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Posts Tagged ‘credit’

The 6 Dirty Secrets About Debt Consolidation The Banks Dont Want You To Know.

16 Apr

Yeah, these myths has been spread very fast, and there are some trues you really need to know, once of the best examples is that you need a professional agency to do it for you, even they can help you to do it, you can do it for yourself. I did it so can you!, our next step will be to revel the truth from some of the most common myths about credit repair and debt consolidation issues.

Myth 1: I can’t do it by myself, professionals needs to handle this situation.

As with many things, we need help once in a while, but credit repair is certainly something that you can do quite easily on your own with a little elbow grease and time. When I first looked at my credit report back in January 2007, I saw some late pays, a judgment, and some other “not so good” marks on my credit report. I screamed, “I’ve got to get a credit agency to help me with this! There’s no way I can do this myself!” Yeah, so I thought. How did I do it myself? I got educated that’s it. And now, you are going to get the best education on how to repair, rebuild, and maintain your credit score. After some time of taking a more in-depth looking into my credit report, I noticed some huge mistakes by either the creditor or credit bureau. These were not my mistakes, but the mistakes of “The Man.” I found mistakes on multiple accounts, ranging from multiple late pays, wrong accounts, to closed accounts, when in fact they were open. Turns out, it’s estimated that anywhere from 75% to as many as 90% of credit reports contain errors.

The Myth number 2: Your bad credit can’t be fix.

Absolutely wrong. Having a bad credit does not mean that you can not fix it, it may take some time to fix it, but you can repair it, get positive lines of credit and have a new start, get your self in the right track to good credit. I remember how with a 520 credit score I was turned down for a credit card at Banana Republic in front of everybody in a very important Holiday, yeah pretty embarrassing but remember if I could do it you can do it too, It is just a matter to get educated and my videos will show you how to get the education you need to repair your credit.

The myth # 3: One credit Score is all you have.

The reality is that you have 3 credit scores, there are from the major credit reporting agencies, all 3 show different scores, so when applying for a credit one company may use a different report than others, it is always good to check your credit score in the 3 bureaus, because they can vary a lot among them.

The 4 Myth: If you check you credit this will lower your score.

There are different types of inquiries: soft inquiries and hard inquiries, the hard inquiries are the ones that will affect your credit score and these are done from the companies you wish to get the credit from, the other inquiries does not affect your credit score and those are the inquiries where you just want the information for promotional porpoises.

The Myth # 5: If you are shopping around for a Loan your score will be lower.

This is one of the most common myths, remember that if you are looking for a credit from several vendors (mortgage, car loans, home loans, etc…), all this inquiries will appear in your credit report just once but remember that this just apply if the same kind of inquiry is made within 14 days, the only exception to this rule are credit cards.

Myth # 6: If I remove all the negative items my credit score will improve.

This is a partial true, because “erasing” your bad marks is just one piece of the credit repair puzzle, remember that while removing “negative items” will help you in your credit score, just building “positive credit” will take your score further. Remember when you were denied from a credit card company because you did not have credit? the true is that you did not have positive credit build up with credit card companies.

“How to reduce your credit card interest rate with one simple phone call” this is a free advice

It’s actually quite simple. How to do it you ask? Break out your telephone, call them, and ask to reduce your interest rate. Mention that you have sitting in front of you, a credit card with a lower interest rate. Possibly a zero percent interest rate for 6 months, which then turns into a 8% rate. If your current rate is 22%. A simple call will lower it. Mention that you are looking to balance transfer unless they lower your interest rate. Be nice to the operator. If they cannot drop the interest rate, speak to the supervisor. In most cases, after speaking with the supervisor they will drop your rate. To threaten to leave is the key.

Before declare bankruptcy go to Miguel Pancardo site and get his excelent free report on debt consolidation Toronto and how to get out of debt in his website.

 
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Will Debt Settlement Become A Proper Decision?

23 Mar

You have probably seen ads about debt settlement. It involves negotiating with your creditors to lower the amount you owe. In some cases, that can be substantial. Is it legitimate? What does it cost? How do you go about it? What does it entail? Here is some information to consider.

You can hire a debt resolution company to negotiate your bills for you. The may try to settle the debt in its entirety. You might need to make payments to the negotiating company. You also have the option of doing it yourself. Not all debts can be negotiated. They need to be unsecured debt. Credit cards, student loans, and medical bills are an example. You will not be able to negotiate home loans or auto loans. These are secured by collateral. In most cases, creditors can take the collateral.

Good things

It may keep from filing a Chapter 7 bankruptcy. A Chapter 7 can ruin your credit for a long time. You also may not have any other way to pay your bills. You could be ill. A family member could be ill. You may have lost your job. It gives you a way to do something about your debt.

It a may help you to start rebuilding your credit. If your debt is settled, creditors will report it as settled. This is not a good mark. However, it is better than a bankruptcy report or a string of no payments reported.

You may save a lot of money. It can be a considerable amount, in some cases. You may also be able to avoid penalty and interest fees.

Letting the phone ring and ring can be terrible. You do not answer it, because you do not want the aggravation. If you settle debts, you may get some peace at last.

The bad things

Debt collectors and credit card companies may sue you. It does not happen very often. They have the legal right to do that if they wish.

You may have a hard time getting credit in the future. It will damage your credit rating.

Things could get worse for you. The phone calls may increase if you do not reach a settlement.

You will have to pay income tax on the money you save. If it is over $600, you will have to report it on your taxes.

How to deal with collection agencies

You may have to resort to debt negotiating. It may be your only valid solution. If it has not been at least a year, things may not go well. They may offer you a settlement. Your debt may be sold to a collection agency. You will want to know some things about those people.

Stay calm at all times. They will always take less money than they offer. Try to avoid a lot of phone contact. Mail contact is better. This will give you a record of all transactions.

You may be able to get the debt wiped from your credit record. Offer to pay the full amount. Ask them if they will remove it from your record. This may work on smaller amounts of money. This will be a good mark on your credit.

Make sure it is in writing. These people will tell you anything to settle in their favor. Telling the truth is not part of their business.

The first and second offers will be in their favor. Wait it out and do not accept. They may threaten to sue you. The chances of that are very slim.

Summary

Debt settlement should not be taken lightly. It is not for someone that just wants to get bills paid. If you are considering Chapter 7 bankruptcy, you might consider this. You can hire a company to do it for you. However, they will not do anything that you cannot do yourself.

In order to get the debt relief, you sometimes need to find someone that can help you with the guidance of paying off debt. We advise you to look into the debt settlement application.

 
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