Credit Repair services » Credit Bureaus

Build Credit in your Name

admin — Wed, 28 Apr 2010 13:26:04 +0000

If you have delinquent credit and are married, you might want to build your credit in your name instead of using your spouse. Somebody has to have stability. Also if you are divorced and all the credit cards of credit information are in your spouse’s name you will need to reestablish your credit in your name.

Getting your credit reestablished is the first step to repairing your credit. When you obtain your credit report you will see that your spouse’s name is listed on the credit reports. This is because together you and your spouse applied for credit cards, took out car loans or what have you.

This means that you are responsible for your spouse’s account. The advantage is that credit bureaus cannot list the negative accounts against you if you are divorced. Once you have copies of your credit report you will then need to cancel all joint accounts.

If you contact the creditors to resolve the issues on your credit report be sure to ask the creditors to take in consideration your spouse’s credit history. It is important to bring into light your spouse’s credit history when applying for a loan.

Let the lenders know that you are now divorced and starting your own credit line. If you apply for credit cards, be sure the cards are in your name and use them wisely since this helps to rebuild your credit quicker than most sources.

Make sure that you pay minimum balance on the credit card accounts each month to avoid delinquencies. If at all possible when you see that your funds are low; pay your bills rather than making a purchase on your credit card.

Once you bills are paid be sure to make a payment on your credit card. This method not only keeps you out of trouble with other creditors, but offers a solution for repairing your credit. If you can afford to pay your bills each month and use your credit card be sure to only purchase items you need and keep it at a minimal.

If at all possible payoff your credit card balances each month to avoid interest. Interest rates cost an additional hundreds of dollars in the long run, so paying off your dues on time can save you money. If you don’t have credit cards and decide to choose a card be honest on your application and look for the best interest rates available.

If you are in debt it is wise to payoff your dues before applying for a credit card, unless you intend to use the card to get out of debt. If you plan to use the card to get out of debt search for the best interest rates, as well as cards that offer cash back on your spending. There are tips for managing credit cards to repair credit.

It is important that you are consistent with the use of your name. For example, if your name is Robert Leon Swisher Jr., always sign your name accordingly. Do not use your card dishonestly for advantages. Few people believe that lying can get them out of a problem. The truth lying gets you in deeper. If you are filling out an application for credit cards tell the truth. It is important that you understand the timeframe to apply for a credit card. If you are out of work, lived at your resident for less than a year or you have negatives on your credit report, this is not a good time to apply for a credit card.

If you are stable it is always wise to apply with lenders where you have done business with them at a later time. Building your credit after divorce is difficult at times. However it is not an impossible task. It is important that you are aware that most credit card solicitations are gimmicks that only offer you a solution for hanging yourself.

Instead of getting out a rope, it is wise to stay alert, and investigate any credit card offer made available to you. Finally, you want to avoid low introductory rates on credit cards since after about six months the interest rates often hit the roof.

By: Jonathan Cheong

Understanding Frozen Credit

admin — Mon, 19 Apr 2010 10:03:21 +0000

Credit freezes are often confused with fraud alerts, but they are really nothing similar. A fraud alert is when new creditors are alerted that you may have been the victim of fraud, and the creditor is required to take additional verification steps that prove they should be accessing your credit and opening an account for you before they can issue the credit. Fraud alerts also remove you from receiving prescreened offers for insurance and credit.

A credit freeze is something a consumer can place on his or her own credit report – depending on where in the country you live. Some states allow anyone to put a freeze on their credit; while others only allow the victims of identity theft to freeze their credit. Here are other tips that will help you understand the basics of a credit freeze:

Even if your credit is frozen, your report can be updated by your existing creditors. Don’t think that by placing a freeze on your credit report you can slide by with a few late payments that won’t get reported! A frozen credit will only prevent new creditors from accessing the information in your report. If your existing creditors want to check your credit report to see how you are paying your other creditors, they can. A freeze of your credit is made with individual credit bureaus. If you freeze your credit with Experian, it won’t be automatically frozen through TransUnion or Equifax. You have to freeze each manually if you want all access to be frozen. “Thawing” a credit freeze; in other words, removing the hold you have on your credit report, takes several days to take effect (unless you live in Utah where they’re able to unthaw in 15 minutes!) If you plan to apply for new credit or apply to rent an apartment or apply for a new job; you will want to thaw your credit a few days before you’ll need it to be sure that these authorized people will have access to the report. Freezing your credit does not prevent you from using your credit cards. It’s not like “freezing” the credit card or “freezing” a bank account. It literally only effects the ability of a new lender to look at your credit report. While the intent of a credit freeze is usually to prevent identity theft and fraud- there are still numerous ways around it that could result in you becoming the victim of identity theft or fraud, despite having a freeze on your credit. For example, in the event a lender doesn’t try to check your credit before issuing a new account, new credit could be opened in your name if the criminal had the right details to do so.

Hopefully, this list has given you some useful insight into what a credit freeze is, and what it is not. Using a credit freeze may help reduce your potential for being the victim of identity theft, but if you are hoping to end the prescreened credit card offers or have creditors alerted to possible fraud activity when they begin to open a new account for you; chances are you are looking for a fraud alert service and not a credit freeze.

By: Debbie Dragon

How Long Do Late Payments Stay on My Credit Report?

admin — Wed, 14 Apr 2010 10:38:10 +0000

Late payments do affect your credit rating but what most consumers don’t know is that it also depends on how late your payment is made to the creditor. To start with, late payments that are made to creditors but are no later than 30 days late are not reported to the credit bureaus. So for instance, you have a credit card payment that is due on the 1st of January and you are not able to make the payment until the 27th of January.

This is considered late with the credit card company but will not show up on your credit report as a late payment. It will not show on your credit report until you are more than 30days late and it will show as a “1-time 30day late payment”.

These types of late payments usually affect your score and can have a lasting effect for about 12 months. The same goes with other types of accounts such as car payments, mortgage payments, personal loans as well as secured loans.

Even if the payment is a couple of days late, the best thing is to try and make sure it does not go beyond the 30-day point. It is also important to note that these late payments can cause your interest rate to rise on your credit cards.

This may be the case even if you are only 1 day late as opposed to 20 days late. This will vary depending on the credit card company you are dealing with. You want to check with the your creditor to find out their exact policy.

By: Tony Banks

Poor Credit? Bad Credit? I Still Need a Credit Card!

admin — Sun, 11 Apr 2010 10:17:28 +0000

In many instances, through no fault of our own, we get a less than perfect credit rating. We can lose our jobs, have lay offs, have an unexpected medical emergency and find ourselves in a tight spot. These situations and numerous more are common to so many today. Do not give up! Any one can recover and get a good credit rating. There are many credit cards that can help you recover a good credit rating. Here are a few tips on how to achieve that goal.

1. When applying for a card read the fine print.

2. Check the annual fee. Some cards have a fee and some do not. Compare offers and try to get a card with no fee.

3. The APR can sneak up and bite you. This is the interest charged so be aware of what will happen if you carry a balance.

4. Use discipline when using your card. Charge items that you will pay for in your regular budget. Then pay it off at the end of the month. Remember, your goal is to reestablish your credit. According to the credit bureaus this on time payment is very important.

5. Secured cards are a good option. These cards are secured by a deposit made by the card holder into an account specifically for that card. These cards are also great for first time card holders with no credit or students.

6. Some cards have maximum limits. Some as low as $200, Rebuilding your credit will take some time so be patient.

7. Be sure to check the annual fee charges. If your maximum limit is only $200 and your annual fee is $100 it may not make good sense to apply for that card.

There are many offers to choose from but be aware of the fine print. Use common sense to make decisions about your choices. Be a disciplined purchaser and use the opportunity for your benefit.

By: William Sears

How to Interpret Credit Score Ranges

admin — Sat, 10 Apr 2010 08:25:56 +0000

Your credit score ranges are an important asset, and it is vital that you treat them as such. Without careful attention, it is possible for your scores to drop to the point where it would be almost impossible for you to acquire a loan of any sort. Why is this? Almost three-quarters of lenders pay close attention to your credit score when you apply for a loan. More than anything else, these scores affect what sort of loan terms and interest rates that you will be able to obtain, for the scores are the only “you” that a lender will see. Never underestimate the importance of your credit record, for it determines many other important things, such as:

Mortgage types available when you buy a home Down payment amounts Car Loans Insurance premiums Whether or not you will be hired for a job you are seeking

Of course, in order to be able to interpret your credit worthiness score, you have to have a copy of your credit report, which you can get by contacting one of the “big three” credit bureaus. Once you have this report in hand, it’s time to look at your stats and see how you stand.

How High Can A Credit Score Go?

Credit scores can range from a high of 850 to a low of 300. Of course, the higher the score, the more likely you are to get a great interest rate and approval for a loan. With a score of 700 or above, most lenders will see you in a very favorable light, for your credit to be considered in the category of Excellent to Very Good. Depending on how much over 700 your score is, some lenders will offer you even better rates than the 700 and below score crowd receives.

A score of 680 to 699 means that your credit is considered to be Good. You aren’t considered as a credit risk with this score, but you won’t get offered the lowest of interest rates like those with higher scores.

The range of 620 to 679 is considered to be OK. It’s not low enough to get you denied for a loan, but you will definitely not have the best terms.

A score of 580 to 619 is considered to be Low. With this low of a score, you are teetering on the edge. You are almost at the point where you can’t get a loan at all. Loan officers will manage to work with you, but the loan will definitely be more expensive for you in terms of interest. And, you won’t have much of a choice, as if you want the loan, you’ll have to pay the price.

The range of 500 to 580 is considered to be quite low. If you are in need of a loan with a score this low, you will only be able to get a specialized type of secured loan tailored to people with bad credit.

If your credit score ranges between 499 and 300, you really should consider credit counseling or a debt management program. But, take heart – with a little diligence, you can raise your credit rating and improve your credit report.

By: Ann Richter