Credit Fixes

dwaindaddy asked:


I am thinking about allowing a credit counseling service (Take Charge America) to consolidate all my unsecured credit. Will this help or hurt my credit rating once I complete the program in about 3.5 years?

mommy’s princess due 8.8.09! asked:


I’m young with no credit and no checking account. I’ve been looking online and have only come across debit cards or credit cards that require a checking account. Where and how can I get a CREDIT CARD w/ no credit and no checking account?

Alan Largo asked:


A multitude of consumers tend to think that their credit score is permanent and cannot be changed. Nothing could be further from that concept. Your credit score is right under your control and you can improve it in only a few easy steps.

The first action that you can do is to obtain a copy of your credit report and check it for inaccuracies and old items that may have not yet been expunged. This really is easier than it sounds and it’s simple common sense.

As a consumer, you are entitled to one free copy of your credit report every year from all three major bureaus. They are; Equifax, Transunion and Experian.

Get your free credit report and look it over for any items that may be obsolete or invalid. By law, the credit agencies are required to expunge resolved issues from your credit report. This should be the first thing that you look for.

If you paid your debts or neutralized a balance, it’s best practice to have retained a receipt. Remember when your mother told you to hold onto all of your receipts? Now is the time when it really pays off if you listened to her.

Before you contest any item, make sure you can provide documentation of the payment that was made. If you can’t locate your receipt, just call the creditor and ask for a duplicate one. Normally if you call your creditor and request a copy of a receipt, they will willingly oblige.

Make sure it’s on official letterhead and signed, if at all possible. Trying to eradicate an item on your credit report by lying or denying knowledge of it is illegal and you can go right to jail.

Another method to raise your credit score is limiting the number of credit applications you fill out. All those credit cards promising premiums, rewards and all those extra perks can be very tempting.

The hard truth is that excessive credit card applications can actually hurt your credit rating. This practice is called shot gunning and is extremely more detrimental than beneficial.

By far, the most practical plan is also the most basic – pay your bills. If you’re able to, exceed the minimum payment due each month. Put a little extra green in there to bring down the balance as speedily as possible.

A premature pay off is a very large plus on your side. It exhibits integrity and establishes trust among the community of credit agencies.

The most notable factor in determining your credit score is reliability and risk. By paying every month on time and bringing the balance down to zero effectively decreases the risk factor associated with your credit.

All of these are things you can do to increase your existing credit. Obsolete items can be a downer when it comes to your credit score. If they are still there, eradicate them right away.

Inspecting your credit report is an important part of responsible credit management. Reviewing your report regularly will reveal any oddities. If you do happen to find any, address them right away to the credit agencies and have them expunged at once.

Remember, a good healthy credit score can really be an asset. Use your credit only as needed and with smarts and when you do have to incur a debt, pay it off as speedily as you’re able.

If you can manage to effectively repair and keep your good credit, you’ll certainly come out a winner again.

Alan Largo asked:


Everyone wants to improve credit but not everyone knows how. Can you imagine an improvement to your score? Of course you can hire someone to fix it for you and counsel you on the matter. Chances are you cannot afford that if you already have bad credit. You can improve your credit yourself. Just use a few simple tips and you will be well on your way.

Be safe and watch your credit closely. If you have a high credit score you can get anything, but not so with a low credit score. Make sure that you obtain a copy of your credit report once a year in order to make sure that all the information contained in it is correct.

Be sure to watch the due dates on your bills. Make sure to pay things like the phone and light bill on time. Even these will affect your credit standing. Not so much when you pay the bills on time but miss a payment or two and you will see a negative impact on your credit very quickly.

Missed payments lead to delinquent accounts and all of those end up on the credit report with negative terminology lowering the score. Paying on schedule will give you a history of being in good standing with creditors and make it easier to obtain financing.

Avoid the rubber! Checks are nice to have but they do not mean you have money. The checks you write are only covered if you have the money in the bank. Check Systems is what the store just ran your check through and denied it for your purchase because you bounced one. Guess what? The bank sees this as well when you apply for a loan.

Even a small effort makes a difference. With a bad credit history getting a loan is nearly impossible. Start trying to get small loans at places that will report your payments to the credit bureau. This will help to improve credit easily. Making even small payments on time can help you. When you first start you may need a co-signer to ensure the loan is paid.

Do not let a collection agency have your account. Once you have let an account get past a certain point they turn them over to agencies that will do anything they have to in order to get their money. The creditor benefits as well by negotiating and working out an agreement with you because they do not fully recover all their money when this happens. This can lead to judgments as well. Judgments allow your wages to be garnished. In order to improve credit after this you need a near miracle.

Improve your credit by staying at one job as long as possible. It shows stability, so does staying in one home instead of moving around. The longer you are at your job the more you will make. This will give you a large source to show creditors for taking care of your debt.

Alan Largo asked:


We have all been bitten by the debt bug at one time or another. It has many faces and it is almost impossible to escape from. It feeds hungrily on our life-giving credit and takes no prisoners.

Fortunately, there are ways to help combat this terrible menace and keep it from damaging your hard-earned credit. The secret weapon to preventing the debt monster from leaving you in ruins is by using efficient credit repair tactics.

I suggest your first step is to obtain a recent copy of your credit report to see what damage may have been done to it. You need to see a snapshot of your credit history before planning any action. You then should set up your battle plan to revive and reconstruct the good credit standing that you once enjoyed.

Keeping yourself armed with every receipt and proof of documentation you can find is very important. You may need to provide them to the credit reporting agencies in case of any errors that may exist in their records. Also keep the addresses and telephone numbers handy of the credit reporting bureaus in case you need to further contact them for any reason.

It is also great practice to meticulously monitor your monthly credit card statements and all other billing statements that you receive each month. Comb through them carefully looking for any possible billing errors, double charges, changes in finance rates or any other details that look out of place. Very often, something may slip past without you knowing it.

How many credit cards do you own? Are you making monthly mortgage payments and car payments too? You should pay close attention to APRs and it is advisable to pay off the highest rates first. Maybe you should consolidate only the credit cards that you really need and close out the rest.

It is also beneficial to have a credit card with zero or a very low APR so you may wish to apply for one and transfer your balances. The money that you will save in interest charges will really add up.

Depending on your situation, you may wish to consult with your lender and get refinancing. You should always go after a long term solution, not a quick-fix. Like an effective diet, your credit will get in better shape by shedding the debt and cutting down on excessive finance charges.

This is accomplished gradually following a well-defined plan. There are many kinds of credit repair programs and software packages that you can manage from your home computer. They can greatly assist you in budgeting and setting up payment options and offer other various debt reduction strategies that are safe, legal and effective.

Your credit is a reflection of how you use money. Credit scores will sometimes rise and fall due to unforeseeable circumstances beyond your control. But the good news is you can effectively repair almost any blemish on your credit record.

If you can keep yourself armed with the proper knowledge and take immediate action where required, you can prevent your credit rating from taking a tumble. With proper treatment and a little time, you can repair your credit back to where it once was. Soon before you know it, you can get right back on track.