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 Look into Credit Scores

The credit score is a unique number that helps lenders and others concerned to decide what are the chances that you will pay your debts.  One kind of credit score is the FICO score (English acronym for Fair Isaac Corporation Inc., the company that developed a common method of scoring).  The FICO score ranges from 300 to 850.

When you apply for a mortgage, it evaluates your credit score.  This score can also be used to determine the interest rate on your mortgage.

Your credit score is based on various types of information contained in your credit report:

  1. Your payment history – Late payments will decrease your credit score.
  2. The amount of debt you owe – If your credit cards have reached the limit, your credit score may decrease, even if the amount you owe is low.
  3. The time you take your credit use – The time you used credit is important.  If you demonstrate that you manage your credit wisely and keep low balances on credit cards and pay your bills on time, your credit score will be affected positively.
  4. The frequency with which you are applying for new credit and new debt is accumulated. If you have applied for several credit cards at the same time, your credit score may decrease.
  5. The types of credit you currently use. This includes credit cards, retail store cards, installment loans, finance company accounts and mortgages.

Your credit score is only one factor when considering a loan to buy a house. Mortgage lenders also study your credit report, employment history, income, the ratio between your debt and income and the value of the house you want to buy.

What Do The Numbers Mean?

FICO does not offer the public the specific statistics related to credit scores. However, it does provide some general numbers that can help you understand how to interpret your credit score:

Credit scores between 770 to 850 are considered very good, and usually the best loan rates are available to borrowers within this range.

Credit scores above 700 are considered good, according to FICO, and most borrowers have credit scores in this range.  The average credit score is around 725.

If credit scores are below 650, lenders receive higher interest rates when applying for credit.

It is important to remember that credit scores are like a snapshot of your credit at any given time.  The “snapshot” shows your credit based on information available at that time. By using credit wisely, you can improve your score over time.

Avoid Credit Repair Scams Which Affect Your Credit Rating

There are several ways you can protect yourself from credit repair scams. Different companies out there that tell people they can eliminate the negative elements of a credit report within a short period of time.

Unfortunately, it is important to realize that nobody can make this guarantee.  As a matter of fact, a good percentage of these companies can't deliver what they promise.  So it is better to try to repair your credit on your own. Here you will learn to protect yourself from credit repair scams.

If you are looking to repair your credit, and you have your eye on a particular company, it is important that you take the time to research the company. You must ensure that you know and understand the true identity of the firm you're considering working with, and do backgrounds check through the Better Business Bureau.  If not, you may actually work with a crook or a scam company which is simply trying to obtain personal information about you, and take your hard earned money.

What to Do If You Did Not Request an Offer?

If you didn’t fill out a credit repair form before the conversation you must be very careful. Basically, there are companies which work with people that have a fraudulent telemarketing company, which go through directories and call lists in an effort to drum up some business.

If you are looking for a loan, you should always make the initial contact either by filling out an online comparison form or contacting them by phone. You should only do this after you having studied thoroughly the company and they have found to be completely legitimate.

You should ensure that firms don't guarantee to remove negative credit from your credit report. It is important that you know and understand that no company can backup such a promise.  Now, if they say they will help you do everything possible to eliminate the negative lists of your credit, this is a little different.

There are legitimate ways in which a company can help with this effort. However, you still want to make sure you check out the Better Business Bureau. If you follow the steps listed here, you will be able to protect against credit repair scams quickly.

Credit Score Ranges: The Good, The Bad And The Ugly!

There are countless articles out there that will tell you different things about what the credit score ranges, really are. This is because each institution decides for itself what these numbers mean for them. That does not mean we have to go blind though! Based on reactions in general we can make some general statements about the ranges and what it all amounts to.

First, the scale ranges from 350 to 850, with individuals at both ends of the scale – that is very rare.

Anything below 600 is bad and will give you a lot of difficulties.

600-649: Most lenders will work with you, but their interest rates on everything, including insurance, will be unfavorable.

650-679: With this you will be able to do things, not have the worst interest rates, but I would not be excited.

680-720: You should feel good if your credit score ranges here! You should never be rejected and, in some cases the top of this will give you better interest rates.

721 and up: This is fantastic, you always get the best prices and nonfinancial door is closed for you! Be sure to keep doing what we have and keep an eye on your credit reports to try to stay here.

Each time you apply for anything where finances are judged such as loans, rental applications, insurance, or anything else where there is a credit check you want to get an idea of their qualifications, and whatever that means. To get a broader idea of the actual situation you want to see your credit report. When you look at it, fix your credit report and anything that you can and should help get your score for the best when they most need.

We hope this information has given an idea of your financial situation. It may be difficult to classify this, but knowing the ranges of credit scores can help you take control.

Choosing The Best Credit Repair Company

Credit repair companies provide a vital service for consumers with credit problems. No need to take your bad credit for granted. Defend your rights and do something. Credit repair offers a legitimate method to restore your credit score and get your financial life back on track. The sooner you become proactive, the quicker you can enjoy the benefits that come with having good credit, such as better financing terms and lower interest rates, personal trust and the knowledge that you are doing the right thing for you and your family.

Cutting Costs and Saving Time

The credit repair companies can provide the expertise by determining the best and most efficient course of action you need to take to fix your credit report, manage your existing debt correctly, and optimize your credit score. There are many advantages of hiring a credit repair company of good reputation on the web. The process can take a significant amount of experience and legal competence. Unless you have enough time available you may not be able to master the complexities involved in getting the commitment given to the right. And the benefits continue well beyond the initial stage.

The Repair Process – Credit Dispute

Once you start your credit repair project you may be need to continue your efforts for many months. This investment of time may be needed if the initial assessment identifies a significant number of errors in your credit report that need to be discussed. This dispute process can be extended month after month, how to deal with the credit bureaus is often less efficient. Credit repair companies manage this process of challenge for you. Conflict management involves the monitoring of each dispute with each credit bureau, and comparing the results as they arrive and determine the appropriate response in the event that the dispute did not produce the desired result.

The Experience And The Right Company

So how to choose between credit repair companies that you find on the Internet? There are some important factors to be considered. The amount of time that companies have been in business is an important consideration for two reasons. First, to be truly effective in business requires experience. Only experience can prepare one to function in a way that really gets the results. And secondly, it is important to know that the contracting company is well established and will not disappear tomorrow. You may be dealing with your choice of credit repair companies for many months, so you must have peace of mind throughout the process.

Check The Better Business Bureau

There are other methods of sorting through credit repair companies. It is highly recommended that you investigate their Better Business Bureau record. It is not unusual that a company has a couple of complaints. Things happen and a few isolated reports should probably not influence the selection process. But a closer look may reveal a pattern. If consideration of the record companies reveals a significant number of complaints in a particular area, it may well be an indication of the kind of experience that will take, so read carefully.

Your Personal Comfort

As important as these factors mentioned above can be, there is no proof better than to strongly recommend, before selecting among credit repair companies, the telephone interview. It is important that you are personally comfortable with your decision. So pick up the phone and call them. I suggest you consider your goals and situation in advance and prepare a short list of questions to ask. Make sure you are getting the kind of answers you want from a company that you will rely on your credit repair project. Good luck!

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.

Here’s How Your Credit Score Is Calculated

There are three major companies in the United States that participate in reporting credit scores and histories of each with a different method. Therefore, your credit score is a little different in each of the companies. Here are some of the factors you can consider if you want to calculate your credit score yourself.

The first thing is that you have a credit score of zero if you have never owned a credit card or had any type of bill in your name or if you haven't borrowed money of any kind. It is difficult to get a loan if you have no credit but this is not considered bad credit. However, some companies will give the opportunity to someone who has no credit. It's much better to build your credit slowly as you go by having cards in your name and a comfortable and stable life within your means of income.

What is Credit All About?

Your credit history is very important and represents about 35% of your total credit score. If you have debts that have defaulted or invoices are not paid, it will hurt your credit score from 7 to 10 years before it deletes all. You need to know that if you make bad decisions with credit will hurt your credit in the future. Even if you are paying the debt now, it may still be displayed on your credit report and the accounts that were paid late. It's a good idea to start building credit as soon as you can even if you do not need to borrow money. You will need a good credit score to buy a house. While you have a bank account, your credit score will improve as time passes. You will have a better score for the already employed or maintain the same residence. This shows that have a stable life.

30% of your credit score depends on what you currently owe to creditors. Even if you are late paying your bills, if you have many loans out at one time, it may be possible that he refuses to have another. Therefore, it is important just to get the loans you really need and pay on time or earlier if possible. If you pay your loans on time, you not only see your credit score rise, you also save money on interest payments. This will show favorable credit history. You also want to try to keep your money in one place if possible. 10% of your credit score will be based on new accounts. They will look at different types of loans that have applied and how many have opened now. Not recommended for opening and closing accounts too fast.

Make sure you just use common sense and you'll be fine. Knowing what your credit score is and how it is calculated will help you find errors in it. You should review your credit report annually and is entitled to see a free copy.

Finding Your New Life through Credit Repair

Credit repair is a dynamic process of taking control of your credit life, if you come from a careful and methodical lifestyle that is destined to triumph. And as the credit repair process begins to pay off, your old life will disappear and a new life with good credit will bring, the economic hope for you and your family, and a new bright perspective.

Seize the Day

Start your credit repair program through the establishment of positive credit. Do not wait seven years in the hope that you're bad credit will vanish, do so now. Secured credit cards are a great way to develop sound, healthy new credit. They are a low cost starting point. More importantly, these small secured credit cards are so valuable to your FICO credit score, as higher warranty cards.

The Correct Formula

There are a lot of credit scores available everywhere. You can get them from credit bureaus, and you can get them from a variety of suppliers and resellers. Interestingly, none of these results are the same as what lenders look at when reviewing a loan application. And in most cases, these results are not even close to those used by lenders. Lenders use FICO scores. FICO stands for Fair Isaac Corporation, creator of the score and the rating process that matters to your credit repair project.

The Power Of Positive Credit

The FICO scoring model generates your credit score is based on fact and everything that appears on your credit report. Your credit repair success depends on understanding the importance of positive credit. Negative information can keep your score down, but keep positive information in this report is to demonstrate to Fair Isaac that you are willing and capable of making responsible payments on time each month to your debtors. The best way is by credit card. Obtain, use, and see the success of credit repair. But you have to do well.

Playing Your Cards Right

The FICO scoring model is programmed to identify a number of different levels of uses by the card holder. The more available credit you use, the more you lower your FICO score. The reason for this is that high balances are statistically connected to a high risk of default. FICO scores are sold by Fair Isaac to lenders to assess the potential risk of lending money, the higher your balance, the lower your score will be. If you really want to make a good impression on Fair Isaac and be rewarded with higher scores, keep the balance at 20 percent of your card limit.

The Credit Repair Attack

Once you're through the reconstruction phase of the ongoing repair credit program, it is now the time to attack all questionable negative items on your credit report. Do not make the mistake of believing in the infallibility of the credit bureaus. More than three quarters of all credit reports have errors on them. A huge percentage of these errors are able to lower your credit score significantly. You must defend your rights and prepare for battle. Now it is the time to review every line of your credit report and prepare to send dispute letters to credit bureaus.

Patience And Simplicity

The dispute process is an integral part of credit repair and requires both common sense and patience. Credit bureaus dispute processes your applications reluctantly, so you should expect some resistance. Plan to repeat your requests until you are satisfied that they have carried out appropriate research. And keep your dispute letters simple. Employees of the poor read these letters and therefore must understand your words in just seconds. If you try to tell their whole life story, it may very well be rejected. Credit Repair and simplicity go well together.

Go Ahead And Reach for It

If you do not have the perseverance of drafting the letter you can think about hiring a professional credit repair company. They will make sure that all work is managed in an organized and efficient manner and will follow through in a timely manner, month by month until they get the job done!

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!

Avoid Credit Card Debt And Live Debt Free

Avoid credit card debt? With the right mood, plus a dose of determination and discipline is possible. No, do not throw it away yet, because its use has some good points in his favor. There are frequent flyer miles and cash dividend to win and to boost credit rating.

A dose of prevention is worth a pound of cure. While it is true that teaching young people all the money could be like a detour, it is more worthy to take them out of debt by then would have cost hundreds if not thousands of dollars. There are many resources that can help you do this.

It is no secret that despite winning the majority of this plastic money has to be used properly. To avoid credit card debt is easier to get out of it that is a very difficult task. Many have fallen into this financial hole and discovered how hard it is to get out. The following are some simple rules that help prevent credit card debt.

  • Manage your finances by creating a budget and stick to it with monthly income and expenses and 5 to 10% is reserved for emergencies appeared in before using plastic money.
  • Develop good spending habits, like not buy anything that you cannot pay in full later this month.
  • You do not need more than one or two letters. Each comes with a different set of rules and will be quite a responsibility to remember all the penalties, interest rates, etc especially if you do not pay the full balance each month.
  • Use the right card with no annual fee and low interest rate.
  • Ascertain the rate of interest even on the street looking up in his statement that the credit card company can change its interest rate at any time without any apparent reason, even when you have no balance.
  • Read the fine print though is so boring, because this can save you hundreds of dollars and a headache later.
  • Treat as cash instead of plastic money to buy anything you can only pay in full at the end of the month.
  • Do not use the credit card as a loan for what will be at a rate of interest.
  • Little extra cost may surprise you to avoid them.
  • Also avoid cash advances for those who incur the highest interest rate up to 20% and you continue to pay this high interest until you have paid all your purchases. There are also transaction fees and no grace period for it.
  • It will also seek to sell some protection products do not really need, so just say no.
  • Choose wisely for purchases to ensure that they are not building up a balance with higher interest or dividends flyer miles you'll receive. Check all rates and fees charged.
  • Keep all receipts and check with the sentence. Report on all charges you do not recognize.
  • Monitor your positions so you do not go more than 30-50% of the available limit, because if you miss that, your credit score can go down and interest rates could rise.
  • Pay the full balance each month or will pay much money for them for the privilege. When this happens keep plastic money until you pay the balance.
  • Paying on time all the accounts that have been delayed either of which could affect its credit card interest rate. Pay online so do not delay.