The Things You Should Do to Raise Your Credit Score!

By Tom Edwards on January 30, 2010 In Uncategorized

Professionals would have you believe that it is impossible to repair your credit without their services. The reality is that do it yourself credit restoration is possible. Here are somethings you can do to improve your credit score.

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Need Credit Help? You’re Not Alone

By Chun-Ming Chen on January 30, 2010 In Uncategorized

Last statistic I read, approximately 60 million Americans have bad credit. That’s 20% (or 1 out of every 5 people).

In fact, an entire industry, called Subprime, has formed around this demographic. These are the Check Cities/Payday Loans (Check Cashing stores), the Boost Mobile phones (pay as you go), and Subprime Credit Cards (credit cards with REALLY high interest rates).

Why are these establishments pandering to these “bad credit” people? – Because they can make lots of money off these people.

For example, my sister-in-law’s sister went to a Check City place and got a loan for $400 for 30 days. At the end of the month, she had two options 1) pay back the $400 (plus some interest) or 2) pay $100 to wait another 30 days. She chose option number 2….for 23 months. Yes. She kept paying $100 every month to extend her “loan” for 23 months. She paid $2,300 on a $400 loan and the Check City people laugh all the way to the bank.

That is why these people love to accommodate your crappy credit.

Our Government is trying to help. The administration passed the Credit CARD Act of 2009 that goes into affect in Feb 2010. One of the significant regulations is a cap of 25% of the credit limit of the credit card (i.e. $75 fee for a $300 card).

However, First Premier Card, a major subprime credit card issuer, is trying to weasel around these restrictions. They used to have a $256 annual fee on a $250 credit limit card, but now, in anticipation of this new regulation, they will have a $75 fee (for a $300 card) and a 79.99% interest rate. It’s almost sick how these guys work.

Bottom line. Having bad credit will cost you lots of money. Improving your credit score will save you lots of money.

Here are my short term and long term recommendations for credit restoration –

1) Short Term: Reduce Debt (get to 30% of credit limit on credit cards) and Remove Negative Items from credit report.

2) Long Term: Get educated about your credit. Review your credit reports (from all 3 credit bureaus), create a budget, and get disciplined with your money.

Good Luck getting out of the Credit pit.

I have been working in the credit restoration industry for over a decade. I am more convinced than ever about individuals rights to take control of your credit and ultimately your life. Click for more ways to improve your credit score.

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Legally Eliminate Credit Card Debt – Things Credit Card Companies Don’t Want You to Know

By Marie3atha on January 30, 2010 In Uncategorized

The title makes it sound as if credit card issuers have been involved in a conspiracy against the borrowers. Well, there is nothing of that sort. It is just that the borrower never bothered asking about these things and the credit card companies never saw any reason to inform the borrowers on their own. Read ahead and know some points about your card issuers that you never would have believed to be true.

• Credit card issuers do not mind if you do not repay the debt in full.

I am ready to stick my neck out and say that this is always the case irrespective of the amount of debt owed. If you are a person who has a revolving balance on your credit card, then you certainly will be paying a lot of money in the form of interest. Card issuers obtain funds at very low rates from big financial institutions. They charge more than twice the rate they pay from their customers.

The end result is that they earn a fantastic profit whenever the customer pays interest. If you combine the interest and the principal repayment, you will definitely be providing a huge profit to the card issuer. That is the reason why issuers do not mind giving a ten or fifteen percent discount on the total amount owed. If you have been using the same credit card for many years, you certainly can ask for even a seventy percent waiver without causing a loss to the card issuer.

• Card issuers are as scared of you as you are of them.

Credit card debt is unsecured debt. Apart from your signature on the contract that states that you have borrowed money and that you promise to repay the same, there is nothing that will help card issuer recover money in a crisis.

Even when an individual declares bankruptcy, the credit card debt and other unsecured debt comes last. The first is the dues to secured lenders. The second is payment to the government. Only then will unsecured lenders enter the picture. Needless to say, unsecured lenders are always aware of this fact and keep this in mind when pushing their customers for repayment.

You can easily extract more benefits from your card issuers if you raise the point of bankruptcy. Combine this information along with the services of a settlement company or any other debt relief service provider to bring down your debts very quickly.

If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called “Free Debt Relief Networks” that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below:

Free Debt Help.

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I’ve Got a Tarnished Credit History, What Do I Do?

By Jaine on January 30, 2010 In Uncategorized

Just had had your application for a personal loan or credit card declined by your lender? Yikes!

What now?

As part of the investigative process each lender will do a credit check on you to see whether you’re a good credit risk. Whilst there are many other factors involved in the loan application assessment process, one of the things the Banks do first up is to get a credit check done.

If there are any issues or red flags on the credit check, your application can be declined quite quickly.

The most common problem that arises is a hidden default. By this I mean a default that you didn’t know about. This could occur where, for example, you change addresses. Even if you cancel all your utilities and move house thinking everything has been taken care of, it may not necessarily be the case.

It’s not uncommon to discover that there was one final bill to be paid, usually from your phone company, posted to you after you have moved.

If you have not left a forwarding address with them, they cannot contact you and so the bill remains unpaid. If it remains unpaid for three months or more, they will list you on the public record as defaulting on the payment.

You will not find out about this until you make a credit enquiry.

Most banks will take a very dim view of this, and their initial reaction is to decline your application.

You will need to have an extremely good explanation to change the Banks perception, and unless the amount is extremely low, no more than a couple of hundred dollars, this may be difficult.

Most lenders take the view that you are responsible for all of your bills. In the case above, they will claim that it was your responsibility to stay in touch with each of the utility providers to ensure that everything was paid, and that you should also have provided them with your forwarding address.

Even if you pay the bill after you learn of the default, it will remain on your credit record for five years. This is the kind of blot on your copybook that you really can’t afford to have.

So the lesson to be learned here is a simple one, take your financial responsibilities seriously, and make sure that you check and double check that you have paid everything on time every time.

If you don’t, it may come back to bite you when you least expect it.

Richard J Gardner operates the Australian Bank Branches Directory which lists the location of all bank branches. Find the right bank branch and the best banking deals on home loans, credit cards and business lending at

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Tips For Building Credit When You’re Starting Out

By Hong Haojun on January 30, 2010 In Uncategorized

Many do not realize how important it building credit is these days. Whether you ever plan on financing a car, buying a house or refinancing a house, credit is all looked at very well. Even future employers that you may have could want to see you credit score. It will not reflect very well on your character if you have a bad personal credit profile.

A credit report will give lenders and even employers an understanding of what kind of person you are and how responsible you have been with your finances. You can build credit in many different ways. When you’re starting to build credit it is best to pick up a few beginner credit cards such as visa from your local bank. After you make few transactions on your card you will want to pay off the balance at the end of every month. It is actually more beneficial to pay just over the minimum monthly payment required and to keep a little debt.

When you pay off your monthly payment and keep a little debt it will show the credit bureaus that you are responsible and can use credit properly without over spending. Once you are able to do this you will be well on your way to developing good credit. You should then get another credit card or a gas card since they usually are not too picky about your scores. Your scores will be lower when you start out. Probably around the 650 ranges but overtime when you act responsibly they will slowly grow very nicely for you.

I hope this helps you build your credit score to as much as you want.

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What Happens If You Don’t Pay Your Credit Cards on Time?

By Charles Henry on January 30, 2010 In Business

So, you are up to your neck in credit card debt? Well, you are not alone, if that is any consolation. However, no matter what you do, you need to take the time and effort to pay back your debt or you could face any or all of the following consequences.

Endless Harassment

Your creditor will turn over the your credit account to professional collection service companies. These firms use pressure tactics to pester and harass delinquent debtors. We are talking about receiving calls, not just once a month or once a week but at least once a day.

Limited Job Opportunities, Maybe

The recession has made job opportunities limited as it is. However, when you have a less than satisfactory credit score, which was negatively affected by your non-payment of credit card bills, you are further limiting your chances for employment. Most employers will ask for your credit report and when they see your low credit score, questions will be asked and doubts will be raised.

Higher Interest Rates

Think of the domino effect in regards to raising your interest rates when you fail to pay your credit card debts. No thanks to the universal default clause in your bank contract, once you fail to pay on just one credit card, all your other credit cards will reflect an increase in interest rates. As such, your credit score will once again drop, which means that you will have more difficulty getting a new loan. And even if you do get that loan, your interest rates will be higher because of your higher credit risk.

Higher Insurance Rates

Just like new credit lines, your insurance rates will also go through a significant rise in premiums. Insurance companies also get your credit scores and then use it as a determinant in computing for your insurance premiums or, worse, on not renewing your policy. Because of such a sad turn of events, you will most often find yourself burdened by increased expenses on top of the debts that you have to pay. You end up in a worse situation!

Wage Garnishment Unlike in cooking where garnish means to beautify a dish, in the case of bad credit, wage garnishment is very unattractive for your financial well-being. It happens like this: When you enter into a contract with a creditor to make payments on your account and you failed to do so, a civil suit will be lodged against you in a process called garnishment. Basically, your wages and assets will have liens imposed on them – something that your employer could frown upon.

These are all worst-case scenarios of not paying your bills on time. You can avoid these situations if you tackle the problem head-on.

To learn the best ways of eliminating credit card debt click here!

For more free tips on becoming debt-free visit

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Can a Consumer Really Eliminate Unsecured Debt Up to 70% With Settlement Programs?

By Alan Cowgill on January 27, 2010 In Uncategorized

What is an unsecured debt? An unsecured debt is that debt which does not include any seizure of property in the case of default payments or bankruptcy. It is also a debt which never legally has to be repaid.

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