Fix My Bad Credit Score

Reader’s Question:

I never thought that bad credit will actually run after me years after my purchases! I am applying for a home loan in Pittsburgh, Pennsylvania for my family and found out that my application is being evaluated against my credit history. I am breaking into sweat just thinking about it. I’ve already paid them but I’m still worried. What should I do?

Jeffrey

Pittsburgh, PA

Como esta, Jeffrey, I hope this finds you well. I have heard of a phrase before that has sort of stuck with me – “what we do today echoes through eternity” – which is sort of an exaggeration but is actually true nonetheless. You have proven this to be true and I hope that this will serve as a fair warning to all our fellow borrowers out there, to always try to do good with their credit payments.

I know how you feel, man, it is really disconcerting to know that your not so ideal credit history will hinder you from getting your family a home. Do not lose hope, Jeffrey, like you said, you have already fixed your bad credit and therefore you stand a good chance of having your home loan approved. Lenders in Pittsburgh, Pennsylvania are not unreasonable and they will take this into consideration when they evaluate your application.

Let me admonish you now, Jeffrey to be very strict about your payments in your home loan, if you will be approved. The worse thing than being turned down for a home loan is having your home sequestered by the lender due to non-payment. This has happened in the past in Pittsburgh, Pennsylvania before and can happen again. I am not trying to paint a doomsday scenario but would just like you to be aware of this angle.

Tags: bad credit repair, bad credit reports, credit management, credit repair, credit reports

Reader’s Question:

Hello! How are you today? I need some help fast. I will be facing my final interview with a potential employer in Akron, Ohio in a month’s time but this guy from HR gave me a tip that I will be asked about my credit history. Help! I need credit repair fast! I don’t want to lose this opportunity just because of my bad credit!

Derek

Akron, OH

Tsk, tsk, Derek! I’m not passing judgment here but this is a classic case of credit karma, as I’d like to call it. When we get a loan or purchase something on credit, we should be aware of the responsibility associated with it, and that is paying the loan or the credit, at the right time agreed. This is only fair, considering you have enjoyed your purchase and was able to buy it at a time when you had no funds. However, for one reason or another, some creditors fail to fulfill their side of the bargain and end up with a bad credit standing. They sit on it until something like this happens and they realize that the problem they have ignored has not gone away!

Anyway, I’m sure that you didn’t come here to hear a lecture but I just want to stress that we all have to be responsible in fulfilling our responsibilities in these kinds of contracts – whether it is in Akron, Ohio or Tallahassee! So now, my friend, your past is hunting you, and you need to repair your bad credit fast, otherwise (like you said) you may lose this opportunity which you obviously seem to like. What you need to do now is find a way to pay off all your debts so you can repair your bad credit situation.

Instead of robbing a store in Akron, Ohio (which will even make your opportunity disappear faster!), you may want to look for a quick loan that will enable you to consolidate all your debts, with a reasonable interest rate and payment scheme. This way, you will be able to fix your bad credit while afford to pay your new debt. Good luck, Derek, I hope you get this job!

Tags: credit counseling, credit management, credit repair

Reader’s Question:

I learned from a friend that my bad credit standing affects my home insurance application. How can this be possible? Is this the practice in Lincoln Nebraska NE?

Katie

Lincoln, NE

Not only in Lincon Nebraska, but also in the whole country as well, Katie. Credit standing is said to reflect the attitude of a person and though it may sound a bit judgmental, the rule of thumb for most insurers is: bad creditor, high risk. They say that if you are not responsible to maintain good credit, you might not also be responsible in taking care of your home, thereby increasing the risks for the insurers. Like I said, this is just a generalization, but one subscribed to by insurers nonetheless.

Bad credit can drive your home insurance premiums up and so it is advisable to fix your credit first before you apply for a home insurance policy. While you are waiting for this, you can start shopping online for free quotes from this page by entering your zip code. You can print the proposals given by several insurers from Lincoln Nebraska so you can study and compare them side by side. You will also want to speak to them in person because the proposal you got online might not yet reflect the correct premiums due to your bad credit. Each insurer will interpret and underwrite risks differently and you might be able to find an insurer who will not ask such high premiums for your home insurance due to your bad credit.

Tags: bad credit history, bad credit repair, bad credit reports, credit counseling, credit management, credit repair, credit reports

There was a time when credit was not very easy to get. Borrowing money for any reason was actually considered shameful, and being “in debt” was simply scandalous. If people wanted to buy things that they wanted or needed they simply SAVED; they did without those things until they could afford to pay for them in cash. It’s kind of strange, how things have changed!

In pursuit of fat profits, those banks have very cleverly used every marketing strategy possible to make you want something now, not later, after all why wait a lifetime when you can have it now!

Simply put, anyone can get a credit card. It seems you don’t even need a social security number and to prove the point, one man in what must appear to have been a fit of rage in California answered one of those “pre-approved” ads that came in his email and applied for ..

Source: credit card bankruptcy

Reader’s Question:

Hi! I’m opting to consolidate my debts here in Colorado and I’m wondering if I still need a debt consolidation company in order to help me repair my bad credit. I would like some tips. Thanks ahead.

Deanna

Southwest Arapahoe, CO

Thanks Deanna!

Credit repair is such a very tedious process. Although you can go about and try to repair your credit by yourself, getting someone to help you might pull you out in case you meet challenges or problems along the way. A lot of people (I mean a lot!) get themselves into messed up credit standings, but do not have the capacity to repair their own credit standings.

You may want to fix your debt up by yourself, or you might want to try debt consolidation. A debt consolidation would be the third party that negotiates with your creditors on your behalf. The company asks your creditor/s to reduce your debts or arrange repayment terms to make your debts less burdensome.

One great thing about debt consolidation companies is that they’re good at negotiation (that’s what they’re there for, in the first place). And they also protect you from harassments from creditors. Trust me, it happens some times.

Once the negotiation comes out successful, your debt consolidation company will then make a debt management plan for you to make sure that you keep up with your new repayment terms. You then submit all your repayments to the company, who then submits your repayments to your creditors.

The best thing to do right now is to start looking as there are a lot of debt consolidation agencies in Colorado for you to choose from.

Tags: credit counseling, credit management

Reader’s Question:

I am in a very big trouble. This is because my credit standing in Anchorage Alaska AK is in a very bad shape. I have heard there are support for professional help on credit issues. Would this pertain to services of a debt settlement agency?

Darwin

Anchorage, AK

Making sure you settle your debts as soon as you can will give you more peace of mind. So how will you know if you do qualify for debt settlement in Anchorage Alaska AK?

Acquiring a debt settlement is one way to deal with debt problems. In fact, there can be many ways of credit repair. Do you know the steps necessary in getting approved for a debt settlement? You remember some points before seeking debt settlement in Anchorage Alaska AK.

You have to know the type of your debt in the first place. Not all kinds of debt can qualify for a debt settlement. Try to consult your local debt settlement company in Anchorage. They will be able to assist you to determine whether the debts you owe are acceptable or not. The types of debt that are suitable for settlement with agencies are usually medical debt, personal loans, and credit card debts.

There would be some debts that would not be qualifying for debt settlement. These are loans with collateral such as government loans, car loans, military debts, mortgages, and loans from Credit Unions.
You will be able to get sensible advise on how you can control your spending if you consult debt consolidation agencies…so you will never be in a bad debt again.

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

Reader’s Question:

Hi, I’m Shiana from New Jersey. Just about three months ago I got my very first credit card. The problem I’m having now is that I can never seem to understand my credit card bills. Can you give me a super easy way of understanding my card statements?

Shiana

Camden, NJ

Credit card statements can be difficult for a lot of people to understand. It can easily be overwhelming with all its information on charges, credits and APRs. Here are some tips on how to easily understand your credit card bills.

The information on your credit card statement includes purchase and new charges. This section shows an itemized listing of all of the charges you’ve made. To make sure that these are accurate, keep all of your receipts every month and compare them on what’s on your statement. Your statement will also include payment and credits where you’ll find details about any previous payments you’ve made, as well as credits you’ve received for returning merchandise. You will also find finance charges, APRs and previous balance on you bill. The finance charge indicates the amount of money you will be charged if you don’t pay your balance in full. The APR means annual percentage rate which fluctuates but shouldn’t vary significantly every month. And then your previous balance, that should line up with your bill form last month. But of course there is an array of things listed on your credit card statement. If you don’t understand any of the other details or you think there are discrepancies on your bill, contact you credit card company in New Jersey immediately. They should willingly take time to explain the finer points of your statement.

Tags: credit card, credit card debt, credit counseling

by Richard Cochran

What is credit repair? Credit repair is the process of rectifying inaccuracies contained within your credit file, thus improving your credit rating and allowing you access to the levels of credit you deserve. UKDebt24 offers a debt management scheme that could see all your debt being dealt with through one affordable monthly payment. In just 24 hours, UKDebt24 could be dealing with all your debt problems, offering you short-term debt solution and long term financial stability.Many credit repair companies are fraudulent and practice illegal credit repair methods. Any credit repair guarantying that they will fix. Paying off a debt will not increase your credit score very much.

Do you help with credit repair? While we will evaluate your credit report and advise you on what steps to take over the following year, we are not a credit repair agency. It is up to you to do take the proper ..

Source: Credit Repair

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