Author : Liz RobertsWhen seeking credit help, everyone is warned against agencies or organizations offering “quick fix” or “instant credit repair” to unsuspecting consumers In fact, credit repair scam is so prevalent in the market today in response to the large number of people in need of credit help In this article, let’s talk about how you can avoid credit repair fraud and how you can distinguish a reliable credit counseling service

Can You Repair Bad Credit?
The fact is there is really no way you can instantly “repair” or “fix” bad credit According to the Credit Repair Organizations Act, all agencies or companies offering credit counseling or debt help are mandated by rules and regulations set by the government Those who will be found in violation of these rules must be punished by the law

No agency has the power to erase negative remarks or unpaid charges in your credit report, unless these charges are incorrect or inaccurate However, there is a way to rebuild bad credit and raise your credit score However, take note that doing so involves time, effort and hard work especially on the part of the borrower

What can a credit counseling agency do for you?
How can these agencies help you recover from debt problems? First, a legitimate counseling service can help a consumer understand how credit reporting works For instance, not everyone may realize how important it is to personally check their credit reports on a regular basis When was the last time you ordered a copy of your credit report? If you haven’t examined your credit report for more than a year, you could already been in trouble

A credit counselor can also teach you practical money management skills that you can apply in your daily life A trusted counselor should evaluate your financial situation and create a budget plan that best suits your needs and spending

Watch out for credit repair agencies who may force you into signing up for a debt consolidation loan or a debt management plan even if it’s not really applicable for your situation Some agencies that are just after making profits may use this tactic without even considering the client’s problem Such agencies make money by charging excess fees and rates on the loans and DMP (debt management programs) they offer

Furthermore, a credit counseling agency must not require you to submit upfront fees without first rendering service If an agency asks for unreasonable fees, take your business somewhere else Never sign up for counseling without examining the company’s terms of service

You can also check the Better Business Bureau if there has been any record of complaint filed against the agency If so, what are these issues and how were they resolved? Check the history and background of the company How long has the agency been providing debt help to people? What does it track record of service prove about it? Finally, see to it that the agency is in compliance with the Credit Reporting Organizations Act Liz Roberts is a freelance writer and loan consultant. The website BadCreditResources.com offers resources that specialize in providing bad credit loans and credit cards for people with poor credit financing.

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Author : Pat StedlingCleaning credit with secured credit cards and sub-prime merchandise cards can be an alternative for the credit challenged Basically, when your FICO score falls below certain levels, it becomes increasingly difficult to get credit of any kind at a reasonable cost Obtaining a credit card, if even possible, begins to resemble pawn-shop and loan-shark interest rates When you find yourself in a situation like this, there are steps you can take for credit clean up

Using a secured credit card for a period of time can help with credit clean up, even if it is for a price A secured credit card is basically what the name says, a credit card secured by a cash deposit with the card issuer For instance, placing say $400 in a deposit account with a participating bank or lender would entitle you to $400 worth of credit, or some amount close to that You may wonder why not just spend the cash instead of leaving money in the account, and instead of paying the monthly fees and expense After all, some shopping for these cards will show that the fees can be quite high Well, the answer is that this is a price to pay for cleaning credit as you go By making your normal purchases with the secured card, and consistently paying it off at each statement, this information begins to be reported to your credit history By doing this over a period of time, all those on time payments begin to drown out the negatives on your reports, and soon you will see an improvement in your credit score

Using a secured card in this way takes a bit of discipline though, and you will find that you really do not want to miss a payment And, your budget may force you to start small and grow slowly If you can only afford a $200 deposit, start with that and manage it carefully After all, the money management is what they want to see on your credit history Another common sense tip with secured credit cards is not to use them for extra holiday or fun spending At the end of the day they are meant to be and should be used as a credit cleaning tool

Sub-prime merchandise cards can also be an alternative for the credit challenged Cards of this type are attached to a line of credit that allows you to buy merchandise from a particular vendor You will be required in most cases to put down a deposit on your purchased items, and the balance is financed on the card Again there is a price for this, but it is the cost of credit clean up The merchant captures your business along with sales they wouldn’t normally have gotten in trade for the risk of extending credit to the credit challenged That risk can have a cost to the merchant, and hence the extra cost However, like the secured credit card, good payment histories are reflected directly to your credit history report

Again, as with a secured credit card, sub-prime merchandise cards take a bit of thought and discipline Both issuers have a very short tolerance for late or missed payments So try to use the card for what you would normally spend, and place that amount aside immediately in your budget to be sure to make the payments Both of the above cards show up as new lines of credit, and good payment histories from them are reflected on your report In this way, both cards serve to bury or replace the bad information on your report over time The extra costs of credit cleanup are far less than the costs of higher insurance premiums, missed job qualifications, and high risk loan interest rates

Cleaning credit using the above methods are not the only tools you have available And, they may or may not fit your situation But, millions of people have and will continue to use both types of cards for credit cleanup and credit building efforts Learn more credit cleanup tips and tools at Credit Cleanup Guide and at Credit Cleanup Coach. Submitted By ArticleUnited.com

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Author : Chris EspositoNot long ago, almost anyone could get a home renovation loan or home improvement loan, regardless of credit score Then, with the housing and mortgage industry crisis, the best home renovation loans required at least a 580 credit score The, it shifted to 600 Now, it basically sits at 620 Is this the last change, or will the target keep moving for credit scores and home rehab financing?

For potential borrowers, all of these rapid changes within the mortgage industry have created a lot of frustration You work under one set of rules to qualify yourself for a much-needed home renovation loan only to find out that the rules have changed on you Banks have been circling the wagons, attempting to fight back the pains of the housing market crisis In doing so, they have grown much more conservative in their lending guidelines

One of the big shifts in the guidelines is the requirement for minimum credit scores Right after the housing collapse a couple of years ago, you could still secure a home rehab loan (a k a , a home renovation loan) with a 580 credit score through the FHA 203k program This was great news, because home improvements are going to be the means by which this nation eventually corrects the housing crisis

As more and more foreclosures flood the housing market, home improvement projects, including the home improvement loans that go with them, will be the best way to increase the value of the homes in neighborhoods across America So, when banks decided to increase the credit score requirement to 600, it made things that much tighter for potential borrowers

Just recently, banks have again increased the credit score requirement for the FHA 203k renovation loans to 620 It’s not a huge increase, but it will seem like a mountain to climb if you are a borrower who thought you were sitting pretty with a 601 credit score So, what’s the good news?

There is more than one silver lining in all of these changes First, let’s start with the most basic - this last shift to a 620 credit score requirement ought to be the last change for a long time The FHA 203k program is still quite liquid, meaning there is plenty of money to be lent for home improvements and home rehab loans The government is making sure money is available, as they realize the importance of these loans to the economy

Second, this credit score increase to 620 may actually help the country overall Remember, loose lending practices by banks across the nation are one of the main reasons that our housing market and mortgage industry found themselves in such trouble Now that banks have basically flushed out their overly aggressive, often predatory, lending guidelines, we should feel more comfortable that only qualified borrowers are being let money

Why should we care? Because qualified borrowers will have a much lower foreclosure rate, meaning less foreclosures on the market over the next few years This will directly lead to an increase in housing values and a nice boost to our economy in general That will be good for everyone By setting the credit score requirement at 620 for home renovation loans, banks have basically found a happy medium - score requirements that are just high enough to insure only qualified borrowers but also low enough to make home rehab loans a possibility for the majority of Americans

But, what if you are below the 620 credit cut-off? Imagine you found the perfect home to buy that just needs a little work to fix it up It could pay off handsomely for you, because prices right now are low And, home renovation loans allow you to build a ton of equity into your new property

So, if you are below a 620 credit score, you may feel like you’re on the outside, looking in, while others around the country get to take advantage of some amazing opportunities If you fall into this category, take heart There are ways to still qualify for your financing In the past, you could simply get a sub-prime loan Nowadays, we are smart enough as a nation to know that this is not the way to do business - it’s not good for banks, it’s not good for borrowers, and it’s not good for the country

So, the good lenders out there have found that they can be most helpful to borrowers by joining forces with trustworthy, quality credit repair firms Unfortunately, there are a lot of credit repair scams out there Many companies simply don’t deliver on their promises, sucking money out of their customers That’s why savvy lenders have teamed up with the reputable credit restoration institutions to make sure their borrowers are protected

So, if you have a credit score below 620, and you need a home renovation loan or home rehab loan, then don’t fret Make sure you work with a lender who understands home improvement projects as well as proper credit restoration If you do this, you should be well on your way to fixing up a property for your new home Chris Esposito specializes in home renovation and rehab loans, working as a direct lender nationwide. For more information about home renovations in general, or specifics about home rehab loans, go to www.DirectRehabLoans.com, or call (877) 876-3688.

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Author : Tom FazioIn most social circles debt has a very bad connotation But among educated investors and speculators, debt is the substance of wealth creation We’re taught from early on that debt is evil and binding But the wealthy use this evil burden to purchase appreciating assets, which in time not only cover the original debt obligation plus interest, but also adds a few zeros to the equity statement

For those not born to the wealthy few, credit cards have provided access to capital for small business men and investors for years They’ve allowed capitalism to progress, the economy to grow, and individuals to make new lives for themselves But as we all know, investments don’t always turn out well, and sometimes the daring entrepreneur winds up in a mound of debt

Given our current economic and financial crisis, it isn’t a very good time to be burdened with credit card debt Especially now that interest rates are on the verge of rising and access to capital is tight But there is an interesting flip side to this equation, and it lies in the poor money management of our faithful leaders Our government loves to spend They live on credit just as all of us live on credit The US government is burdened with debt, owed primarily to China, Japan, and the American tax payer, and the economy at present is not helping to pay it off

But our government has a few tools that we as individuals don’t Our government has the magic ability to create more money, from nothing And that is exactly what they’ve been doing The reason for this is two fold The first is to provide support to a crashing economy, creating works projects and holding up banks by the bootstraps, or noose And the second reason is because the more money they create, the less each dollar that currently exists is worth, thus making their burden of debt a little less burdensome The consequence of all this is hyper inflation and asset values rising tremendously

For those of you who think like the herd, this is and should be a scary thought, because it implies the evaporation or pillaging by the government of all the wealth you’ve created throughout your life For those of you who think outside the box, this is a great time to accumulate debt, so long as it finds a soon to be appreciating asset Because as soon as inflation takes hold, asset values rise but your debt remains constant, and therefore your equity grows significantly

For those with less risky blood, there is a conservative benefit of this ridiculous government spending Your current debt, assuming your income keeps pace with inflation or you currently own a house or other long term tangible asset, will gradually fade away into oblivion Remember how your grandmother used to tell you what she could buy for a penny? Yes, I know she was crazy, but she was also telling the truth A penny used to mean more than good luck And in 20 years we may look back and reminisce about all a dollar could buy

So for those of you burdened with credit card debt, find some way to pay if off with passive income It won’t burden you forever as it does today And for those of you looking to invest, do your research, find a good credit card with a low APR and a long term payment plan, borrow, invest, and cross your fingers This should go without saying, but consult your accountant before you do any of this Or your priest Tom Fazio is an independent investor and investment author who writes on credit card debt, secured credit cards for people with bad credit, and 0 interest credit cards.

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Author : Pat StedlingAn overview and sample of how to draft a letter to dispute credit card charges

No matter if you agree with the concept or not, the fact is that if an item appears on your credit or charge card statement, the merchant and credit card company view the items on that bill as “their money” from the moment it’s billed They have the motivation to react defensively to any attempts to get that money back from them, unless there is a solid logical reason to do so Further, because of the world we live in today, most merchant and credit companies face a daily assault from scammers and tricksters making them even more defensive and experienced than you That solid logical reason they need to remove a charge may be your only chance at success in getting disputed charges removed

Step 1: Organize all your data Make three copies of the credit card statement that has the disputed item(s) listed One copy will be sent to the credit card company (never send the original), and the other two are for your disputes file and for corresponding with the merchant during the follow-up phase Do the same with any documentation that applies to the item in question, like sales receipts, returned items receipts, proof of identity not that of billed, copy of identity fraud alert if it applies, etc

Step 2: Organize your dispute argument In an orderly and logical manner, outline why you feel the charge is in error For example, the item was never ordered or received, the billing information is from another individual not you, the item was returned for legitimate credit or charge back not reflected, etc Be clear and be sure your argument is legit Your chances are increased the more accurate and concise you are, and you risk legal troubles if you are fraudulent in your claim of dispute Many legitimate merchants and charge companies share valuable information about what is a legitimate dispute in their terms and conditions pages, so be sure to check these out as well

Step 3: Identify exactly as possible (through a phone call if needed) who exactly will be your target of this letter This may give some insight to influence or leverage in your favor, and insight how to tone or craft your argument or dispute For instance, is the person or department receiving dozens of these mailings per day, or is this a merchant charge account where the proprietor or credit manger can handle each letter individually as a matter of good business practice

Step 4: Using the data in Step 2 and Step 3 above as a guide, create a rough draft of your initial dispute letter Spell checking and grammar are second considerations here, since they will be handled in the final draft

Step 5: After taking a break from the process for a day or night or two, look at all three above in sequence and think about how you could improve your strategy, argument points, or final draft argument tone and style Remember, this is an initial contact that does not call for quoting the laws, name calling, personal attacks or threats of action, or anything of the sort Cool headed, correctly crafted and displayed logic should lead the recipient to no other decision than to agree with your argument If you’re not there yet, you need to go back to Step 1 to start over till you get it right This is your best chance for success, if not your only chance

Step 6: Using the final draft from Step 5 and the copies from Step 2, package your letter and supporting documents together, and send them to the appropriate address, with some form of tracking like certified return receipt It’s always a good idea to match this step to the level of the charge amount and your target as well Remember, you are negotiating and presenting at this stage, not picking a fight or a legal battle There may or may not be a need for legal stuff later For now you are documenting and tracking each step and little more, but certainly not less

Give it a shot If your reasons are legit, the item(s) may be adjusted But don’t try to refuse to pay the rest of your bill until resolved You may even find yourself in a situation where a reversal is not possible, or that you may have to pay and recover later to preserve your account standing And, the above steps may not work Now you can think about your possible legal standing and remedies
Sample credit letters and boilerplate templates abound at bookstores and on the web. While they can be helpful, learning to draft and manage your own credit letter communications is in reach. If properly drafted and executed, your personal efforts may even outperform the templates on the web. Find out more at Sample Credit Letter. Submitted By ArticleUnited.com

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Author : Andrew CocksGetting into financial debts is like putting on weight It is easy to get by leading a carefree life but is quite a difficult task to get rid of Although losing weight can be a difficult task it is not impossible and neither is getting out of debt traps

You may have heard the old adage, where there is a will, there is a way and this is exactly what it takes to deal with financial debts and you will see yourself out of it sooner than you expect Discipline, focus and the right help are all that you need to get your finances back in control

Credit card debts are a common problem for millions of Americans today This problem is mostly faced by immature young individuals who go through major dilemma in reasoning their temptation of easy credit However, it is not only young people who are facing this problem but there are other segments of the population as well who come across similar issues

There are many people, be it individuals who have suffered a job loss, injury or have spent more than they could afford, see their credit card bills growing every month Most of these people can only afford to make the minimum payments required or in some cases, skip payments

This definitely leads towards growing credit card dues, which makes their situation even worse And remember, the credit card industry makes a yearly turnover of multi-million dollars, which is made possible by your growing credit interests and minimum payments

Well, the good news here is that there are ways to counter such financial issues One of the most common ways to deal with the situation is to go for debt settlement Let us take a quick look at what debt settlement is all about and how does it help in overcoming the credit card debts

What is debt settlement or credit card debt settlement?

Debt settlement is as old a concept as debt itself It is a completely ethical, logical, and legal method to get you out of debts This is a way in which you can avoid bankruptcy and come out of those debt traps laid by the credit card companies

In case you have major credit card dues that you cannot afford to pay, then banking on credit card debt settlement is the best thing to do Making only minimum payments do not do much to help your situation, rather you take decades to pay back all your debts and probably end paying ten times more than what you had borrowed initially Debt relief can not only reduce your payments by 40-60% but also cut down your repayment time to 3 years or less

So to conclude, if your credit card bills are keeping you up all night, and you just can not think of any way to get out of your debts, then considering credit card debt settlement may be a good option, this way you can not only save on the interest but also prevent yourself from filing for bankruptcy Gain Instant Access to the Honest and Ethical Way to Quickly Get Out of Debt Without Having to File Bankruptcy. Check out the Best Credit Card Debt Settlement site and claim Your FREE Video now: http://www.DebtSettlementSystem.com

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