Credit Repair, Doing it Yourself

By Michael Russell

We all know what bad credit can do to our ability to get financial help when it is needed the most. Although, it is a part of life, things do get out of hand; missing payments and piling up debts; we don't always control everything that happens to us in life. But that does not make bad credit less damaging, anyway. Bad credit could readily make a bad situation worse. It prevents you from getting loans, financial help or credit cards, or makes you pay neck-breaking interests on loans. Since we all will need credit someday, the earlier you start doing something about that bad credit, the better. It sure will be no good to pay off debts just before requesting credit, because most lenders are more interested in your financial history.

It may not be so easy to repair bad credit, but there are steps you can take to make the whole process easier. So, when you find yourself in such a situation, the following advice could be of great help.

I think the first port of call should be the credit bureaus responsible for providing credit reports in your locality or country. Each country has established credit bureaus with the task of monitoring your credit performance, as reported by financial institutions and you can always get your credit report from these bureaus, free or for a fee, depending on your country. If there is more than one established bureau, you may want to get each body's version of your report. It affords you the privilege of comparing the different versions. The reason why the reports may differ is that they are prepared based on the information supplied to the bureaus and it is possible they get different information about your accounts from different reporters.

Once you have the reports, scour them for errors. Don't be surprised to find mistakes or negative comments that are not true in your reports, it happens. You will also want to take note of credits that have been cleared but are still showing in your report, or accounts you cannot remember opening. Fraudsters do open accounts in people's names only to clear out the credit when the attached credit line gets reasonable. These are all very bad for your credit rating. You may also find scathing negative comments in your report. For a start, you will need to clear all these anomalies. Get accounts that are not yours removed from your credit report. Talk to creditors who are reporting negative comments about you or still showing bad debts that have been paid. You may be pleasantly surprised at how many creditors are willing to cooperate once you have explained your situation. The bottom line is communication. Talk to creditors; explain the situations you are facing. People can't help you if you don't tell them what you are experiencing. Besides, you can file a dispute, if you are sure some negative comments or bad debts are not supposed to be on your credit and the creditor don't want to cooperate, especially when you have documents to back up your claims.

There are times when the scathing comments on your report are indeed true. However, if your account is in a good condition now, you could still talk with the creditors and arrange to get the comments removed from your report. Your credit report will look better with fewer of those negative comments. Another factor that needs to be considered is the amount of debts hanging round your neck. Too much debt, definitely, spells pending financial crisis and a low credit rating. Lenders will be reluctant to grants loans or credit lines, if your report shows significant debts, even if you have re-paid most of the debts. Too much debt is a sign of financial recklessness, it does a heck of a lot of damage to your credit rating. The ugliest side of the story is that you will be required to pay higher interest rates for loans if your credit is bad, to cover the risk of lending you money. It is wise a idea to keep debts less than 30% of your limits and to pay off debts with the highest interests rates first.

Just as too many accounts will pull down your credit, too few accounts may also be harmful. If you don't have enough established accounts, your credit may be poorer than it should be. Adding departmental store or gas cards account that are in good standing to your credit report will surely boost your credit standing. Another idea is to get a loan or credit card and buy something you know you can pay for quickly. Re-paying debts on small loans or credit card purchases quickly will speed up your chances of repairing bad credit.

Bad credit is not a thing to get over with in a hurry. It takes time and requires patience. Take your time, clear your debts gradually beginning with those with the highest interests rates. Your seriousness in dealing with past debts could impress lenders and show them you are financially serious and reliable. Whatever you do, remember that you are affecting your financial future.

Michael Russell

Your Independent guide to Finance

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Airline Credit Card - Tips for Getting the Most Miles

By Robert Alan

Travel is one of the most popular ways to spend your down time. With travel agencies online and easier methods of booking flights and hotel rooms, travel is the choice for weekends and vacations of all sorts. And airline credit cards make travel available to all, whether you have a travel budget or not. Here are some tips to getting the most out of your airline credit card.

What Is an Airline Credit Card?

When you apply for a credit card online or at your banking institution, you have the option in many cases of applying for an airline card. These cards work just like rewards cards do in that they offer you something back for every dollar you spend. Most airline cards offer you one mile in the sky for each dollar you spend.

This means that if you spend five hundred dollars on your credit card each month, you could earn five hundred airline miles with that particular airline. This could come in handy when traveling with your family or on business. Some airline credit cards offer different ratios of rewards so be sure that you read the fine print to find out how much you have to spend to get the miles you need.

Restrictions

Many airline credit cards come with restrictions on how you can use your miles. For example, you may need to acquire a certain number of miles before you can redeem them for an actual plane ticket. Other airline cards make you use your miles only on certain days or during certain times of the year. It is vital that you check out the contract for your credit card to be sure what these restrictions are. Another airline card might actually offer you more miles for shopping with specific merchants that the financial institution partners with for this purpose. Check the rewards program details for information on promotions of this kind.

Tricks to Getting the Most Miles

Many airline cards will give you bonus miles for using the card at specific merchants, so the easiest way to earn more miles quicker is to do your shopping with these select merchants. Another way to earn more miles is by using your airline card for your everyday shopping, such as grocery shopping, pharmacy needs, or even online bill paying. Be sure that the financial institution that issued your card rewards miles for the ways you want to use your card.

Check Out the Airline

Overall, airline credit cards are a wonderful way to earn a free vacation for you or for your family. However, in these unstable times, be sure that you check out the financial stability of the company you want to earn miles with. Remember that if you earn miles with a company that goes bankrupt, you may be able to transfer your miles and you may not. If you are able to transfer them, it could take months for the transfer to go through. So check out your airline as well as your airline card.

For more information on airline credit card offers, Robert Alan recommends that you visit CreditCardAssist.com

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Top Tips To Improve Your Credit Score

By Stu Pearson

Improving your credit score is very important and it can help you save money. Your credit must be in good standing so that you can open credit accounts when you need them. Good credit will help you get the best interest rates too.

Your credit score will be based in how well you can pay your bills and loans on time. You must keep your credit healthy and pay promptly. If you have a high score, lenders see you as a better risk, and are willing to give you more credit at better rates.

For your credit score to be good, your goal is to reach above 620 which is considered the line for creditors. If your credit score is below 600, banks have trouble lending you any money. Even your mom or a friend would have a hard time lending to you if they found out your score was too low. Work to keep your credit score up at 620 or higher.

If you are over 700, you still get low rates, though you could do better if your score was higher. Try to get above 760 and you will get the lowest rates and offerings. If you can make it above 850, this is ideal and you’d be offered the best interest rates and payment terms. The average credit score is 723.

To improve your credit score, always pay on time or before the deadline. If you are always late, chances of getting a good score are slim. The idea that “better late than never” is not applicable to this situation. All your late statements are noted, making it almost impossible to escape bad credit.

Keeping your credit balances low is also very helpful. This will lessen the burden of bills you need to pay each month. Lenders believe that if your credit is kept in balance, you will be able to attend to your payments more readily and regularly. A balanced credit line is also an advantage because you are still capable of opening credit cards. If your income is increased and improved, the more chance you have of upping your credit line even more.

Also, don’t open any credit cards that you don’t need. Sometimes credit card offers are very inviting and enticing especially for those who love shopping sprees. If you have a lot of credit cards, you’ll have a hard time paying for each of them. This will lower your credit score an average of 10 points, and most definitely affect your credit lines.

Keep in mind that closed accounts in your credit report don’t just go away. You might think that your accounts from long ago are no longer included in your credit report but you are mistaken. Every single detail and record is clearly stated. Even the oldest things are going to stick with you forever.

Stu Pearson has an interest in Business and Finance related topics. To access more information on line of credit, business lines of credit or on equity line of credit, please click on the links.

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Credit Terms - Tips For Controlling Your Receivables

By Joshua Feinberg

Credit terms and policies for extending credit to customers requires a tight balancing act. You need to watch out for your money and protect your cash flow. You also want your services to be attractive to clients. By following a few simple rules about providing credit and setting credit terms, you will keep yourself in perfect balance.

Credit Terms Rule #1

With new clients, get paid as you do the work. The bill you're most likely to get stuck with, is the first bill a client receives. Quite simply, don't give them credit terms.

Credit Terms Rule #2

Get credit card authorizations whenever possible. Either get a credit card or do a check before you leave. You don't want to extend credit terms to new clients without performing due diligence unless it’s an extremely small amount or you like taking huge risks.

Credit Terms Rule #3

Don't give credit without a rigorous credit application and credit check. No exceptions.

Credit Terms Rule #4

Get something up front. Commit to getting half up front. Securing a deposit check makes all the difference in the world when determining the likelihood of receiving the second half. Once you make this credit term policy - enforce it.

Credit Terms Rule #5

Never extend credit on product sales. You're not going to make much money on product sales. This is an accommodation or incremental source of revenue at best. Get it prepaid or get a credit card authorization.

Credit terms are an important part of operating a business. You have to remember however, you are a computer consultant, not a bank. You are not in the business of lending money so don't make it a habit.

The Bottom Line on Credit Terms

Credit terms are part of business, but you have to be smart about them. Don't extend credit terms to new customers or on product sales. Do get authorizations and deposits before starting work. If you manage your credit terms properly you improve the likelihood of maintaining positive cash flow. This is what allows you to extend credit terms in the first place.

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Joshua Feinberg helps small business computer consulting firms get more steady, high-paying clients. Learn how you can too. Sign-up now for your free access to a one-hour audio training program on Small Business Computer Consulting Tips.

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Credit Card Debt: Coping Tips

By Jeanette Joy Fisher

As interest rates rise and the economy slows down, many people find themselves in over their head, especially when it comes to their credit cards. Here are a few tips for coping with your credit card debt.

First, cut up your credit cards and don't use them again until you've regained control of your situation! Then create a budget for yourself and your family. Be realistic and totally honest in your appraisal of what you really need to spend money on, and how much money you're bringing in every month. Make trade-offs wherever you can to bring the income and expenditure columns into agreement. And don't forget to include saving, if it's at all possible.

If you're already in deep, contact your creditors. They'll actually appreciate your effort, since most folks turn and run scared when they begin experiencing financial difficulties. Tell your creditors what you can pay, but be honest and then stick to that proposal. You'll find that they're generally quite willing to make special arrangements to help you regain control of your financial life.

Try to work out repayment plans with your creditors before they turn your account over to a collection agency. That means they've given up on trying to get their money from you. If your account has gone to an agency, there are Federal regulations that prohibit them from bothering you excessively, threatening you, or making false assertions in order to collect your debt. Even when you've that far in arrears, you still have rights.

Regardless of where you are financially, it's worthwhile to contact a credit counselor for help and suggestions on how to approach your problem creatively and responsibly. Many of them can help work out deals with your creditors that you might not have been able to accomplish on your own.

A word of caution about credit counselors: never pay a monthly fee to a counselor for their services, and never believe that someone can repair your bad credit in a simple, easy way. It can be dangerous, both for your pocketbook and from a legal standpoint, and the repercussions can be severe.

If you're simply too far in debt to get back on your feet again, bankruptcy can help, but it should always be your last resort. A bankruptcy will stay on your credit report for seven years, and can affect your ability to get loans and credit cards for a long time to come.

Nearly everyone gets into financial trouble at one time or another, but if you face your own money problems head-on, you can regain control of your financial life.

Copyright © 2006 Jeanette J. Fisher

Jeanette Fisher helps people with credit card debt so they can buy their first home or multiple investment properties. Free "Credit Tips for Mortgage Financing" ebook http://worryfreecredit.com

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