Category Archives: Your Credit

Rebuilding your Credit After Bankruptcy

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Get a secured credit card. A secured card functions like a debit card in that you pay the bank the money beforehand, but your payments should be reported to all three major credit bureaus and go toward building your credit score. Only buy what you can afford, and pay the balance as often as necessary. Keep in mind to be cautious of high start-up fees. Be sure to ask if your transactions will be reported to all three major credit bureaus. After having your secured credit card for a year, ask to switch to an unsecured card with the same bank. Here’s a list of banks in Sacramento that offer secured credit cards:

• Bank of America
• Wells Fargo
• CitiBank
• U.S. Bank

Get a gas credit card. When you’re back on track using a secured credit card, you can try applying for a gas credit card. Try to get a card like this because gas is a necessary expense lessoning the urge to splurge. Be sure to pay the balance off as often as possible just like your secured credit card.

Get copies of your credit report from all three bureaus. You can get one report a year from each bureau for free. You can order your credit report online at: www.annualcreditreport.com

You can also call to have your credit report mailed to you. Here’s a list of the credit bureau contact information:

• Equifax: (800) 685-1111
• Experian (888) 397-3742
• TransUnion (800) 888-4213

Once you receive your credit reports, be sure to dispute incorrect information. To dispute your credit report you can use the online dispute form on the Equifax, Experian, or TransUnion website. Pay your bills on time. Get a calendar with all your due dates (or enter it into your cellular phone), and check it constantly. Make sure the money is ready ahead of time, and try to mail payments or do online transfers a day or two ahead of the deadline. Create a budget and figure out exactly how much
you can only spend each month.

Remember, people have walked this road before you. If they can make it, you can too. Try not to apply for too many credit cards or accept every credit card offer in the mail because it can have a negative impact on your credit score. Avoid spending money you do not have on the any type of credit card so that you can keep yourself from sliding into bankruptcy again.

Bankruptcy & Short Sale Experts

Five steps to repair your credit history

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legal guide If you feel like you`re overwhelmed by a mountain of credit debt, you’re not alone. With today`s economic recession, families all over the country are increasingly swamped by credit obligations that they can’t meet.

Whatever the reason for their financial distress, millions of people are in far more credit debt than they ever imagined possible.
If your credit score has taken a nosedive and you’d like to get it back on the road to recovery, here are five tips to help you get started on the right path.

1) Stay on top of your credit score. This means getting a copy of your credit report and making sure that there are no erroneous charges or late penalties listed. If you find that your credit report is mistaken in any of its figures, contact your credit bureau and your lenders to get the erroneous charges corrected.
2) Use a credit counseling service. This is one of the most important things you can do to repair your credit debt. A credit counseling service professional can give you the advice you need to manage your credit and become debt free. Credit counseling services operate by consolidating your monthly debt into one single bare minimum payment. In doing this, they work closely with credit card companies so that you can pay a reduced payment every month. In addition, if they know that you`re working with a counseling service, some creditors might be willing to reduce the amount you owe by as much as half, in return for a lump sum payment.
Credit counseling services charge a very small fee every month, but their services are absolutely invaluable when it comes to helping you get out from underneath a mountain of debt.
3) Stop using your credit cards. If you use a credit counseling service, this is the first thing that they`ll tell you to do. By eliminating credit cards from your life, you’ll be starting off with a clean slate and you’ll prevent yourself from incurring further debt.
4) Pay as much as you can afford on your cards each month. If you`re left with any disposable income at all at the end of the month, try your best to pay more than the minimum payment on as many cards as you can. Otherwise, it could take years, or even decades, to completely pay off the cards.
5) Make sure you pay all of your bills on time. Whether you`re paying through a credit counseling service or handling your remaining bills on your own, it`s crucial to pay everything on time every month. If you pay late, you`ll not only accrue late charges, but you’ll also be whittling away at that good credit score that you want to maintain. Even one late payment can damage your score, so budget yourself carefully so that you can pay on time from now on.
Whether you`re looking at debt relief or considering other resources to help you get out of debt, you`ll want to get advice from a reputable professional. By taking these important steps, you`ll eventually find yourself debt free and ready to face a better financial future.

Manage Your Credit – The Do’s and Don’ts!

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Credit management is a plus!

Credit scores affect everyone and everything! Everyone’s got to have a credit score to survive.
Whether you plan to purchase a car, rent an apartment, or want to pick up a cell phone, having credit in your name is part of being approved.
Here’s a list of what to do’s and what to don’ts!
DO:

  • Open a bank account – it doesn’t appear on your credit report, but bank account numbers are usually asked for in a credit application.
  • Apply for a credit card – to avoid being denied, only apply for credit cards with the requirements you are likely to meet. A simple department store or gas credit card can be easier to obtain than a bank issued card because they don’t revolve.
    • If you have bad credit already, apply for a secured card – if it’s hard to get qualified, you can apply for a secure card. A secure card has a credit limit based on the deposit you make. A secure credit card works the same way a regular credit card does.
  • Charge purchases and make payments on time – this shows responsibility and can help you open new credit accounts if you need it. Remember that a $5000 credit limit is not an additional income!

DO NOT:

  • Overdraw your bank account – you will be charged with heavy fees and could damage a good reference.
  • Avoid missed / late payments – your credit rating will be damaged!
  • Cash advances – avoid cash advances! They’re expensive, and you can be charged a hefty upfront fee of 2-4%, plus the high interest rates. Also, there are no grace periods for a cash advance.

More Information:

  • If you’ve been denied credit, be sure to ask why. Reasons can include anything from income, employment, or credit history. It’s important to know because if you are denied multiple times on your credit report, you can be viewed as a negative to a potential creditor. View your credit history and if there are mistakes, be sure to have corrections made.