When do you need a credit counselor?
If you can pay your bills on time and are current on all your payments, you certainly do not need a credit counselor. Some indications that you may require the aid of a credit counselor are:
1. If you are not able to pay the minimum payments on your account.
2. If you are constantly late paying one or more of your regular bills.
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Stop Identity Theft in its Tracks
No matter how careful you are, thieves are usually a step ahead. What do you do, when they come for you? Once you discover that you may have become a victim of identity theft, here are some MUST DO’S for you to avoid minimal damage:
· Immediately, notify police, banks, credit card companies, and any other parties that you can think of.
· Make certain that you get your copy of the police report, so that you have proof of a crime having been committed.
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Fraudulent credit repair services?
You see ads all the time on tv, radio, the internet, and fliers, promising you services (for a fee) to “erase your bad credit”. These companies offer to remove bankruptcies, liens and bad loans from your credit forever. Some even go as far as offering to “create a new identity for you–legally.
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Free Credit Report - Your rights
You are entitled to a free credit report once every 12 months. Each of the 3 national consumer reporting companies( Equifax, Experian, and TransUnion ) is required to provide you with one, at your request. If you require another copy of your report within the 12-month period, the reporting company can charge you upto $9.50 per copy or more.
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Is it possible to “repair bad credit”?
If you have bad credit, be aware that your credit score keeps changing as new information is reported by your creditors. And so a bad credit score can change over time if you start to manage your credit responsibly. This means that you must do all the following:
· Pay bills on time, as late payments and collections can do real damage to your credit score.
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What is a “business credit report”?
A business credit report basically serves the same purpose as a personal credit report. Just as a personal credit report is an indication of an individual’s “financial health”, a business credit report is an indication of the “financial health” of the business. A business credit report is usually used by lenders to determine if a company can take on additional debt and if they will be able to repay it.
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What does “bad credit” mean?
“Bad credit” means exactly what you think…BAD CREDIT. It implies that a person or business entity has a bad credit history and is not of sound financial health. It means that you are a “high risk” to lenders and credit may not be extended to you, as you may not be able to make timely payments. Bad credit can be the result of late/missed payments, filing for bankruptcy, or exceeding credit card limits.
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What the heck is a “credit report”?
You often see the term tossed around, but many times not everyone is totally clear on what a “credit report” really is. In simple terms, a credit report is a record of your credit activities that is kept by a consumer reporting agency (CRA). This will include a list of all loans and credit cards you have, the unpaid balances on these and whether or not you make regular payments.
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What is “identity theft”?
Identity theft is a crime that occurs when a criminal obtains key personal information of another individual, such as social security number or driver’s license and uses it to take on someone else’s identity. The criminal will then go ahead and do such things as obtain credit, open new accounts, and purchase goods and services, using the victim’s name. Criminals can also use their victim’s info to commit other non credit-related crimes.
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What is “credit monitoring”?
Credit monitoring is a service provided by companies to monitor your credit activity and detect any irregular or suspicious transaction that may occur. Credit monitoring can be helpful in alerting of credit fraud and identity theft. You will also be alerted to such activities as credit inquiries, delinquencies, new accounts, changes in employment and other items that affect your credit history.
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FCRA-Fair Credit Reporting Act
The Fair Credit Reporting Act ( FCRA ) requires that the credit reporting agency must provide complete and accurate financial information to businesses, so that applications can be looked at with all integrity. As an individual, you have certain rights under the FCRA, such as:
· You have the right to know all the information recorded in your credit report.
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Business credit report monitoring
It is just as important to keep a close eye on your business credit report as it is your personal credit report. As a business owner, you want to know exactly what is in your business credit report because it is the basis of many decisions others make about your company. It will be used to determine how much loan you can get, how much interest you will pay on it and other things such as how much insurance premiums you will pay.
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What is “credit counseling”?
You see television and radio ads all the time with companies offering credit counseling in order to get you out of debt. Basically it is professional counseling services provided by organizations to help people find ways to repay debt through methods of careful budgeting and management of money.
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What is a “credit check”?
A “credit check” is the process of reviewing a person’s credit history prior to credit being extended. For example a bank may conduct a credit check, when processing a customer’s loan application. The result of the credit check will determine whether or not the loan is granted.
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What are “Credit Bureaus”?
“Credit Bureaus” are companies that collect information about consumers’ financial activities. There are 3 major credit bureaus: EQUIFAX, EXPERIAN and TransUnion. They collect information from parties that have given you credit in the past, such as stores that may have given you credit cards, or banks that you may have obtained loans from. They then sell this information in the form of a credit report to anyone who has a legally recognized reason to request it. This would include:
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What is a “credit score”?
Wondering what a “credit score” is? Well, let’s break it down into a few basic terms. Your credit score is a number that is derived from your credit report that tells lenders or others how likely you are to make credit payments on time. This score will affect whether you are able to obtain credit and if so, what interest rates you may pay for credit cards, mortgages, car loans, or whatever the case may be. For the most part, a higher credit score will mean that you will most likely be approved for a new credit at a lower interest rate.
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