Desperate Local Governments Making Staying On Top of Your Credit Even More Difficult

Posted Jul 19 2010 by Marc Chasewith 0 Comments

In the past, we blogged about a recent trend among local governments who are so desperate for income that they’d begun taxing basic services on everything from dry-cleaning to hiring a magician for your kid’s birthday party.  Now, these cash-strapped provinces are looking for more aggressive tactics to try and save themselves from this recession, which can make personal credit repair just a little harder.

Better clear out that drawer of unpaid parking tickets

Yes, it’s true.  The days of blowing off parking tickets in a lot of states are coming to an end.  Of course, if you’re a responsible adult, those days were never around in the first place.  But for the rest of us you, who throw out those ticket stubs almost as soon they’re handed to you and never pay any more attention to them, those days are over – assuming you care about the state of your credit history, that is.

Whereas before you may have only troubled yourself with minor worries like higher car insurance rates or the possibility of losing your driver’s license, local governments are cracking down and sending any and all unpaid or idle tickets (both parking and speeding) straight to collection agencies.  So now you not only have to worry about paying off that speeding ticket you got 3 years ago and dealing with the repercussions on your insurance rates, you add it showing up on your credit report and driving down your credit score to the list of worries as well.

And unlike a ticket, which can be paid and forgotten in an afternoon, a collection on your report is like a bad case of herpes – it’ll follow you everywhere.

And while you’re at it, the library wants a word with you about those overdue books

Not content with adding to your worries with throwing your unpaid tickets to the wolves, many state governments are looking at library fees for extra income as well.  Your local library (that’s that big building where they store a bunch of books, for our younger readers) is tired of you not returning those overdue books and DVDs, and since revoking your library card doesn’t seem to do the trick (who’da thunk?), they’ve begun following the parking tickets’ example and begun forwarding your overdue fees to, you guessed it, a collection agency.

Unlike parking tickets, overdue fees from a library should really be a non-issue for most people, I would think.  Just imagine the embarrassment of opening a letter from a collection agency telling you they intend to collect on that long overdue copy of Twilight you checked out in secret, and that should incite you to pay off any fees.

Seriously, we’ve been in this business for over 10 years, and have seen every kind of collection known to man – from major medical bills to unpaid fees from Pizza Hut and Blockbuster – but collections for overdue library books?  That’s a little much, we think, but clearly local governments are trying every tactic they can to keep themselves out of the red for as long as they can.  And if you want to make sure you don’t wind up on the wrong end of these tickets and fees, and want to keep yourself on the right path to debt relief, stay on top of your finances before they’re pulled out from under you

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How to Improve My Credit Score

Posted Jul 19 2010 by Marc Chasewith 0 Comments

Credit repair is probably going to do most of the groundwork with the credit reporting agencies and your creditors, but what you do when the credit repair is completed is even more important when you’re trying to improve your credit score. Too often consumers assume that the credit repair and debt relief was supposed to clean up their credit reports, pay off all of their credit card debt and leave them with excellent credit scores.

While credit repair will probably stop any decrease in your scores, it's going to take some time, some hard work, and a lot of patience to get your financial profile back on track. Companies can challenge your reports' inaccuracies, settle debts for you, even open up lines of credit for you; but they can't do everything. You are ultimately going to have to show some initiative if you are truly committed to maximizing your score.

Constantly Monitoring Your Reports

You've probably seen the commercials or read the advertisements about credit monitoring services, they're everywhere. There's a reason for this; it's never been so important to keep an eye on the accounts being reported to the bureaus. Not only are they used for loan and credit card applications, but an increasing number of employers and property managers are using credit checks as part of their application process.

Whether you choose to pay a monthly fee in order to monitor the bureaus on a constant basis is up to you. All three major credit bureaus will provide consumers with a free credit report once every 12 months. It is highly advisable to take them up on this free offer. Not inspecting your reports on a regular basis may leave you worse off than you were before you started repairing your credit.

Keeping Balances Low

This is one of the most overlooked aspects of consumers' credit scores. Your debt-to-limit ratio is a very large percentage of what goes into that score. A debt-to-limit ratio is basically the total amount of money borrowed on open lines of revolving credit compared to the total amount of the limits on those cards. Anything under 20% is considered adequate and should make a positive impact on your scores.

Simply going from a 20% debt-to-limit ratio to having all of your cards maxed out, and vice versa, can change scores by over 100 points. Once you bring the balances down though, make sure you keep them there. The longer the history of sensible credit usage, the higher your scores will peak.

Having a Favorable Credit Profile

The formula which determines your credit score is more heavily guarded than Fort Knox or the colonel's original recipe. However it is generally accepted that the Americans with first-class credit profiles tend to have anywhere between three and five opened lines of revolving credit, as well an installment loan and mortgage.

There are many consumers who believe that one credit card is all that they'll ever need. While this does limit your ability to get into too much trouble debt-wise, it may not be optimum in terms of your credit profile. On the other end of the spectrum, shopaholics with a card in their wallet for every store they've ever shopped at might want to think about trimming some of the unnecessary accounts out of their lives (being careful of course not to lower the overall age of your accounts)

If your credit profile was really damaged, you may have to start with a secured credit card. While they are very useful to the rebuilding process, the fees can be a bit much. Use them for a few months to demonstrate your newfound responsibility, and then open another line of credit that won't be so expensive.

Budgeting and Savings

This is perhaps the most difficult undertaking once the credit repair is done with. However, now that you've started on the road to a better financial future, you don't want to have to take a step back because you continue to spend frivolously. On top of that, unexpected events are going to happen that would create a financial burden; but if you have the money saved away you may just be able to come away unscathed. Thankfully, if you've planned ahead, your credit profile will not suffer as a result.

There are plenty of simple budgeting websites online, or you could always consult with your personal bank as to tips on saving and budgeting. Not enough Americans budget and this is what leads them down a path where they end up needing credit repair. If you've already repaired your credit, learn from your mistakes and put in the time that budgeting is inevitably going to take. You'll be happy that you did.

Be Patient

None of this is going to be done overnight so don't expect miracles in a short period of time. You need to be patient and understand that the longer you keep up your good habits, the more your credit score should improve and the more savings you should have put away. It's a fairly simple blueprint for success, but it's sometimes hard to stick to it. Remember to always keep your goals at the forefront of your mind and you will be successful.

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How Does Credit Repair Work?

Posted Jul 19 2010 by Marc Chasewith 0 Comments

Like most financial services credit repair isn’t a cookie-cutter, one-size-fits-all type of procedure.  Because sending a dispute letter might work for a small percentage of consumers, doesn’t mean that it’ll work for you.

What you want to do is figure out what approach is going to work best for your particular situation.  But to think that a company that only takes one approach to fix your credit is going to work is a risky proposition.  And one that'll probably fail and leave you aggravated with credit repair as a whole.

What is Your Circumstances?

Have you looked at your credit reports?  Do you know what’s holding your credit score down?  Is it late payments, collections, a tax lien?  Everyone’s credit profile is going to be different and as a result, so is the solution that’s going to best repair your credit.

Each derogatory account on your credit report is probably going to need a different solution if you’re looking to improve your credit score.  Just trying to dispute every negative account, isn’t going to get you the results that you’re looking for.  And you’ll end up paying for months of service to see almost no change to your credit score.

Find a Complete Credit Repair Company

Good credit repair usually involves a range of credit repair tactics.  While disputing negative accounts has been advertized as the magical fix to your credit repair problems, the truth is that actually boosting your credit score takes a lot more than that.

Accounts that are yours may require letters sent to the creditors, or maybe you need debt relief too.  Potential lenders are going to want to see that not only that you’ve taken care of past credit card debt but that you’re currently using new credit responsibly.  Good credit repair services will help you get those new lines of credit that you need.  They’ll also layout a plan explaining where your credit card balances should be, and how to use your cards properly to max out those credit scores.

Taking the First Step

Deciding on the best credit repair services for your needs is going to take some work on your part.  Make sure you’re completely comfortable with the company you choose.  After all, you are investing your hard earned money to try and correct your financial future, not just to make someone else rich.

Credit repair is excellent at stopping any decrease in your credit score, but that’s usually where credit repair ends.  Excellent credit repair services won’t end there; they’ll explain exactly how to go about building a positive credit profile, improving your credit score in the process.

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How to Fix Credit – Credit Repair Starts at Home

Posted Jul 20 2010 by Marc Chasewith 0 Comments

A good number of Americans don’t completely understand what’s involved with credit repair so they hire a firm to handle it for them.  Or sometimes they bury their heads in the sand and never bother to look at their credit card debts at all.  The truth is that most ways to fix your credit begin with your daily financial routines.

Paying a credit repair services company to fix credit problems may help with a lot of the legwork that needs to be done during the repair process, but there are still tips that if you incorporate into your credit habits will have you maximizing your credit scores in months.

Tip #1: Pay Bills on Time

You might think that this is fairly obvious, but you’d be surprised how many consumers will simply overlook a monthly payment.  Missing just one monthly payment can lower your scores over 100 points and could stay on your credit reports for up to seven years.

Tip #2: Pay More than the Minimums

If you’re only paying the monthly minimums than you are spending more money over time because of interest rates and other fees that’ll add up.  With new credit card laws, the creditor has to breakdown exactly how much you’ll be paying if you were to just pay the minimum each month versus paying it off faster.  Be sure to read through your statements to see what you could be saving.

Tip #3: Keep Credit Card Balances Low

Ideally, you want to get your credit card balances below 20%.  This will indicate to lenders that now you’re using credit responsibly.  Maxed out cards tells them that you need that money and that you’re using your cards out of necessity, not convenience.  Plus, maxed out credit cards are often what lead consumers to need debt relief.

Tip #4: Don’t Close Old Accounts

A portion of your credit score is based on the average length of your credit history.  This means closing out older accounts, even if you’re not really using them, can actually hurt your credit score.  Ideally you want to use these cards occasionally to make sure that the lender doesn’t close them out either.

Tip #5: Read Your Credit Reports

You can’t know if your reports are reporting negative information if you never look at them.  All three major credit bureaus – TransUnion, Equifax and Experian will allow you to pull your free credit reports every 12 months at annualcreditreport.com.  It’s free, so there’s no reason you shouldn’t at least be looking over them once a year.

Tip #6: Find Help if You Need It

You may not need to pay for credit repair services, these tips could boost your score to exactly where you need to be.  But if you’re ever confused or overwhelmed, there are tons of online help sites and credit repair forums you can use.

Tips Only Help if You Follow Them

I know that these tips are sometimes easier said than done, but when you’re being pre-approved for loans and credit cards or you’re being offered the best interest rates in the industry you’ll be glad that you were able to maximize your credit scores.  These tips usually involve a good amount of budgeting and saving, but if you’re committed to the process you should see positive results within a few months.

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“Fix Bad Credit in 24 Hours”

Posted Jul 20 2010 by Marc Chasewith 0 Comments

You must’ve seen the ads promising to fix your credit and have your score up 200 points overnight.  They’re on the TV, the radio, newspapers and there are no shortage of fake "Top Credit Repair Company Review sites".  As if some wand is going to magically fix all of your credit & debt woes.  So let’s get the deception out of the way:

You won’t be able to fix your credit problems in 24 hours!

Unless you’ve been perfect, every month for your whole financial life, no excessive credit card debt, your credit card balances are all at about 10%, you have money in savings, and you’re lucky enough to be part of the 21% of Americans that don’t have an error on their credit reports, then maybe you can fix your credit in 24 hours.  It’s not too difficult to fix what isn’t broken.

For the rest of you, get ready to devote some time and energy to credit repair and debt relief.  It’ll be well worth it when you’re paying the lowest interest rates allowed and you’re getting pre-approvals on everything from mortgages to credit cards.

What’s a Realistic Time frame?

This depends largely on how much there is to “repair.”  Generally 3 to 6 months is a good benchmark.  You should have an idea of what’s going to be on your credit reports.  If you’ve maybe missed a payment or two and allowed one account to go to collections, it could take 2-3 months.  If you’ve spent the last couple of years borrowing from anyone who would lend you a dime and not paying them back, it could take over a year to get everything paid off a listed correctly on your reports.  

What’s on My Credit Reports?

You won’t know that until you pull them for yourself or have someone get them for you.  All of the major credit bureaus offer a free report every 12 months at annualcreditreport.com.  It’s free!  There’s no reason that you shouldn’t do that as soon as possible.  The sooner you have your credit reports in front of you, the sooner you can fix your credit.

How Do I Read These?

If you’re new to credit repair, then the codes and abbreviations might be a little difficult to read the first time around.  What you may want to do is find a trustworthy credit repair company that gives free consultations.  They will analyze your credit report, explain what’s helping and what’s hurting your score, as well as lay out a plan for you.  It’ll give you an idea of how to get the ball rolling.

What If I Don’t Have Time for This?

Make time!  If you need support, credit repair experts can do all of the legwork for you.  That’s not to say that you should completely forget about it.  Worthwhile credit repair is going to take some work on your end whether you hire someone or decide to go it alone.  If you’re serious about maximizing your credit scores, you need to educate yourself as to what’s going to help you get to where you want to be financially.

When Should I Start?

Right now!  Finish reading this paragraph and go get your free credit reports.  It shouldn’t take you more than 10-15 minutes to have all 3 saved to your computer or printed and ready to go.  Learn the federal and state laws, or have someone that knows them take a look at your reports, and get started gradually.  You know it’s not going to take 24 hours, so plan ahead.

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Credit Repair Services Should Preach Budgeting

Posted Jul 20 2010 by Marc Chasewith 0 Comments

Budgeting might as well be a dirty word to most Americans, yet for those who have a financial plan in place their ability to improve their credit scores is amazing. While there’s no listing on your credit reports for whether you’re planning ahead with your finances or not, it’s usually obvious to lenders that you’re being responsible with your money.

Not running up your credit card debt has its advantages.  Not having to involve yourself with debt relief or deal with harassing phone calls.  Plus if you’re budgeting, you can avoid falling into a similar situation that’ll require credit repair. 

Budget and Save

The primary purpose of budgeting is to make sure that you are not living beyond your means. But in order to put a budget to good use, you need to make sure that you are saving money too. Generally, savings is used for retirement, or the purchase of a home, however having money for a potential financial disaster is just as important.

Consumers that are living paycheck-to-paycheck would be devastated if they were to lose their job or have to add another expense because of a family tragedy. These things happen to everybody. If you’ve put money away for a rainy day, then it may not be such a financial hardship.

Don’t Miss Payments

If you’re budgeting properly, then you should never miss a monthly payment on either a credit card or installment loan that you may have. Even if something happens to your income or expenses for a brief period, the fact that you’ve been squirreling money away will get you through that time without a payment slip up.

Just one missed payment can lower your credit score 50 points or more. That’s why it’s so important to make sure that you never miss a payment. A missed payment can lead to higher interest rates, which means paying more money each month, which leads to less money for savings. It’s a domino effect that can be completely avoided with suitable planning.

Pay Balances Down

If your credit cards are maxed out you’re walking a very fine line between building positive credit and being completely overwhelmed by your debts. Keep your balances as low as possible. Use your credit cards as a convenience, not as a necessity.

If a financial crisis does happen, you’ll be glad that your credit card balances have been kept low. You may need those credit cards for a few weeks to get you through this rough patch. If they’re maxed out though, not only is it going to be difficult to pay off, but you’ll find that you may have absolutely no money on hand.

Your balances also have an impact on your credit scores. Keeping them at less than twenty percent of their balances will almost certainly cause your score to creep upwards. While having high balances will usually do the exact opposite.

The Bottom Line

Too many people have no desire to break down their finances and really budget. But if you’re able to stick to it and avoid impulse purchases, your ability to increase you credit score is significantly higher than someone who isn’t planning ahead.

So many people think that credit repair is going to be the answer to their credit woes when being financially responsible is by far the better, safer approach. These are steps that need to be part of your everyday life; however, when you’re paying the lowest interest rates in the industry and you have a credit score that’s in the 800s, you’ll be glad you took the time to budget.

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Free Credit Scores Coming July 21

Posted Jul 21 2010 by Marc Chasewith 0 Comments

We’d previously blogged about the FACT Act as it made its way through the House and Senate to become a real law. 

Short for Fair Access to Credit Scores, the law would finally allow consumers a big behind the curtain at their actual credit score.

On Wednesday, July 21, President Obama will sign the Frank/Dodd Act into law, which includes the FACS Act, meaning there will finally be a way for consumers to see their actual credit scores for free, instead of having to sign up for a monthly service or pay a fee to see it through a credit reporting bureau.

This doesn’t mean everyone who asks will get to see their score, however.  Only those who have been denied anything based on their credit score, will then be allowed access to their score as well as a full credit report.  Being adversely approved (i.e. you got what you wanted, but not the way you wanted it) for a loan of any kind will also net you a peek at your score. 

Why this doesn’t mean free scores for all is kind of a mystery (after all, the more you’re educated on your credit, the better you’ll be able to handle it), but at least we’re now getting to see our scores with our reports for free, making things like credit repair just a little bit easier.

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Credit Repair Help

Posted Jul 21 2010 by Marc Chasewith 0 Comments

With so many businesses pulling credit reports it’s becoming more important that Americans address any credit problems that they currently have.  But is credit repair really the magical cure-all that many companies make it out to be?  In order to answer that question you need to understand what credit repair is capable of doing for you.

Can Credit Repair Erase Negative Info?

Yes and no.  Credit repair is meant to correct inaccurate or outdated information on your credit reports.  Many consumers, even many credit repair services companies, try to use this process of challenging accounts for every derogatory listing.  This is not what credit repair is supposed to be doing and will only create more problems.

If the negative accounts on your credit reports are wrong, then yes, credit repair can have them corrected and possibly removed.  Don’t think that you can go run up thousands of dollars of credit card debt, not pay, and then have a credit repair company magically remove those accounts.  It’s not going to happen.  You’re going to need debt relief for those debts.

Does Credit Repair Boost My Credit Score?

Comprehensive programs should have no problem improving your score.  However, removing negative items from your credit reports doesn’t usually increase your scores.  What’s more beneficial is establishing new, positive lines of credit and using it responsibly.  The credit repair process will often times include creating new credit lines to maximize your scores.

Can Credit Repair Be Done in 24 Hours?

Absolutely not.  Credit repair is a process that generally speaking takes 3 to 6 months. Of course this depends on how bad your credit really is.  But 24 hours is completely unreasonable.  Most correspondences with creditors, collection agencies and the credit bureaus are still done via regular mail and has a turnaround time of about 45 days.

Is it Worth the Money?

If done properly, then yes, it is.  Credit repair can get you approved for credit cards and loans, but it can also improve the interest rates on those loans & cards.  You can end up saving thousands a year in interest payments just because your score was a few points higher.  So while it is an investment, the money you save can far exceed the money you spent.

Where Would I Begin?

If you’ve never taken a look at your credit reports, then now’s the time.  All three major credit reporting agencies – Equifax, Experian and TransUnion – offer a free credit report every year.  It’s free at annualcreditreport.com.  Take them up on this offer and see what your credit profile is saying about you.  The sooner you start, the sooner you’ll reap the benefits of a high credit score.

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Credit Card Debt Relief and How to Get Started

Posted Jul 22 2010 by Marc Chasewith 0 Comments

Negotiating your own debts with creditors and collection agencies can save you a bit of money, but there are several pitfalls to avoid during the process. Just like doing your own credit repair, you’re going to need to be patient and pay close attention to details. Because while you may be saving money, you certainly won’t be saving yourself time or aggravation. However if you’re up to the challenge, the benefits of debt relief are their own rewards.

Get Ready for the First Phone Call

You need to have any important information about the credit card debt that you’re calling about available. This includes recent bills or any letters that the creditor or collection agency may have sent you.

You also want to have an idea of what you can pay them, whether it be in a lump sum or broken down over a few months. Do not agree to pay more than you know is possible or you’ll just end up in the same predicament a few months down the road.

Don’t Get Intimidated

Collection agencies and creditors aren’t generally the nicest people to talk to if your account happens to be overdue. Their tone will be harsh and they will try to direct the phone conversation in the manner they’ve been taught. State your purpose from the beginning; that you are looking to negotiate a payment with them.

Do not get irate or use profanities no matter how upset you become. This will get you nowhere, and will likely result in worse results. Try to have the call elevated to a supervisor if possible as they are more likely to reach a deal for a reduced amount.

Be Detailed

Every correspondence or agreement you make should be in writing before you actually start making payments. Collection agencies are notorious for telling you one thing on the phone, then “forgetting” that the conversation ever happened. If you reach an agreement that you are happy with, get it in writing first.

Make sure that every last detail is part of your agreement. You need to be as specific as possible as to the dollar amounts that you will be paying as well as the exact dates that they will be receiving these payments.

Be Reasonable

If you’re trying to settle a $20,000 debt for $250 then you’re out of your mind. Expect to pay between 30 to 50 cents on the dollar for most credit card debts. There are various factors that play into what percentage a collector will accept; 30%-50% is just an industry average. You may encounter a situation where they are unwilling to negotiate at all. They may have a plan for suing you in court for the entire amount.

Be Patient

Make no mistake about it, while settling your own debts is intensely gratifying, it’s going to try your patience. You need to keep a detailed log of every correspondence made between you and each of your creditors, collection agencies and their attorneys. Make sure you seek help if necessary, there are plenty of debt relief companies out there that will give you a free consultation to let you know what kind of predicament you’re really in.

Make sure you know your rights as a consumer and that you’re versed in both state and federal laws regarding your situation. While it may seem like an impossible task your financial future may very well depend on it. If you settle those debts now, you may find your credit score in a year or two is much higher than you’d ever imagined.

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Good Idea/Bad Idea: Online Credit Card Statements

Posted Jul 22 2010 by Marc Chasewith 0 Comments

When the internet was first invented in 1980-something, the dream behind it was to make every facet of our lives as convenient and easy as possible.

Actually, that’s not true but that hasn’t stopped me from ordering pizza online while taking out some random Facebooker’s mafia before he stomps all over my turf.

One major way the internet has made life a little bit easier is with the advent of online bill paying and credit card statements.  Now those of us with a high number of bills to pay can have them automatically withdrawn from our account without having to worry about pesky things like keeping my bills in order or remembering which one needs to be paid on which date.  I can also have my credit card statements sent to me via monthly emails, meaning I barely even have to go to my actual mailbox anymore. 

But are these services really making our lives that much easier, or could automatic bill withdrawals and online credit statements end up leading to more problems, specifically the need for debt relief, in the long run?

Let’s examine how switching from snail mail to email for your financial statements may be a Good Idea or a Bad Idea.

Good Idea

• It saves trees!  With the whole world on a quest to go as green as possible, switching to online statements and payments certainly makes you look good in Mother Nature’s eyes.  If that doesn’t matter to you at all, switching to online statement deliveries will at least help you clear up a lot of the clutter they usually bring with them.

• It’s much more convenient!  Most people generally have somewhere between 2-3 credit cards that they keep open.  Add in bank cards and statements, as well as any other bills you have (cell phone, utilities, cable/internet, etc.) and that’s a lot of unnecessary clutter clogging up your mail, especially considering just about every credit card bill and bank statement comes with a bunch of fliers for some new service or deal they’re promoting. 

And since these bills all come at their own time, having a lot of them can make keeping track of your financial obligations a serious pain in the ass.  Switching to paying all your bills online just makes things much more convenient and less of an overall hassle.

Bad Idea

• Not paying it any more mind.  Of course, the downside to an “out of sight/ out of mind” online bill paying policy is that many companies will try and tack on extra fees while you’re not worrying about their bills, especially on older credit cards you may no longer use.  In addition to fees for going online only, many card companies feeling the heat of the recession are looking to raise all kinds of fees right under your nose.

• There goes your credit score.  One more serious misstep many who go online only can make is deleting every bit of email they get from creditors and their bank, except for their statements.  While it’s true that most of that stuff is spam anyway, this is also how many people lose track of the annual fees that may be added to their accounts. 

Before you know it, those unpaid fees start to pile up until BOOM, there goes your credit score.  Now, you’re left with a pile of unpaid bills you never knew you had, and a report in serious need of credit repair.

So what’s it to be in the end?  Do the benefits of paying your bills online outweigh the potential risks?  I certainly think so.  Just make sure to continue to monitor at least some of your emails and statements so you don’t fall into their fee traps.

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Credit Card Debt and Teenagers

Posted Aug 2 2010 by Marc Chase
It’s a common problem: kids getting their first plastic, wrack up the credit card debt and wind up needing debt relief before they’re even 20.  Now you’ve got a teenager dealing with the harassment of collection calls and desperate for credit repair just because no one explained the dangers of credit.

Credit cards and teenagers can be a potentially dangerous thing when mixed together. Usually because teenagers see the limit on their credit cards as actual cash they’re getting. They might also think there are no penalties down the road. Educating your children on credit cards, and how they work might be beneficial, but that doesn’t mean that they’re guaranteed to listen.

Building Credit vs. Ruining Credit

Credit 101: What They Should Be Teaching in Schools

Posted Jul 27 2010 by Marc Chase
It’s been a long-held belief of mine that every high school in this country needs to start including classes to teach kids about credit and personal finance.  If they’d been offering these types of courses back when I was in high school, there’s a pretty good chance we wouldn’t be in the financial snafu we’re in right now, with half the country in need of a way out of credit card debt and the other half continuing on like nothing’s wrong (Okay, that’s generalizing things a bit, but you get the idea).

Back in my day, when I was a fresh-faced 18 year old out of high school, creditors seemed to be falling all over themselves for the chance to give to give me my first credit card, usually with a limit of up to $5000 (oh the ways I could spend that…) and some useless trinket as a sign up bonus.  Things are a little different now, the biggest change-up being that banks are no longer allowed to issue credit cards to anyone under the age of 21, unless the person applying has a cosigner or can provide proof of sufficient income. 

Now, I’m sure that probably sounded sensible to whoever came up with the idea, but back here in reality, it doesn’t make any sense at all.  Not only does it serve to stave off any experience a younger generation will have with credit cards, but with a decent percentage of your credit score (15%) made up of the length of items in your credit history, having to wait until you’re 21 to start building up your credit is like being held back two grades for no discernible reason.

So what’s a responsible teenager (responsible enough, anyway) to do if they want to get ahead in the game and start establishing credit before their 21st birthday? 

How to Repair My Own Credit

Posted Jul 26 2010 by Marc Chase
It’s a common question we get here: “Can I repair my own credit?”  The short answer to the question is “yes.”  If you need credit repair for your credit card debt problems, you’re going to need a bit of free time and a lot of patience.

Where Do I Start Repairing my Credit?
Your credit reports shape your credit scores.  All three of the major credit reporting agencies – Equifax, TransUnion and Experian – allow consumers to pull their reports every 12 months.  These reports are free, so there’s no excuse.

How Do I Read Credit Reports?
If you’re new to credit repair then the reports may be a little difficult to read.  They’re full of numbers, codes and abbreviations to ensure that they’re both consistent and kept as short as possible.  If necessary, find a credit repair services company that’ll give you a free consultation.  Not only will they explain your specific problems, but they’ll also give you an idea of what your plan of attack should be.

I Found Some Mistakes on my credit report, Now What?
You need to challenge anything on your reports that’s not 100% accurate.  Find a sample dispute letter, list exactly what’s being reported incorrectly and mail it to the credit bureaus.  This is a fairly slow process as it’s still being done through the mail.  Expect a turnaround of about 45 days and make sure that you’re keeping detailed notes of all correspondences.

Credit Repair, Debt Relief and Financial Discipline

Posted Jul 28 2010 by Marc Chase
Many of our credit repair and debt relief clients are with us because they weren’t disciplined with their budgeting or with credit card debt.  When it comes to your financial future, the important thing is to have a proper plan in place before problems begin to occur.  It’ll be easier to maintain a positive balance in your bank account by being proactive rather than trying to make up for a loss after you’ve messed up.
Of course, it’s easy to talk about the importance of a budget.  Actually creating and implementing a strict set of guidelines is usually a whole different story.  But for those that embrace a disciplinary approach to budgeting, their financial burdens are lessened.