Fix My Bad Credit Score

1. Interest only mortgages really get a bad rap when it comgees to talk about home loans. Many financial experts talk about how bad they are because you never gain any equity in the home because you are not paying down the balance. They are right in this conclusion because you are not required to pay down the balance during the interest only period of the mortgage.

2. What many financial experts or gurus do not tell you is that you have the choice to pay down the mortgage if you want. The mortgage company is not telling you that you have to for a certain period of time. Typically most interest only home loans are a normal 30 year fixed interest rate mortgage where the first ten years of the loan are an interest only option period and then at year ten it turns into a 20 year principal and interest loan where ..

Source: Real Estate

Ashley writes in and asks:

Hi I’m trying to check my credit score but i cant because I don’t have a credit card to type in and all I want to do is just know what my score is one time so i can make it good so could you please help me.

Ashley,

What a good question. I had to go hunt down the answer but here it is, if you use the credit score or credit report link you can pay for it with a checking account or debit card.

Steve

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Source: Credit Score

Reader’s Question:

I usually take advantage of low introductory rates on credit cards and avail of free annual fees. So, I’ve already opened and closed several accounts in the past four years. Do you think this will hurt my credit rating?

Peggy

St. Louis, MO

Actually, we all want to take advantage of better deals and there’s nothing wrong with pursuing teaser rates. Offers such as low introductory rates on credit cards and free annual fees are very enticing in deed. But it is also very important to take note of all your accounts- both old and existing. Just make sure that you maintain a very good payment history and your credit report reflects that your closed accounts were tagged as “closed by customer.” What will hurt your credit rating is tolerating unwarranted number of credits that could possibly be a cause for being denied of a loan. Somehow, it also depends on other factors on your credit report. Apparently, 10% of your FICO score is determined by “search for new credit”. It hurts you worse than if you wait a few months in between if you apply for many cards in a short period of time. Your credit scores distinguish between a search for a single loan and a search for many new credit lines. In addition, some credit card issuers are starting to screen out people who jump from card to card, so there would be a possibility that you might be turned down for a card at some point. Just in case, prefer cards that provide you with a low rate even after the introductory period.

Finally, you have to keep an eye on the details. Other card issuers have tried to impose account-closing fees, or charge a fee for using a convenience check to transfer your balance. If you close an account within 90 days of opening it, a fee for closing an account is typically imposed. There are some banks that will zap you with the fee if the account is closed within six months. If this is the case, then the offers given to you initially would eventually be useless.

Tags: credit cards, credit repair, credit report

Reader’s Question:

Can you tell me more about secured and unsecured cards and which one is better?

Evelyn

Fort Wayne, IN

The term “secured” comes from the fact that you must open a savings account and deposit a minimum amount that usually ranges between $200 and $500 before you can use the card. Your deposit is considered your security and some card providers will even allow the deposit to earn interest. The amount that you deposit into the account generally reflects your credit limit. It is important to understand that a secured credit card is not a debit card. Thus, if the customer fails to make sufficient payments, each month, interest will be charged on the outstanding balance and the deposited money will be used to satisfy the credit card debt.
An unsecured credit card, on the other hand, is generally issued to those who have a good credit history and have demonstrated an ability to repay the accrued debt on time. Credit limits are determined on an individual basis, and may be raised or lowered based on performance. An unsecured credit card is essentially subject to credit checks and credit approval though. Unsecured Credit Cards are simply credit cards that do not require a security deposit on the account.

So, which one is better?

You should consider getting a secured credit card if you have a bad credit score and cannot get a pre-approval for other credit cards, or if you want to increase the lines of credit other companies are willing to offer you. Secured cards generally accept everyone, it can easy way to start building or rebuilding credit. It is also generally used to help people raise their FICO scores, or the line of credit that companies are typically offering them. However, if you have a decent credit score and you want lower interest rates, then you should go with an unsecured credit card.
Your choice depends on your situation.

Tags: credit counseling, credit repair, credit report

Reader’s Question:

Hi, I just got my credit card as a graduation gift. I have heard horror stories though with lost or stolen cards. What happens if my credit card is lost or stolen and what should I do?

Nicholas

Los Angeles, CA

Hi Nick,

Well, I hope that won’t happen in the future. But if it does, as soon as you find out that your credit card is lost or stolen, you need to contact your credit card issuer immediately. The 24 hour emergency number provided by your credit card issuer is written on your statement. You are expected to report stolen or missing cards as soon as possible or at least within 24 hours, for that zero-liability luxury. To prevent any fraudulent activity, you are required to verify your credit card number, the circumstances of the loss or theft such as date and location, the last authorized charges to your account, and any access or purchase checks numbers that need to be honored.

However, some card companies admit that they rarely enforce this requirement. But it is still the wisest practice to get on the phone and notify them as soon as you see the card is gone or the minute you see transactions made without your permission. Make a follow up on that call with a letter confirming the facts of the loss or the phantom charges on your statement, and also include the details of your call (name, time, date) The rule of thumb is simply to be “better-safe-than-sorry” .

If you report the missing card and have not compromised your Personal Identification Number (PIN), you will not be responsible for any confirmed fraudulent activity that occurs on your card. Your current card will be blocked and a replacement card will be ordered. You will be issued a new card and any remaining balance will be transferred.

It would also be best to review your credit card company’s policy when you get your card deal because there are always exceptions. Card companies are more liable to ask for their money if you have done something reckless, like not reporting the card stolen for a period of time.

Tags: credit cards, credit repair

Reader’s Question:

I know that I have been mailing in my credit card payment on time, but the bank says it usually arrives late. I still prefer sending out payments in the mail, but with the late fees accumulating, I need to reconsider other payment options. Can you help me out on how avoid late fees and interest?

Jonathan

Columbus, OH

Yes, credit card interest rates and fees are on the rise. Before, credit card providers used to charge a late fee only if you were late by a full billing cycle. But now, you may provoke a fee even if you are just a day late. But if you have a clean track record, if you think you would be late, a phone call may be all it takes to waive the charge as a courtesy to customers with good payment history.

These can be your guidelines to avoid late fees and interest:

• Follow your card issuer’s payment rules precisely- To ensure that your payment gets credited immediately, it’s a good idea to mail your payment at least one week in advance of the due date. If your credit card bills are due at a time of the month when you’re running low on cash or before your pay date, many card issuers will let you set or move your own due date — if you ask. This will help you manage your finances each month.
• Pay minimum immediately- It is also a safe strategy for those who sends a card payment by snail mail to pay the bill as soon as it arrives, even if you can only make the minimum payment. Another great way to guard against late fees is to give your issuer the 2 percent minimum payment it requires as soon as possible and you can always send a bigger payment when you’ve got more cash.
• Payment options - Other ways to pay would be paying your bills online, paying over the phone, via express mail or wiring the payment. Just make sure that you send payment with proper postage to the payment address requested by the card provider.

Tags: advice, credit counseling, credit repair

Reader’s Question:

My credit standing in Las Vegas, NV is in a very bad shade. I think I need professional help for my credit issues. Would there be any qualifications for me to be able to avail service of a debt settlement agency?

Caren

Las Vegas, NV

Nothing can give you more peace of mind that dealing with your debt problems as soon as you can. But the question that you might be asking is: do you qualify for debt settlement in Nevada?
There can be many ways of credit repair and acquiring a debt settlement is one way to deal with debt problems. Do you already know the steps required in getting approved for a debt settlement? You remember some points before seeking debt settlement in Las Vegas, NV.

First of all, you have to know the type of your debt. You also need to be aware that not all kinds of debt can qualify for a debt settlement. You can ask your local debt settlement company in Las Vegas whether the debts you owe are acceptable or not. Normally, the types of debt that are suitable for settlement with agencies are personal loans, medical debt, credit card debts- just to name a few.

Some debts that would not qualify which I can name are loans with collateral such as government loans, mortgages, car loans, military debts and loans from Credit Unions.
The good thins about consulting debt consolidation agencies is that you will be able to get sensible advise on how you can control your spending so you will never be in a bad debt again.

Tags: credit counselling, credit management, credit repair, debt consolidation agency, debt settlement

Reader’s Question:

I need urgent help with credit repair for a bad credit card debt which haunts me all the time. What are the ways I could consolidate my credit card debts in Jacksonville, Florida?

Karla

Jacksonville, FL

Do not worry too much about your debts, Karla. For any one who is in a bad credit, there are always some options for credit repair that can be done in Jacksonville. One way is to consolidate credit card debts through a balance transfer credit card. This will be possible if you own more than two or more credit cards and you have existing balances with each of these cards. Essentially, this means that you have the option to consolidate these balances into one.

It’s good to know that there are available balance transfer credit cards that usually offer lower rates of interest or zero APR for a certain time period. Say, zero interest period may last from 6 months up to one year, by which during this time, the credit card holder can pay off the original amount of his credit card balances. This can happened even without incurring additional interest rates. Mind you that even if balance transfer credit cards offer only a temporary relief, you can take advantage of this period to get off from credit card debts.

For most who can’t control spending and are clueless about debt management, there needs intervention by a debt consolidation company to facilitate credit repair and get free from debts. If you are one of these people in Jacksonville, Florida, then debt consolidation agency might be necessary. Although, remember that it is still possible to work on your own debt reduction plan without seeking help from a debt consolidation company in Florida.

Tags: credit counselling, credit management, debt consolidation agency, credit repair

Reader’s Question:

I messed up my credit a great deal and I want to be out of my debts as soon as possible. Is there any agency or company that can help me manage my credit? My life in Tallahassee, Florida is very much out of sorts because of a bad credit.

Tommy

Tallahassee, FL

You better consult a credit management or debt consolidation agency in Tallahassee, FL. These agencies in Florida will help you execute an efficient budget plan or debt management plan not only to get free from debts but also to avoid getting stuck in debt all over again. Do you practically find it difficult to manage your finances or control your spending all the time? Then the problem that you have may be a lot more serious than you think.

Seeking credit counseling is a very wise decision for anyone who is immersed in a bad credit. This should help you take control of your finances now and forever. Just remember to check the background and reputation of the credit counseling agency you’ll run to in Tallahassee, Florida. This is because there are many false credit counseling agencies that do not offer help at all. These fraudulent companies, which might be around in Florida too, can charge unreasonable fees for their services and will not be a great help.

The company’s track record is so important that you need to do a little research in Tallahassee. Try not to be too desperate and choose one that is accredited by the government of Florida FL and national organizations.

Tags: credit counselling, credit management, debt consolidation agency

Reader’s Question:

My brother found that out that his credit card has been billed in error several in the past. The latest error was made two months ago when he was charged for something he did not purchase. He sent an e-mail to the credit card company only to get a response saying the issue should have been brought to their notice sooner. What should I do in case the same thing happens to me?

Dana

Clearwater, FL

The law identifies a wide range of card problems as “billing errors.” An example of error is being charged for something you did not buy which is exactly what your brother’s case has been.

Good news is that the law is on your side so you can fight the improper charge should the same happen to you or to him again. And what gives you the right to fight rather than pay is The Fair Credit Billing Act.

The important rule to be protected under this law is to dispute any errors you find on your bill in writing. And the best thing to do is to send a dispute letter ASAP because e-mailing or faxing a letter will not protect you. And the reason why you’ll have to mail your dispute letter quickly is because the deadline for notifying your credit card company is only 60 days from the date that the bill was mailed out to you.

Your letter must include your name, address, your account number as well as a clear description of the problem and don’t forget to keep a copy for your records.

Lastly make sure you send your dispute letter to the address for “Billing Inquiries,” which should be listed at the back of your bill.

Tags: credit card debt, credit counseling