Credit help service

The information in your credit reports at the three major credit reporting bureaus is too important to just ignore and hope for the best. You can contact the three major credit bureaus at the “official” website annualcreditreport.com for a free copy from each of the three major credit bureaus one time per year. If you request only one of the three reports every four months then you can monitor your credit history for free.

You can dispute outdated or incorrect information in your credit report. That much should be common knowledge to every adult consumer by now. But this article will introduce you to some easy tips that you can use to boost your credit score and eliminate some of your credit related problems.

Tip #1: If you don’t use your regular street address when filling out a credit application, but instead use a mail box number, UPS store, or other postal store, it is less likely the credit request will be granted. That address will show up in the credit bureau as an unknown address for the person completing the application.

Tip #2: By the same token if your permanent street address has changed you want to correct that at all the credit bureaus. Otherwise you run the risk of having your credit file merged with the file of the new occupant at your old address. It happens more than you think.

Tip #3: It’s not enough to just remove the dings from your credit report; you must add positive information and accounts to improve your credit score. One fast way to add a positive account is by using your savings account as collateral for a loan from your bank. Make it a small loan for one year or so and when the loan gets funded put the cash in your checking account. Set up an automatic bill pay so there is no chance of ever being late with a payment.

Tip #4: Being self-employed can lessen your ability to get loans and credit cards. If you are a sole proprietor, it could be to your advantage to become a corporation or a limited liability company. Employment with a company (even if it’s your own), looks better to lenders than someone who is self-employed. There are tax implications in doing this so you better check with a good tax guy first.

Tip #5: Even if you have a good credit rating, it can still take a hit if your debt load gets too high, maybe as little as 50% of your available credit. If at all possible you want to get your ratio of debt to reported available credit down to 30% or less. If you don’t have the cash to pay it down then try to raise the credit limits (available credit) on your existing accounts. The credit bureaus average across all accounts so success with even one account will help more than doing nothing at all.

Tip #6: It is better to carry a balance on credit card and installment accounts, even though you’ll be paying interest on them every month, than it is to pay off the accounts and bring the balance to zero. Keep a 10% to 30% debt to credit ratio on all your accounts if possible. That demonstrates to potential new lenders that you are a solid, financial risk who can handle credit. The flip side is not to go nuts shopping for new credit cards or installment accounts under the assumption that even more is better. The credit bureaus know whenever you apply for new credit and a burst of activity will raise a red flag.

Tip #7: Avoid the free credit report services that are popping up on the net and advertise on TV. Most free services will give you the first 30 days free, and then nail you with a hefty monitoring fee. Those TV ads have to paid for. You can get a free copy of your credit report once a year from an organization set up by the credit bureaus themselves, so take advantage of it.

Tip #8: Just one payment that goes more than 30 days overdue can ruin all your hard work. If you’ve worked hard to scrub your credit report, don’t blow it now by missing even a single payment date. Just one “late-pay” may have a huge impact on your credit rating. As much as 100 points on your credit score for one late payment on even a small amount.

In tight credit times like these, good credit is more important than ever. The median credit score is 723 and that should be your absolute minimum goal. You can take charge of your credit score, and enjoy the lifestyle enhancement of lower interest rates, and lower insurance premiums. You can do it all yourself too - once you know how!

Borrowers who’ve realized their mounting credit card debts can no longer be easily dealt with should start thinking about their spending like any other addiction. It’s a little different, of course. Popular culture teaches young consumers that credit cards are an essential part of modern American life - many borrowers start their debt careers with an application signed on their college campuses! - but, as soon as they’ve taken out their first non-essential purchase, borrowers have started down a life of spending beyond their means.

Like any other addiction, debt only feeds upon itself - debts need more and more just to get by. With surprising speed, borrowers then find themselves taking out one card after another, stupidly spending to remove the daily stress of their personal debt burdens, and then they’ll need cash advances from one account just to pay the minimums from the other ones. It’s a deadly spiral that can’t possibly right itself unless the debtor comes to terms with the problem and acts to take control of their own finances. The Publishers Clearing House Sweepstakes won’t be knocking on anyone’s door, and one should never depend upon inheritances from forgotten relatives

Meanwhile, as the borrowers stick their heads in the sand and indulge pipe dreams, the overall debt loads spiral exponentially. Somehow, before they’re even aware of the extent of their problems, debt collectors are knocking on the door and the borrowers have accumulated debts no honest man could pay. When borrowers are in the height of debt addiction, we recognize the temptation to simply ignore their situation, but, make no mistake, unchecked debts ruin lives every day. Credit card debts must be tackled and sooner rather than later!

Above even the financial repercussions, unchecked debts lead to all sorts of secondary problems.

- Physical consequences

Stress and unneeded worries create any number of medical concerns including heart strain and hypertension.

- Mental consequences

Alongside the physical problems created by exacerbated stress-loads, depression and sleeplessness are other signs of helpless debt.

- Employment consequences

Many employers now routinely check the credit reports of potential job applicants before considering whether or not to hire them.

- Family consequences

Sadly, all too many couples divorce or think about separation due to arguments about debt.

The good part? Debt elimination is entirely within every borrower’s power. They simply have to work out a budget and maintain that budget with rigorous discipline - to reassert their control over whatever debt has accumulated.

It won’t be easy, and it won’t happen overnight. Most borrowers have to refrain from some of their favorite leisure activities, sell off beloved but ultimately unnecessary possessions in order to put more money into their debt loads, or take our another job or home business just to increase their earnings.

After all, there’s a limit to how much any borrower can lower the amount of money they pay every month. Between food and gas and utilities and shelter, the costs of living are fixed and irritatingly elevated these days. While every borrower should do whatever it takes to live minimally, raising their income may be the only method of debt elimination.

There are a few other alternatives. Debt consolidation is a popular new option for borrowers that just can’t earn enough to pay off what’s owed in a reasonable amount of time. With debt consolidation loans, the borrowers combine all of their credit card balances into one single loan (and, more importantly, a single payment) in order to lower their interest rates and better manage the remaining debts.

Also, debt settlement is another option. Often, when borrowers talk to their lenders or take advantage of a debt settlement profession, the credit card companies will reduce the overall debt load in exchange for a new payment system. It’s important for borrowers to have already created a budget to ensure their creditors that they are serious about debt management; this also lets the creditors know precisely how much the debtor could reasonably repay in a given amount of time.

It might seem too much to hope for that borrowers would simply forgive funds that are owed, but, more than anything else, they just want to make sure that the debtors do not go bankrupt: thereby leaving the credit card companies with no recourse to collect their debts. Of course, under any circumstance, the borrower should not actually consider bankruptcy protection - the effects upon lifelong credit can be ruinous - but even the threat allows debts to be greatly reduced (sometimes by as much as half).

Whatever the borrower’s particular solution, it’s extremely important that they begin attempting to lower their debt load as quickly as possible. Debt will cripple individual’s finances, working relationships, family life, and even their personal health, but things can change! All that’s necessary is to start taking control.

To help you find the perfect credit card you should think about how you intend to use and repay the card, as you can then better decide which can is right for you.

You can select from a wide choice of card types, such as credit cards that offer cash back, credit cards that offer interest free credit, credit cards that allow you to transfer your balance, credit cards that offer rewards, and credit cards that are suited to those with credit problems.

Cardholders that will use their card often and pay back the full balance each month may find that the most suitable card is a cash back or rewards based card. This is because you can earn rewards or cash back for spending on the card but you won’t have to worry about costly interest charges because you will be paying off what you owe each month.

You may wish to spread the repayments on your credit card purchases in which case a 0% purchase card may be the most suitable. With these 0% purchase credit cards you can pay off your balance gradually over a specified period of time, which could be up to twelve months or more depending on the lender, and you won’t be charged interest.

For those with damaged credit the choice is not all that great. If you have a poor credit history or rating you may have no other choice than to apply for a card that is geared towards those with damaged credit. If you do opt for one of these cards remember that the rate of interest charged can be way above average and your credit limit may be set very low.

One more type of credit card is called the balance transfer credit card, and there are two variations of this which includes the 0% balance transfer and the life of balance transfers cards. Those that opt for the 0% transfer credit card can transfer balances from current credit cards and then look forward to a set period of interest free credit within which to clear the combined balances, although most cards charge a 2-3% balance transfer fee.

On the other hand the life of balance transfer credit card does not charge transfer fees, but you will be charged interest at a very low rate on the transferred balance until it has been paid off.

As you can see the wide range of credit cards on offer these days makes it easier to find the perfect credit card for your needs and circumstances. By thinking about what you want from the card and doing a little research online you can quickly determine which credit card is going to prove the perfect choice for you.

When you use the Internet to find the perfect credit card you can compare different cards and even make your application without having to leave the house.