmingly high. No matter what the reason is, when your credit scores are low it is viewed a number of ways. First, your debt to income is reviewed. Creditors look at the amount of money you OWE on your credit versus the amount of money that you MAKE. Also, if you have many debts that are small amounts unpaid, this looks very bad too. However, the biggest way a company looks at your credit score is that it shows you don't pay your bills. This means you cannot be trusted with paying back a credit or a loan. The better your credit score is then the more a business will trust you with paying back the loan.
When you have bad credit it is next to near impossible to get a loan for anything. You won't be able to get credit cards, buy a home, a car, or get credit for anything you might need. In most cases, if someone does extend you a line of credit then your interest rate is very high. When you are given a high interest rate then you are almost paying double for the initial line of credit.
When you make the decision to repair your credit with a 'repair my credit toolkit' then you are taking the first step to a better financial situation. Remember, bad credit means higher interest rates. It also means when you have a financial emergency, you can qualify for a line of credit to help you make it through your problems. You have the financial freedom to buy things like boats, cars, and more. You also have a better interest rate on your line of credit.
Through our credit repair tutorials you will find that the first thing you need to do to take a step toward free credit repair is to get a copy of each of your credit reports. There are three primary credit reporting agencies. These companies are Equifax, TransUnion, and Experian. You are entitled to one free report from each of these agencies a year. You should compare the three reports and write down all of your debts that appear to be damaging to your credit.
When you begin your credit score repair the quickest way to get started is to highlight all of the small amounts that you can afford to pay. If you have any amounts that are less than $100 on your report then you should pay them immediately. These look the worst on your credit. If you think you can repair your credit on your own then you can. You should start with the smaller amounts first. You should call one creditor at a time. Call each of the creditors and ask them for the payoff amount. Most creditors who show negative on your credit will be happy to get anything. Most of your creditors will accept a deal to pay 60% of the debt owed rather than the full amount. If they accept a deal with you then you should have this agreement faxed to you. You should also demand a receipt for payment and attach to the agreement.
Once you pay on a debt on your credit report it may take up to 60 days to reflect on your credit report as being paid. Keep in mind that although you pay a debt off on your report, it will remain on your report.
If you need credit repair help because your debt and bills seem too overwhelming for you to handle then you can find many places that offer free credit repair. You should be cautious about people you use to help you repair your credit because there are a lot of fraudsters out there who will make promises they cannot keep.
The most important thing is that companies who offer to repair bad credit for free should never charge you for anything up front. They might offer services that do have fees in addition to repairing your credit. These fees might include the cost of copies being made and other things. However, you should not agree to any fees if a company tries to charge you for repairing your credit.
Another thing people forget is that when they go in to 'restore my credit' businesses they might hear that debts can be erased from a credit report. Many people who are dishonestly trying to provide services to people with bad credit will make promises like this. No one can erase negative information. The only type of information that can be removed from a credit report is information that is incorrect. If there is a debt on your credit report that is not valid and that you do not owe then this is the only thing that can be erased. Information that is accurate will remain on your credit report for 7 years from the date the debt is recorded. A bankruptcy will also remain on your credit report for ten years. If you had bills like credit cards and you fell behind on them for a month or two and then caught back up on them, this too will reflect on your credit report. Falling behind on your bills can remain on your credit report for up to seven years, even if you have been caught up for a year.
A credit repair company helps many people with bad credit report repair issues. Most of the companies will sit down with you and total all of your debts. They will offer you consolidation services to help you pay back your debts. Consolidation of your debts is often the best solution if you are paying a bill here and a bill there. It is easy to lose track of which bill to pay this month or next month and a credit repair company can help you get back on track financially.
A credit repair company will use credit repair software to help you organize your debts. You will work with a consultant who will go over all of your bills and your current income. It is important to remember that your most important bills are the bills of necessity for living. These are your rent, electricity, water, trash, and food. Any other bills you are used to paying will be set aside with your debt and not listed as living expenses.
The company will also help you look at your spending habits. You might be used to shopping online or eating out at a restaurant every day during the work week. Your spending habits will be assessed and stopped. You can save a lot of money by taking lunch to work with you or by going home for lunch instead of eating out.
Once the company has assessed your bills, your income, and your spending habits they will figure out how much additional income you can afford for a monthly payment toward your debt each month. The great thing about this is that when a company consolidates your debt for you, then you make only one monthly payment toward your debt. The company will disburse your monthly payment among your creditors accordingly.
If there are things on your credit report that are not accurate the company will help you prepare a credit repair letter to the reporting agencies to dispute things on your credit. They will help you every step of the way work toward getting your credit back on track.
When you make a decision for bad credit report repair and to go with a company then you will receive a detailed written contract. By law, if you go through a company that is for profit, nonprofit, banks, credit unions, and creditors, you are allowed three days to back out of the written agreement. They must give you a full explanation of all of your legal rights. In addition, they cannot demand any form of payment until all promises have been kept by the company. If the company is demanding money up front then you should go with a company who is not in it for the money. Remember, there are many nonprofit governmental agencies designed to help people get their credit back on track.
There are many things you should be aware of when you are thinking about credit repair. If you receive an email about credit repair then you should be leery. Be sure to research the company and confirm they can really help you. Most emails sent out about credit repair are commonly fraudulent and dishonest. Just remember never to pay any money up front for your credit help.
Another thing you should keep in mind is that some fraudulent companies tell consumers that they can help them create a second credit file. They might offer a new social security or tax identification number. Not only does this promise not work but it is considered illegal. The term for a promise like this is called 'file segregation'. No one can give you a new social security number but the Social Security Administration office. There are very rare instances of new numbers being given out in situations of witness protection programs with the government, and serious cases of an identity being stolen. Remember that what you feel to be serious and what they consider serious are very different. There are also thousands of identity thefts that occur on a daily basis. This also has caused the Social Security Administration to consider these issues even less today. If a credit repair company makes a promise to you that sounds too good to be true then it probably is.
Many people say "I want to restore my own credit." You can. The first thing you should do if you have credit problems is get counseling. You can call your local Consumer Credit Counseling Service (CCCS). They can give you advice on how you can build your credit record back to something acceptable. They can also help you find an agency that can help you if they cannot and you can trust the information you receive from them. The CCCS can help you make payment plans with bills you have fallen behind on. The services offered through the CCCS are usually free but if they do charge you then they are at a very low cost. If you need to find the nearest CCCS office so you can get started on your credit repair, then you can call toll-free 1-800-388-2227.
When you make a decision to repair your bad credit you are taking the first step toward your financial freedom. You can repair your credit on your own or you can seek credit counseling from a credit repair firm. This is usually the best option for people who are upside down in their bills and the phone will not stop ringing from creditors. A company can help you prioritize your monthly bills. They can also give you the benefit of one easy monthly payment that will be applied to all of your debts. You won't have to worry about your creditors anymore because they will take care of everything for you.
When you repair your bad credit then you can have the financial freedom to have credit extended to you for those things you really want or that house you have been working so hard to qualify for. Don't let your bad credit be a detriment to your financial freedom with poor interest rates and denials anymore. You can get back on track with a positive credit score.

This article is brought to you courtesy of Jordan FeRoss who is a leading expert in Credit Repair

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