Steps to Repair and Protect Your Credit

Here are Steps to Repair and Protect Your Credit.

1)Order a copy of your credit reports. You can order your reports from myfico.com or you can get a free copy of your 3 credit reports every 12 months from annualcreditreport.com or by calling. After you get your report, you can then correct any errors you find that could be hurting your score.

2) Fix errors on your credit reports. You don’t want to get penalized for old mistakes or errors which aren’t your fault. About 70% of credit reports have errors so there’s a good chance that yours also does.

2) Catch up on missed payments.  If you can’t pay the old bills in full, you can try to work out a payment arrangement with your creditors or consult a non-profit credit repair agency to negotiate on your behalf.

 3) Payment history is the biggest factor in calculating your credit score. Make sure your payments on any debt and other bills like rent are on time. You may want to consider having your payments automatically deducted from your checking account. Just be sure not to overdraw the account.

4) Get a secured credit card. A good place to begin is at your local bank. These cards usually require a deposit in an amount equal to the credit limit of the credit tradelines you want. The deposits go into a special savings account that the bank can collect any missed payments from. The bank’s risk is minimal so it’s easy to get.

6) Pay down as much of your credit card debt as possible,  because the amount you owe as a percentage of your total amount of credit is a major factor in determining credit scores.

7) Avoid closing your oldest credit cards, since the age of your credit tradelines is a major factor. Closing the old credit tradelines could lower the the length of your credit history. If you have a card with an annual fee, you could always request the card be switched to one without a fee.

Above are the best Steps to Repair and Protect Your Credit.

How To Achieve Financial Excellence

Steps to achieve financial excellence

1) Save Money – You have to save before you invest and when you do you show that you can delay gratification. It’s shows your’e disciplined and this ability to delay gratification is required to achieve financial excellence and maintain it. By saving the money, you’ll be able to take advantage of deals when they present themselves. Live below your means.

achieve financial excellence

The rich get richer because they have access to cash.. So if you can save, though it will be hard and your friends may laugh, the next time the markets presents opportunities you’ll  be able to take advantage of the deals. Though cash is no longer king, access to cash is required to build your foundation. Keep your credit good and make sure all credit tradelines are reporting correctly. Understand it takes longer to build up your funds than it does to multiply.

2) Multiply Your Money – Invest some of the money you saved. You can leverage your money and buy real estate, buy a business, reinvest in your business. Only invest in things you know about. Don’t take chances investing on things you don’t understand. A couple mistakes could wipe out your foundation. If you save before you take the big swings trying to multiply your money, then if do you have mishaps it allows you to still be in condition to move on. You can’t focus more on multiplying  your money than you do on saving it.

3) Compound Interest on Your Money – Compounding of your money happens naturally after you been in the multiplication faze long enough. Compounding is a by product of being in the multiplication stage. This is where true wealth is. Now you have time to do things you really care about. You’ll now have assets that are working for you. At this point many will say that you have reached your desired goal and have attained financial excellence.

I hope this helps someone while travelling on their personal road to riches and financial excellence.

7 Personal Finance Tips To Master Your Finances

Financial Basics

1. Create a Financial Calendar

To help remember to pay your quarterly taxes or pull a credit report, you should think about setting up appointment reminders for these important financial matters the same way that you would your yearly doctor’s visit.

2. Find Out Your Interest Rates

Q: Which loan do you pay off first? A: The loan that has the highest interest rate.

Q: Which savings account should I open? A: The savings account that has the best interest rate.

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3. Keep Track Of Your Net Worth

What is your net worth? Your net worth is the difference between the value of things you own and the value of what you owe.  These numbers can tell you where you stand financially.

4. Set a Budget

Your budget is the starting point of every financial goal in your life.

5. Consider Paying With Cash

If you overspend when using credit cards, consider only paying with cash only.

6. Read Books on Finance

Richest Man in Babylon, Rich Dad-Poor Dad

7. Put at Least 20% of Your Income Toward Financial Priorities

10% of your savings should be put away for savings

10% of your savings should be put into investment which can bring a moderate or high return.

Can You Spot Credit Repair Scams

You may see credit repair ads claiming that your bad credit can be fixed easily. Some of these are credit repair scams and the simply collect your money and give you nothing in return.
I’d avoid new businesses even though just because their new doesn’t mean they aren’t any good.  I’d just prefer to go with a company which has been around for years. Companies that tell you only the credit-repair company can remove old or inaccurate information or that they can remove everything. These claims are false.

can-you-spot-credit-repair-scams

Be on alert if they want you to pay by Western Union or Money Gram as these are common ways scammers ask to be paid. Any licensed business will have a business bank account. Having the license does not ensure they aren’t crooks but, it’s just another thing to check for.

Avoid new credit identities

If you have terrible credit or have recently filed for bankruptcy, you may be targeted by schemers trying to sell you some ones social security number as your new credit file number, this number may belong to another person or be made up. If you score is that bad it may be best to add tradelines to your own credit files. If you use another persons number, you could face fines and or be imprisoned for Fraud & Identity theft.

Other Credit Related Scams

Consumers looking to fix their credit easily  are often targets of other credit-related scams:

Such as the “Credit by phone”: Pay-per-call services have become a popular vehicle for credit repair scams. False Advertisements promise that “guaranteed” credit or cash loans are only a phone call away. But after calling and buying the product, it may turn out to only be a booklet or a list of banks offering low-interest credit cards.

Anything a credit repair company can do you an to. they only use the available laws to repair your credit. If you knew the laws and had the time and patience required to d credit repair then you could repair your own credit. As you do this,. the credit tradelines that you open and pay on time will raise your credit scores. So beware of credit repair scams.

How To Raise Credit Scores Fast

How To raise credit scores fast?  To learn how to raise credit scores fast get a copy of your credit reports from sites like AnnualCreditReport.com. Then read the tips below to learn how to raise credit scores fast.

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1. Dispute any errors you notice. Mistakes happen. You can dispute errors online through TransUnion, Equifax and Experian. (If you don’t want to dispute you can pay a reputable company) As many as 80% of credit reports have an error on the reported credit tradelines.

2. Negotiate with your creditors. You can always ask your creditors to “erase” debt or any account that went to collection. Some write a so called “good will letter” a letter offering to pay the remaining balance or a percentage if the creditor will report the account as “paid as agreed” or maybe even remove it altogether (this is known as a pay to delete). (Note: Be sure you get the creditors agreement in writing before you make any payment to them.

3. Make sure your correct credit limits are reported to the credit bureaus.

4. Get yourself a credit card. Having one or a pieces of plastic can help your score – but only if used regularly and paid on time.

5. Become an authorized user. Ask a relative or good friend if you can be added to his or her existing credit card account. Tell them you don’t need the card. You may hear the word “no” a lot. But you might also luck out, If you do get added as an authorized user the years of perfect payment history and the credit limit get placed in your credit files. If you can’t get a relative who has good credit to add you, you can buy tradelines for sale from IZM Credit Services and be added to their authorized user tradelines.

6. Under-use your credit cards. Yes, we did just tell you to use credit when possible. But don’t use it to pay for everything . Your “credit utilization ratio” should be no more than 30% and even less if possible. A reported credit utilization of 10% or less will maximize your credit scores.

For example, your credit card has a $10,000 limit and you charge a grand a month. That would be fine, the main thing is to have the limit which is reported to the credit bureaus be under 10% for you to achieve the highest credit scores possible. To do this pay down balances on the payment date or at least one day before your account closing date.

7. Don’t close old credit accounts, the old credit tradelines which are called seasoned tradelines add to the average account age on your credit files

For more info on how to raise credit scores fast, come to this blog regularly or sign up for updates.

High Interest Credit Cards

High interest credit cards are very easy to get but, the interest rate only matters if you carry balances your balances. People who have had judgments, bankruptcies or have a bad credit rating are most likely to apply for high interest credit cards. Many low interest credit card issuers will allow you to transfer balances from higher interest credit cards but you must have a good credit rating. One of The most important things about balance transfers is the amount of money it will potentially save you over time if you have a high interest credit card/s that you carry a balance on.

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Be aware some credit card companies will try multiple methods to get you signed up and then if your late on a payment for any reason, they charge large fees. This could happen even if your credit card payment is only one or two days late. Those considering applying for a major high interest credit card to establish or re-establish new credit should always consider the total price they will pay. Even those who don't qualify for low interest credit cards should still shop around and compare other cards to make sure you get the best deal available.

Interest

Most credit card issuers base the interest rates you'll pay on your credit score. This tells them how you use your credit and if you pay your bills on time or not. If you have a card that has high interest rates you NEVER want to carry a balance. If you do get a low interest credit card and ever make a payment late, the higher default interest rate goes into affect, sometimes it's up to 25 percent, making it very hard if not impossible to pay the bill off. The difference between high interest credit cards and low interest cards could cost you hundreds and even thousands of dollars each year.

Getting your high interest credit cards paid off as soon as possible should be a top concern if you do have those. Whenever your credit scores improve try to transfer all high interest credit card balances, some transfer cards even offer a 0% introductory offers for balance transfers, making it easier to pay off your debt much faster. This is actually another subject which should be taught in school instead only being taught in schools of business finance classes.

Good & Bad Things About Prepaid Debit Cards

Today it’s almost impossible to get by without having some type of credit card. From being able to make a purchase online to filling up you car with gasoline to checking into a hotel room a credit card is helpful. So what are you supposed to when your credit is not good enough to get a regular credit card and you can’t get a secured credit card. A prepaid debit card could be exactly the thing you need. Now, what are the good and bad things of getting a prepaid debit card?

An advantage of using prepaid debit cards is that you can use them without going into debt. When you use prepaid debit cards you have to pay in advance so there’s no bill at the end. This way, prepaid debit cards are more like cash than like a traditional credit card where you get billed every month.

Another benefit of prepaid debit cards that appeals to many people with bad credit is that you do not have to worry about going into debt.

Another really huge benefit of a prepaid debit card is that you do not need to have good credit to get a card. Just pay the activation fee, deposit money and you’re ready to use your card.

Some bad points of having a prepaid debit card is you need to report if it’s lost or stolen right away since there are stricter guidelines pre prepaid debit cards as opposed to a unsecured credit card. There are  also monthly fees that you need to keep a look out for.

Also with pre paid debit cards you may not be able to rent luxury vehicles or sign up online for different types of websites. Many  large car rental agencies require a a debit card which is linked to bank account, this is so they can charge your account if you owe them.