Fixing Your Credit Score Doesn't Have To Cost
You
by Ed Vegliante
Credit repair advertisements claim to guarantee a quick fix on
your credit report. They promise for a fee (not always
disclosed at first) to clean up your credit history so that you
can qualify for a new home, car, insurance, a job, or premium
credit cards. Before you sign up with one of these companies,
you need to know some facts.
The real facts on fixing your credit score
The real truth is that no one can legally remove information on
a credit report. The Fair Credit Reporting Act (FCRA) allows
you, the consumer, to request an investigation of information
in your file that you dispute as inaccurate or incomplete.
There is no charge to you. There are other steps that you can
do yourself, without paying a credit repair company, such as:
* You are allowed a free credit report if a company denies you
credit, insurance, or employment (if this is a part of your
employment application) provided you request a report within 60
days of this denial. The notice will give you the name of the
consumer reporting agency that provided this report. You can
dispute information that this denial is based upon. Under FCRA,
both the consumer reporting agency and the information provider
are responsible for correcting inaccurate or any incomplete
information in that report.
* Put in writing what information you believe to be inaccurate.
Include copies of any documentation that supports your claim. Be
sure to send this letter to the credit reporting agency, and
send it certified mail so that you can prove it was mailed and
signed for at their end.
* You will get a response within 30 days. During their
investigation, they must forward all your documents to the
merchant or vendor that provided the negative credit
information and report back to the credit agency. If they find
that the information is inaccurate, they must notify all three
reporting agencies of their findings: Equifax, Experian and
TransUnion.
* When the investigation is concluded, you must receive a copy
of the results in writing and a copy of the dispute if it is
changed. It the disputed item is changed, the credit reporting
agency cannot put the disputed information back into your file
unless it is verified as accurate by the merchant or vendor.
* The credit reporting agency must send notices of a correction
to anyone who received your credit report in the past six
months. You can also have a corrected copy sent to employers
that did not hire you based on your credit report.
Removing a bad credit rating
When you have a bad credit rating based on negative information
that is accurate, you can only wait for it to be removed over
time. By law, a credit reporting agency can only report
negative information for seven years and bankruptcy for ten
years. For unpaid judgments, the reporting period goes back
seven years or until the statute of limitations runs out.
Criminal convictions and applications for over $150,000 of life
insurance have no time limits. By starting to pay your bills on
time and contacting the creditors that you cannot pay, you can
start to change your credit profile to the positive side, but
that will take time also.
If you do decide to use a credit repair company
Start by getting a free copy of your credit report. Then
assemble all your credit card bills and write them down. This
will give both you and your credit repair company a starting
point. By law, credit repair companies must give you a
brochure, "Consumer Credit File Rights Under State and Federal
Law" when you sign a contract for their services. This contract
must clearly specify your rights, obligations and fees. The
contract must also clearly detail the descriptions of the
services they will perform for you, how long it will take to
see the results, and any guarantees they offer you. Members of
the National Foundation for Credit Counseling are non-profit
organizations providing free and low cost services to consumers
with a wide range of plans, covering most types of credit used,
including home mortgages.
Credit repair companies can help if you're drowning in debt.
Before you sign a contract, check out these low cost and free
options you can do yourself.
Copyright 2005 Ed Vegliante.
Ed Vegliante is the owner of
http://www.credit-card-surplus.com , a well organized credit
card directory enabling the user to compare and apply for a
variety of credit credit card offers. Find links to secure
online credit card applications.
Sunday, October 16, 2005
Bad Credit Loans - Pay off loans
Pay It Off And Plan Ahead
by Taffy Wagner
Maybe you've looked at your calendar and realized that October
is fast approaching. You have set some goals earlier this year
in the area of your finances but have not achieved them. Now is
the time to make a committed effort to begin paying those bills
off and plan ahead. Why? As holiday season approaches, people
tend to create more debt than any other time during the year.
The idea is not to achieve more debt as the end of the year
approaches, but to end the year on a financially positive step.
You can still concentrate on one bill now and make a dedicated
effort. Perhaps it will only take you one or two months to pay
it off. Regardless, pay it off. Then the money you placed
towards that bill use to purchase your holiday items.
I can assure you with the latest round of hurricanes that
happened consumables are bound to go up. When I was recently in
my home state of Louisiana, retailers were having trouble
keeping food on the shelves. It will not be long before this
happens in other states.
Do not charge your holiday shopping because when January comes
and you receive those bills, you could end up disgusted. More
than likely you will not pay the bill right off. Eventually
whatever you charged ends up costing you more than the original
price. Does it make sense to pay two times the amount for a
product?
For example, last year my husband and I found some gift baskets
that we really liked in a magazine. We were going to order them
and looked at what the shipping costs would be. We decided to
shop around at some of our local stores and found those
baskets. We sat down and made up a list of clients and
relatives that should receive them. Then we began purchasing
them in small increments. We were done with our clients and
family by December 1.
Do not add more bills to your financial situation, begin a new
start and take steps to remove financial stress. To plan for
the holidays you should:
1) Make a plan now even if it is the beginning October, (its
not too late) about what you are going to purchase
2) Shop around to see who has the better bargain
3) Do not overspend
4) Do not wait to the last minute to shop. I know this will be
challenging for those individuals that like those last minute
discounts. However, is it really worth fighting all those
crowds on December 24th, when you could be done by December
1st.
Once you have gotten your holiday spending done and looking
forward to the next year, put some financial goals in place and
stick to them. It is less stressful knowing that you can shop
early and get what you want, instead of having to take what is
left. Remember back in October when you paid off that first
bill, now you want to begin working on the next bill. Then
every three or four months, you could potentially be working on
a new bill. When October comes the next year, you could have
paid off two or three bills depending on the time frame you set
for yourself and the holidays will be more enjoyable.
Dr. Taffy Wagner is the author of Debt
Dilemma. Debt Dilemma is her own personal story of how she got
into debt and was able to get out without filing bankruptcy.
She will be launching a national marketing campaign on October
18, 2005. View her website at
http://www.paidoff.net/SpecialPromo.html for further details.
by Taffy Wagner
Maybe you've looked at your calendar and realized that October
is fast approaching. You have set some goals earlier this year
in the area of your finances but have not achieved them. Now is
the time to make a committed effort to begin paying those bills
off and plan ahead. Why? As holiday season approaches, people
tend to create more debt than any other time during the year.
The idea is not to achieve more debt as the end of the year
approaches, but to end the year on a financially positive step.
You can still concentrate on one bill now and make a dedicated
effort. Perhaps it will only take you one or two months to pay
it off. Regardless, pay it off. Then the money you placed
towards that bill use to purchase your holiday items.
I can assure you with the latest round of hurricanes that
happened consumables are bound to go up. When I was recently in
my home state of Louisiana, retailers were having trouble
keeping food on the shelves. It will not be long before this
happens in other states.
Do not charge your holiday shopping because when January comes
and you receive those bills, you could end up disgusted. More
than likely you will not pay the bill right off. Eventually
whatever you charged ends up costing you more than the original
price. Does it make sense to pay two times the amount for a
product?
For example, last year my husband and I found some gift baskets
that we really liked in a magazine. We were going to order them
and looked at what the shipping costs would be. We decided to
shop around at some of our local stores and found those
baskets. We sat down and made up a list of clients and
relatives that should receive them. Then we began purchasing
them in small increments. We were done with our clients and
family by December 1.
Do not add more bills to your financial situation, begin a new
start and take steps to remove financial stress. To plan for
the holidays you should:
1) Make a plan now even if it is the beginning October, (its
not too late) about what you are going to purchase
2) Shop around to see who has the better bargain
3) Do not overspend
4) Do not wait to the last minute to shop. I know this will be
challenging for those individuals that like those last minute
discounts. However, is it really worth fighting all those
crowds on December 24th, when you could be done by December
1st.
Once you have gotten your holiday spending done and looking
forward to the next year, put some financial goals in place and
stick to them. It is less stressful knowing that you can shop
early and get what you want, instead of having to take what is
left. Remember back in October when you paid off that first
bill, now you want to begin working on the next bill. Then
every three or four months, you could potentially be working on
a new bill. When October comes the next year, you could have
paid off two or three bills depending on the time frame you set
for yourself and the holidays will be more enjoyable.
Dr. Taffy Wagner is the author of Debt
Dilemma. Debt Dilemma is her own personal story of how she got
into debt and was able to get out without filing bankruptcy.
She will be launching a national marketing campaign on October
18, 2005. View her website at
http://www.paidoff.net/SpecialPromo.html for further details.
Bad Credit Loans - The Chrismas Loan
The Myth Of The Christmas Loan
by Rachel Lane
If you think Harry Potter was going to be the most imaginative
marketing plot this Christmas, think again. Each Christmas, as
consumers look at their finances and investigate the different
sources of funding to cover their Christmas shopping, loan
companies and credit card providers polish up their marketing
tactics and customer service skills.
No doubt some of you will see an advertisement for a Christmas
loan over the next few months. Unfortunately for you, it's not
provided by a jollyvaceous (curvy and happy) bearded man in a
red, furry suit. It's more likely to be a cunning marketing
initiative by a loans company designed to exploit consumer cash
concerns over Christmas.
If you need credit over Christmas - you will probably fare
better with a credit card, but if you have to take out a loan,
you'd be better off searching for a standard personal loan, on
a secured or unsecured basis. There are plenty of sites which
offer price comparison services for credit cards and loans. The
most popular ones include moneynet, moneysupermarket and
lowermybills, but if you really want the best deal - why not
visit them all and cross-reference the fairest deal.
When searching for a credit card - there are several things you
need to consider. Firstly, you may wish to transfer existing
debt from your old credit card, by taking advantage of an
introductory interest free period on a new credit card. Despite
the apparent 0% interest rate on all balance transfers - do
ensure that you are genuinely being charged no interest and
that once the interest free period is over - you're not going
to be hit by an unusually high APR (Annual Percentage Rate) -
the interest rate. Also look out for additional charges and
hidden fees on the credit card and make sure you have set up
your account for minimum repayments.
Credit cards offer you greater flexibility in your repayments
than personal loans, though credit cards may be sold with
higher rates of interest. You can pay off the balance on your
credit card early without a charge and as long as you track
what you're buying on plastic and set up minimum repayments,
you're likely to manage the debt effectively. However, do bear
in mind that late repayments and fines may affect your credit
history, so don't assume that just because you can't see the
debt that it isn't there.
Personal loans can be a suitable credit solution - if you need
to make the repayments over a longer period. However, you need
to be realistic about the total repayments - firstly, that you
can afford them and secondly - that you're prepared to make all
of them. For example, if you decide half-way through the term of
the loan that you could actually afford to pay it off in full,
you should be aware that there will probably be an early
repayment charge which may bring the amount to the same as the
total number of repayments.
Credit is for life, not just for Christmas; what you pile on to
plastic in December may lead to a significant financial hangover
in January. The best thing you can do is plan your shopping in
advance, shop around (including online) and stick to your list
of what you intend to buy - no impulse purchases!
Resources
http://www.moneynet.co.uk/loans/index.shtml Price comparison
research for loans
http://www.moneynet.co.uk/personal-loan-guide/index.shtml
Personal loan consumer guide
Rachel writes for the personal finance blog
Cashzilla - a mighty personalfinanosaurus living in the hills
around Edinburgh. http://www.cashzilla.co.uk Contact details:
Rachel Lane E-mail: rachel@positiveinterest.com Phone: 0131 561
2251
by Rachel Lane
If you think Harry Potter was going to be the most imaginative
marketing plot this Christmas, think again. Each Christmas, as
consumers look at their finances and investigate the different
sources of funding to cover their Christmas shopping, loan
companies and credit card providers polish up their marketing
tactics and customer service skills.
No doubt some of you will see an advertisement for a Christmas
loan over the next few months. Unfortunately for you, it's not
provided by a jollyvaceous (curvy and happy) bearded man in a
red, furry suit. It's more likely to be a cunning marketing
initiative by a loans company designed to exploit consumer cash
concerns over Christmas.
If you need credit over Christmas - you will probably fare
better with a credit card, but if you have to take out a loan,
you'd be better off searching for a standard personal loan, on
a secured or unsecured basis. There are plenty of sites which
offer price comparison services for credit cards and loans. The
most popular ones include moneynet, moneysupermarket and
lowermybills, but if you really want the best deal - why not
visit them all and cross-reference the fairest deal.
When searching for a credit card - there are several things you
need to consider. Firstly, you may wish to transfer existing
debt from your old credit card, by taking advantage of an
introductory interest free period on a new credit card. Despite
the apparent 0% interest rate on all balance transfers - do
ensure that you are genuinely being charged no interest and
that once the interest free period is over - you're not going
to be hit by an unusually high APR (Annual Percentage Rate) -
the interest rate. Also look out for additional charges and
hidden fees on the credit card and make sure you have set up
your account for minimum repayments.
Credit cards offer you greater flexibility in your repayments
than personal loans, though credit cards may be sold with
higher rates of interest. You can pay off the balance on your
credit card early without a charge and as long as you track
what you're buying on plastic and set up minimum repayments,
you're likely to manage the debt effectively. However, do bear
in mind that late repayments and fines may affect your credit
history, so don't assume that just because you can't see the
debt that it isn't there.
Personal loans can be a suitable credit solution - if you need
to make the repayments over a longer period. However, you need
to be realistic about the total repayments - firstly, that you
can afford them and secondly - that you're prepared to make all
of them. For example, if you decide half-way through the term of
the loan that you could actually afford to pay it off in full,
you should be aware that there will probably be an early
repayment charge which may bring the amount to the same as the
total number of repayments.
Credit is for life, not just for Christmas; what you pile on to
plastic in December may lead to a significant financial hangover
in January. The best thing you can do is plan your shopping in
advance, shop around (including online) and stick to your list
of what you intend to buy - no impulse purchases!
Resources
http://www.moneynet.co.uk/loans/index.shtml Price comparison
research for loans
http://www.moneynet.co.uk/personal-loan-guide/index.shtml
Personal loan consumer guide
Rachel writes for the personal finance blog
Cashzilla - a mighty personalfinanosaurus living in the hills
around Edinburgh. http://www.cashzilla.co.uk Contact details:
Rachel Lane E-mail: rachel@positiveinterest.com Phone: 0131 561
2251
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