Credit help service

Recently my significant other found herself in a bit of trouble with her credit card companies. What happened to her could happen to anyone and I hope other’s can learn from her unforeseen mistake. Here’s a background:

She went to grad school in Chicago, for a two-month conclusion to a year-long program. Swamped with schoolwork and the confusion of being in a foreign city, the last thing she felt inclined to do was file the necessary paperwork to get more student loans on top of those she already had received…especially for the small amount of additional money she needed. As a quick-fix, she chose to use her two credit cards to pay the difference. Being only about $2000 short of what she needed to pay her tuition and rent, she didn’t think this would be much of an issue.

Hindsight being 20/20, of course this was a major issue. While she didn’t ‘max out’ any of her cards, she did put herself dangerously close on both. So close that in fact one credit card company decided that she was so close to her limit on her OTHER company’s card, that they lowered her limit. This then immediately put her over her new limit. With this new limit came overage fees, and then the typical finance charges on top of the new balance reflecting the charged fees. For simplicities sake, here’s the math of what happened:

Card A: $900 balance with a $1000 limit. APR reasonable.
Card B: $1500 balance with a $1600 limit. APR reasonable.

Company A, owning the $900 debt, saw the balance of Card B and lowered her spending limit to $700. Thereby putting her immediately over her limit, assessing a $40 charge for each month she was over AND increasing her APR. Because of this charge (and the finance charges on top of the $900 AND the increased APR), she was not able to get the balance on Card A under her new limit of $700 for a few months. This resulted in roughly $120 in the pocket of the credit card company, plus the additional finance charges paid. All just for being CLOSE to her limit on her OTHER card.

Card A: Limit lowered to $700, now $200 over limit and APR increased.

This mess not only cost her on Card A (with which she has dutifully paid her balance on and cancelled), but also on Card B, because finance charges racked up as she appropriated her money to pay off the mess on Card A! Overall, being close to her limit on both cards ended up costing her well over $250 in additional fees and finance charges. Her credit was likely also damaged.

Buyer beware - putting cards even close to their limit can cost you money. Play it safe: pay your balance every month and never even approach your limit.

Today more then ever there is a growing number of people over burdened by debt they cannot pay down. A side effect to this problem is that many consumers now have very low credit scores, this makes getting a more affordable loan to consolidate the debt they do have next to impossible.It just seems like a vicious circle to many people caught up in it.

Although there are companies that can help you increase your credit score the average cash strapped person just cannot afford to pay for this type of service. All hope is not lost because there are self credit repair kits available that can help the consumer fix their own credit report for a lot less money then a paid service charges. The decision to purchase a self credit repair kit that includes a good credit repair letter template for you to use is a critical first step towards better credit and getting a good debt consolidation loan.

The importance of a good credit repair letter template cannot be over emphasized. Without the proper formatting and all the required information listed, your dispute letter may not be properly recognized by the credit reporting agencies. An improper letter will cause many delays and prolong your credit repair process. A properly formatted letter will increase your chances at having derogatory accounts removed from your credit report.

A good credit clean up guide should have everything you need to accomplish your credit goals. However the credit repair letter template is the most important tool that you will need in your efforts so be sure that the kit or Ebook you purchase contains this very important piece of information.