Bad Credit Loans

Monday, February 23, 2009

How to Repair Bad Credit

Many businesses have sprung up to offer assistance to those who need credit repair help. There are credit repair specialists, credit repair lawyers, credit repair kits and credit repair counseling; the list goes on and on. Consumers who are confused about how to repair bad credit are even more confused by this vast array of services and items which are supposed to help. There are certain things that you can keep in mind which may help you choose between credit repair counseling and other products. Credit repair is a very individual thing. Everyone has different issues and therefore has different needs.The first stop in a “how to repair bad credit guide” At this website the consumer can view his or her credit reports. This is the basis of your credit score. The FICO score is all that most lenders look at these days and many decisions are made by computer, but the information recorded on your credit report affects your FICO score. Before you get credit repair counseling or some other service, check your credit report for inaccurate information.The credit bureaus know how to repair bad credit, but they will not help you much. You must report any inaccurate information that you see to them. Even people who have excellent credit need to keep an eye on their credit reports. Identity theft is fairly common and can ruin a person’s credit rating. If you believe that you may have been a victim of identity theft, then you should notify the credit bureaus immediately and have them put a “fraud alert” on your account.Many people get credit repair counseling and consumer credit counseling confused. They are not the same thing. Consumer Credit Counseling Services, which are non-profit organizations, do many things to help consumers create a workable budget and pay off their debt, but they do not provide information about how to repair bad credit. Some “for profit” companies have chosen names similar to “Consumer Credit Counseling Services” in order to attract business. So if you are in need of credit counseling, rather than credit repair counseling, it is recommended that you learn about their fees up front. Even the “non-profits” charge a fee, but it is far less than that charged by the “for profits”.If a credit repair counseling service is not associated with a law firm, the consumer should get the details of what services they are offering; what is included in their “how to repair bad credit plan”. Some credit repair counseling includes explaining what the consumer needs to do to repair his or her own credit; have negative items removed from the credit reports, make sure all information is accurate and up to date and include a consumer statement, sometimes called a “hundred word statement”. This information is also available in books, software programs and so-called credit repair kits. People who want to know how to repair bad credit and do not have limited finances often choose to spend twenty dollars or so to buy the information and attempt the process themselves. This can be frustrating and time consuming, but it may pay off in the end.Credit repair counseling services that recommend “file segregation”, changing social security numbers or using an employer ID number should be avoided because of the legality of these options. The Federal Trade Commission recommends that consumers beware of any credit repair counseling service that promises results in a very short period of time. You may want to know how to repair bad credit, but you do not want to waste money or end up with legal problems.

Bad Credit Doesn’t Have To Mean No Loan Help

Everyone faces unavoidable financial problems at some time and find that they are in an impossible situation and unable to meet their obligations. This situation might make some feel that it is hopeless to find money help, but that is not necessarily true.There are two types of bad credit personal loans, secured and unsecured. A homeowner may qualify for the secured personal loan and non-homeowners may apply for the unsecured bad credit personal loan. Bad credit should not affect your ability to obtain a home mortgage loan. The interest rate for a home mortgage loan will depend upon your credit rating. If the credit score is 600 or above, the borrower is usually required to pay a 5% down payment. Credit scores that fall below 580 necessitate down payments of 20% or more. However, reputable bad credit mortgage lenders do not require unreasonable down payments of 50%.Bad credit secured personal loans are worth considering if you own property such as real estate, automobiles, valuable jewelry, or other types of assets. However, it is important to keep in mind that the collateral may be seized and sold by the lender in the event of non-payment. In addition, there are bad credit automobile loans that are easy to apply for with minimal requirements to qualify, such as an income of $1,500 per month, proof of residency, and verifiable employment. There are reliable lenders who have reasonable interest rates and offer good financing options.Debt consolidation loans are another option to consider if you have a history of bad debt. These loans consolidate your debts into one loan, allowing you to make one monthly payment that you can afford. Unsecured debt consolidation loans are not tied to your assets, and they eliminate annoying calls and letters from creditors, as well as helping you avoid filing bankruptcy.

The Way Out With 0 APR Credit Cards

I don’t know that credit card ARE a luxury. The days of needing a job or an income to get a credit card are long gone. What kind of credit card are you looking for? The advantages of a credit card are that you don’t have to possess the money at that time to pay for your purchase. Since it is gaining importance in our lives, the use of credit card are also on the rise. The choices available for these plastics are enormous, with a wide variety of interest charges, annual charges, loyalty schemes, and bonus points available. If you buy a good or service over the internet, you may find that only certain types of payment and types of credit card only.Let’s address the issue at hand, why do you even need a 0 APR credit card for. First of all, ensure that the benefits of your credit card are the most appropriate for your lifestyle. The only costs you’ll pay for a credit card are the interest fees on unpaid balances. If at any way you think about it, spending more than your means will mean that debts will eventually get to you. Debts that won’t let you go so easily once you have been ensnared by it. Secondly what features in a credit card are most important to you. Both a very low and a 0 APR credit card are promotional programs offered by credit card companies so to get the consumers on the hook.Finding a good a 0 APR credit card offer can be a great way to pay down the balance on existing high interest cards without paying a lot of fees. So when the bank makes you a 0 APR credit card offer, you’re liable to jump at the chance. Make sure you have in mind a new low interest or 0 APR credit card waiting by to which you can transfer the balance of your present credit card. By paying an annual charge for your card you are not truly getting a 0 APR card.But don’t get too excited yet, there are some downsides to having a 0 apr credit card. Credit card debt is one of the most common problems of the Western world and 0 APR credit cards are not exampted. If you are knee deep in credit card debt and you can barely pay the finance charges, the only wise course of action is to eliminate credit card debt and to begin now. Use this calculator to determine how long it will take to pay off credit card debt! These innocent plastic that looks as if there are no strings attached have in actual fact, plenty of fine prints to it. Usually, there are hidden clauses that the 0 APR credit card are for a limited time period or amount after which there is heavy interest.There is a way to consolide credit card debts. I know it sounds crazy but it’s possible to get out of debt by using 0 APR Credit Cards. Follow the link to find out more.Are you looking to boost your credit score today? How about I show it to you for free? David Burrow is the CEO and author of Report Annually where he offers free tips every time you visit his site!

Friday, February 20, 2009

How To Deal With And Negotiate Settlements With Creditors

First, know your foe! By that I mean you must understand who you will be talking to. There are two types of people that creditors will hire to deal with their clients. The first is for customer service, to help handle problems and answer questions for account holders. These folks are nice, kind and patient. That’s why they are hired.The other type is hired for the collection department. They are hired because they are heartless, don’t care about you in any way and are ruthless in getting the money. Once you fall into a collection account, the creditor doesn’t care if you like then any more… they just want their money back.So when you call in to negotiate terms, you must be aware that you will be talking to the jerk that wants your money, not the sweet lady that wants to help you.Now that you are mentally prepared for battle, there are some very simple techniques to employ that will help and protect you.When you talk to anyone, and I mean anyone, make sure you get their name (full name preferably), their direct line or extension, and any other pertinent information they give you. Write this down! That way if you ever need to do follow up, you can get back to the same person and not start all over from the beginning again. (Trust me; you will thank me for this one!)When you talk to the collector, let them know that you are calling because you want to make arrangements to settle the account. Do not worry about telling them why, how or what about the account and what is going on in your life They won’t care at all. You have to understand that there are so many people out there that just don’t want to pay their bills and lie about horrible things. The collector has heard all the “stories” and will automatically assume that what you are telling them too. (Again, that’s why they are hired for the job!) So, honestly, don’t waste your time. Keep it business like and calm.Right off the bat they will want to collect the entire amount right now. Don’t go for that at all. Ask the collector what they will accept for a settlement. (Again, be sure to write this stuff down.) They will either come back stating they cannot offer anything lower, or that they can take something like 10% off. You should already have a goal in mind (a reasonable goal) and should continue on your path towards that goal.. get as close as you feel you can.If after you have spent some time with the collector and they cannot or will not offer something close to what you are willing to settle for, ask for their boss or supervisor. Do not allow them to tell you the boss is not there. Call centers ALWAYS have a supervisor there if for no other reason to make sure the people are on the phone!When you talk to the boss, get their info and then negotiate with them. Stay at it until you get a fair settlement offer (Fair for both you and the creditor remember, you most likely do owe them the money!)Now let’s assume you finally got a decent settlement offer. Before you send them any money, demand an agreement in writing. Have them fax (or mail) the agreement to you before you give them any financial or payment info. Once you have the agreement stating they will settle for a certain amount, make sure that you pay them in such a way that you can prove you have made that payment (personal check, copy of cashier’s check, etc.)A word of caution here most skilled collection agents will assure you that they will update the credit bureaus for you… no need to wait for an agreement. They may also tell you that the only way to get the settlement offer is to pay right away without the agreement in writing. DO NOT FALL FOR THIS! If you ask for this agreement in writing, they must send it to you. If they won’t them inform them that the agreement is not acceptable and that they will get not one penny from you. (This will make them stop a second and rethink their position as the collector get s paid when they collect!) Do not get angry or blow up. Even though this can be frustrating, the calmer head wins.Once you have the agreement in writing and have made payment in a way that is traceable, you will now be able to show that you paid according to the agreement, even if the creditor never sends you a “paid in full” statement. (MOST WON’T SEND IT!)Then all you have to do is send that info to the credit bureaus for an update. You now have all the proof you need to prove that the account is paid, and that the credit bureaus must update it.Remember to always keep a copy for your records, just in case the creditor still sends the account to collections (which can happen, even if by mistake.)Once these collections are paid and updated on credit, it will take some time for your scores to rebound… typically 6 months. But once they are settled, you should not really have to worry about them again and your credit should get mush better over the long term.About the author: Ed Nailor is a webmaster, writer and works in the financial and credit fields. His websites, BestNewCreditCards.com, OrchardBankApproval.com and PlasticPlatinum.com have the most current credit card offers online. Each card has a comprehensive review, details about each offer, and a link to the site for instant online applications. For more information on home mortgages in North and South Carolina, or to contact Ed Nailor directly, visit his website at DropRent.com

Free Credit Report Online

If you’ve taken a look online, you’ve probably found a number of sites that offer to provide you with a free credit report. But is it really free? That’s not easy to answer. It’s quite possible that you won’t need to pay for the report with money, but you may find yourself paying in other ways once you’ve entered in all your personal information. Some companies will then use that information to pester you with spam, junk mail or even annoying phone calls. So in many ways, a free online credit report really isn’t free at all. Quite often you will need to sign up for an offer, which might include a trial membership to service that traces and looks for irregularities in your credit history. You may even have to sign for services that have nothing to do with getting a free online credit report.In the end, you might actually be better trying to find a credit report online that’s cheap, although the free ones might still be worth it. After all, it’s important to keep your credit history clear, and it can be a good idea to check what’s listed on your history before you apply for a loan. Do you remember when you changed addresses and missed the last cable payment? That’s a black mark on your credit history. Running late with a credit card payment? That’s on there as well. All of these things damage your credit, and if there’s enough of these little slip ups on your credit record, you may find it difficult to get a loan from a regular lender. It’s also possible that there are things on there that have nothing to do with you, and have either been placed against your name by mistake or by someone committing fraud.Identity theft is on the rise, and a criminal may have been using your personal information to buy cellular phones and order credit cards. Once they have your name and identity, they can rent a home in your name or apply for loans. Unless you regularly check your credit report, you might not even know that these things are happening until one day you’re refused credit and you don’t know why. It’s much harder to clean your credit history than it is to mess it up in the first place, so checking it regularly can be insurance against having a big mess to clean up down the track. Removing all the fraudulent entries can take as much as a year, and will cause you a lot of hard work and frustration. Getting regular credit reports can be costly, and that’s why it might be worth getting a free credit report online, even if you have to put up with a few junk letters afterwards.

How To Dispute Your Credit Report Errors

Your credit report contains important information about you. It generally includes facts about your identification data, your bill-paying habits, inquiries and public record information.Credit bureaus compile and sell your credit information to businesses, which use it to evaluate your credit applications. Therefore, it is important that your credit report contain complete and accurate information.Under the Fair Credit Reporting Act, you have the rights to dispute the completeness and accuracy of information in your credit files.If you find information in your credit record that you believe is inaccurate, what you need to do is to complete the special investigation request form that comes with your credit report. Follow the form’s instructions to fill out all of necessary information.You may also want to attach a letter to your completed form, dated and signed by you, and along with copies of any documentation you have that helps prove the error in your credit report.The documentation might include copies of canceled checks, sales receipts, account statements, or previous correspondence between you and the creditor involved.Attaching a letter to the investigation request form is always a good idea if you don’t think that the credit bureau’s investigation form gives you enough space to explain why you think there is error in your report.Keep a copy of your completed investigation request form, letter, and backup documentation. They provide you with the records of what you said and when you said it. Also, the date on letter will let you know when you should have heard back from the credit bureaus.Once you have completed the investigation request form, mail it, along with your letter, and copies of any documentation. Send it by certified mail with a request for a return receipt. When you get the signed receipt back, file it with the rest of your credit record information.When a credit bureau receives a dispute, it must investigate and record the current status of the disputed items within a “reasonable period of time,” — between 30 and 45 days, unless it believes the dispute is “frivolous or irrelevant.”If the credit bureau cannot verify a disputed item, it must delete it.If your report contains erroneous information, the credit bureau must correct it.If an item is incomplete, the credit bureau must complete it.If a investigation does not resolve your dispute, the Fair Credit Reporting Act permits you to file a statement of up to 100 words to explain your side of the story.The credit bureau must include this explanation in your credit report each time it sends it out. Credit bureau employees often are available to help you word your statement.Be aware, however, that when negative information in your report is accurate, only the passage of time can assure its removal.Credit bureaus are permitted by law to report bankruptcies for 10 years and other negative information for 7 years.Also, any negative information may be reported indefinitely for use in the evaluation of your application for:- $50,000 or more in credit;- a life insurance policy with a face amount of $50,000 or more;- consideration for a job paying $20,000 or more.