Understanding Your Credit Score
In a rough and tumble economy, more people are getting bogged down by credit card companies with late or no payments. But how does that affect your credit score, and what does that score mean? A lot of people don’t really know how the credit score works; there are a lot of misconceptions out there.
The following account is why you should monitor your credit score and watch it like a hawk! When the economy eventually turns around your good credit will make all the difference in the world when you are able to make the purchases you want.
“There’s three scores and whenever a lender is looking at your credit score they chose the middle line,” Michelle Symthe says. Michelle Smythe knows little about credit scores. She’s done her research because she’s trying to buy a house. “It’s pretty interesting how you can have great credit and zooming along and one thing happens and boom–it tumbles like 50 points,” Smythe says.
In hard economic times, many credit card holders are tumbling all over the place. “We’re seeing a lot more credit card problems and a lot more credit card issues,” Credit Counselor Jill Perry says.Perry sees numerous people. She says landlords or home mortgage lenders look at your score. The score number is a simple version of your complex financial history. The credit scale ranges from 300 to 850.
“When you think back–who taught you how to manage credit? We don’t teach it in high school and don’t teach it in college. We just throw you out there and expect you to know one of the most important things in the world,” Perry says. There are many myths surrounding credit scores. First, checking your credit score doesn’t make your score go up or down.
Age, income and sex will go on your credit report, but not influence your score. And a higher salary doesn’t necessarily mean a good credit score. Lastly, newlyweds don’t have merging scores. They can have a joint credit report, but separate scores. “Usually when you’re looking at credit scores, the lower the number the worse your credit,” Perry adds. Call the credit score a “scarlet letter” of the financial world, but a low score can scar you from the time being. “Believe it or not, you can repair a score 400 to a 600 in a year or less if you do the right thing,” Perry says. The right thing is taking action.
Categories: consumer info Tags: credit card companies, credit counselor, credit report, credit score
Credit After Bankruptcy
This is a book that I have really been looking forward to reviewing. I am very glad that I finally got the chance.
Just after I declared bankruptcy, I was researching ways to repair my own credit, and I ran across Stephen Snyder’s website. He is the author of this book, “Credit After Bankruptcy” and he has an excellent series of free newsletters that I made good use of when I began my own journey of recovery.
At that time I didn’t consider buying and reading the book that went along with the emails though. So, I was very happy to find it on the list of used books available on Amazon.com. Although the book does contain some of the same information mentioned in his emails, there was quite a bit of entirely new information too. Here are a few of the highlights:
Snyder Begins the book with a laundry list of some historical, and very famous people who have all declared bankruptcy.
Credit After Bankruptcy: A Book Review
Categories: bankruptcy Tags: bankruptcy, credit repair, credit score, finance
Predatory Lending
Predatory lending and the like; well they too are the fault of growing atmospheres of greed and profiteering deliberately implemented at the expense of the American people. Furthermore, it is my assertion that none of this is accidental and was and is held as top secret by every of America’s elected officials all the way up to the top; the Oval Office. It was and is the ultimate of capitalist [2] agenda; to promote and expand wealth among the wealthy and hold back and restrict economic growth among those not of wealth. It is the ultimate separation of societal difference, economically. It is almost third-world-like if it is understood that most countries have no middle income class; only the rich and the poor. Like ours, the agenda is to keep the lower class low and the upper shall prosper and grow.
Categories: banking Tags:
Improve Your Credit Score
There are so many infomercials and ads around lately offering to ‘fix your credit’ or improve your credit score it’s difficult to know who’s offering a helpful service and who’s just out to take your hard-earned money from you.
Don’t be fooled. These companies are making money off people who can least afford it by offering nothing to do the same thing you could do on your own.
Despite those ads telling you how easy it is for them to fix your credit for you, there are some things that just can’t be fixed easily or quickly.
You really can take steps to repair your own credit score and it’s not as difficult as you might think.
Let’s look at some things you can do to begin re-building your credit right now:
* Fix Errors
You’ll need to order a copy of your credit report to check if there are any errors on your report.
Many companies report things in error. Maybe your name is spelled the same way as someone else’s or perhaps they didn’t list a payment that was made. The point is errors happen and credit companies must respond within 30 days if you challenge an entry that was made if you think there’s an error.
* Fool The Computers
Most banks and credit companies run on computerized software that tells them what amount of repayment is due to them each calendar month.
That software doesn’t care if you pay your bill daily, weekly, bi-monthly or whatever – as long as the correct amount of money is sitting on your account by the due date.
This is where computers can be fooled into thinking you’re much better with your credit by doing some simple things.
1) Divide your monthly payment into a weekly payment (or fortnightly)
2) make your repayments more frequently (like weekly or fortnightly)
3) round your new repayment amount up to the nearest $5
By doing these little things, the computer instantly recognizes that you’re paying more than you need to AND you’re paying more frequently than required. This can improve your credit score and have the added benefit of making it harder for you to fall behind with payments in future.
* Payment Plan
When you’re already behind on your bills, it can be difficult to catch up any late payments. It’s important you call your creditors and explain your situation. Ask to negotiate a payment plan to catch up with overdue payments and explain that from now on you’ll be paying ¼ of the monthly amount each week plus a few dollars.
You’ll be surprised at how willing they are to negotiate as long as you are honest about your needs.
* Re-Negotiate and Consolidate
Take a close look at the statements on your existing debts. Some credit card companies can charge up to 18%. That’s a lot of interest. Call your lender and see if they’ll negotiate the rate down. A lower rate means lower repayments, which helps. If they won’t lower their rate, ask if they’ll consolidate your outstanding debts into one easy, lower-rate option.
Trying to pay off several cards with interest rates around the 18% mark feels like going backwards. Adding them together and rolling them into one personal loan at 10% is cheaper, reduces your repayments and means you’re paying an amount of the principal with every payment you make.
* Be Proud
It seems like a strange tip – but be proud that you’re doing something to improve your credit situation instead of hiding your head in the sand.
You really can begin fixing your credit score on your own today.
Categories: credit repair Tags: