New Credit Repair – Free Credit Repair Help

Reader Question Should I use my Visa card or a gas credit card to pay for gasoline? Is one better than the other?
Rex,

Houston, TX

Credit cards can be a great asset if used wisely. At least they are convenient when you urgently need something and just don’t have the cash at that moment to pay for it. Take for instance the recent increase in gas prices. Credit Card companies have responded to these high gas prices: Discover Card recently made huge changes to its credit card offerings to bring their cardholders a gas credit card that competes with the Chase version. The Chase PerfectCard™ gives you six-percent rebates on all eligible gas purchases at any gas station for 90 days and one-percent rebate on all other purchases.

Reader’s Question:

I filed bankruptcy in 2000. its 2008, 8 years later, it is still on my credit report. How long do foreclosures and bankruptcies stay on a credit report?

James

El Paso, TX

Foreclosures and Bankruptcies can remain on a credit report for seven to 10 years.

Some lenders will consider a borrower earlier if they have reestablished good credit standing. The surrounding circumstances with the bankruptcy may also influence a lender’s decision. For instance, if you went through a bankruptcy because your employer had financial difficulties, a lender may be more sympathetic. However, if you went through bankruptcy because you overextended personal credit lines and lived beyond your means, the lender probably will be less inclined to be flexible.

Reader’s Question:

I am planning to go through credit counseling. What is the general process for credit counseling agency?

Linda

Dallas, TX

Let us assume that you are referring to credit counseling offered by companies like Consumer Credit Counseling Services, a not-for-profit company, this is the general process:

1) You will first enter counseling.
2) Then you have to destroy your credit cards and turn over the bills to them.
3) judgments, collections and other debts are also turned over to
them.
4) You will have to work out a budget with them, including everything you spend,
and figure out how much you can pay per month on your debt.

Now, they will contact the creditors and tell them that they are managing your accounts. So the creditors will close the accout, and mark the account ‘Closed by Credit Grantor’ in your file. This may also have the notation ‘Managed by CCCS’ or something similar. The credit card companies may (or may not) choose to lower the interest rate they charge you.

Reader’s Question:

I am in debt up to my nose. Does anybody have any solutions or suggestions to help me get everything paid off? I was looking in to debt consolidation but I am not really sure if it is the best option for me.

Jim

Cleveland, TX

Consumers who are seeking help with their financial problems are under great stress, and can easily be taken in by unscrupulous operators in the credit counseling industry.

The truth is that the answer is very simple and you probably already know about it. You just need to keep chipping away at the debt with regular payments, and not run up any new debt under any circumstances. Debt consolidation is the only a good idea if it’s not going to cost you more, and it might. You may check out the interest rates, fees and terms to be sure.

One of the very best things that you can do is call up your credit card company or bank etc and make a payment arrangement where you can have a payment for a fixed amount every month. It will be less than your installment would usually be, so it will make your bills more manageable, and they will freeze your line of credit so you can’t run up any more debt

Reader’s Question:

Is it easier to clean up your credit after you go through debt consolidation or file Bankruptcy?

Bonnie

Houston, TX

Bankruptcy is better for me than debt consolidation. It wipes out your debt (depending on if you file Chapter 7 or Chapter 13) and within one year usually afterwards you can start getting small loans and credit cards and start rebuilding your credit. Debt Consolidation takes you forever to get through it and then after spending all that money and time to get out of debt you still have to rebuild your credit.

There is a lot of advice that you could receive, but none as good as that of a real financial advisor. I would go see one of them if I were you. They will be able to help you find the best option to suit your current situation. This may cost a little bit of money, but it’s worth it to not have a permanent mark on your credit record.