Stop Making Foolish Credit Score Mistakes!

Many people make many mistakes when trying to improve their credit score. This article will guide you in the right direction so you can quickly improve your credit score and fix your credit if you have any errors.

#1 – Don’t Throw Away Old Credit Cards

One of the biggest mistakes people make when trying to fix their credit report, or improve their credit score is getting rid of credit cards. Let’s get this straight! You need a credit card in order to improve your credit score.

It is actually very simple, the only way you can improve your credit score is by using credit. Meaning if you don’t have any credit cards, improving your credit score will be very hard.

If for some reason you want to get rid of your credit cards because you are in debt, consider contacting a debt management company, such as Lower My Bills, which will help you with paying off your debts.

#2 – Make sure your paying what you need to, on time!

Banks want to see that your spending money – YES, that’s the truth. However they also want to see that you can pay your bills on time. When you manage to do both you are rewarded with lower rates, when it comes to insurance, car payments, loans etc. As a matter of fact you will be able to save about $500/Month if you manage to raise your credit score.

Here’s the big Catch!

Banks want you to use credit and spend money, but they don’t tell you how much! Meaning, you can set your own budget, and pay it on time. I recommend a free service called Mint that helps you do just that.

Mint actually helps you visualize your spending habits and shows you places to save. All you need to do is work with a lower budget for a few months and you’ll see your credit score sky rocket.

“But its too hard”

That’s what you might think, but you are wrong. You need to understand that when you are dealing with credit cards you are more inclined to make impulse buys. Meaning you’d buy things that you don’t really need.

With Mint you can see where you’re spending and make a financial educational decision!

#3 – I have more to share with you, in the close future. I’d like for you to digest this information first and take action. If you want specific information to be covered, or you have any question whatsoever,  just leave a comment below.

A Quick Credit Card Debt Consolidation – DIY Guide

If you are experiencing debt problems, then you are not unique. Statistics have shown that in our country on an average, people have eight credit cards and an average debt of $ 9340. An inflated rate of interest of 18-25% (mainly credit cards) is just one of the reasons attributed to why the debt has grown at an annual rate of 5%.

With the growth in debt problems throughout the country, there is also consistency as to the accelerated emergence of debt consolidation credit card services. These companies generally propose resolutions to help combat your debt problems with charging fees or without.

If you are careful enough, you can consider debt consolidation yourself and keep your rates by consolidating your debt repayment.

You should negotiate terms with your creditors and ask to reduce interest rates and late fees which usually are the biggest obstacle to absolve debts. With that accomplished, you have to create a budget and comply with diligence. You should review your tax status of the cases so that you can have more control over your income.

DIY Debt Consolidation

In general, the first reconcile debts include those bearing a higher interest rate. Once you take care of the debts, you'll notice a big difference in your monthly budget. And if you're looking to reduce the interest given to the creditors by covering less debt, a do it yourself debt consolidation could be a smart choice. Here are some steps to follow when considering debt consolidation.

Prioritize debts by organizing a list of your debts (with creditors) and the rank order of priority. Next calculate affordability by building a list of your regular income, including wages, any state benefits, child tax credit, child tax benefit, work tax credit, and so on. Then calculated how much you can spend a month on of all debts.

Once this is done it is time to contact your creditors. Choose whom to pay first by determining whether your creditors are still in control of the debt or if they've sold off your debt to a collection agency. If the creditor controls the debt, you can prevent further contact, if the statute of limitations expires. This can be done by sending a letter. If your debt is turned over to a collection agency, is better than forcing them to corroborate the claim before you start paying.

You should discuss the terms with creditors and ask to reduce rates, thus reducing the payment of inflated interest debts. Also, make sure that your total monthly debt payment does not exceed what you can afford. While you are purchasing a declining level, is able to negotiate waiving late fees.

If you have several credit cards with a low debt amount to each, you will be able to consolidate them doing a balance transfer. This is administered by transferring balances to different cards one with a lower rate of interest rate or 0%. Therefore, one could achieve a single payment instead of multiple payments on all cards and pay much less in interest. However, before committing a balance transfer, make sure to examine the conditions of the 0% APR card and check for a period of sustainable introduction. This is because if the introductory period is quite long, you will have enough time to pay the total levy rate of 0%.

When considering the DIY credit card debt consolidation, self-control is extremely important. Be accurate when formulating the budget and you'll soon will be going to live a debt free life once again.

Credit Card Debt: A Major Component Of Debt Negotiation

Let's sit down and understand the scale of this problem and how to work our way through it.

We can be sure that one out of five people reading this article had or is facing a debt problem. Citing the results published by the U.S. Congress report of the Joint Economic Committee in May 2009, is that up to March 2009, consumer debt in the U.S. touched $950 million and almost entirely consisted of credit card debt.

The other part of this report highlights, is even more alarming which is the fact that almost 14% of revenue generated by consumers in the U.S. was used to pay the debt in the last quarter of 2008. This probably would be more in some homes.

The job market becomes more difficult, the steady income would be a problem and agreed terms of payment become a problem in most households, which are struggling to stay afloat. For these households the debt negotiation definitely brings a little joy and relief.

The situation is grim in most of the population who are under the threat of bankruptcy due to mean increased pressure and a lower loan to repay. The most important of these loans are the loans from credit cards used to buy plants for the house thinking that the situation will improve in a few months and people would be able to return to normal again as soon as possible.

Since the return has not occurred as expected, more and more people are struggling to repay loans they had taken against their credit cards. This has been investigated and a legitimate method of negotiating credit card debt is expected to ensure that assistance given the financial capacity s can return the total amount of a different structure for reimbursement of loan, or at least pay part of loan to the principal amount which is recovered through a deferred plan.

The Process Of Negotiating Debt

Debt negotiation usually starts between the debtor and the negotiator in order to find the best possible way in which costs can be controlled and generate the surplus needed to pay a constant amount which is less than the original amount but in which the debtor cannot default.

Only after the conclusion of deliberations over the property the debtor can approach the credit card companies. There are plenty of options that can be explored during a negotiation of credit card debt, once the creditor is fully convinced of the seriousness of the situation and the authenticity of the debtor. Options include changing interest rates, changes in rates charged end and a total balance transfer at times. They are bargaining agencies that interact regularly with banks and thus enjoy a good relationship and trust with bank officials, so it might be able to get the debtor an extension of credit or a modified form loan repayment.

Therefore, it is imperative that you shed your inhibitions and pick up the phone (or a bank official) or a debt negotiator, so you can sit and have a chat face to face. What is worth remembering is that debt negotiation benefits both parties involved, but simply not that the bank may even want the money. Any form of negotiation of credit card debt need not be a brief, but respectful exchange of ideas and thoughts on the best possible way to guarantee payments. Finally, looking, this negotiation can be considered a win-win situation for both parties.

The Most Effective Credit Repair Strategy

Credit repair can remove many of those pesky errors in your credit report. This is exciting and wonderful, but is only half the benefits that a proper implementation strategy is capable of delivering, and neglecting the true potential of credit repair is to sell yourself short. Go the extra mile and you will see your scores reach unexpected heights and your credit report will be so attractive to lenders that you will be able to ensure maximum, low-cost financing available. Your credit is too important to settle for less than the best.

The Power of New Credit

Everyone loves to see the negative items deleted from your credit reports. It is liberating and exciting, but by itself cannot do much to increase your credit score. Your credit score does not have natural resilience. In other words, the absence of negative information on your report can eliminate dead weight, holding the score down, but without positive credit loft building, which will remain dormant like a deflated balloon inflation pending. You must have positive accounts opened to provide this loft. Without positive credit your credit repair effort, the scores, are sure to disappoint.

The Right Kind Of Credit

If you do not have open accounts that are reporting positive manner, you should remedy the situation immediately. Building new credit is essential for successful credit repair, but not all forms of credit scores will benefit, and some will be downright harmful. To get the correct results, follow with MasterCard and Visa. American Express and Discover are also welcome, but more difficult to achieve and less widely accepted, so choose wisely. If you cannot get approved for standard cards, you must request a secured card. They're cheap, just as valuable and are not denied. Avoid store cards and consumer debt such as loans from the furniture store catalog credit lines. The FICO scoring model has a bias against this type of debt and its results will be affected.

The Importance Of Balance Management

For the right credit repair results you should keep a close watch on your revolving balances. This cannot be emphasized enough. Your results are based on changing the rhythm of your balances. Many people make the mistake of getting a couple of new secured credit cards and carry them to their limit. The intention of obtaining the card was right, but let stocks run up can cost more than 100 points. This is an easy mistake to make, especially if the limits of the secured cards are low. Credit repair requires diligence. View balances!

Patience and Victory

Once you start the credit repair process you need to be patient. Credit bureaus are required to process their conflicts, but do not do so voluntarily. Systems that have been created to manage the voluminous number of dispute letters they receive are designed to move the cards through the system with little emphasis on precision. Don't be nervous if your initial complaint was ignored or denied. Remain calm and continue to send your order until you are satisfied. Statistically, the odds are that eventually they will process your application for credit repair properly.

The Power of Savings

In our experience, those who start a credit repair program at the same time with a small savings plan are more like to succeed. Unexpected events arise. And with these events often come costs. If your budget is tight you will find that these events can stress your ability to make timely payments and suddenly find a new one late payment from your credit report. Do not put your credit card at risk. Find a way to start a savings plan. Budget for it. It offers protection in difficult times and ensures that credit repair results are safe.

Credit Repair Resources

Confused or overwhelmed by the prospect of investing the time needed to launch a credit repair effort correctly? Do not be discouraged and not give up. Nothing is more important. If you cannot manage it on your own, find a reputable repair service credit for taking up the case on your behalf. Research a bit, check out the options and make your decision. A professional credit repair company will make sure the job is well done. You will succeed!

Do-It-Yourself Tips On How To Reduce Credit Card Debt

There is a lot of climbing in the area of credit cards debt help industry nowadays. The proliferation of these credit repair services only mean two things: that the industry is in serious trouble, and that people are suffering much more than they should. And yet, trying to eliminate your debt all by yourself is not far as possible, always take to heart is to pay all these debts and make an improvement in your credit report.

The biggest problem people have when dealing with professionals who are experts in debt elimination credit card fees. Sometimes these people have money to pay should not use more debt to pay these professionals in the elimination of debt. That's why sometimes people tend to be deep in debt when they could have solved this problem by themselves. In fact sometimes people do not recruit these professionals, since I really need help, but only because they need good advice, that they could easily get into if you just think calmly and collectively. The way to reduce credit card debt is actually somewhat simple and easy if you think with your head quiet and serene.

The reason why these credit repair services are so popular is because they can reduce credit card debt in a way that nobody else can, even someone who works just to eliminate this debt. They agree with a credit card company for reasons that are often more beneficial to the customer that they, and most of the time they charge only a small percentage of that fee payments. They are also experts in bridging alongside credit companies and customers in a deal that is fair for both sides, which would have been impossible if they have not intervened between the parties.

Before taking the road to eliminating credit card debt, there are a bevy of things you should do. Hey, after all, this is not a pushover.

  • You must spend much of their time doing this work. Your credit repair services how these are going and they know it's no joke. It takes a long time to repair, and you must work together on documents, talk to your creditors, negotiating and monitoring activities to arrive at a solution that will benefit more than anyone else.
  • Strategies and tactics are largely planned … and carefully planned in order to reach a solution to move on. This could be the most grueling process in this method.
  • As you chart your strategy, you should also look at the bigger picture and find out the possible consequences.
  • Also you must create real-time strategy, like being able to reduce, even slightly, the credit they owe to your creditors. Since after all we really owe the money, you must, figuratively speaking, give to Caesar what is Caesar's.

Times to Avoid a Payday Loan

A payday loan or instant cash advance is an unsecured loan which carries high interest. Its repayment plan is straight forward too. You pay it back from your upcoming paycheck. If you default on a payday’s loan payment the balance you owe is increased by the payday lender, charging additional interest as penalty.

Payday loans can be a great source for cash when needed to pay a bill or unexpected expense, but, there are some cases where its better you keep away from a payday loan.

I have outlined some cases where you shouldn’t take a payday loan, cases where a payday loan is considered an unwise financial decision. So if you’re looking for cash advance and considering a payday loan read this article first. By knowing when not to take a payday loan you will obviously know when applying for one can be beneficial.

No Cash? No Problem. Caution!
Creative Commons License Photo credit: futureshape

1. Big mistake to use a Payday Loan to pay off a different loan

One of the biggest and unfortunately most popular mistakes consumers make is applying for a payday loan and using the cash to pay off a different loan or to consolidate debt. By doing so you are only worsening your current debt balance.

For the same reasons you shouldn’t consolidate debt with a payday loan you should understand that any kind of loan repayment such as a mortgage loan payment shouldn’t be made with a payday loan.

2. Do not use a Payday Loan to pay anyone who works for you on regular basis.

This is more of a concept than a common case. If for any reason you don’t have money to pay an employee his salary and your thinking of using a payday loan as a solution ask your self this: If I don’t have the money to pay my employee this month then how will I pay him next month’s salary and still manage to pay back the payday’s loan repayment (which is more than the loan itself)?

3. Try not to apply for a Payday Loan just to lend to money to someone else

One of our subscribers contacted us telling us he had a friend in need for roughly

$1000 to pay for an unexpected expense and asked him (our subscriber) if he could help him out. Since they were good friends, the subscriber which was short on cash too, thought about applying for a payday loan to help his friend. We advised our subscriber not to and this is why:

A payday loan often doesn’t require a credit check, meaning, pretty much anyone with a monthly salary and a permanent address can qualify. So can his friend. If for any reason his friend can’t get a payday loan then something isn’t in place and chances are the friend won’t be able to pay the subscriber back on time. Should this happen, the subscriber would need to pay the loan back from his next salary (rule: pay off high interest debt first) putting the subscriber in debt. Most likely credit card debt because of using the money meant to pay monthly bills, to pay off an unexpected payday loan repayment.

4. Never use a payday loan to pay for unnecessary expenses.

One of the reasons consumers’ debts increase dramatically is from paying for unneeded expenses when knowing that paying off the minimum monthly payments might be unachievable. Take all that and add a payday loan to it and watch your credit score dissolve and your debt balance grow. That is not what you want! Is it? An unnecessary expense would be; a vacation, eating out, partying…I think you know what I mean.

The idea in general is to make sure that you can pay back the payday loan when you get your paycheck. I am sure that there are more cases that would quickly come to mind if you take a moment to think about them…

Money Management: Teaching Children the Basics

Child Sculpting Hand
Try thinking back for a moment, do you remember the first time you understood what the value of money is?

I was a child, maybe 5 or 6 years old, I asked my mom for 99cents for some candy or baseball cards, I don’t remember what it was exactly that I wanted to have, but, I know for sure that I needed a specific amount of money to get something I wanted, from a shop. At that point in my life I started understanding what money is.

My 2 year old niece uses the word money as part of her vocabulary. For example: when she hears coins hitting the floor she would say immediately, money! We both know that she has no idea of what money is, but, I guess as far as she is concerned the word is important enough for her.

Managing Money at Home

By being a good role model you are in fact teaching the child with out talking too much, what money management is. Once they see you involved with managing money they will be curious and if your child acts responsible and even for a moment asks you anything related to personal finance never push them away. Tell them the answer to their question in a way they can understand. Try not to use the phrase “This is for grown-ups”; they might just wait to grow up before they ask you again…

The main idea is to let your children help you with managing money by letting them manage their own and at the same time making it fun and worthy for them and for you. So every child at a certain age should have a money management plan for his capabilities, remember, we are trying to implement the habit of managing money, so that in time it will be a lifestyle and a good one too.

Hoping School will do the Work

What ever your child studies at school is necessary. The books that the child learns history from or worksheets that he takes home to study with will help your child get a degree, but they won’t help do his monthly budgeting or manage his cash flow, will they?

As a child, did you have a class that teaches finance or even basic money management? If you did than you’re lucky, that’s the way it should be.

I think more than just teaching your children at home how to manage money there should be classes at school, just like math and science, which teach personal finance and money management. That’s something your child will use for life!

If you are a 6th – 12th grade teacher you might find this money management lesson to be fun, interesting and refreshing for yourself and your students.

Here is a great site I found that will help you teach your children how to manage money.

What other blogs say about children money management

» Should You Pay Your Kids for Good Grades? @ fivecentnickel.com – @Nickel:. Maybe you could make more clear the exact reason you are giving the allowance for. Although from the article, I gathered you do it as a way to train your children in the ways of finance & money management. DebtFreek! …

Money Management for Kids: Tips to Raise Money-savvy Children – Parents can cultivate good money habits in children by encouraging them to spend and save money wisely from young.

Pantagraph Blogs & Columnists » Several things can help teach kids … – Several things can help teach kids money management skills. Filed under: Hearts at Home — Jill Savage @ 12:00 am. Every child has a financial personality. Three of our children are savers. Two are spenders. Of course, they take after …

Shaping Youth » Money Management for Kids: Chores, Allowance … – Money Management for Kids: Chores, Allowance & Digital Nagging. Part Two of our interview with PAYjr CEO David Jones includes one of the rarely used aspects of PAYjr’s chore and allowance program (only 5% evidently) where parents can …

Teach Children about Money Management at a Young Age – If you have children it is important that you give them the knowledge they need to succeed. And while “book smarts” are very important, you must remember to teach your children about money as well. This is not a subject that is always …

Payday Loans from A to Z

A payday loan is a cash advance for a short period of time. You can borrow up to $2000 and will have to pay the money back within 30 days maximum. All you need in order to be eligible for this type of loan is to be over the age of 18 with a bank account and a fixed source of income. Even people with bad credit can get this loan by applying for an online bad credit payday loan, and perhaps the biggest benefit is that the money you borrow will be transferred to your bank account in a short period of time, sometimes even within a few hours.

A fast payday loan is a great solution for anybody in need for quick cash to pay an unexpected bill or for any emergency, and doesn’t have the cash available.
A bit about the payday loan rate

Since payday loans are a quick way to get cash, the interest rate lenders offer you are high. Rates range between 10% – 30% depending on the amount you wish to borrow and the type of repayment plan you choose to go with. If you fail to pay the loan back on the deadline the interest you’re supposed to pay will be double for the following repayment period. For this reason, people who are in debt should avoid applying for a payday loan.

The fastest way to get a payday loan

The internet is a great source to find information and considered by financial experts as the best place to apply for any type of loan. By applying for a quick no fax payday loan you can enjoy a quick approval procedure hassle free. Before you sign the dotted line make sure to compare payday loan rates from at least 3 different companies. If you happen to come across a very low rate meaning lower than 15% call up the company making sure they are legit. If the rate is lower than 10% I would advise you to find a different lender.

The Advantages and Disadvantages of Payday Loans

Payday loan advantages

Payday loans are great cash advances for anyone who can pay them back on time. By applying for a instant no fax payday loan you may even get approved within a few hours. They are suitable for paying an unexpected payment, going on a short vacation or to buy something you find necessary but don’t have the money at the present time. The hassle free process of getting the online fast payday loan is what makes this type of personal loan unique.

Anyone above eighteen years of age with a monthly salary and a checking account is eligible for the payday loan. Even people with a bad credit history are guaranteed to get the loan when applying for a bad credit payday loan. Due to the competitive market you may find a lender that offers you a good rate and approval will take maximum 72 hours. The cash is deposited into your checking account in a few hours or days, making access to the money very convenient. Online lenders are a great source to begin with and the option of comparing payday loan rates comes in handy.

Payday loan disadvantages

When applying for a payday loan, pay special attention to the agreement. Rates range from 10% – 30% which are considered high, and failing to fulfill the repayment on time will consequence in doubling the interest for the next repayment schedule. You have 30 days maximum to pay back the loan with the interest, depending on your repayment plan. People in debt are recommended not to use a payday loan as a debt consolidation loan because they will find themselves deeper in debt. Borrowers should pay extreme caution when dealing with online lenders due to fraud issues and reading the fine print is essential.

If you don’t have a fixed workplace or salary you will not get the payday loan no matter how much you beg and promise for it. If you don’t have a checking account you can’t write a check meaning you cannot secure the loan and the lender will not process your order. If you need cash advance but don’t qualify for a payday loan for any reason, ask friends and family to lend you the money. Anyway a payday loan only supports small amounts of money therefore, asking your close ones shouldn’t be too difficult. If you haven’t managed to get the cash you need, consider applying for an unsecured personal loan you might even find that time wasn’t so important after all.

Learning How to Avoid Payday Loan Scams

The internet is a great place to get cash advance it is quick comfortable and cost effective. It is also however, a very easy method of becoming a victim of fraud. Most borrowers apply for payday loans to pay an unexpected bill, improve their car or for any personal use and don’t have money at the same time. This issue can put many borrowers in frustrating situation and borrowers might even sign a payday loan agreement without thoroughly reading the payday loan agreement.

Scammers are aware of this act and some use the borrower’s confusion for their own benefit. Therefore it is important to compare payday loan rates from at least 3 different online lenders.

Common payday loan scams

One of the most common scams around is when a so called lender offers a payday loan with very low rates. The same lender does not have an address or phone number on his website and requires you to send in more than the basic information. These payday loan scammers will not send you the money and eventually tell you that you didn’t get approved for the loan. Most of these scammers are interested in your identity information such as social security number, copy of passport, credit card number and other personal information. Their main goal is a fraudulent act referred to as identity theft.

Avoiding payday loan scams

It is important to compare rates from different payday loan lenders in order to get a rough idea of the standard rates payday loan lenders offer. If you come across a website where the rate is very attractive (I would say less than 10%) work with the company ONLY if you know from past experience that you aren’t being scammed. Make sure to read the agreement a few times and to pay special attention to the repayment plan and the fine print. Contact the lender (if he hadn’t contacted you yet) after receiving the terms and condition and just before signing the dotted line. It is important you always keep an eye open for lenders that don’t really own legit companies or who offers extremely low rates.