Before you go out and try to purchase your new car or obtain a personal loan, you’ll want to spend just a little time learning how to repair credit. There are a few simple strategies that you can use to quickly boost your credit score and get the financing you need.
When it comes to getting a credit card for the first time, I would highly advise that students do their research on the credit card market before they actually apply. When I say research, you should also look into how people generally make mistakes and how you can avoid them. If you’re aware of the mistakes, you’ll be better off with that card in your wallet.
We live in a society where most of our credibility is dependent upon your credit score. It is under close scrutiny whether applying for a loan, a job or even a home rental. Landlords may try to determine your ability to pay your rent by checking on your credit report. If there is something on there that is detrimental there is a good chance you will be turned down.
Credit restoration is a long process for most people and it can be discouraging and frustrating. Most people think that in order to restore their creditworthiness, they have to pay off everything, pay bills on time, live within their means, and wait for their bad accounts to hit the point where they drop off of their credit report. Some people just give up because the process seems impossible. These people are not familiar with the credit repair secrets and they need credit counseling.
Some people are simply not aware of their level of power when it comes to credit card companies. Are you one that has thought in the past that there really is nothing you can do in regards to your payments or interest rates?
That is simply not true and here is some very good news for you! There are several steps you can take to reduce your interest and save you hundreds, maybe even thousands of dollars every year.
Have you felt frustrated to see your minimum payment only has a few dollars applied to the principal? Would you like to see more of your hard earned money go towards that principal that you are trying so hard to pay off?
Be confident and comfortable while following these steps and you will soon see that you can keep credit card companies from ripping you off.
1. Contact your credit card companies and ask them if they have a balance transfer rate that is lower than your normal interest rate. (Be sure and ask what the fees are for doing a balance transfer and do the math to make sure it makes sense.) Also ask if your credit line can be increased for a balance transfer.
2. If they say NO, ask if there is any other way to lower your interest rate. If they still say NO, sometimes the card company will lower the rate if you talk about moving your account to another company.
Say, “I’m getting offers in the mail almost daily to transfer my money at 0%. I would really like to stay with you but I can’t tolerate your interest rate. Is there a different department I need to talk with to discuss closing my account?”
(This will usually get you transferred to the retention department or a supervisor who has more authority to lower your rates.) Explain that you want to balance transfer to a lower interest rate or lower your APR and can they help you. (30% to 40% of the time managers are willing to help.)
3. If you’ve had problems with your card in the past (late payments, above your limits, etc.) ask if your standing with them has been long enough to “cure the account?” Also ask if they can review this without doing an inquiry. (Credit check).
4. Sometimes simply calling and saying, “I’m shopping around, what can you do to lower my APR?” (annual percentage rate) is enough to get them to lower your rates.
5. Every two months you should be calling your credit card companies and asking them to lower your interest rates.
WHY YOUR CREDIT CARD INTEREST RATES MAY HAVE GONE UP
1. You were late with a payment.
2. You were late with another debt. (Under the universal default penalties clause if stated in your contract.) Card issuers regularly check their customers’ credit reports for late payments on any of their bills. Any late payments can be used as an excuse to trigger an increase in your credit card’s interest rate, even if you have never made a late payment to the card issuer.
3. Your issuer merged with another entity. The receiving bank has the option of changing the conditions, if stated in your contract.
4. The bank’s cost of borrowing money has increased. (Has to be in the contract.)
There are some individuals that have too much credit card debt and it is nearly impossible to get out of. People who have experienced this usually have, or will soon experience bankruptcy too.
Although not an ideal situation, bankruptcy can get some, if not all, of your debt forgiven. This should be your last choice though, a last resort. The tips listed in this article can give you some ideas to start controlling your debt and payments.
Mortgages - Increasing Requirements And Your Credit
If you have ever purchased a home you know exactly how much work you go through to become approved. With rising foreclosure numbers, lenders finding themselves in financial trouble, property values declining, and a volatile stock market, mortgage companies are finding it necessary to tighten the requirements of loan applications.
In conversation with a friend, Brian Corbin, who does commercial and residential lending, said that five years ago, if you had a pulse and a credit score he could get them financed. He described the loan approval process as analyzing the applicants financial situation to see if they fit into a conventional mortgage. If that will not work due to circumstances, then there were sub-prime loans available. He described the conventional market as a box, if they didn’t fit into the box, then the sub-prime lenders have a larger box which is larger with more options. Sadly that box is shrinking at a increasing rate.
What does this mean to you? Unless you are sitting on a chunk of money and an 800 credit score, it may be difficult to get financed for a home. It is imperative that your credit is as clean as you can manage. Here are some tips.
1. Get a copy of your credit report. Review it for accuracy. Any inaccurate information that you find will stay there unless you dispute it.
2. Dispute errors. Disputing the information should happen in two parts. You should notify the creditor in writing by certified mail that they have done something in error. Be respectful and professional, remember, you need them to do something about it. Second, you need to notify the credit bureau, again by certified mail that you are disputing a record and ask them to investigate the concern.
3. Pay your bills on time. By paying on your debt in a timely manner creates a positive credit history that lenders will look at.
4. Keep your credit card debt low. Lenders become concerned with your ability to pay back debt if they see several accounts open that are nearly at their maximum level. It appears that you as the consumer may have become accustomed to living beyond your means hence the nearly maxed out limits.
5. Pay back the small loans. Debt to income ratios play a part in your credit score and your credit worthiness. If you have a small personal loan hanging out their you have been paying on, get rid of it as soon as you can.
Once you have done the work of cleaning up your credit, you should set realistic expectations when shopping for a home. With the responsibility of home ownership comes increased expenses. Utilities, taxes, and insurance all add to your payment. Brian also mentioned that many of his customers don’t have a realistic budget. They list basic expenses such as their bills, gas, and food but they don’t take into consideration how many times they golf or go out to eat. Truthfully listing your expenditures will help any lender determine the amount of home you can afford.
Finally, get pre-qualified. Most realtors are so excited to see you and show you homes, they rarely take into consideration that you don’t really know how much house you can afford. If you take to time to work with your bank so that you are prepared to sign, you wont be disappointed when the bank tells you that the house you fell in love with is out of your reach. It will save many people time and frustration.
The economy will rebound and loans will get easier to obtain but all of this takes time. The harder you work to keep your credit score up, the easier time you will have in reaching your goals.
Credit counseling agencies can offer you a lot of help in reducing your debt. With the experience that they have they will be able to quickly sort out a budget for you and show you how to manage your budget, your income and your expenditure.
Debit cards are great to use in every day life. You can use them at the grocery store, at the pump, even at restaurants. And debit cards aren’t just limited to tangible use. They’re great for paying bills online, or for just buying things on websites like eBay. They are an excellent resource!
MasterCard is a world-renowned credit card company. Having one of their three personal debit cards means that, because of their prestige, you can use it just about anywhere! There are three personal debit cards that you can choose from: Standard, Gold, and Platinum. While the Standard card is just that–standard–, the Gold and Platinum cards are similar, albeit with a LOT more options:
Standard: The Standard MasterCard Debit Card is the most basic option. With this card, you have, of course, acceptance to just about any store, restaurant, etc., globally. This means that, no matter where in the world you go, you can always carry cash safely.
Speaking of carrying cash safely–with a MasterCard Debit Card, you can carry “plastic cash” without having to worry about being robbed, even if you’re not in the best neighborhood in town. To use your debit card, you have to enter a PIN number, and no one else knows your PIN number. So, if someone wants to use your card, they need you to put in your PIN number. Now that’s safe cash!
So what if someone does steal your debit card? Not to worry! With the Standard MasterCard Debit Card, you have MasterCard’s Zero Liability coverage. First, you must authorize every single payment you make with your debit card. If there are unauthorized payments made from your debit card, you are not liable for them. Of course, you must be in good standing, and have a small number of unauthorized payments to qualify for Zero Liability coverage. If your card is lost or stolen, you also have MasterCard Global Service by your side. Basically, all you have to do is report a lost or stolen card, and MasterCard has your back!
Gold and/or Platinum: With the Gold and/or Platinum MasterCard Debit Card, it gets even better! You get MasterRental Insurance, Extended Warranty Coverage, Master RoadAssist Service, Travel Assistance Services, MasterCard Global Service (just like with the Standard MasterCard Debit Card), Purchase Assurance Coverage, Baggage Delay Coverage (just in case!), Hotel/Motel Burglary Coverage, Lost or Damaged Luggage Coverage (again, just in case! You never know what can happen when you’re traveling!), Satisfaction Guarantee Coverage, and Price Protection Coverage. See, MasterCard is there to look out for you!!!
Remember, whatever MasterCard Debit Card you choose, you can’t go wrong with such a great company out there to look out for you! They know what you, as the consumer, want and need, and they’re there to provide it for you! And, by choosing MasterCard, you’re opening up your world to great advancements and technology, with great information available on their website about controlling and eliminating your debt, tips for paying on time, and preventing identity theft.
The days of seeing your own bank manager to arrange a loan are over. Nowadays you will no doubt apply remotely over the phone or online to arrange finance. This situation has created the need for Credit Reference Agencies who hold information about your financial conduct. Potential lenders will view this information before deciding if they will lend, at what interest rate they will lend and how much they will lend.
Big problems arise when the information held about you is wrong. Please don’t think this is a rare occurrence. It is not ! Think about how many mortgages, loans and credit cards are held by people in the UK. Every month your existing lenders will update your file and millions of others peoples. With this volume of information it is clear that mistakes will be made. Mistakes on your file can cost you £1,000’s of pounds.
Think about it. You may be shopping around for a new mortgage deal and believe your current mortgage history is unblemished. What if the mortgage lender has made a mistake, maybe a direct debit mix up (This happens all the time !) and they have informed the Credit Reference Agency you have missed a mortgage payment. When a new potential mortgage lender sees your credit report they will see you have missed a mortgage payment and either refuse to offer you a mortgage or offer you one at a greatly increased rate of interest.
Example Only : A £150,000 interest only mortgage at a reasonable 6% will cost £750 per month for someone with a clean mortgage history.
Example Only: A £150,000 interest only mortgage at 7.5% will cost £937.50 per month for someone with a missed payment on their mortgage.
Applying for a new 0% credit card deal? If the information held on you is wrong you may not be approved and have to start paying at interest of 15% + on your credit card.
Food for thought !
Most people check their banks statements for mistakes every month but how many check their credit file? It’s vital that you do,honestly it is!
Mistakes can be corrected but how can they be if you don’t know that mistakes have been made in the first place . No one else will keep an eye on this for you.
Lenders are very nervous at the moment and the slightest blemish on your file could honestly cost you an awful lot of money.
The good news is that you are entitled to see the same information the lenders see. This information is totally free !
Don’t pay for other peoples mistakes!
Most credit repair companies that charge a fee don’t do anything for you that you can’t do on your own, and for less money. Don’t be fooled by their promises. Although these companies may try to convince you they’re accomplishing things for you that would be impossible on your own, this is not the case most of the time.