Credit repair secrets – 3 powerful things you must know
Many people find themselves in a bad credit situation. There are many companies that claim to know credit repair secrets that can put you back in good credit status in no time flat. What are these secrets and how can you find them?
Well, to begin with, let’s first reveal to you one secret; there actually are no credit secrets. Sorry, I didn’t mean to burst your bubble; it’s for your own good. Please read on.
You see, scam credit repair companies want you to believe that there is some big credit secret that only they know, just to get your money. What there really are, are what are better called open secrets. That is, secrets that you can discover yourself given the right information source.
And yes, they can also be loosely called credit repair secrets because not many people know about them.
There is yet another reason they can be called “credit secrets”. Banks, credit bureaus, payday loans with no credit checking, debt collectors and others who stand to make more money out of your lack of knowledge don’t want to keep it that way. Knowledge is power, and they want to keep you powerless. Why?
When more people get charged higher interest rates due to low or mediocre credit scores, it’s not hard to guess who stands to gain.
When a debt collection agency buys an old “uncollectable” debt for pennies on the dollar and then harasses the debtor into paying off… well, it’s easy to see why lack of knowledge on the consumer’s part is money in the bank for the collector.
Now let’s take a look at some of these open credit repair secrets:
1. Credit reporting statute of limitations (SOL): There is a seven year statute of limitations on reporting bad credit notations for bad closed accounts, collections and public records. Bankruptcies can stay up to ten years and tax liens can stay up to seven years from the date paid. However collection agencies can trick you into acknowledging an old debt, which restarts the SOL. There also are some unscrupulous collection agencies that give old accounts new names and numbers and then report them as new. When an account is nearing its SOL you can offer a fraction of the amount owed and demand a deletion from your credit report. However be careful with your words lest you restart the SOL.
2. State SOL: There is a period outside of which a debtor or collector cannot take you to court for an outstanding debt. This differs from state to state, so check your state’s stipulation. If the SOL in your state has expired, you can use this as leverage to get the reporting party to delete the negative notation on paying a fraction of the full amount. Again, you should be careful with what words you use lest you restart the SOL.
3. The FCRA and FDCPA: The Fair Credit Reporting Act (FCRA) is the law that governs how your credit is reported. The words are “fair and accurate”. Though the requirements of this law are not hard for the bureaus to meet, errors and omissions happen all too often. You can use these to get derogatory information reported. The Fair Debt Collection Practices Act (FDCPA) governs what debt collectors can or cannot do. Again, the “secret” is to knowledge and learning to use that knowledge to your advantage. You can stop the collection agency dead in its tracks by demanding validation of the debt. Once more, the language you use matters or it can backfire in your face.…
5 Easy to tips to help you improve your credit score fast
Learning a few basic things about the credit system can help boost your rating. In this article, I shall give you some easy tips improve your credit score so you can qualify for better, or even the best, rates in credit cards, car loans, mortgages and anything else that goes with the “C” word.
First, here’s a secret; your credit score is made to maximize profits for banks and other interest parties. It is not about you.
Yes, the whole credit system is made in such a way as to keep as many people as possible in “sub-prime” status. This is the most profitable status for banks as they can now hit you with high interest rates that help their bottom-line and screw up yours.
It is for this reason that the system has been made in such a way as to make it extremely difficult to get back in good credit status once you have a ding or two.
The system also treats everybody the same regardless of the reason for having the dings: a person who has credit problems because he/she had been hospitalized gets treated the same as a crack-head.
But let’s now get back to the tips to help you improve your credit score:
1.Starting paying bills on time: This is the most fundamental of all the tips to help increase your credit rating. If you can’t make your payments on time moving forward, don’t even bother reading any farther as it won’t help you.
2.Reduce your debt to credit ratio: A maxed out credit card can cause a loss of up to 45 points on your credit score. Now, imagine that your have more than one maxed out credit cards as most of us often do. While lost points do not automatically get double or tripled, it can cause a serious ding on your score. Also, 30 percent of your score is factored on your debt to credit ratio. Keep your credit card balances low.
3.Build a credit profile: This means creating different types of credit. A person with a total of, say, $20,000 in credit cards only will typically score less than a person with $20,000 but with a credit card, a car payment and a mortgage and/or school loan.
4.Dispute inaccurate items on your credit file: The Fair Credit Reporting Act protects you from having inaccurate information reporting on your credit file. But here’s a secret: even “accurate” items can successfully be disputed and removed if you know what to look for. This is a whole other subject that can fill a book (and books have been written about).
5.Keep old accounts open: Unless you really have a serious spending problem, keep your old credit accounts open. Why? Because they help build your credit history and keep your overall available credit up. This is the reason you should avoid debt consolidation services (again, unless you really have a debt problem) as you will be required to close all open accounts.…
5 tips to avoid online payday loan scams – your checklist
Ever since the economy has crumbled down, it has been hard for people to find a stable job to support their needs. So when there are instances that you need that extra cash before your next pay day, payday loans are readily available. You can conveniently find a payday lender online. However, due to the high demand for payday loans, scams are sprouting up as well.
Everyone is concerned on how to avoid these scams. You need not worry though, as there are some things you will be able to do to take precautions.
Beware of unsolicited emails from posing lenders. These people will attempt to give you great offers for some quick fix cash. In return, they will need some personal information. This is poses a great deal of danger. Being a victim if identity theft is highly possible. When you need a payday loan, seek them out and not the other way around.
When checking out the online lender’s website look for security seals marked somewhere in the webpage. Make sure the security seals link DIRECTLY to an active certification of validation for that domain and that the domain address matches the one on the ACTUAL certification. Some common security seals are VeriSign, TRUSTARC, Thawte or MacAfee Verify.
Never pay any amount upfront. No reputable lender would ask you to pay any fee so they can lend you money. These people know you need money. So asking you to pay a certain fee is incomprehensible. These lenders will just get your money and flee away. You will end up in a bigger dilemma.
Take caution when dealing with Electronic Funds Transfer (EFT). EFT directly goes to your savings account. As soon as you open money, people you are dealing with that process to send you money can at the same time request for an amount. In so doing, these lenders can actually send you money through EFT or request money through EFT. If in any case they do the latter, all of your money will go straight to them. Do not consent to EFT. You can opt to use trustworthy and safe online payment methods such as PayPal or Western Union.
If you are very cautious, you can also check the lending company with the Better Bureau Business (BBB). BBB collects and accounts for information on business reliability, makes the public aware to frauds against consumers and businesses, give information on ethical business practices, and act as mutually trusted mediators between consumers and businesses to resolve disputes. If in any case you find yourself interacting with any suspicious online lender, you can do your share and report it to them immediately.
Payday loans aim to help people with financial needs. So do not hesitate if you badly need one. Just take precautions and you will be okay.…