Be Debt Free

2009-04-01T15:37:00.000-07:00

7 Reasons To Get Started Now!

It's strongly recommended by the FTC! Both the FTC and all three credit bureaus strongly recommend that consumers monitor and repair their own credit.
You are throwing away money! With over 80% of all credit reports containing errors, you are simply throwing away your hard earned money in high interest rates.
It’s Completely Free and Legal. It does not cost you a dime to repair your credit! Find out how to raise your credit score to what it SHOULD be.
Eliminate your debt!How much debt would you have left if you found over $120,000 in the next 24 hours? Take your money and spend it on yourself.
Know how boosting your score can help you....... Protect against identity theft..... Get a better job...... Buy a car..... Buy a home..... Get a loan. So get started now!
It’s FUN! Believe it or not, watching your credit score rise month after month is a lot of fun! Especially when you think of how much money you are saving with each increase.
Save for retirement Imagine having an extra $300,000 saved by the time you retire! Most people will struggle with paying the bills while you are spending your days on the beach!

5 Quick & Easy Steps To Improve Credit

2009-04-01T14:25:00.000-07:00

Here are the five quick and easy steps to help you get started on improving your credit rating:

1.) Order Your Credit Reports

Get your credit report from the top three credit bureaus "Equifax, TransUnion and Experian" to see what they are saying about you. You'll most likely find that they're all slightly different. Yes, different! Your creditors don't subscribe to all three credit bureau's usually, so they typically only report to the credit bureau to which they subscribe.

2.) Examine Your Reports Carefully

Nearly everyone has a mistake on at least one of their credit reports from one of the major credit bureaus. Credit bureaus generate your report on information they receive from your creditors; without verification.

You may not like it, but keeping your credit report accurate is up to you. Get ready to search and destroy. Carefully look for anything from........ typing errors, outdated & incomplete information, as well as inaccurate account histories. You'll want to make a complete list of items you will want to dispute and why. Be specific.

If by chance, the negative information on your report is true, then only time and better credit habits can change that. Late payments, such as credit cards, and charged-off accounts remain on your report for seven years and bankruptcies for 10. Most creditors, however, look for a pattern of payment rather than focusing on one-time or rare occurrences; so consistent on-time bill payments will improve those blemishes.

3.) The Double-D strategy......... dispute and document

Remember, a bad credit report will cost you money. So, it pays to be thorough! You can either complete the dispute form provided with your credit report or write a letter. Clearly identify each mistake and state why it's wrong. One recommendation is to send a photocopy of your credit report with the mistakes circled to the reporting credit bureau. Include any copies of supporting documents.

Document, document, document. Keep copies and records of all the forms, letters and documentation that you send the credit bureaus, plus the dates sent. The credit bureau must investigate any relevant dispute within 30 days of receiving your letter. Any item that is not verified as accurate by a creditor is removed. Sometimes it's necessary to contact your creditors to resolve mistakes.

If the credit bureau makes any changes to your credit file, it will send you the results plus a free, updated copy of your credit report. Once a negative item has been removed from your report, the credit bureau cannot put it back in unless a creditor verifies its accuracy and completeness, and then sends you a written notice.

4.) Solve and dissolve debt

Now's the time to devise a spending plan that reduces your debt and sets you up to pay on time, every time.

If you're having difficulty making payments, be proactive. Call your creditors and negotiate to keep your accounts current and from being reported as delinquent or "bad debt." You can ask for reduced monthly payments, or even change due dates to balance out your monthly bills.

The same strategy can be used for fixed-loan payments. Remember, though, that this is a short-term strategy. You'll pay more interest to extend the repayment schedule, but it allows you to stay current and save your credit rating. Use the extra money to pay off debts one at a time, gradually increasing payments to other debts.

Deal with any collection accounts. Unpaid collections are worse than paid collections. You can negotiate a pay-off settlement that reduces your bill, plus demand that all derogatory remarks are removed from your credit report or at least reported as paid in full. Be sure to get verbal agreements in writing before sending off your payment.

Slowly close out unneeded or unused credit accounts. Most experts recommend carrying between two and four credit cards. But, be cautious when canceling because closing accounts can negatively impact your credit score, commonly called a FICO score. FICO considers the ratio of total debts to total available credit. A good rule of thumb is to keep your revolving debt to 50 percent of your available credit.

Remember that cutting up the card doesn't close out the account. Here's a step-by-step guide to smartly close out your account.

Other tips:

Close out your newest accounts so that you don't lose your longer credit history.
Close out accounts slowly over several months.
Verify that all accounts you've closed are reported as "closed by consumer" for the best report.
Even if creditors offer to raise credit limits, allow yourself only moderate credit limits.
Keep your balances low and avoid revolving balances.

5.) Add stability to your credit file

You can also work to add positive information and show stability in your credit file.

You may have been denied credit because of an insufficient credit file, yet you still have credit. Some creditors...... such as, travel, entertainment, gasoline card companies, local banks and credit unions....... may not report your credit history to the credit bureaus. You can try asking the creditors to report your account information and monthly payment history to a credit-reporting agency. Unfortunately, not all will do that. So, in the future, before opening a new account, ask if your on-time payments will be reported monthly to a reputable credit-reporting agency.

If you have really bad credit (perhaps even filed bankruptcy) don't let your credit status go dormant. The faster you can begin to re-establish your good credit, to where you pay on time, every time, the faster you'll be able to improve your credit score.

Build a solid credit history. Secured credit cards offer people with no credit and those repairing their credit this opportunity. Shop around for the best deal available, but limit your applications. Credit bureaus look at how many new accounts you've opened, and the number of "inquiries" for new accounts that are listed. A sudden flurry of "inquiries" results in a lower score, because many times consumers anticipating money problems increase their credit lines.

Lastly, open a savings account at your bank. This shows creditors that you are working to save and that you have reserves to repay debts.

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Be Debt Free

5 Quick & Easy Steps To Improve Credit