In the past the Americans used to fall in debts frequently as they were unable to get hold of their credit reports. As a result, they were unable to keep a track of their credit situation. In spite of enrolling in a debt relief program, if they were unable to repay their debts on time, credit collectors used to call and harass them. They used to sue them and take a toll on their life if they were unable to repay their debts. Thus, in order to put an end to this problem Fair Credit Reporting Act was put into effect. In addition to this act, few other consumer protection acts has been put into effect in order to earn you the rights to work with the creditors and the collection agencies. Thus, try to gain knowledge about these acts that will help you protect your rights. Continue reading »
Have you been avoiding calls lately at home and in the office because of bad credit? Maybe you see yourself in the character of Rebecca Bloomwood from the popular Shopaholic novels. On the surface the famous ‘Girl in the Green Scarf’ is a published financial guru, but secretly she’s a ‘shopaholic’ stuck with miles of debt.
If you are stuck with this problem, it is not the end of the road for you. This article will definitely enlighten you on where to go when looking to repair bad credit.
1. If you are worried about debt, use this awareness to your advantage. List all the present debts you have with corresponding amount and deadline dates. This will help you prioritize which bills to pay first or which are urgent. If you do not know how to do this, a credit repair program can help.
2. Pay the bills and avoid making late payments to avoid a surcharge, which means additional costs. If you already have existing notices for late payments, find a means to pay them as soon as possible in order to start anew.
3. Prioritize needs over wants. Making a critical analysis on your monthly expenses helps you see where the bulk of your money goes. You’ll probably be surprised at how much your bills escalated because of things you don’t really need.
4. Reduce the number of credit cards you have in your wallet. Credit cards give you purchasing power wherever you go with just a swipe. But control and accountability to the credit you spend is a big part of making your credit cards work to your advantage.
5. Aim for realistic credit limits. Write or visit your creditors to adjust your credit limit for your credit cards. This is an instant buffer to your impulsive spending.
6. Always remember to spend within your means. You can never go wrong with this principle. It will keep you away from financial headaches and empty pockets.
7. Never hesitate to ask for moral support and help from your partner or family members to help you control the urge to swipe that card.
8. Start a new hobby that does not entail spending. Explore activities that will enliven your spirit and give you the same ‘high’. Get away from possible triggers to do retail therapy which will just put you into more debt.
9. Change your strategies. Try to become comfortable with the money and credit cards in your wallet. Just because they’re there doesn’t mean you have to spend them or swipe them. Having this frame of mind can lead you to save rather than spend.
10. On this road to deliverance from bad credit, you’ve got to take an active role to make these tips work. If you are willing to free yourself from sleepless nights because of financial accountabilities, now is the right time. Not tomorrow, but today. It’s your decision to make.
For consumers who are deep in credit card debt or those whose balances are $10,000 and above, rather than file for bankruptcy first and badly damage their credit, there’s a debt relief alternative that can help, called debt settlement. Continue reading »
You must have read about debt settlement, as an alternative to bankruptcy. As the US national debt is about to cross the debt ceiling ($14.28 trillion) and is expected to reach a $15 trillion level, there is a simultaneous surge in the number of bankruptcies in a particular year. Continue reading »
There are three major credit reporting bureaus that can offer you a free credit report. They are Experian, Equifax, and Transunion, and all can be found easily online. These three bureaus provide credit reports to everyday consumers, but, unfortunately, you are only entitled to have one credit report for free.
In 2003, the Federal Government passed the FACT Act that allows for all Americans to have access to one free credit report each year. That means that in order to get a credit report from the three bureaus, one of them will be free, and the other two you will have to pay for.
Why bother to get a credit report from all three bureaus when only one is free? The answer is simple. Businesses and creditors are not required to report to all three of the credit bureaus. They are not legally required to report to any of them if they don’t want to. However, most companies will report to at least one of the three credit bureaus.
If you are serious about either keeping good credit or improving your bad credit, you as a consumer should request first your free credit report and then buy the other two so that you have a credit report from all three credit bureaus. The reason is given above. You want to have a full and clear picture of where you stand when it comes to credit, so getting a credit report from all three bureaus is just a responsible thing to do.
Once you receive your free credit report from at least one of the three bureaus, you will want to take some time to go over it and make sure that the information is accurate. Even one mistake on your credit report can make a difference in your overall credit score and could get you denied for a line of credit or a loan.
If you do find a mistake, you need to report it right away. Usually, there will be a link on the websites where you can go to so you can at least alert them to the error. After that, you will have to provide written documentation to them that the account is a mistake and they will review your request. Once they decide, if it is indeed a mistake, it will be removed from your report immediately.
To recap, you can get one free credit report from any of the three bureaus in charge of credit reporting. To get reports from the other two, you will be charged a small fee, but in the long run, it will be well worth the money to protect your credit.
