Who Can You Trust for Credit Advice? – Credit Tip #3:

Who Can You Trust for Credit Advice? Let’s start by noting those agencies who are not credible for giving you advice on your credit score. Bankers, credit card agents and those with financial gains to be made at your expense should be out of the picture when it comes to getting legitimate credit repair advice. After all, these organizations have something to gain from your credit limit. While they may give you advice on using your credit, they are less likely to give you advice that will help you keep your credit in good condition. Avoid dropping your credit score by getting credit advice from a credit repair agency.

For additional information feel free to Sign Up for $0 below.

Secured Credit Cards

What’s a Secured Credit Card? – Credit Tip #12:

Credit card companies have come to recognize that some financial disasters happen through no fault of the consumer. Job loss often results from economic changes. Rather than punitively, punish credit card companies chose credit repair. If your credit score has fallen or a rough patch in life has dinked your normally good money practices, then you are eligible for a credit card. A secured credit card requires a deposit as collateral. This negates your credit score and allows you to build good credit once again making money management possible.

For additional information feel free to Sign Up for $0 below.

Dealing With Collections – Credit Tip #4

Dealing With Collections – One of the first things you can do when dealing with a collection account is to pay off the collection account. You need to do this before the amount is sent in to credit bureaus so to negatively affect your credit score. However, do not simply send in a check to cover the amount you may or may not owe. On the bottom left-hand corner of the check, in the memo line, write the words “Pay in Protest.” This shows that, while you are paying off the account, you are still protesting that you do not actually owe the business in question.

For additional information feel free to Sign Up for $0 below.

Importance of Payment History

Payment History – Credit Tip #19

According to Nick, paying on time, every time is crucial to maintaining a good credit score. Since your payment history makes up 35% of your FICO score, it is the single, biggest item that you need to be concerned about affecting it. You are adversely affecting your credit score for seven years each time you pay a bill more than 30 days after it is due. When you must pay a bill late, it is critical that it be paid within those first 30 days in order to prevent a lowering of your credit score.

For additional information feel free to Sign Up for $0 below.

Do Goodwill Interventions Work

Do Goodwill Interventions Work? – Credit Tip #19

Do Goodwill Interventions Work? – While credit laws allow for protesting any negative item on your credit report, it is sometimes effective to all on the good will of a creditor to remove a single ding, such as a 30-day late report. Called a “good will intervention letter”, you can contact a creditor and appeal to their good will to remove the negative mark. This normally works best where you have a stellar record with a company and simply missed one payment for one reason or another. Send a letter, explain the oversight, and nicely ask that they remove the negative report from your file. While not required to do so, many companies will respond positively to such a request.

For additional information feel free to Sign Up for $0 below.

Bad Credit – What do I do?

Bad Credit – Murphy’s Law tells us whatever can go wrong will go wrong. This colloquial advice applies to everything from planning a wedding, pulling off a bank heist, or repairing your credit score. If your credit is low, you’ll want to create an action plan with Murphy’s Law in mind. According to Nikitas Tsoukalis, choosing the right final goal in your action plan is the “single most important part.” Your goal should overshoot a lender’s minimum, so if something does go wrong and you do fall slightly short, you can still be approved for what you need.

For additional information feel free to Sign Up for $0 below.

Total interest you will pay !

How Much Interest Will You Pay in Your Lifetime? -Tips

Nobody likes to pay interest, but it’s a necessary evil for large purchases such as a home or a car, as well as part of the deal when you charge items with a credit card. (To really make your stomach churn about the interest that you’re paying, all you need to do is take a glance at your mortgage the next time a bill is due.)

But if we were to ask you how much total interest you pay throughout your lifetime, would you know? What would your guess be? $100,000? $200,000? Something greater?

The amount of interest you’ll pay throughout your life certainly depends on a variety of factors

your credit card limit and spending behaviors and your credit score. But according to a report on Credit.com, a site that has developed a tool to calculate how much interest you’ll pay over a lifetime based on the purchases that you’ve made, the average American can expect to pay $279,000 in interest. To put this number into perspective, consider the fact that recent estimates have stated that the cost of raising a child, from birth to 18, is $245,000. So yes, if you’re an average American, you can expect to pay more in interest than you would to raise a child.

Scary, we know. Thankfully, you can take measures to ensure that you’re more than just the “average American” when it comes to interest to curb this $279,000 number. The most obvious means is to save and pay cash for all of your purchases. After all, an additional $279,000 back in your pocket over a lifetime sounds pretty good to me, no? But that’s certainly not practical for everyone. With that in mind, here’s a look at some practical advice to reduce those lifetime interest payments:

Raise Your Credit Score

It’s worth noting that the $279,000 lifetime interest payment is based on someone with a fair credit score (620-679). So if your credit score is better than fair, you’re going to be paying less than the average American over the course of your lifetime due to your status as a more trustworthy consumer, which comes with lesser rates. Is your credit not up to par? Enact some credit repair strategies to improve it, as well as your finances:

  • Pay bills on time: Payment history accounts for 35 percent of the FICO score, the largest single category.
  • Reduce credit card debt: If your credit card debt is greater than 30 percent of your total credit allotment, your score will suffer. To boost your FICO score, pay down debts so that you owe less than 30 percent of your limit.
  • Credit history, types of credit and new credit are other factors that contribute to your score, but aren’t weighed as heavily as the two aforementioned categories.

 

Refinance Loans

Perhaps you took out an auto loan or bought a house when your credit score was just “fair” and now it’s “excellent” – you don’t have to continue to pay your bills with the interest rates that came with a fair score. Consider refinancing old loans if your credit status has changed to lock in lower interest rates. Check with your bank or credit union to see what interest rates are at and consider pulling the trigger and refinancing when rates are low enough. It doesn’t take long and can pay big dividends.

Credit Card Tips

The interest you’ll pay over a lifetime on credit cards come in a distant third place compared to interest on home loans and auto loans for most consumers, but it’s still a category worth focusing on. There are a number of things you can do to reduce interest payment, such as:

  • Pay on-time, in-full: Only charge what you know you can pay off.
  • Make multiple payments each month: Making more than one payment per month, even if you can’t completely pay the card off each time, can help lower your balance and thereby your interest.
  • Negotiate a lower rate: If you’re unhappy with your credit card interest rate, just a simple phone call to inquire about the possibility of getting a lower rate can work sometimes, especially if you’ve had the card for a long time.
  • Shop around: Not happy with your current interest rate? Shop other cards.

A final tip when it comes to charging is to seek alternatives for large purchases. For instance, instead of charging furniture when furnishing a home, look for a store that offers a 12- or 18-month same-as-cash payment plan. You can do the same with large medical bills – go on an interest-free plan if it’s paid off within a certain period of time.

Just because the average American pays $279,000 in interest over their lifetime, it doesn’t mean you can’t deviate from the norm. For more information on how to repair your credit score, feel free to Sign Up for $0 below.

Holiday Travel & Credit

Credit Before Holiday Travel – 10 Things to Do Before

10 Things to Do With Your Credit Before Holiday Travel
Getting ready to hit the friendly skies and take in some holiday travel? There are a few credit-related chores to take care of between picking your hotel and packing your bags. Before you even book your tickets, start taking care of these credit card tasks:

1. Let your bank know you are traveling.

Whether you are traveling overseas or just to another state, give your bank and credit card issuers a quick call with your itinerary. Card issuers may freeze your accounts to protect against fraud if the activity is considered unusual. Making a call before you go can save you the headache of dealing with potential issues while on the road. Many credit card companies also allow you to register travel plans online.

2. Check out your card’s concierge service.

You don’t need to be wealthy or famous to have a concierge at your service. Many credit cards offer free concierge service, which can assist with everything from researching local attractions to finding the best price on hotels. Check your card benefits to see if this is available.

3. Look up your card’s foreign transaction fees.

Many cards charge a per-transaction fee or a percentage when you use your card in another country. Make a note of which card charges the lowest fees, and try to use it exclusively to save while you are away.

4. Check out which of your cards give rewards for travel.

Discover offers 5 percent back on travel during one quarter of the year. Some American Express cards offer 2 percent to 3 percent back on travel expenses at any time. And, other cards pay out rewards in the form of airplane miles, which can be used for expenses during your trip.

5. Research your card’s protections for travel problems.

Depending on your cardholder agreement, you may have protections during travel. American Express, for instance, provides insurance when you use their card to rent a car. Knowing the coverage on your cards can keep you from expensively reproducing coverage through rental car and travel insurance.

6. See if your card offers travel discounts.

Many cards have agreements with airlines, hotel chains and rental car companies to give discounts to customers. Often, these can be found inside the members area of your credit card site.

7. Set a daily spending budget for your trip.

It’s easy to get carried away with extravagant meals and fun souvenirs. To keep spending under control, set up daily charge limits, and have reminders automatically sent to your phone when you get close to these limits.

8. Double-check your cards’ spending limits.

Having a card declined is embarrassing. And, over-the-limit fees can put a bite on your finances. Before you go, take note of how much you currently owe on each card to avoid going over the limit. Be mindful of charges that can add up, such as hotel fees.

9. Decide which cards to carry when.

It’s best not to have all of your cards in one place while you are traveling. Keep some securely in your luggage or hotel safe while you carry just one or two.

10. Make a copy of all your cards.

Before you leave, photocopy or take digital photos of all of your cards, front and back. (If you take photos with your phone, be sure to store the pictures in an encrypted folder and that automatic back-ups are turned off.) By having copies of all the cards, you can quickly contact your card issuers if your wallet is lost or stolen during your trip.

By taking a few minutes to complete these tasks before you go, you can save money, eliminate stress and better enjoy your time on the road.

Key Credit Repair wishes you safe and enjoyable holiday travel and a prosperous New Year!

hard inquiries truth

Credit Inquiries – How do they affect my scores?

How Do Inquiries Affect My Credit Score?
Each time someone views a copy of your credit report, an inquiry is added to your record to indicate that it has been viewed. While some of these inquiries are completely harmless, others will lower your credit score.

Types of Inquiries

  • Hard inquiry: A hard inquiry occurs when a potential lender pulls your credit report with your express permission. Because this type of inquiry indicates that you are trying to borrow money, it can count against your credit score.
  • Soft inquiry: A soft inquiry occurs when someone who is not a potential lender pulls your credit report. For example, a soft inquiry may appear when an employer pulls your report or when you check your own credit. Soft inquiries appear on your report, but they won’t affect your score in any way.

Understanding the Effects of Inquiries

According to FICO, the effect a hard inquiry has on your score depends on a variety of factors, including the amount of time that has passed since the inquiry, the number of inquiries and other such information. For some people, a single inquiry will have no effect at all. For others, the credit score may decrease slightly. Hard inquiries will have a more dramatic effect on your score if you have other negative indicators on your credit report, such as a short credit history. Likewise, a large number of inquiries may be viewed as a sign of poor debt management.

TransUnion reports that most credit inquiries remain on your report for one year. However, some inquiries may remain for up to two years.

Rate Shopping

One of the most important credit tips you will hear involves finding the best interest rate for long-term loans, such as mortgages, student loans or car loans. If you are shopping for financing in one of these categories, it’s possible to apply for a loan from multiple lenders without incurring extra inquiries on your credit report. FICO reports that all hard inquiries made to finance an automobile, obtain a mortgage or take out a student loan within a 30-day period are typically counted as a single inquiry when your credit score is calculated.

Inaccurate Inquiries

In some cases, inquiries you did not solicit may appear on your credit report. Even though you did not approve these inquiries, they will still harm your score if they are not removed. For this reason, it is important to check your credit score regularly and use credit repair strategies to eliminate any inaccuracies. If you need help to repair credit problems, Sign Up for $0.

car insurance rates

Credit Scores and Car Insurance – Credit News

Credit Scores and Car InsuranceWhile credit scores and credit reports are most commonly associated with loan approvals, there’s more than just getting approved for a credit card, auto loan or mortgage that the little three-digit FICO score is used to calculate.

For instance, credit scores are also factored into things like auto insurance premiums. Yes, credit scores count for insurance too, which makes credit repair all the more important and quite the lesser known credit tip.

So just how is a credit score factored into an insurance premium? An insurance provider will typically base premium rates on an insurance score. And this insurance score takes into account your credit history in order to predict your likelihood of being involved in an accident or filing an insurance claim. Studies detail how credit history can be linked to risk and accident potential.

Here’s a closer look at a credit-based insurance score and why it’s important that you repair credit for more than just good interest rates on loans:

  • The higher your credit score – and thereby your credit-based insurance score – the greater the likelihood that you’ll qualify for low auto insurance premiums. Keep in mind that this premium also takes into consideration driving history and the amount of claims on your record.
  • If you have a low credit score, you’re more likely to pay more for your auto insurance premium, as you’ll likely have a lower overall credit-based insurance score.

If you have less than stellar credit, what can you do to improve it for auto insurance purposes? The same thing you would do to improve it for any other purpose:

  • Make sure payments are on time.
  • Open new credit lines in good standing.
  • Have a favorable credit history (i.e., no collections, missed payments, etc.)
  • Good debt management – try not to accrue more than 30 percent of your total credit line at once.

Yes, good credit is about more than just low interest rates on loans – it can also net you lower auto insurance premiums. So if your credit is lacking, take measures to get your finances in order today.

For more information on how to repair your credit, please Sign Up for $0 below.