credit
Harassing Creditors - What Can You Do?
When the harassing creditor phone calls keep coming and the mail is full of past due debt bills, it may feel like you don't know where to turn or what can be done. Threats of lawsuits or seizure of your property (cars or home) can be frightening.
Bad Credit Checking Account: ChexSystems Myths and Facts
If you have made financial mistakes in the past, you may find it difficult or even downright impossible to open a checking account. If you find yourself in this position you may be wondering what you can do about it. After all, it can be very hard these days without a checking account to pay bills with.
How to Deal with Bad Credit Reports
In today's world our credit score is everything. Creditors and bankers approve or disapprove loans based on your credit worthiness. It is also something that will determine your credibility to certain employers or landlords.
If you have a good credit rating you will be able to apply for loans and/or credit cards easily. And, ultimately, isn't that the goal? It will also mean that you will have more chances of getting certain jobs. You will be able to pay your bills on time.
Having bad credit reduces the opportunities of these things. You may get approved for a loan or for a credit card but you'll most likely have a very high interest rate. You will be an “at risk” customer because the creditors are not sure if you will be able to pay your bills on time. If you are trying to apply for an apartment complex the landlords may take a look at your credit score to determine if you will be able to pay your rent and utilities.
3 Ways to get Bad Credit & 3 Steps to get it Corrected
Many times the most well meaning people seem to develop bad credit. Those who had perfect credit in the past seem to go through periods in their lives where debt piles up and paying bills on time becomes more and more difficult.
Why does bad credit seem to occur so often to good people with good intentions? Here are three circumstances in life that regularly turn good financial situations into bad ones:
1. Many people never really learn how to manage their money and build good credit. It might be because their parents themselves did not know enough to teach them, or that they just never were interested enough to pay attention and learn how money worked.
Managing Personal Credit
The world of personal credit continues to change at a rapid rate. There are several steps consumers can take to keep a handle on their credit and not be caught off guard when applying for a loan or credit card.
Most of the recent changes in credit are a result of two things: The impact of computerization or electronic processing and government regulations.
Computerization allows credit organizations to amass and process large amounts of information, analyze it, and act on it quickly. The computerization of information has also greatly reduced the role humans play in the credit process and as a result increased the amount of incorrect information found in a credit file. Previously, consumers sat down and discussed the possibility of credit approval for a loan or credit card with another person. The loan processor would even have a role in determining the interest rate. Applicants also had the opportunity to challenge and correct information that was wrong.
Three Strategies to Improve Your FICO Score
It used to be that "people" made decisions about your credit worthiness. You knew your banker and your handshake was all the collateral you needed. Those days are long gone, and now a single number - your FICO score - determines your credit worthiness.
Although there are several credit models, the most commonly used is FICO, based on a model created by Fair, Isaac Company. Their consumer website is myfico.com, and you can find information about the FICO credit scores there.
Your FICO credit score can be used to determine your interest rate and how much credit a lender will give you. So taking care of your score, and keeping your credit clean will save you money.
It Takes Credit To Build Credit
Using a credit card wisely is an important step in building a good credit rating. If you're trying to re-build your credit or if you're young and just starting out, pay close attention the next time you receive a new card offer in the mail. When you're trying to build a positive credit history for yourself, using the right credit card makes sense. Making small purchases and then making your payments on time each month is a simple, reliable way to build an outstanding credit report.
What to Look For On a Credit Card Application
If you receive a credit card application that appears to offer a low monthly interest rate, don't make a decision until you turn it over and closely examine the Disclosure Box. In it you'll find a more important measure of credit terms - the Annual Percentage Rate, or APR. By federal law, the Disclosure Box will also tell you whether or not the card has what is called a grace period - a number of days, usually 25, until your purchase starts to accrue finance charges. If a card has a reasonable grace period and you pay off your balance at the end of each billing cycle, you won't have to pay finance charges. It isn't difficult to find credit cards that offer these grace periods, so if the Disclosure Box doesn't declare one then throw the application in the trash and look for a better offer.
How Divorce Can Ruin Your Good Credit
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In the event of a divorce, many couples do not realize that it is necessary for both individual's future to consider the changes that may occur in their credit rating. Despite the reasons for the divorce, it is important to take care of financial business before you go your separate ways, especially if there are children involved. When you entered into the marriage you may have built most or all of your credit together, which may have been fine as a couple, but often leaves one person at a disadvantage after the separation.
Some marriages unfortunately end abruptly for various reasons. For a stay-at-home mother this can be a nightmare when it comes to finances. All of the assets, including all vehicles are commonly under the husband's name if he is the only one working. The woman could be stuck with little or no belongings to move on with and no job or prior work experience. On the other hand, this could hurt him if there is any money owed on any of these belongings because they are now all his responsibility. If the one who initiated the divorce is not careful, their partner may purposely sabotage their credit for their own enjoyment. This is just one reason that it is important to sit down and make a mutual agreement that will protect the future for both people.
Give Your Kids Some Credit: Teaching Children About Money
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If you are a parent, one of the major responsibilities you have to your children is to make sure they are ready to enter the adult world when they leave the nest. This includes financial know-how, although most parents do not consider speaking with their child about credit and debt until it is too late. If your child is old enough to make and spend money, they are old enough to understand the basics of good credit and its importance, so you should speak with your child regularly about this to help them prepare for the future.
Most children receive some form of allowance from their parents. If this is an option you choose, you are helping your child learn the first step to creating good credit-managing money. Teach your child the basics of budgeting, such as how to balance a checkbook, when they are of an appropriate age. Also help your child open a saving account to start saving money for the future. Even if the bank account never reaches a larger balance, it still teaches your child the importance of saving for the future.
Online Scams: "Free" Credit Reports can Cost you Hundreds
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A few years ago, the government passed a law allowing every citizen to receive a free annual credit report to track their credit history with the recent increase in identity theft. This report is easily available online and provides you with all three national credit reporting agencies' information on your credit history. Your score is not provided in this case.
Because of the popularity of this new law, many con artists and identity thieves have come out of the woodwork, creating free credit report web sites to scam people out of money as well as steal their identities - ironically, something the new law was supposed to help stop. There are over 100 free report web sites online at the moment; however, there is only one web site where you can get the real free credit report online: www.annualcreditrep ort.com.