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Archive for the ‘Credit Tips’ Category

Got bad credit? Here are four tips on how you can clear up your credit score:

Tip # 1: Save early, save often

One of the best ways to ensure this your credit rating stays good is to save money each month. Whether you are able to save a month or 0 or even more, saving and investing your savings will prepare you for credit emergencies, will get you out of overspending, and will allow you to build investments this may assist you in later years.

Tip # 2: Credit impacts mortgage rates which impacts your monthly payment

A few points on a credit score may mean the difference among a lender offering you a prime rate reserved for the best credit risks and the worse interest rate offered to less than prime customers. That may amount to only a few percentages in uncommon loan rates, however this may make a vast impact, especially on a large purchase. For example, a few percentage points on a long-term fixed-rate loan may mean the difference among tens of thousands of dollars saved – or tens of thousands of dollars overspent.

Tip # 3: Beware of expenses and credit you don’t use. It is simple today to apply for a store charge card this you forget all about in three years – however this account will remain on your credit report and affect your credit score as long as it is open. Having credit lines and credit cards you don’t need makes you seem like a worse credit risk considering you run the risk of “overextending” your credit.  Read more...

A debt consolidation plan is the consolidation of all unsecured debts into one monthly payment to a third party agency, usually nonprofit. Debt consolidation can eliminate debt while improving your credit with timely monthly payments at reduced fixed interest rates. Learn the inner mechanics of a free counseling session and what debt consultation entails with a nonprofit. The payments are sent out monthly as they are received under modified terms negotiated by your nonprofit credit counseling organization. The modified terms include.

Stopping of collection calls
Stopping of late, past due, and over the limit fees
One lower monthly payment that gets you out of debt in 5 years or less
Reduction of interest rates to one single digit fixed rate
Change of the due date in accordance with your other bills and pay schedule
Bringing past due accounts current without paying anything additional
Keeping accounts reporting positively to help improve your credit score

TIP: If you’re not behind and current a nonprofit debt consolidation plan can keep your accounts current so it does not hurt your credit rating.

TIP: If you’re behind and receiving multiple fees a nonprofit debt consolidation plan stops those immediately after enrollment and brings the accounts to a current status so they start building back your credit score.

TIP: Most consumers are paying 2-3 different interest rates between purchases, cash advances, and balance transfers. A consolidation plan creates ONE low fixed APR, usually in the single digits between 0-9 percent.  Read more...

We have all seen the advertisements stating the average U.S. credit score is 678. Many people who see those ads start to wonder what their credit score is or even how they can improve their score. There is a lot of confusion out there on how to establish really good credit. Here I have listed 5 tips that will help you achieve a great credit score over time.

Tip #1: Pay your bills on time every time.
Your payment history makes up nearly 35% of your credit score. By missing payments or making late payments lenders may view you as not being responsible. This may result in being declined for a loan or receiving a higher interest rate on your credit card.

Tip #2: Have a mix of different types of credit.
Having a mixture of different types of credit accounts will also improve your score. It is suggested that consumer have up to 4 revolving credit accounts (credit cards, lines of credit) and 2 installment credit accounts (auto loans, personal loans).

Tip #3: Don’t max out your credit cards.
Be careful not to approach the credit limits on your revolving accounts. Having balances of 50% or more of your credit limit will have a negative impact on your credit score. Lenders may think that you are borrowing more than you will be able to pay back. Try to only use 30% of your available credit.  Read more...

A debt consolidation plan is the consolidation of all unsecured debts into one monthly payment to a third party agency, usually nonprofit. Debt consolidation can eliminate debt while improving your credit with timely monthly payments at reduced fixed interest rates. Learn the inner mechanics of a free counseling session and what debt consultation entails with a nonprofit. The payments are sent out monthly as they are received under modified terms negotiated by your nonprofit credit counseling organization. The modified terms include.

Stopping of collection calls

Stopping of late, past due, and over the limit fees

One lower monthly payment that gets you out of debt in 5 years or less

Reduction of interest rates to one single digit fixed rate

Change of the due date in accordance with your other bills and pay schedule

Bringing past due accounts current without paying anything additional

Keeping accounts reporting positively to help improve your credit score

TIP: If you’re not behind and current a nonprofit debt consolidation plan can keep your accounts current so it does not hurt your credit rating.

TIP: If you’re behind and receiving multiple fees a nonprofit debt consolidation plan stops those immediately after enrollment and brings the accounts to a current status so they start building back your credit score.

TIP: Most consumers are paying 2-3 different interest rates between purchases, cash advances, and balance transfers. A consolidation plan creates ONE low fixed APR, usually in the single digits between 0-9 percent.  Read more...

If it’s your first time to apply for a credit card, be careful with accepting any unsolicited offer that comes your way. If you don’t take care, you just might find yourself a victim of credit card fraud.

5 Tips on Wising Up to Fraudulent Credit Card Offers

Tip #1 Apply Directly to the Credit Card Issuer.
You might find yourself encountering an offer that says you’ll have an easier time applying and getting approved for a credit card through their help. Unless they work directly for the credit card issuer, no middleman representative or company can change your credit card application’s fate if it’s truly not meant to pass. The only thing that can improve your chances of getting approved is by improving your credit score and nothing else!

Tip #2 Bad Credit Matters…Negatively.
If someone tells you that he can get you a credit card that’s not only unsecured but with low interest rates as well, you’re getting your leg pulled by a con artist. Bad credit always matters, and they matter negatively. Credit card issuers never ignore the fact that you have bad credit no matter who you are. If you have bad credit but you want to have a credit card, your best bet is getting a secured one or one that’s specifically designed for people with bad credit.  Read more...