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Monthly Archives: February 2017

Tips to Rebuild Credit After Debt Settlement

Debt settlement companies negotiate with creditors on your behalf and allow you to pay off debt for an amount that is less than you actually owe. While this type of debt help may seem like a fast and easy solution, using these programs can leave your credit in shambles.

The best way to convince credit institutions that you are a safe bet again is to demonstrate that you can manage credit wisely. Here are some ways to prove yourself and help raise your credit score:

1. Create a budget and stick to it. This is the most important step in reestablishing your credit because you are likely to fail without a realistic budget. Take a close look at your monthly income and bills so that you can get an accurate picture of your financial situation, which will prevent you from overextending yourself again.

2. Focus on remaining debts. Get serious about paying off any debts that weren’t eliminated during the debt settlement process. Pay more than the minimum amount required if at all possible so that you can get rid of the debt quickly and have a positive addition to your credit report.

3. Scrutinize your credit report. Make sure that everything is accurate and that none of the debts you settled are still listed as outstanding. Contact the credit reporting agencies directly if you see any discrepancies. They will investigate and make all necessary corrections.

4. Start a rainy day fund. Instead of spending all of your extra cash, start sticking some aside so that you can cover unexpected expenses that may arise without being forced to rely on a line of credit. You may want to consider ways of adding extra income if you find that there’s no money left at the end of the month.

5. Apply for a secured credit card. These allow you to add funds to an account that you can then use just like you would any other credit or debit card. Make sure that the card you choose reports to the credit bureau regularly so that your positive progress will be reflected.

Rebuilding your credit after using a debt settlement program is a slow process, but it can be done. Get serious about managing your money and credit more responsibly so that you can replace the negative entries on your credit report and eliminate the need for debt help in the future.

College Students And Credit Score

While going to college can be a lot of fun and a very exciting time, it is also a great time to learn about finances. Yes, you can learn about finances in an actual class, but you need to also learn about your own finances and building your credit score. College is the perfect time to start learning about your credit score and finances, hopefully you’re not learning it the hard way though.

Of course if you have never paid for anything like bills or had a credit card, you probably have nothing on your credit history to give you a credit score. So, you will need to start building your own credit. There are several ways you can do this. You can ask your parents if they can add you to one of their credit cards, that way as your parents use and pay off that credit card, your credit score will slowly go up. If your parents have a bad score then this probably isn’t the best option because it will cause you to get a bad score too. You can also look into getting a student credit card through your bank. These cards will have a small spending limit which should make it easy for you to pay it off each month. You can also put bills like your phone bill, rent, water, trash, and student loans under your name. This helps show that you are making monthly payments and are responsible, even if your parents are paying these bills.

Since you may start having your own bills and credit card statements you will pay, you will probably need to get a job. Yes, you probably aren’t going to get a very high paying job, but even if it is enough for some extra spending money than it is helpful and you can probably pay a bill or two. Having a job may not make too big of a difference on your credit history but it will at least let you learn how to plan for your own finances and how to save money. If you already have a job, then you should know how much you can afford each month and can start creating a budget.

Creating a budget is a necessity whether you’re a senior in college or a senior citizen; it is something that everyone should know. There are some college students who still get weekly allowances from their parents, but they still have to budget that money. If you receive financial aid or loans, which will add to your credit history, then you will have to budget how you use the money that you receive, same with scholarships. The only downside is sometimes when you get your budget set up; these things may only end up paying for your books. However, knowing how to create your own budget is always good.

No matter how old you are, knowing about your credit score and how to be financially stable is essential. If you aren’t sure about what to do, you can always talk to a trusted financial advisor to help you through any questions you may have. Your credit report will have the past seven years of your credit history, so remember that even though you are in college, you still need to build your credit up.

 

Simple Way to Repair Your Credit

To improve or repair your credit, you must first obtain a credit report and credit score. There is plenty of free information about credit available online. You cannot put a plan into place if you do not know what circumstances you are dealing with.

Contact creditors and see which will allow late payments or installment-based repayment plans. When you know which creditors won’t accept delayed payments or installment plans, you can move forward and focus on those particular bills first. It is important to know how high the rates and penalties are. Focus on the higher interest accounts to avoid less penalty fees.

While reviewing the accuracy of your credit report, be sure to document any information that is not correct. If you find mistakes in your report, contact the credit bureau for instructions on how to correct the information. Write down anything that may be your fault and try to fix them.

You have certain rights when it comes to dealing with collection agencies. Collection agencies cannot send you to prison for not paying a debt and they cannot threaten you verbally either. Take the time to learn the laws regarding collection agencies, as they differ from state to state. There is no reason for a debt collector to threaten you or engage in verbal abuse.

You will want to keep any balance on your credit card at 30 percent or less. If you keep balances low, interest will not kill you, and it will be easier to manage.

You have a few options for dealing with debts that have been turned over to collection agencies. See if you can consolidate your debt into one payment plan. Keep in mind that collection agencies have to make a profit to survive, so they will typically be agreeable to working with you. Avoiding communication with them will not lead to a resolution of your debt situation and may instead hinder your progress. You should always be truthful with your debtors. The agency may agree to lower the amount you owe in total, so long as there is a concerted effort on your part to try and meet expected payments despite your difficulties.

Learn More about Credit Score Scale

The foremost thing to be on familiar terms with about the credit score scale is there are quite a lot of methods to keep a tally your credit. This makes for a spacious array of feasible domino effect. For case in point, scoring can come and go in the middle of types this sort of as FICO and Vantage. The scale on these two designs is an assortment of thing. With the FICO scale opening up at 300 and heading to 850. The Vantage scale goes from 501 to 990.

The second tip to be on familiar terms with about the credit score scale is the divergent formulas make the most of them. To as soon as a long time ago for a second time put side by side the FICO and the Vantage, the sums are assorted. Just one finicky building block in the vein of payment heritage carries a plump of 35% in your FICO score. In the Vantage attain, the impossible to tell apart piece weighs in at 32% of the gain.

The third topic to be on familiar terms with about the credit score scale is the score will show a discrepancy on the credit score tale in employment. That is why when you get scores from every government department you will see an assortment of figures. This is for the reason that of the detail your distinctive accounts only have to statement to one meticulous credit government department. When you make out your credit report you will make out miscellaneous things on each on its own statement. The authenticity that your score is centered on your three dissimilar promising reports will provide you a small number of poles parted scores.

The fourth matter to be on familiar terms with about the credit score scale is the representation preferred by the immense greater part of the credit give somebody an advance of providers in the nation state. The FICO is the one used. This has its extraction in the spreading out of bargain hunter in the 1990’s. Screening the helpfulness and the rate of knots to which credit scores established credit to patrons, the two finance loan giants, Freddie Mac and Fannie Mae, encouraged the use of the FICO. Making an allowance for that these two companies are held responsible for further than 50 % of the mortgages in the province, loan companies paid attention to their commendation.

If you are departing to get a credit, you could do with to until the end of time originate by locating out your credit score aforementioned to hand. Get all three, this way you are not flabbergasted by just about no matter which the lender is going to say about your score. Also, on bits and pieces like vehicle loans and other shopper purchases you could do with to seek advice from what credit bureau the loan company employs. These will much well again put in order you for the mortgage technique. In adding together, if you are going to use for a mortgage, you want to recognize your FICO score.