Family Issues

There’s just no use to dodging and looking over your shoulders, amigos. At this age and time, it’s impossible to escape the clutches of finance companies and never have to undergo credit checks. Look at the bright side at least. Credit checks are done for your own protection, too.

Put yourself in the lender’s position. Without credit checks, credit bureaus and credit reports, how would you be able to determine which individual would be more probable to pay off their debts on time? And anyway, undergoing credit checks isn’t as terrifying a process as it’s usually portrayed to be. Thanks to credit repair, that is.

Haven’t heard about credit repair? My, oh my, good thing you’re reading this article then. With credit repair, all your fears about credit checks would be resolved. Interested? I bet you are. And so, without further ado, here are the steps you could take when fixing bad credit.

See What They See – Why let them surprise you when you could know the details about your credit report beforehand? If you know that you’re going to undergo a credit check in the near future, take the necessary steps to make sure that it’s a cinch you’ll be able to pass the credit check. How do you do it? Simple. First, check the directory for a list of credit bureaus or agencies. Getting a copy of your credit report will always cost you some bucks so if you don’t think you can afford to procure all the credit reports done on you, you could at least stick with the reports made by the three major credit bureaus of the United States – Experian, Equifax and TransUnion.
When you’ve gotten the credit reports done on you, it’s time to get nasty and see what kind of dirt they’ve dug out about you. Oh. Do you see an item containing details about your declaration of bankruptcy more than ten years ago? If so, that’s an item you should highlight because according to the rules – and we’re playing by the book here – credit agencies aren’t allowed to list down details about bankruptcies more than ten years old unless you’re borrowing or applying for something that’s worth more than $150,000.

If you think you’re not ready to get nasty and sometimes – act pathetic – towards the credit bureau representatives, creditors and bank managers, maybe, maybe it’s time to ask help from credit repair companies. I know there’s been a lot of controversy over the practices of such companies but as long as you’re employing the help of a reputable company, I don’t see any harm from that.

Tags: Credit Cards, Credit Repair, Debt, Credit Reports, budget

Rather than try to futilely escape the process of credit checks, why not simply try to beat and win? If the key to passing credit checks is within reach, why not take it? Let’s see. The only reason why you could be afraid of undergoing credit checks is when you have something to hide. Do you? Or maybe, you just don’t know whether your credit reputation is either good or bad so you’re still feeling 50/50 about your chances of passing credit checks. But no matter because the only way to conquer fear is to face fear itself. And here’s how you shall do it.

Step Uno requires you to know about your present FICO scores. Ask any finance whiz and they’ll tell you that passing credit checks would always come down to your FICO scores. And whether you have a good or bad FICO score, it’s always best for the individual to consistently check your FICO scores because the earlier you can correct mistakes or errors in your report, the better. When I say regular, doing it semi-annually is good enough.

Now, back to your FICO scores: there are what we like to call the Magic Three credit bureaus in the country and each credit bureau has its own credit rating systems. These credit bureaus are known as Experian, Equifax and TransUnion. Do list down their contact numbers because if I have my way with you guys, you’ll soon be forced to get to know a representative from each credit bureau very well, indeed. But don’t worry because everything we’re going to do is legal and ethical.

Nobody knows just how it is that each credit bureau rates an individual’s credit worthiness but we can hazard a safe guess and tell you that your FICO score is affected by your payment habits, the number of loans and credit cards in your name and how much credit do you have at present. Anyway, whatever their rating systems are, we can also be sure that these credit bureaus are able to collect information about us from banks, merchants, lending companies, government agencies and maybe even your very own landlord.

Step Dos in our credit repair goals would be studying our credit reports and checking for inconsistencies. It’s time to hit the books for this step if you’re determined to fix bad credit all by your lonesome, sans outside professional help.

Step Tres is the most difficult thing to do because it asks you the equivalent of asking an alcoholic to stay away from liquor: it’s time to change your spending habits. Pay on time and so on to make sure that next time, you won’t be afraid of undergoing credit checks.

Tags: Credit Reports, Unpaid Debts, Bad Credit, Credit Repair, Bankruptcy

Don’t fool yourself into thinking that you’ll never be subjected to credit checks even at least once in your lives. Unless you’re as rich as Donald Trump or you have the sort of financial credibility that only the name of the Queen of England could have, going through a credit check is a normal process in the world of finance.
There are a number of reasons why you have to undergo a credit check.

The most common reason behind credit checks are when you’re applying for a loan, a mortgage – whether it’s for a car or a new house – or a credit card. Some employers also require applicants to undergo a credit check if they’re about to hold a position of importance. If you want to make sure that you pass the credit bureaus’ investigation with flying colors, here are a few tips that may help you.

If you’re afraid about passing credit checks then by all probabilities, you’re sure to have bad credit already. Bad credit is exemplified by having too much credit cards and using up almost all its balances, applying for too many mortgages and loans, having problems keeping up with payments and the likes. Now, the first step to fixing bad credit is obtaining copies of your credit report from the three major bureaus of the country – Equifax, Experian and TransUnion. Do keep those names in mind because experts advise you to regularly undergo credit checks – at least every six months – so starting today, you’re going to have a wonderfully close relationship with those three credit bureaus.

Now that you have the three credit reports on your hands, the next step to take is more of a decision type – it’s now time to decide whether you want to continue with the credit check process alone or with the help of professionals.

Admittedly, there are a lot of free advice that you can obtain from just searching the Internet and there are of course a lot of books that are out in the market and dealing with credit repair. But reading and learning about fixing bad credit and credit checks is quite – no make that totally – different from actually doing it. If you don’t think you’re up to the task of disputing erroneous items, negotiating with your creditors and the likes, maybe you’re better off hiring the services of the professionals.

Whatever decision you make, the last step shall be the same. Never ever let yourself fall for the same trap once more. Pay your bills on time and avoid overextending your loans.

Tags: Wedding Invitations, Debt, Credit Repair, Family Planning, Credit Cards

1. Payday loans become a trap and are not used only once as originally claimed by the industry.

Borrowing money from payday companies are usually the alternatives of consumers who are in debt.  Repaying the loan has been a problem for these persons because of the high rates.  As a result, they end up extending the loan by paying $17.50 for every $100 many times over. Consequently, they pay much more than what they borrowed.
Payday lenders assert that they are the lone alternative for financially troubled consumers. The reality is that payday loans complicate the problem.

2. Payday loan rates are way too high, especially given their low risk.

Because of the risks and the high loss ratio, the industry says that the extremely high fees are justified.  Payday loans continue to expand in the state of California and around the United States.  Since it was legalized in January 1, 1997, more than 3,500 payday loan stores have been operating in the state.  There is high profit in the industry.

3. Payday lenders are virtually unregulated.

Compared to consumer finance lenders, payday lenders are virtually uncontrolled

4. Consumers are easily deceived by payday loans.

When consumers are required to pay a post-dated check, the consumers open themselves to illegal threats or collection practices.  For instance, they will be threatened with jail for passing a bounced check, even though the law specifically exempts them from prosecution if the check bounces. Borrowers often issue a check prior to the due date, resulting to a bounced check and consequently, more fees on borrowers.

ALTERNATIVES TO PAYDAY LOANS

A payday loan is not the only option for financial debt problems.  Even before payday loans, dealing with their finances have not been a problem for consumers.

1. Negotiate a payment plan with creditors. Setting up a payment plan to pay financial debts is a cheaper alternative than payday loans.  Many lenders allow partial payments when a payment plan is in place.

2. Credit cards/Secured credit cards. Another alternative is a secured credit card. A secured card is basically a credit card packaged for a savings account ($500 for example). The cost of the savings account serves as the card’s credit line. The amount charged to the card is secured by the funds of the account.

3. Advances from employers. Many employers allow paycheck advances to employees. This is not a loan and is obviously a better choice compared to payday loans.

4. Credit unions. Credit union members are granted small, short-term loans. Joining is relatively easy now that requirements for affiliation are less strict.

5. Overdraft protection. Checking accounts with overdraft protection is offered by most banks. While payday lenders maintain that they have lower fees than bounced check fees, preventing a check to bounce is a much better option in the first place.

6. Lines of credit from finance lenders. Consumers with poor credit rating are granted a small credit line by finance lenders. Amount ranges from $2,000-$5,000 with interest rates ranging 25-35% APR.

Tags: Unpaid Debts, Bad Credit, Credit Cards, Credit Reports, budget

Payday loan lenders are required by CFSA (Consumer Financial Services Association of America) to inform their clients of two important things.  First, that payday loans may be an honorable way to meet emergency financial needs but it is not a long-term solution to a person’s financial woes.  And second, that a person who has persistent financial problems may benefit from credit counseling services.  Such services are offered by credit counseling agencies.  So, how exactly does a counseling agency help a person who is weighed down with debts?

A credit counseling agency helps a person solve his financial problems in two ways.  The first is that the agency will structure a way for the borrower to settle his present debts.  And the second is that the agency will help the person prevent future financial problems.

In helping a person settle his debts, the credit counseling agency negotiates with the person’s creditor.  The agency intends to accomplish three goals during the negotiations.  First is that the penalties and late fees may be waived.  This will certainly reduce the amount owed by the person.  Second is that the term of the loan may be extended.  When the term is extended, a person may have more time to find means to settle his debts.  Also, a loan with a longer period term meant lower monthly dues.  And the third goal is that the interest rates may be decreased.  Lower interest rates meant lower and more affordable monthly payments.

The credit counseling agency may also advise the client to start a debt repayment plan.  In such a plan, the set-up will be that each month, the client will pay a certain amount to the credit counseling agency.  This amount will be then paid to the client’s creditors.  This debt repayment plan is usually done if the biggest creditor is a credit card company.  This is because most counseling agencies are primarily funded by credit card companies.  But before a client plunges ahead with the debt repayment plan, he must carefully analyze the monthly payment being suggested by the counseling agency.  He must be critically honest of himself and decide whether he can afford the monthly dues or not.

In helping a person avoid future debt problems, the counselor assigned will provide advice and educational materials.  The advices and materials will be all about budgeting and money management.  The client is informed, guided, and inspired to do his budgeting.  He is shown ways on how to manage his finances better.  And he is encouraged to foster the attitude of saving money.

Tags: Bad Credit, Credit Repair, budget, Credit Reports, Credit Cards