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Learn How to Improve Your Credit Score!

Feb 6

Posted by admin in Credit

Under state law, consumers in Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey, and Vermont already have free access to their credit reports.

If you ask, only the last four digits of your Social Security number will appear on your credit reports.

What can I do to improve my Credit Score?

Pay your bills on time. This is the big number one! It’s always good to pay your bills on time and that keeps your credit score healthy. It is especially important that all of your recent bills have been paid on time if you intend to apply for new credit or a new loan. Recent late payments weigh against your credit score tremendously.

Don’t close or open credit card accounts near loan time. A good rule of thumb is do not open any credit accounts near a time when you will be applying for a loan. It can lower your credit score, especially if you do not have a proven track record. What’s more, a new account will lower the average age of your accounts, another factor in your FICO score. (FICO is an acronym for Fair Isaac Credit Organization) If you have several credit card accounts but are only using a few of them, you’ll raise your balance-to-limit ratio if you close the unused ones.

Pay off debt rather than moving debt to other places. The ratio of your credit card balance versus your credit limit is the key, so, closing out an account and transferring the balance someplace else simply means you increase that ratio, which is more than likely to lower your score.

Example: You owe a total of $1000 on four credit cards, each of which has a $1,000 limit. Your total credit limit is $4,000, of which your total balance ($1,000) accounts for 25 percent. If you transfer all your balances to two cards and cancel the other two, your total credit limit is reduced to $2,000, and your $1,000 balance now accounts for 50 percent of that limit.

Reduce your credit card balances. A heavily weighed factor in your FICO score is how much money you owe on your credit cards relative to your total credit limit. Generally, it’s good to keep your balances at or below 25 percent of your credit card limit, said Jeanne Kelly, founder of The Kelly Group in Brookfield, Conn., which helps clients improve their credit scores.

Examine your billing statements for errors. This is a commonly overlooked place to reduce debt. Companies do make mistakes. This includes examining all of your bills, not just your credit card bills. Jennifer Tarzian wrote more about this at youngparentsmagazine You?d be surprised at how much money you recover due to correcting common billing mistakes.

Correct blatant mistakes in your credit report. Your credit score is only as good as what shows up in your credit report. Review your reports from all three credit bureaus for accuracy once a year as well as several months before applying for a loan. Changing a mistake on your report – such as a payment that is wrongly labeled as late – can take 30 days to three months, sometimes longer. The way to obtain your credit score and report is listed above in this article.

Healthy credit is important in today’s day and age. More information sharing between companies has been made easier due to new technology, so any blemishes on your credit will be known by all credit reporting agencies almost immediately. Keeping up with your credit score and taking steps to improve you credit score is essential, so take the time.

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5 Steps to Repairing Your Credit Score

Dec 4

Posted by admin in Credit, Debt Consolidation

Your credit score is one of the most important factors in getting a loan, qualifying for a mortgage on a house, getting financed on a new car, or being approved for a new credit card. Repairing your credit score is essential if you want to be eligible for the best deals available. A high credit score tells lenders that you are reliable, and as a result you will get lower interest rates and better terms. On the other hand, a low credit score labels you as high risk, making lenders more likely to charge you a higher interest rate – if they don’t reject you altogether.

Negative items on your credit report, whether they are accurate or not, can be devastating to your credit report. Many people do not realize that credit bureaus frequently make mistakes in reporting credit information, which then affects innocent people’s scores – in fact, one study in 2004 found that about one in four credit reports contain major errors. If steps are not taken to correct these errors, they can have a significant impact on your ability to get a loan or qualify for a new card.

Even if the negative items are accurate, there is still hope for repairing your credit score. By following the five steps listed below, you can eliminate negative items from your credit report and improve your overall credit score, paving the way to more easily obtained loans and credit cards.

Step 1: Order Your Credit Reports
In order to start repairing your credit score, you will need to contact each of the credit bureaus – Experian, Equifax, and TransUnion – for a copy of your credit report. Make sure you order your report from all three, as the information each contains can be different. For example, if one of them made a mistake on your credit report, that mistake may not be repeated on the other two.
Some states mandate that the credit bureaus give you a free credit report every year. If your state is not one of those, you may still be eligible for a free credit report if potentially negative items have been reported recently, or if you have recently been denied credit due to your credit score. Otherwise, you will need to pay for your credit report, but the fee is minor if you only order the basic report.

Step 2: Study Your Credit Reports
Once you have all three credit reports, you will need to look over each carefully. First, you should look for any errors that could potentially impact your credit score, such as:
- Credit card limits that are reported as being lower than they truly are – This may make it look like you carry a higher percentage of your available credit than you actually do.
- Accounts that don’t belong to you – Having additional accounts on your credit report may make it look like you already have more credit than you can handle.
- Inaccurate reports of late payments, judgments, and other negative items – Negative items can severely impact your credit score. Make sure you are not taking the fall for a late payment or a judgment that never actually happened.
- Accounts that are falsely reported as being delinquent – Make sure your credit report accurately reflects each account’s status.
- Negative items older than seven years or bankruptcies older than ten years – Negative items should drop off your credit report in seven years. It takes a little longer – ten years instead of seven – for a bankruptcy to drop off.
- Accounts listed as delinquent that were eliminated in bankruptcy proceedings – If you filed bankruptcy, the accounts that were involved should no longer say “unpaid.”
You should also check your credit report for accurate negative items that you would like to have removed, if possible. Good candidates include:
- Negative items belonging to you that you believe you may be able to contest – For example, if you have made one or two late payments on an account that is otherwise in good standing, you may be able to convince your creditor to remove the negative items from your credit report.
- Negative items belonging to you that are more than several years old – Creditors typically care less about older missteps in your account history, and may not bother to verify the information if you contest it with the credit bureau.

Step 3: Contest Any Errors
If you find any mistakes in your credit report, you will need to send each credit bureau a letter contesting the error(s). You should also include photocopies of any documents you have that support your claim. Keep copies of all your correspondence, and when mailing letters always request a return receipt for your records.
Once the credit bureau receives your letter, they will notify the creditor. If the creditor does not verify the information within 30 days, the item will be removed from your credit report. However, sometimes you may need to repeat this process in order to ensure the errors are removed, so be sure to check your credit reports again in a month or two. If the problem persists, you may also need to send your creditor a letter requesting the error be corrected.

Step 4: Attempt to Remove Accurate Negative Items
Even if the negative items on your credit report are accurate, removing them is essential if you want to repair your credit score. Two types of negative items that you may be able to remove are negative items on an account that is in good standing, and negative items from several years back.
Negative Items on Accounts in Good Standing
If you are in otherwise good standing with your creditors, they may not mind removing the odd late payment report. You will need to send a formal letter stating your request. Be sure to keep copies of all correspondence for your records, and when sending letters always request a return receipt for your records. If your creditor does not agree to your request the first time, you may want to try again at a later date.
Negative Items that are Several Years Old
Often creditors do not care as much about verifying negative items that are more than a few years old, and this may work to your advantage. If you think there is a chance your creditor will not verify a negative item from several years ago, you can contest the item by claiming either that the charge was unfair, or that the negative item is an error.

Step 5: Adopt Credit-Boosting Habits over the Long Term
A sincere effort to repair your credit score also needs to include a plan for the future. Whether or not you were successful in removing negative items from your credit report, improving your habits can only help you in the long run. Here are a few tips to help you keep your credit clean in the future.
- Keep your total credit card debt at approximately 50 percent of your total available credit. Your credit score will be best served if you do not regularly max out your cards.
- Carry two to four major credit cards. Too few credit cards and you won’t be able to build a respectable credit history. Too many and creditors will view you as a liability.
- Keep your older credit cards. Even if you pay off cards and decide to close a few of your accounts, be sure to keep the older cards. Established accounts help your credit score by demonstrating long-term credit history.
- Only apply for as much credit as you need. If you have plenty of credit but keep applying for more, you will only end up hurting your credit score.
Repairing Your Credit Score
Your credit score is one of your most important assets in life. The lower your credit score, the more money you will lose on high interest rates and fees on credit cards, car loans, and mortgages – if you qualify at all. Luckily, with a little time and patience you can repair your credit score, enabling you to qualify for better deals on credit cards and loans.

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Debt Collection In Developing Countries UKRAINE

Dec 2

Posted by admin in Credit

The Ukrainian debt collection industry was only in its formative stages when it met the challenges of the world financial crisis in the middle November 2008. The collapse of the world’s banking system, high and rising unemployment and the subsequent panic led to rapidly increasing bad loans portfolios of up to 20%, with 30% of bad debts being a critical line for the Ukrainian banking system.
Nevertheless, financial institutions outsource debt collection for 7% of their total debt portfolios only leaving them exposed to high levels of risk.  In addition to the misadventures mentioned above, B2C collection suffered a lot from government endeavours to license the collection industry.

The President’s and Ministry’s of justice statements about the illegality of the collection business has led to a decrease in the rates of collection and subsequent effectiveness along with the client’s interest to cooperate with collectors.  As a logical reaction, the collectors looked to protect their professional interests and establish an appropriate legal basis for their activities. In March 2009 an association of Ukrainian collection companies was established, with its first endeavours directed on protecting the collector’s reputation and the development of fair debt collection practice rules.

However, the licensing of the collection companies can an is likely to cause small and medium companies to withdraw from the marketplace. Only 6-8 financially strong collection companies can survive, yet the Ukrainian market is full of dozen’s of small start up collection companies that commenced business in Q1 2009, owing to mass media hype talking about “unbelievable profitability of the collection business in crisis times”.  The situation is much better in the commercial sphere; a lot of trading companies have recovered after the economic shock in February-March 2009 and now are able to pay their debts.

However, B2B collection is less developed than the collection of consumer debts. Commercial debt collection was not a very popular or well-known service for Ukrainian businessmen, until the economic crisis which has changed their outlook.  The share of delinquent debts increased fourfold over the past year; internal collection efforts being not so effective, businessmen are now paying attention to the services offered by B2B collectors.

Thus, the endeavours of B2B collectors are heavily directed on popularization of B2B collection idea. “It is cheaper to outsource collection than to try to do it yourselves”, “Commercial debt collection is fast, efficient and an easy way to recover debts”, – such slogans can be seen in the promotional material of B2B collectors.

Generally, this market is increasing, and as result, nearly 7 collection companies declared their intention to deal with B2B debts in 2009. Experts have stated “it will be hard for them to survive in tough traditional competition with lawyers”, and so it is necessary to for the competition offered by B2B collection companies to became more focused in producing fast efficient and cost effective results, as a lot of legal companies have reduced their prices for legal collection due to the competition..
The future of the Ukrainian collection business is yet to be seen, owing to its infancy, the financial crisis and what is considered in many quarters to be the unreasonable attention of the government. Irrespective, there is no doubt that the collection business is “hard money”, as Ukrainians say, implying it will be not easy to develop high profits dealing in this sphere.

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Facts On How To Improve Your Credit Score

Jun 18

Posted by admin in Credit

Do not become discouraged about debt, just realize that it is important to know the answer to how to improve your credit score. Knowing what actions to take will make a positive credit history possible once again. Patience will be required, but in time, with dedication it will work out.

The first step is getting a copy of credit reports from the major reporting companies of credit. Make sure to get all of them because a certain report might not have what another one does. Once the copies are in, then look to find if any discrepancies exists, and get them cleaned up.

Also, the continual use of credit cards is bad, so stop using them. Closing out an account can also damage credit, so consider it carefully. Also, do not apply for any more cards because a denial negatively affects the score.

The dirty deed of making contact with creditors is difficult. But, it is another way to finally get to a positive credit score. At contact some of the business will work with a schedule for less than the original payment charges. The reality exists that with time past due balances become positive.

To settle past due accounts it could be a benefit to get a second job, or pawn a few items. If the situation is rushed, search around for counseling with people that know about debt. Individuals like these are there to clear the path for debt reduction, and freedom. Acting now, could very well stop court action by others later.

Straightening out a credit score does take work, but it can be done. Again, learning patience and following the course outlined will improve the score, and debt load. It took time to unbalance the debt load, it will take the same to make it positive again. Waiting for the new reports to change the situation is hard to wait for, but worth the time.

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The Importance Of Learning To Read Your Credit Report

Jun 9

Posted by admin in Credit

If you\’ve ever applied for a credit card, a personal loan, or insurance, there\’s a file about you. This file is known as your credit report. It is chock full of information on where you live, how you pay your bills, and whether you\’ve been sued, arrested, or filed for bankruptcy. Consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses with a legitimate need for it. They use the information to evaluate your applications for credit, insurance, employment, or a lease.

Having a good credit report means it will be easier for you to get loans and lower interest rates. Lower interest rates usually translate into smaller monthly payments.

Nevertheless, newspapers, radio, TV, and the Internet are filled with ads for companies and services that promise to erase accurate negative information in your credit report in exchange for a fee. The scam artists who run these ads not only don\’t deliver ? they can\’t deliver. Only time, a deliberate effort, and a plan to repay your bills will improve your credit as it\’s detailed in your credit report.

This is why it is critical for you to fully understand how to read your credit report.

Credit reports are much easier to read now than in the past, because years of pressure from consumer advocates and regulators led to significant changes in the credit-reporting industry. The rise of identity theft was a key consideration for lawmakers when Congress wrote the Fair and Accurate Credit Transactions Act of 2003, which amends the Fair Credit Reporting Act. During that process, consumer advocates and others called attention to the growing importance of consumers understanding how the credit system works.

These days, bad marks on your credit report can determine whether you land the job you\’re applying for, how much you pay for auto and homeowners insurance, and your credit card interest rate, plus whether you have to pay your utility or cell phone company a deposit.

But, despite tougher laws, including free reports for consumers, centralized fraud reporting, and more pressure on creditors to respond to consumers\’ complaints, the credit-reporting industry is still, to a large degree, a black box, and credit reports are not nearly as clear and understandable as they could be. Consumers still get confused.

You should focus on identifying what\’s bad on your reports and the information you\’ll need for planning your repair effort. There are many different styles and formats of credit report, but most of them derive from one of the three super-bureaus that supplied the information being reported. Each of the three main credit bureaus uses a different format, plus each bureau\’s format varies depending on whether you request the report online or order it by phone or mail.

On top of that, regional credit bureaus, from which mortgage lenders and others often buy reports, use their own unique format to list your credit information. The instructions are organized around identifying the basic information you need for repairing bad credit:

1. Credit name (and type of creditor)
2. Account number
3. Status
4. Lateness patterns

Some of the information, such as your name and address, won\’t be new to you, but it\’s useful to know what the credit bureau has listed anyway. Tiny mistakes in any of the most mundane information can affect your credit rating, especially if it means you\’ve been confused with someone else with a similar name.

Also, each credit bureau offers information on its web site on how to read credit reports and how to submit a dispute, and also will mail you that information if you request your report by
mail. When communicating with the credit bureaus, be sure to include the credit report number at the top of your report. Experian calls it the \”report number,\” TransUnion says \”file number,\” and Equifax refers to it as a \”confirmation number.\”

About The Author

Michael Saunders has an MBA from the Stanford Graduate School of Business. He edits a site on Credit Repair and Debt Consolidation.

Writen By : Michael Saunders

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Why You Need To Check Your Credit Score Annually

Mar 25

Posted by admin in Credit

Most North Americans no little or nothing about their current credit rating. The only time they know when something is wrong is when their credit application gets denied. The fact is, you need to know everything about your credit rating and what is in your file or it could spell trouble down the road if you are ever looking to borrow money, applying for a mortgage or leasing a car. So getting your credit report is extremely important and it is something you should consider doing annually.

What is your credit file and how did it get there?

Every time you apply for credit either through a credit card company or if you apply for a mortgage, buy new furniture on the don?t pay for 5 years plan, the banks, financing companies, credit card companies etc. send specific information about the transaction to the credit reporting agencies. These credit reporting agencies collect and store this data that will and can be accessed by other companies at a future date. This credit file contains all the information about your credit activities that companies have send in.

So why do you need to review your credit report annually? Because companies make mistakes when they send information in to these credit collection companies and this misinformation could be very damaging to your personal credit rating.

Another important reason is because of identity theft. This is a craze that is spiraling out of control. People are having their credit ratings virtually destroyed by someone who has stolen their identity and has gone on wild spending sprees. In some cases, it can take years to clean up your credit rating if you have been the victim of identity theft. This alone is the major reason to check your credit score regularly.

Who has access to your credit file?

No one can access your personal credit report or file without your consent. This consent is granted when you fill out a form from a lending institution that says they will be accessing your file or they have told you they will be accessing your file. Each time someone pulls your credit file, a note is made on the file to track this.

People can only have access to your credit file for the following reasons:

? Applying for some form of credit ? card, loan etc.
? Debt collection
? Housing rental
? Applying for employment
? Applying for insurance

With the new privacy laws in place, it is very difficult to get personal information without the individual knowing and consenting.

How to obtain a free credit report:

You can obtain your free credit report 2 ways. You can either submit a request form or you can call credit collection agencies directly. These companies will then issue via mail your free credit report.

Is a free online credit report available?

Yes. However, it may not be a complete report. There are a number of companies that will try and offer a free online credit report. There may be a small fee but you will be able to access your information quickly versus waiting for it in the mail. Remember, be sure you are dealing with a reputable company that is recognized in the industry when giving out personal information over the phone for your credit report.

Credit Report Score:

Every item of credit history is given a score or rating by the credit grantor. The most commonly used ratings in North America are the ?R? ratings. The ?R? stands for revolving credit and you can score from an R1 (you always pay on time) to an R9 (bad credit). If you have a number of R9 ratings on your credit report score, this would indicate to a lender that you are of high risk. They may still decide to lend to you, but expect a higher interest rate than if you had a very good credit score.

The most important thing you can do is clean up your bad credit scores quickly. Lenders want to lend their money out or extend your credit. If they can see a positive trend in your score, they will be more eager to lend to you than if they don?t.

Amy-Jo Strutt is a regular contributor of financial, mortgage and credit articles. For complete information on credit scores and repairing bad credit, check out http://www.reverse-mortgages-loans.com/Credit-Score-Repair.html
For more information on Canadian Credit Scores and Reports, go to http://www.reverse-mortgages-loans.com/canadian-credit-report.html

Writen By : Amy-Jo Strutt

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