Fast Credit Repair – How Credit Repair Services Work

Many of us hear the term “credit repair services” and automatically think it’s a scam. This is because many of them are, and only attempt to steal your money and drip-dry your wallet. However, we’ll be taking a look at what an ideal, reputable, efficient, and proven credit Repair Company, does. This company assists people in repairing their credit quickly, usually within a couple months. This can take at least a year for a novice to try to do, if they are successful. The most important factor to keep in mind when seeking credit repair services is that it is a marathon, not a sprint. It takes delicate time and resources to repair a credit report, so you need to find a company that is passionate about helping you, and has a proven track record. We will also discuss tips and tricks you can use to ensure you’re picking a winning company to help keep yourself and your wallet safe.

Firstly, let’s go over safety. This is the main concern when selecting a credit repair company. A good credit repair company doesn’t have the words “wire” or anything of the sorts on their site. They proudly accept payment via check, credit, or debit card, just as any legitimate business does. You won’t be sending non-refundable money to them, or making cash deposits into their account. These are the same trusted payment options you use everywhere else, and credit cards are also backed by the credit companies’ award winning fraud protection, so you know you’re safe. Other companies that claim to want to truly help you, often drip-feed your wallet taking $100 month-by-month, and falling back on the excuse that they never promised anything, but would “try” to do their best for you. As much as it’s a fact that nothing can be promised, because ultimately it’s up to the credit bureaus, they live on that excuse to suck peoples’ wallets dry. A good credit repair company isn’t like that, and you’re welcome to ask any of their many satisfied customers.

Second, some type of reasoning behind their services is what you’re looking for. How can they help you? What are they capable of clearing from your reports? What is the turnaround time? Do they have any examples of their work? These are all great questions to be asking not only the company, but also yourself when sourcing professional credit repair help. A good company separates itself from the fakes out there in a number of ways. They show you a detailed in-depth video of a consumer’s credit report. A video would be ideal so you can then note the differences. They go over how their report looked at one point, and also at another point to show the improvements. You want to see a timeframe of around a couple months. They should take time to show you the basics of what they can do for you in order to begin building trust with potential clients.

By now, you’re hopefully leaning towards using a good credit repair company for your credit report issues. But how do they work? A good credit repair company works off of government legislature to fairly represent you to the credit reporting bureaus. To ease some of your curiosity, their strategy involves them using, on your behalf, the Fair Credit Billing Act, Fair Credit Reporting Act, and the Fair Debt Collection Practices Act. True knowledge and understanding of all these pieces of legislation gives us the ability and the confidence to legally challenge items in your credit reports. Each one of these acts can be viewed at: www.ftc.gov. You may also be asking how long it takes to see results. Once you receive your credit reports from all 3 credit bureaus, a good credit repair company will aggressively remove the negative debt from your credit report. By law, the credit agencies must respond to your dispute letters within 30 days from the actual dispute claim, and you should definitely see results on your credit file within 30-45 days.

Hopefully, the above paragraph gave you a reasonable idea as to how they operate. They’re basically like your lawyers, but to the credit bureaus! Trust them to work with you, and you surely won’t be disappointed. If you have any questions, comments, or concerns, reach out! The first step to bettering your financial future is to allow them to help you in combating the intimidating credit bureaus. You could also try to fix your credit report yourself, but when a novice attempts to do that, the credit bureaus log each and every dispute, so this can make it harder later on down the line when you attempt to seek professional help. Let the expert’s help you from the get go! It is important that you don’t begin contacting the credit bureaus and seeking disputes without knowing what you’re doing. This can only hurt you and make you look less serious to them, and they will attempt to take advantage of that. You must convey to them that you mean business, and allowing a professional outfit to represent you is generally the best option available.

So why hire a professional outfit to professionally represent you? It has gotten to the point where almost everything is based on your credit history. With a better and more accurate credit file, you can receive lower credit card and home mortgage interest rates, lower automobile finance charges, lower down payments, lower insurance rates, and more pre-approved credit. Foremost, restoring your credit will give you more peace of mind and will also eliminate certain stress. Therefore you can benefit greatly by taking advantage of professional services. Most of the important things in your life such as your car, job, financial standing, and job, can all be affected by how well your credit report is. If you are in the position where you need credit repair assistance, you need to consult a professional company that specializes in removing derogatory remarks on your accounts, remove accounts that are in collections, and other bad histories within your credit report that can prevent you from obtaining future loans, having to satisfy for higher interest rates, and other obstacles throughout your financial future. You may also want to fix your credit fast in case you need to acquire any new loans for a family emergency, a new vehicle, getting a new job, or even a new home.

Justin Rapp is a Credit Repair Specialist that have helped over 850 clients in repairing and rebuilding their credit and obtaining personal and business funding for them as well.

Types of Credit Card Fraud

“Credit card fraud is the use of plastic cards (including credit, debit, and stored value cards) to withdraw cash, make purchases, or otherwise use the card without the owner’s permission.” Australian Crime Commission.

This type of fraud is by far the most common (as compared with debit or stored value) and the most recent methods are described below:

Application fraud: Application fraud occurs when a person’s identify is stolen and a credit card is obtained in that name. The fraudsters can simply sign it and use it until the limit is reached. The unsuspecting owner becomes unknowingly liable for the debt.

Card not present fraud: The fraudsters discovers the details on the card and uses it in places where a signature, PIN or cards are not required, such as online purchases.

Not received fraud: Not received fraud describes the situation where the owner of the card does not receive it. The fraudsters steals it from the post or home and uses it in a similar way as the card not present fraud.

Counterfeit card fraud: Technology exists where he details of a credit card can be easily copied. The fraudsters simply uses the copy as if it were the real one. Credit card details are stolen and sold to fraudsters.

As the methods indicate, use of cards online in a fraudulent manner is increasing. Staying vigilant about these methods is necessary to avoid disappointment.

What do you do if you suspect fraudulent behavior?

Check your statement online regularly. Report it immediately to the provider. They will most likely put a hold on the card until the matter is resolved.

Minimize the impact of some of the frauds by insisting on the lowest possible limit.

If your credit cards are stolen, anywhere in the world, report immediately to your card provider. They have phone numbers available 24/7. Again, they will most likely put a hold on it. Always travel with at least one other option for cash and keep it in a separate place.

Look out for other payment options. You may not even need a card to carry on your lifestyle!

The credit card is a wonderful invention and a tool of convenience, particularly for the online shopper and traveler. However, it is prudent to take precautions to minimize the risks associated with the theft of the card. Most people take it lightly but ask someone who has experienced credit card fraud and they will encourage everyone to be vigilant.

How to Repair Damaged Business Credit

Many business owners think they have items reporting on their business credit reports that really aren’t reporting. But over 90% of trade vendors don’t report to the business credit reporting agencies. So chances are good that the negative information you think is on your report might not even be there.

Obtain Business Reports to know what’s on your business credit you should obtain business credit reports from the main business credit reporting agencies. Business credit reports are offered by Experian, Dun & Bradstreet, and Equifax. You will first want to get a copy of your business credit reports to see what is being reported.

You might have already heard of the FCRA. The Fair Credit Reporting Act outlines consumer’s rights to dispute inaccurate information on their credit reports. But it’s essential to know that this law does NOT apply to credit repair. There are currently no laws which outline business owner’s rights regarding credit disputing. The FCRA also requires credit issuers to notify you of what bureaus they pulled your credit data from to determine your denial for financing. In the business credit world this is not the case, you rarely ever know the source that pulled your business credit or the reporting agencies they pulled it with.

If you see accounts or details you don’t recognize or you feel are inaccurate, request a debt validation for that account using a debt validation letter. A debt validation is where you solicit the creditor for verification of the account details they are reporting. They will typically send you back details of your account that they are reporting. The FCRA and the fair debt collections practices act apply to consumer debts, not business debts. So you can send a debt validation letter, but the creditor is not required by law to respond to your dispute.

When sending a debt validation request, your request must be sent to the creditor in writing. Also insure you dispute the debt with the credit agencies if the creditor doesn’t respond to your request. If no response is received within 30 days of mailing the letter directly to the creditor, then you should then dispute the account with the business reporting agencies.

Based on how you pay your bills. If you pay the majority of reported accounts on time or early, you will have a good score. Most business owners have little to no credit reporting. So, even one negative account can have a BIG impact on their business score. It is essential that you continuously build your credit profile just as you do with your consumer credit. One of the best ways to battle negative information on your report is to offset it with LOTS of positive information. So continuously build your business profile just as you do with your consumer credit.

3 Big Reasons People Fail Building Business Credit

There are three main reasons many people fail building business credit. The 1st BIG reason people fail, is that their business isn’t setup credibly in the lender’s eyes. The perception lenders, vendors, and creditors have of your business is critical. Before applying for business credit a business must insure it meets or exceeds all lender credibility standards. There are over 20 credibility points that are necessary for a business to have a strong, credible foundation.

To insure you are seen credibly, it is very important that you use your exact business legal name. Your full business name should include any recorded DBA filing you will be using. Insure your business name is exactly the same on your corporation papers, licenses, and bank statements.

Whether you have employees or not your business entity must have a Federal Tax ID Number (EIN) to start getting business credit. Just like you have a Social Security Number, your business has an EIN. Your Tax ID number is used to open your bank account and to build your business credit profile. Take the time to verify that all agencies, banks, and trade credit vendors have your business listed with the same Tax ID number.

Your business address must be a real brick-and-mortar building, deliverable physical address. It cannot be a home address, cannot be a PO Box and cannot be a UPS address. Some lenders will not approve and fund unless this criteria is met. There are Business Address Solutions available at companies like Regus including address only where you receive mail and packages at your dedicated business address.

You must have a dedicated business phone number that is listed with 411 directory assistance, under the business name, to successfully obtain business credit. Lenders, vendors, creditors, and even insurance providers will verify that your business is listed with 411. A toll-free number will give your business credibility, but you must have a LOCAL business number for the listing with 411.

Lenders perceive 800 number or toll-free phone numbers as a sign of business credibility. Even if you’re a single owner with a home-based business, a toll-free number provides the perception that you are an even bigger company. It’s incredibly easy and inexpensive to setup a virtual local phone number or a toll-free 800 number.

A cell or home phone number as your main business line could get you “flagged” as an un-established business that is too high of a risk. DON’T give a personal cell phone or residential phone as the business phone number. You can forward a virtual number to any cell or landline phone number.

Credit providers will research your company on the internet. It is best if they learned everything directly from your company website. Not having a company website will severely hurt their chances of obtaining business credit. There are many places online that offer affordable business websites so you can have an internet presence that displays an overview of your company’s services and contact information.

It is important to get a company email address for your business. It’s not only professional, but greatly helps your chances of getting the thumbs up from a credit provider. Setting up a business email address is just too easy and inexpensive to neglect.

The 2nd BIG reason people fail building business credit is that they apply using their social security number. Always apply first without using your social security number. Some vendors will request it and some will even tell you on the phone they need to have it, but submit first without it. Many don’t even know you can get approved without it.

When you apply using your SSN you almost always are giving a personal guarantee. One easy way to know if you have business credit already is if you obtained credit without signing for it and providing your SSN. TRUE business credit doesn’t require an SSN in most cases to qualify.

Business credit is using your EIN to qualify for credit. When you have enough credit built for your EIN, you can then get approved without providing your SSN. If you provide an SSN, your personal credit WILL be pulled in most cases. That personal credit will then be used for the approval decision.

Most credit issuers will approve you without your SSN if your EIN credit is strong enough. If your EIN credit is not good enough, you might be declined and they then might ask for your SSN. No matter what ANY credit representatives tell you, credit CAN be obtained based on your EIN only.

The 3rd BIG reason people fail building business credit is that they apply for credit in the WRONG ORDER. A business credit report can be started much the same way as a consumer report commonly is, with small credit cards. The business can be approved for small credit cards to help them build an initial credit profile. These types of initial cards in the business world are commonly referred to as “vendor credit”.

A vendor line of credit is when a company (vendor) extends a line of credit to your business on “Net 15, 30, 60 or 90” day terms. This means that you can purchase their products or services up to a maximum dollar amount and you have 15, 30, 60 or 90 days to pay the bill in full. So if you’re set-up on Net 30 terms and were to purchase $300 worth of goods today, then that $300 is due within the next 30 days.

You can get products and services for your business needs and defer the payment on those for 30 days, thereby easing cash flow. And some vendors will approve your company for Net 30 payment terms upon verification of as little as an EIN number and 411 listing. When your first Net 30 account reports your “tradeline” to Dun & Bradstreet, the DUNS system will automatically activate your file if it isn’t already. This is also true for Experian and Equifax.

You need to have a total of at least five (5) Net 30 day pay accounts reporting. Some vendors require an initial prepaid order before they can approve your business for terms. Vendor accounts are hard to find, so keep in mind that your vendors do not necessarily have to serve 100% of your business needs.

Avoid these three BIG mistakes to quickly build an exceptional business credit profile and score that you can use to obtain credit for your business.

How to Get Business Financing With Bad Personal Credit

Banks REQUIRE good credit to get approved as you know. Most people only go to their bank when they need money. But the most common business bank loan, SBA loans, only account for 1.1% of all business loans (Department of Revenue 2013). The reality is the big banks are NOT the suppliers of most business loans. And even though they require good credit to qualify, many sources don’t.

SBA and other bank conventional loans are tough to qualify for because the lender and SBA will evaluate ALL aspects of the business and the business owner for approval. To get approved all aspects of the business and business owner’s personal finances must be near PERFECT. There is no question that SBA loans are tough to qualify for. This is why according to the Small Business Lending Index, over 89% of business applications are denied by the big banks.

Private investors are a great source of business funding. They want average or better credit of 650 scores or higher in most cases. They will also want solid financials for at least two years. Think of private money as being for SBA and conventional bank loans that just miss the mark.

Does the business have existing cash flow proven by bank statements, NOT tax returns? Does the business have over $60k annually received in credit card sales? Does the business have over $120k annually going through their bank account? If the answer is yes then revenue financing or merchant advances might be the perfect funding product.

You must be in business six months for merchant advances and revenue lending. No startup businesses can qualify and you must have 10 monthly deposits or more. Most advertising you see for “bad credit business financing” are these products. These are short term “advances” of 6-18 months. Mostly short term at first, then when half is paid down lender will lend more money at a longer term. Loan amounts up to $500,000 and loan amounts equal to 8-12% of annual revenue per bank statements. For example, a company that has $300,000 in sales might get $30,000 advance initially.

With revenue and merchant financing 500 credit scores accepted and are COMMON with this type of lending. Bad credit is okay as long as you aren’t actively in trouble such as in a bankruptcy or have serious tax liens or judgments.

Collateral based lending lends you money based on the strength of your collateral. Since your collateral offsets the lender’s risk, you can be approved with bad credit and still get REALLY good terms. Common BUSINESS collateral might include account receivables, inventory and equipment.

With account receivable financing you can secure up to 80% of receivables within 24 hours of approval. You must be in business for at least one year and receivables must be from another business. Rates are commonly 1.25-5%.

You can also use your inventory as collateral for financing and secure inventory financing. The minimum inventory loan amount is $150,000 and the general loan to value (cost) is 50%; thus, inventory value would have to be $300,000 to qualify. Rates are normally 2% monthly on the outstanding loan balance. Example is a factory or retail store.

How to Identify and Remove Credit Report Errors

We live in the age where intrusion is a common phenomenon. Big Brother is not the only one that is watching you. Financing companies, banks and auto lenders also monitor your credit report and analyze the confidential financial information that is provided in it.

And, if there is an error on your credit report, it can create massive problems for you. It can increase your interest rate, obstruct you from getting a job or prevent you from buying a car. A study by FTC has revealed that one in every five customers has an error on his/her credit report. So, you must check it for any errors and remove them at the earliest.

What are the Common Credit Report Errors?

Inaccurate Identity Information

The three foremost credit bureaus – Equifax, Experian and TransUnion collect information of every American. They commit errors because of two main reasons: massive data management and human involvement. Following are the examples of errors:

1. Incorrect Name and Address

2. Error in Employment Information

3. Mistake in Social Security Number

Errors in Financial Information

A bank or a financing company may pass inaccurate information to a credit bureau. Also, a credit bureau can commit errors while processing your financial information. The most common financial errors include:

1. Unwarranted Financial Transactions

2. Duplicate Entries

3. Incorrect Origination Date of Mortgage

4. Out-Dated Bad Debts Record

5. Bankruptcy Information older than 10 Years

Existence of Fraudulent Accounts

According to Javelin Strategy and Research, 13.1 million Americans were victims of identity fraud in 2013. The number shows how commonly a person’s information is misused in order to access money.

So, while checking your credit report, you must pay attention to any unwarranted line of credit. If you find any unjustified auto loan, credit card or home mortgage, contact the credit bureau immediately and opt for a security freeze on your report.

How to delete Errors from your Credit Report?

Do not worry about errors on your report, here’s a step-by-step procedure to help you remove them:

Collect Evidence

If you think there is an error on your credit report, you must collect evidence to support your claim. It will help you in proving the relevant credit bureau wrong. Also, it will ensure faster results. For example, if you think that the auto loan origination date is inaccurate; you must find the auto loan contract and show the accurate date to the credit bureau.

To remove errors from your report, you must dispute it with the relevant credit bureaus. Highlight all the errors and attach evidence. You must also write a letter to the credit bureaus and explain your situation in detail.

Inform the Relevant Credit Reporting Agencies

Credit reporting agencies such as banks, credit card companies and lenders provide financial information to credit bureaus. It helps the credit bureaus in keeping track of your financial situation. They have a legal responsibility of investigating your complaints. So, if a bank is providing incorrect information, inform the bank authorities immediately.

Now that you know what the different kinds of errors are, identify them and follow the step-by-step procedure to remove them. It will help you in keeping your credit report risk-free.

Credit Card Secrets You Must Know

When you were little, your introduction to the world of personal finance management most likely came about in the form of a gift from your parents: a pouch, perhaps a small canister, or any container where you could deposit loose change – any money that you mean to save up for use in the future instead of the present. By learning the fundamental practice of setting money aside now so that you can have something to spend later, you are able to develop a mindset that does not hanker to spend every last riyal that ends up in your hands; what you gain, instead, is a culture of responsibly ensuring that you have the financial resources for any need that may arise by preparing for such instances and making wise use of the money that you do spend.

This is the same when applying for credit cards as a means of having another source of funds to spend. Most of the time, having credit cards are often associated to financial loss but with the right ways of handling it, you will be able to see how helpful it will be. Below are some tips and tricks you must know if have a credit card:

Check For Annual Fees

Most companies charge a certain amount of annual fee on the cards. However, very few people know that they can easily get rid of such fee, especially if they have a good credit score. For this case, all you need to do is to pick up the phone, call your bank and request for the fee to be removed. Tell them that you are going to dump the card if they don’t remove the fee.

Universal Rules

Say for example, if you are late in making the repayment of one of your cards, you will be charged with a much higher rate of interest on your other cards. So, one of the most important credit card tips for you is to make the payment on or before the due date. This is considered to be part of their universal default rules which is a disadvantage to the subscriber if he has no idea of this.

Try Waiving The Late Fees

If you have never been late before paying your balance and fees, you can call up the credit card company to have them waive the late fees for you. Some representatives may refuse this request but it doesn’t harm to just call them and try. You may call another time and you might just be lucky with the next representative.

Stashing cash away among your possessions is certainly not an option in this day and age. If you want to have total convenience and security with your finances, as well as a smart management strategy, then turning to reliable banking institutions for their products is the best thing to do.

10 Tips on How to Improve Your Credit Score

Your credit score not only determines whether or not you will be able to get credit, it can also have an impact on the interest rates that you will be charged. If you haven’t checked your own credit score, then it might be a good idea to do so, because there are many things that you could be doing inadvertently that would adversely affect it. If you want to want to improve your credit score, there are some simple steps that you can take. Here are ten ways that can you make your credit rating better.

1. Find out what is already recorded against your name

It really is worth the few pounds that it will cost you to check out your credit score. The credit referencing agencies do make mistakes and lenders do not always pass on the correct information to them. If you register online with a credit referencing agency, you will see what is recorded against your name and you then get any errors corrected.

2. Get on the electoral roll

Even if you have no intention of voting at the next election, it is still a good idea to register on the electoral roll. Not doing so will have a detrimental effect on your credit rating and some lenders won’t lend to you if they can’t find all your details.

3. Close old credit card accounts

If you are one of those people who regularly transfer credit card balances in order to rake advantage of introductory offers, don’t forget to close of the old accounts. If you don’t, then you could have thousands of pounds of unused credit against your name and this could reduce your chances of getting further credit.

4. Always make your mortgage payments

If money does get tight, always pay the mortgage payments first and then work out what else you can pay. A missed mortgage payment puts a huge dent in your credit rating, so if you are having difficulties, speak to your mortgage lender and see if you can arrange reduced payments, or a repayment holiday.

5. Be careful about making loan applications

If you are looking for a loan, be careful about making too many enquiries with too many potential lenders. If you apply for a loan, or even if you just enquire about a loan, the lender may make a credit check on you, which reduces your credit score.

6. Remember to remove your ex from all your finances

A divorce doesn’t stop you being liable for any joint accounts that are left open, so make sure that all joint accounts and finance agreements are closed, or transferred to a single name. This is a common mistake that people make and they find out later that their own credit score has been damaged by something that their ex-partner has done.

7. Always pay your bills on time when you can

Many of your regular bills are classed as credit and late payment of these bills could affect your credit score. Utilities, such as electricity and gas, are particularly important, because the utility companies are notoriously quick at passing unpaid bills over to debt collection agencies and that will have an impact on your credit rating.

8. Create a credit history for yourself

There have been cases of very wealthy people being refused credit, simply because they have never borrowed money before. Lenders view properly used credit as a good sign, so even if you don’t need to, do use your credit cards and then repay the balance at the end of each month, so that you have some kind of credit history against your name

9. Reduce your utilization ratio

30% of your total credit score is based on how much you owe in total, so one of the simplest ways to get a better credit ratio is to pay off some of your debt. If you know that will be applying for a loan or other form of credit, it might be worth getting even the smaller debts, like store cards, paid up to date.

10. Check your credit report carefully

Some lenders can be very slow at informing the credit agencies when debt has been repaid and sometimes errors are made. Check your credit report very carefully to make sure that it is accurate. You should also be looking out for credit fraud too, which can happen if someone has used your details to obtain credit for themselves.

7 Tips For Credit Card Management

The invention of credit cards was a giant leap forward for humans. People around the world use their credit cards for all kinds of purchases and payments. The credit cards give the people, the freedom of purchasing what they want, without having to depend on their bank balance. Credit cards are used by all kinds of people in cities and towns across the world. It is a fact that a credit card can be a boon as well as a bane at the same time.

At times, people do not know how to effectively manage their credit cards. This is why, their credit score is severely affected and they find it hard to acquire financial assistance from banks and other lenders. In order to make sure that your credit score is not affected, you need to effectively manage your cards. You need to be careful about making payments and using the card for any purchase.

When you make your credit card payments on time, your credit score improves and you can obtain higher amount of credit. On the other hand, if you fail to make the payments on time, your credit score is negatively affected and you may not get any further credit from financial institutions. Here are a few important tips which will help you in effectively managing your credit cards:

1. Plan your purchases – Before purchasing or buying any product, determine if it is necessary to buy it. You must make a list of your priorities and stick to that so that you can arrange for the money needed to pay your credit card bills. At any point of time, make sure that you do not purchase something too expensive as it will make you cross your monthly budget or the credit limit on your card.

An effective way of way of planning your purchases is to make a shopping list. At the beginning of the month, try to make a list of things you need to buy with the card and stick to that list as much as possible.

2. Always check your statements – Check your statements on a monthly basis as the statements will help you understand your spending pattern. Based on your observation, you can try to avoid unnecessary purchases. Also, checking the statements will help you in knowing the minimum payment due for a particular month, so that you can make that payment on time and avoid extra charges or fees.

You can easily check your statements online, and you can also use your smartphones to keep a track on your card usage. Mobile alerts can be very helpful in ensuring that you do not end up paying more than what you are supposed to, when you use your credit card for any transaction.

3. Try to make full payment – Try to make full payments, whenever possible. When you pay your credit cards in full and within the due date, you do not have to pay any interest on the billed amount. Besides, paying the credit card balances in full will help in improving your credit score. Even if you are not able to pay your credit card balances in full, you should always make sure that you pay the minimum amount due, within the due date.

Apart from saving a substantial amount of money on interest, you will also be able to improve your credit score and increase your chances of obtaining more credit in the future.

4. Keep a track of supplementary cards – At times, you might forget the fact that you have provided supplementary cards to your family members and these cards are linked to your credit card account. The way these cards are used can have an impact on your credit card account. Hence, you should keep a track on them and also ensure that the transactions completed with them are paid for within the payment due date.

Besides, you also need to keep a track of these cards so that you can ensure that the credit limit of your card is not exceeded. If it is exceeded, you will end up paying an over limit fee and other hefty charges.

5. Look out for promotional offers – Why pay more when you can get the same product by paying less? Be a little smart when using your plastic money and make sure that you utilize the variety of offers and promotions provided by the card issuers from time to time. These promotions can provide you with access to discounts, deals and privileges across different segments such as dining, travel, shopping and so on.

You can not only save money through these promotional offers but you can also enjoy a variety of other exclusive privileges which will enhance your experience of using a credit card. Make sure that you always visit a website where you can find information about such promotions so that you can take full advantage of them.

6. Make multiple payments in a month – Do not just limit yourself to making a single payment within the payment due date every month. Instead, try to make multiple payments even if you pay small amounts. It has been observed that the credit card issuers and the credit bureau tend to send payment reports more than once every month, if there is a lot of payment activity in an account.

When you make multiple payments you make sure that the lot of positive information about your credit card usage is being sent to the credit bureau and in the process your credit score will get a big boost. For example, if the minimum payment due for the month is S$1500, do make a payment of S$1500 and apart from that also make other amounts in the same month.

7. Avoid cash advances – You will be provided with the feature of withdrawing cash with your credit card but you should avoid utilizing this feature. When you withdraw cash with your card, you will be charged a cash advance fee and you will also not get any interest free period to make the payment.

Cash advances will increase your minimum payment due and the overall balance of your card and will make it difficult to pay off the balance in full. It can also have a very negative effect on your credit score and so it is important that you try to avoid cash advances as much as possible.

Top Reasons People Fail When Repairing Their Own Credit

Reasons people fail when repairing their own credit

#1. Not understanding their rights. The Federal Trade Commission has numerous laws pertaining to credit, credit scoring, credit reporting etc… Understanding these laws and in particular the individual “statues” within the laws help immensely when correcting problems with the three major credit reporting agencies. (Experian, Equifax & TransUnion) Most people simply don’t have the time or expertise to read, study and understand what can be done to improve their credit.

#2. Documenting the entire process of correcting inaccurate information on their reports. It is estimated that up to 80% of Americans credit reports have inaccurate information on them. Documenting when letters are sent and knowing the timeframe the Credit Bureaus and Creditors have to respond is very important. Also, remember to send all documents Certified Mail with a return receipt request!

#3. Being patient during the process. So many people I’ve spoken with over the years simply get exhausted with the bureaucracy of these huge entities. You must be persistent, patient and knowledgeable in your efforts.

#4. Disputing only with the Credit Bureaus. When challenging inaccurate, wrongful or obsolete information on your credit reports it increases your results if you go after the creditors both original and whoever may have the information at this time. As you probably know, “bad debt” is sold many times and thus the same negative information can be reported by multiple organizations!

These are just a few of the reasons people get frustrated and give up in trying to improve their credit. Follow these simple rules and begin the first step in proactively addressing your credit issues and you’ll be well on your way to an eventual “A” Credit Rating!

Unfortunately we have not spoken about possibly the biggest factor: Procrastination! This is due to many things for people such as not knowing where to start. How to address the “big three”, Equifax, Experian and TransUnion But also what about the original creditors! Knowing which to go after and more so how to go after each of these entities is paramount in regard to your success rate!

Take time and visit http://www.ftc.gov and type in credit in the ‘submit’ section. This will give you all of the relevant laws regarding your rights as a consumer. Credit Bureau rights, time frames for processing your reason for removal etc.. Yes it is timely but well worth the effort!

Yours in Credit Education,