http://www.thearticleplanet.com/ Articles at Free Article Directory - Free Content For Webmasters en-us http://www.thearticleplanet.com/finance/credit/if-you-hire-a-debt-settlement-firm-be-ready-for-credit-card-debt-collector-phone-calls.html http://www.thearticleplanet.com/finance/credit/if-you-hire-a-debt-settlement-firm-be-ready-for-credit-card-debt-collector-phone-calls.html Sun, 01 Nov 2009 02:04:15 -0600
What happens if they cannot settle with your credit card bank? What happens to the money you have paid them? What happens to your credit card account that is in arrears? What happens to your credit rating? How long will it take you to save $7000, $2000 for the debt settlement firm and $5000 for a 50 percent lump sum settlement?

$500 a month will total $7000 after 14 months of payments to the debt settlement firm. At that pace it will be over one year before $5000 can be paid (after $2000 in fees is taken) in a lump sum to end the debt. But, that debt may no longer exist because the banks charge off unpaid credit card debts after six months. Then within the year, they sell those bad debts for about 10 cents on the dollar.

That means your debt is owned by a junk debt buyer before the debt settlement firm has settled it. It also means the bank has no motivation to remove that debt's bad mark on your credit report and that the negative listing will be there for seven years.

According to the Credit Card Debt Survival Guide, you will need to be ready for the junk debt buyer?s attempts to collect the debt. If you are not ready, if you are counting on the debt settlement firm and unaware of the debt?s charge-off and sale, you could be ambushed by a debt collector or collection attorney.

So, your debt is not settled. Your settlement fee is spent. You have debt collection problems. And, your credit rating is below par. Just maybe you still have $5000, but that is only if the settlement firm escrowed it with a third-party. ]]> http://www.thearticleplanet.com/finance/credit/what-everyone-needs-to-know-about-refinancing.html http://www.thearticleplanet.com/finance/credit/what-everyone-needs-to-know-about-refinancing.html Thu, 29 Oct 2009 16:44:05 -0500
If you have good credit, or purchased a home a few years ago, now would be a perfect time for refinancing. Difficultly in the global financial markets means that many consumers are eligible for low interest rate mortgages that may not have been available at the time the loan was approved. Securing an APR just a few percentage points lower than the mortgage currently held could save thousands of dollars for the typical homeowner. Be advised that each time you refinance, you may be charged a fee based on the value of the loan, so be sure to discuss this with your lender.

Another loan that may be eligible for refinancing is a car loan. These loans are best refinanced early in the payment process to maximize savings, as the loans tend to be smaller and repaid in less time than a home mortgage. If your credit has improved since the purchase of your car, or if the loan was acquired through a dealership (which typically offer loans with a higher than average APR), car refinancing may be for you.

Fewer people take advantage of refinancing through credit card debt consolidation, which can be a cost saving option for anyone carrying a balance on multiple credit cards. Through consolidation loans or balance transfers, customers can benefit from a single, lower monthly payment, and a lower interest rate than most credit companies offer.

When making large financial decisions, it is always best to seek expert advice. There are many refinancing companies out there, and it is important to choose one, Super Finance is a stellar example, willing to help find the best solution for your unique financial situation.
]]> http://www.thearticleplanet.com/finance/credit/solutions-to-bad-credit.html http://www.thearticleplanet.com/finance/credit/solutions-to-bad-credit.html Thu, 29 Oct 2009 03:18:11 -0500
With a poor history of credit, UK people tend to borrow money as secured or unsecured options depending on their situation. With such high risks, lenders will also tend to ask them to agree to give up any property, like a home or vehicle, as collateral if the fault a payment. Such loans are called secured loans and they come with fairly lower interest rates depending on what the collateral is valued at. Monthly outgo also goes down because of greater numbers of installments if you are willing to pay for 5-10 years.

If you have bad credit and you're looking for an unsecured loan, you are likely a non-homeowner or a tenant because no collateral is required. However, homeowners can also request these loans. The interest rates will be higher due to no collateral. And, you can also pay back these loans in a short time.

If you browse online, you will find that there are plenty of the these loans you can come across. Every internet lender offers tons of loans for "bad credit" at different rates because of the competitive market so you can really take advantage of the situation.

Compare the online lenders as much as you can so you can find the most affordable loans out there for people with bad credit. Go through each set of terms and conditions so you understand each in great depth and so they don't charge you any hidden payments. The loan cost can be reduced if you settle for the offer that has little fee charges, besides a lower interest rate. As you repay the loan on time, you can improve your credit history in the coming months. ]]> http://www.thearticleplanet.com/finance/credit/negative-entries-on-your-credit-report-can-be-challenged.html http://www.thearticleplanet.com/finance/credit/negative-entries-on-your-credit-report-can-be-challenged.html Tue, 27 Oct 2009 03:10:58 -0500
Anxious to remove bad credit from your Equifax credit report?

In this process, obtaining a copy of your Equifax credit report is tantamount in order that you may review the credit report for any negative information listed. Following is a list of items which will affect your credit negatively:

charge offs

legal proceedings, such as judgments

bankruptcy proceedings, such as Chapter 7 or Chapter 13

home foreclosures

auto or boat repossessions

wage garnishment

payment inconsistencies

settled accounts, collection - paid or settled for less

judgments/public records

Next, you will need to draft a dispute letter to Equifax. Be sure to include your personal information and to explain the reason for the dispute, including why you feel the negative information listed is erroneous.

The final step is to wait 30-45 days for the results.

After I Mail My Dispute Letter, What Happens?

If your dispute is successful, continue the process to attempt to remove all negative entries from your credit report. Once this step is completed, clear up any remaining issues, such as discrepancies involving personal information.

When a dispute is resolved in your favor, Equifax will remove the disputed information. On occasion the credit bureau will update an item with newly acquired information which can be good or bad depending upon what the creditor reports to Equifax. For instance, Equifax may update a collection account with the most recent balance owed.

If you lose your Equifax dispute, the negative items will stay on your report possibly for the next 7-10 years. If this happens, you still have some options to continue the credit repair process.

A credit professional is invaluable when a simple dispute is unsuccessful. Negotiating with the creditor, debt validation, or payment for deletion are some methods an attorney might decided to utilize.

It is important to understand that creditors are not required to report credit history to credit bureaus. Only credit bureaus must follow the law requiring the seven year limit. Therefore, an experienced attorney may be able to convince a creditor to remove a negative credit item. ]]> http://www.thearticleplanet.com/finance/credit/get-rid-of-your-bad-credit-problems.html http://www.thearticleplanet.com/finance/credit/get-rid-of-your-bad-credit-problems.html Tue, 20 Oct 2009 02:09:12 -0500
If you are accredited as a bad credit borrower, running a normal life turns out to be a difficult scheme. In such a condition, if you are required to deal with any unpredicted or surprising needs, organizing money instantly becomes a dreadful duty. But now you can easily resolve the sudden financial emergency with the assistance of bad credit payday credits.

These loans give access to quick finance so that you can easily repel the emergency requirements without hanging on for your following payday to come. Bad credit is never a problem at all while availing the loans as lenders approve the amount without a credit verification. This paves the way for the borrowers with credit difficulties such as CCJs, IVA, arrears, defaults etc to avail these credits without having many hassles. With the help of these credits, you can easily cover expenses like paying hospital bills, credit card bills, renovation of car or home, paying for tour expenses, school fees and many others.

To avail these loans, there is no requirement to promise any guarantee. These short term loans can be availed by meeting certain guidelines laid down by the lenders. For instance; applicant should be employed for the past several months. The age of the borrower must be more than 18 years. Aside from these a valid savings account is needed. By fulfilling these factors, you can derive these loans instantly which get credited in to your account in less than 24 hours.

These loans have a high rate of interest not because of your bad credit score, but for the reason that to its short term availability. However a proper investigation of the market using the online means will help you get competitive interests on the loans. On timely repayment of the sum, you can effortlessly make progress to your credit score. ]]> http://www.thearticleplanet.com/finance/credit/how-credit-report-companies-work.html http://www.thearticleplanet.com/finance/credit/how-credit-report-companies-work.html Mon, 19 Oct 2009 02:46:06 -0500
Most businesses and people come into contact with one of the three top credit report companies, if not all of them. Over that past years, these companies have become consumer friendly. If you haven't been to one of the major credit bureau sites, it wouldn't hurt to take a look to see what they have to offer.

When you open up an account with a business, the creditor not only pulls your credit report to get an overview of your financial history, but once you make your first payment, your record begins with the credit reporting companies for that business to record your patterns. By making your payments by the established timeframes you will retain a positive payment history.

These credit reporting company's use a calculation to produce your credit score. If you have applied for a loan online, you may have been asked what category your credit falls into. You will probably see excellent, very good, good, fair, and poor as being an option to select. What is contained in your credit bureau report will determine the category you fall within.

Facts about credit scores you should know is sometimes to keep a good credit record, you have to do more than make payments on time. Lenders look at how many open accounts you have and the total debt owed to determine if they should extend credit. If you have many accounts, it may appear as you are over extended.

To keep a favorable credit score it's a good idea to pay off debt as fast as you can. In many cases with a subscription you can view it online anytime you would like to. Once you subscribe, they will also send you alerts to let you know if your credit report changed or if anything new has been reported.

A positive aspect to consumers provided by the credit report companies is allowing you the ability to correct inaccuracies that appear on your report. That is why it is a good idea to check it. ]]> http://www.thearticleplanet.com/finance/credit/interest-free-credit-card-deals-are-disappearing.html http://www.thearticleplanet.com/finance/credit/interest-free-credit-card-deals-are-disappearing.html Fri, 16 Oct 2009 11:42:33 -0500
Bad debts are causing major problems for credit card providers and as a result, the number of interest-free balance transfers has started to decline.

And it's not just the number of 0% balance transfer cards that has fallen away, there's also been a reduction in the number of longer-term offers, with less and less providers now offering more than a year of interest-free transfer.

With providers reserving their best deals for those with spotless credit records, it's getting increasingly difficult to get accepted for a new interest-free card at all.

Top picks
Nonetheless, the balance transfer market is by no means dead, and for those with clean credit histories, there are still a host of 0% deals to be found.

The best on the market is currently the Virgin Money MasterCard which charges 0% on balance transfers for 16 months. Elsewhere, the MBNA Rewards credit card is offering 13 months interest-free, while Egg is offering one year.

Beware the balance transfer fee

An interest-free card may seem a very appealing option if you're struggling to manage your debts, but before applying for a new deal, you do need to think about the balance transfer fee, as these can be as much as 3%. For example, the balance transfer fee on the Virgin card is 2.98%.

Clearing your card

You also need to consider whether you will be able to pay off the balance within the 0% term, as the rates charged at the end of that period can be pretty steep.

Many cards have an annual percentage rate (APR) of more than 15% after the interest-free period expires; the typical APR on the Virgin card, for example, is 16.6%, Egg's is 16.9% and MBNA's is 15.9%.
It may seem odd that credit card rates are still so high even though the Bank of England has kept interest rates at rock bottom, but the recession and rising unemployment are hitting lenders hard and impacting their profit margins.

Perfect credit profile required

Lenders are also operating a far tougher risk policy in the current uncertain climate, and will only accept customers with a squeaky clean credit record. If you are finding it difficult to get accepted for an interest-free balance transfer deal, then don't despair, as there are some simple steps you can take to improve your chances of getting the thumbs up.

• Begin by checking your credit record. Follow the link to get a free Equifax credit report.
• Read through it and check it is both accurate and up-to-date, as errors may prevent you from getting credit; ask for mistakes to be corrected and for "explanatory notes" to be added to explain previous problems.
• If your credit record isn't looking too healthy, you can improve your rating by registering on the electoral roll and ensuring that if you've paid off a County Court Judgement in full that this is shown.
• Cut up any cards you no longer use, and set up a direct debit to ensure you are not missing credit card payments.
• Make sure you can show a consistent history of repaying your mortgage, loans or credit cards on time.

Leave no footprints

Repeatedly applying for credit cards could damage your credit score. This is because multiple applications to several lenders within a short period will show up on your profile, and could affect your ability to get credit in the future.

An easy way to avoid leaving a credit footprint due to unsuccessful credit card applications is by logging on to the new Confused.com credit profiling tool as this will show which card applications are most likely to succeed.
* Rates correct as of 18/09/09

]]> http://www.thearticleplanet.com/finance/credit/guide-to-getting-a-credit-card-if-you-have-a-poor-credit-score.html http://www.thearticleplanet.com/finance/credit/guide-to-getting-a-credit-card-if-you-have-a-poor-credit-score.html Fri, 16 Oct 2009 10:15:36 -0500 applied for a credit card, you may have found it far more difficult to get accepted than before. This is because card providers are now stricter about who they lend to and are operating a much tighter risk policy. They are scrutinising credit reports like never before and refusing almost anyone with a less-than-perfect credit history.

Repayments could shoot up

No matter which type of card you are applying for, you'll need to have a spotless credit record to be accepted for the best rates and interest-free deals - and in some cases, to be accepted at all.

This makes for particularly worrying reading for those looking for a new balance transfer deal, as if you're unable to find a new 0% card, you could face a worrying hike in monthly repayments.

Don't damage your credit score

But having to pay higher interest is not the only problem created by having a cheap credit card application rejected. If you are too reckless in your applications, you could find your credit record fouled with a litany of failed attempts to secure credit - thereby tainting your credit score.

Ask for a quotation search

When making an application, request a "quotation search" for comparison purposes, as this enables you to shop around for cheap deals - without leaving damaging footprints on your credit file.

Check your credit record

Nonetheless, if you find that you are repeatedly being rejected, then it's time to stop applying - and time to start checking your credit record. Follow the link to get your free credit report.

Clean up your credit report

As a borrower, the key is to get as much as you can on your credit record in your favour; the good news is there are some simple steps you can take:

• Set up monthly direct debits on your card repayments to ensure you don't miss them.
• Cancel any credit cards which you are not using.
• Correct any errors by adding a "notice of correction".
• Ensure you are registered on the electoral roll.
• Change addresses on old financial products to your current address.

Rejected with a perfect credit record?

In the current uncertain climate, even those with unblemished records are having their applications turned down. This is because each lender has certain criteria they are looking for in their borrowers - so there's no need to assume that just because one provider rejects you, others will too.

One course of action could be to wait a month or so and then try another lender. However, remember to request a "quotation search" when you do, otherwise, the lender's assessment of your credit history will only increase the size of your credit footprint, which could negatively impact on your credit rating.
]]> http://www.thearticleplanet.com/finance/credit/3-easy-ways-to-increase-your-credit-score.html http://www.thearticleplanet.com/finance/credit/3-easy-ways-to-increase-your-credit-score.html Tue, 13 Oct 2009 02:38:24 -0500
We can talk about several ways to review your credit but to keep it simple we are going to focus on the credit model created by Fair, Isaac Company. Better known as FICO.

Your FICO score is the method used to determine the interest rate as well as how much credit a bank or lender is willing to give you. the cleaner the credit...the lower your rate and larger the sum you qualify for.

Getting and improving your credit score is not hard at all, just takes time. Here is a tip or two that will help you improve and increase your score.

FIRST: Obtain a Credit History

There are many reasons you may have no credit history. Maybe you're just starting out, maybe you pay cash for everything and have never needed a loan. In any case, if you have no credit history, your FICO score is likely to be low.

A fast and easy way to improve or start a credit history is to get a loan and pay it off on time. "Installment loans" are looked at as more important than credit cards. You will show a stronger score if your installment loans are paid up to date and on time then say a consumer credit card.

Another way to acquire a better credit history is to take $1000 and open a 6 month CD account at a financial institution. Now, get an installment loan for $1000, using that CD as collateral. Now, here's the trick. Take the $1000 loan, and open another 6 month CD account at another institution. Take another loan for the $1000 at the second institution. Do this one more time.

Let the CD's mature, paying only the minimum for the 6 months. Once they mature you cash them out and pay off all three loans. Congratulations...you now have a credit history.

SECOND: Maintain Your Good Credit History

Good job - you have paid your bills on time, and do not have high credit card debt. Here's some ideas to keep your FICO score as high as possible.

Make sure you don't close your old accounts. (Unless of course they charge you a fee of some sort to keep it open.) Part of your credit score is based on the amount of credit available vs. amount used. If you close old accounts you may impact this part of your credit.

Another thing to be aware of is how you manage your money. Here?s the scenario: you have a $2000 credit card. Every month, you charge about $1800 to that card. And, every month you pay it off. But here's what happens - your credit card company reports your credit information monthly to FICO. However if they report it on the day before you pay it off...the credit agency sees you carry a balance every month. If you can try changing the days you pay off your credit card.

THIRD: Repair Your Poor Credit History

At some point there is a very good chance you will have something that causes your credit rating to drop. Don't panic...poor credit can be fixed. Understand however that the process takes time. In some cases you may need to talk to a credit counselor to assure you address the reasons for the drop as well as remove any future habits that may cause it to drop again.

The most heavily weighted part of your score is based on your payment history. The first thing to do to start repairing your credit history is to pay your bills on time. The mortgage is the most important, followed by installment loans, and finally credit cards.

The next factor in your FICO score is how you have used your credit. So pay off those credit cards

At the end of all this, make sure you review your credit report. Get one report from all three credit agencies. Read every page. (I know it reads like stereo instructions in Greek) Look at the entries and call and contact the creditors to have them remove any errors.

A strong, healthy, and clean credit score is a major part of your financial world. Keep it clean and don?t risk it. A good score can factor into things you can't imagine. Don?t damage your score if you can help it. ]]> http://www.thearticleplanet.com/finance/credit/the-fastest-way-to-improve-your-credit-scores.html http://www.thearticleplanet.com/finance/credit/the-fastest-way-to-improve-your-credit-scores.html Tue, 06 Oct 2009 03:49:36 -0500
Removing derogatory credit information from your credit reports is the fastest way to improve your credit scores. Credit bureaus are known for the amount of inaccurate information in credit files. However unless you check your report fairly regularly, you may not even realize that you have derogatory information in your file until you start getting turned down by credit companies, mortgage brokers, or financial institutions. As a general rule, derogatory information remains on your credit report for seven years; however bankruptcies can remain for as long as 10 years. Information about criminal convictions normally has no time limit.

Your credit score is the first thing that lenders look at to check if the score is low or for anything that might make it difficult for you to repay the loan that you are seeking. You can take control over the information that appears in your credit file by getting rid of the inaccuracies and the negative items, and you don't need to spend money on a credit score expert to do so. Under the Fair Credit Reporting Act, both the CRA (Consumer Reporting Agency) and the organization that provided the information to the CRA, such as a bank or credit card company, have responsibilities for correcting inaccurate or incomplete information in your report. By law you may obtain a free copy of your credit report once a year from each of the three credit agencies: Equifax, Transunion, and Experian. You can request your report from each by locating them online, or you can request a report from all three agencies at one time by sending your written request to the Annual Credit Report Request Service at PO Box 105281, Atlanta, GA, 30348.

The next step would be to dispute every item in the report that is incorrect with the aim of getting them removed. What you will need to do is write to the respective credit bureaus disputing the inaccuracy of the entries. Begin by telling the CRA in writing what information you believe is inaccurate. If you have any documentation to support your claims such as credit card statements and canceled checks, include copies of any such documents. Do not include originals.

Provide your complete name and address, and the letter should clearly identify each item in your report you dispute. You should clearly outline the facts and elaborate on why you are disputing the information. Finally, request deletion or alteration of the information. This is important. You can enclose a copy of your report with the items in question circled in red. Your letter may look something like the one below. Be sure to send your letter by recorded delivery and request a return receipt so you can document what the CRA received. In addition, you should keep copies of your dispute letter and enclosures.

Sample Dispute Letter:

Date
Your Name
Your Social Security Number
Your Address
Your City, State, Zip Code
Complaint Department Name of Credit Reporting Agency
Address City, State, Zip Code

Dear Sir or Madam:

I am writing to dispute the following information in my file. The items I dispute are also circled on the attached copy of the report I received. This item (identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information.
Enclosed are copies of (use this sentence is applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please reinvestigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.
Sincerely,
Your name
Enclosures: (List what you are enclosing)

The credit bureau is obliged to contact the creditor to check on the item that is being disputed. This will work well in your favor. If the bureau is unable to verify the accuracy of the information in your credit report within 30 days, they must delete the entry from the credit report completely. If the credit bureau does not receive notice back from the creditor in thirty days that your dispute has been denied, removing the disputed information from your report is automatic. When the investigation is complete, the CRA must provide you with the written results and a free copy of your report if the dispute results in a change.
Finally, you can only file genuine disputed claims since the Fair Credit Reporting Act gives credit bureaus the authority to disregard any frivolous disputes. This is the case if they are not convinced that you are serious about removing erroneous information. This law was initially put in place to protect legitimate claims from errors that are as a result of data entry. With prompt and informed choices concerning credit card use, you would be surprised how easy it is to remove any derogatory information from your credit report.

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