Monthly Archives: May 2013

Credit score: Lead a financially peaceful life with these credit tips

There is no denying the fact that improving credit score is a time-consuming affair. However, there are ways by which you can accelerate the process of credit score build-up and in limited time possible, provided you are willing to abide by certain rules.

So, if you are determined to get your credit score to the next the stage of improvement, then you ought to go through the entire article to achieve this feat.

Fast credit score improvement tips

Here are some of the golden rules of credit score improvement that you may choose to follow:

  • Stay firm to make all the loan repayments on time – First of all, any missed payments will drag down your credit score by 100 points and perhaps more than that. This is equally detrimental to both people with low as well as high credit score. However, the good part is that you need not repeat the same mistakes like others. Moreover, you probably wont feel that mush of a heat for the next seven years till something like that gets off your credit report, but then you’ll have to discipline yourself.So, you’ll have to stay current with your monthly payments and re-commit yourself to remain the same with other lines of credit. In order to prevent missing a payment deadline, you can make automated payments via your credit/debit cards. Now, with the advancement of the mobile applications, you can enroll for such services on your iPad or smartphone.
  • Stay current about all the credit report information – Errors on credit reports are a rampant issue. So, a regular watch on them will aide in improving your credit score, if at all your credit score is being damaged due to someone else’s misleading credit information. However, if that is not the case, then at least you’ll know or would have the stomach to find out the ways to boost your credit worthiness.A lot of credit reports may highlight the areas that are hurting your credit score. In this case, you can take advantage of the free credit reports every year from Experian, Equifax and TransUnion. This you may get at AnnualCreditReport.com. Apart from that you’ll be able to keep a track of score at zero cost and even get free credit repair tips from them.
  • Stay away from the clutches of credit card debt – One of the best ways to boost your credit score is to get rid of all your credit card balances as soon as possible. Doing so will have an instant and that too a positive effect on your credit rating. This is because paying off your credit card dues will lower your credit utilization ratio and this is one of the reasons why your credit score will improve.Actually, credit utilization ratio refers to the amount of balance you are carrying against the credit limit set for you. However, the trick here is to pay off all the credit card bills and to steer clear of incurring fresh high value balances immediately after that. If you can’t manage to pay off your balances, then you may opt to consolidate them so that it becomes easier for you to make the repayments.

Always keep this one fact in mind that credit card issuers will report your existing balances along with your payment history to the credit bureaus and so, sooner rather later they may come back to haunt you all over again.

 

Credit repair: What are the initial steps to dispute credit report errors?

In reality, credit report is now being considered as the passport to all things financial. This is because all types of creditors now analyze a loan applicant’s credit worthiness through his/her credit report. As a result, consumers must ensure that their credit report is free from errors or unwanted elements that may render them ineligible for further loans since every information counts towards determining their credit score.

So, if you want to have a stellar credit rating, then you need to dispute all the negative items on your credit report and get them removed from it as soon as possible.

How do you file your credit report dispute with the concerned credit bureaus?

Primarily, there are three major credit bureaus operating in the country at the moment – Experian, TransUnion and Equifax. In that case, your lender will pull out any one of your creditor report generated by them and based on the information therein, you’ll be judged on risk factor and credit worthiness.

So, in order to have an impeccable credit report, you need to do the following things:

®    Obtain your credit report – You can obtain a free copy of your credit report from the website: AnnualCreditReport.com. Being a consumer, you are allowed to take one complementary copy of your credit report created by all the three credit bureaus though this portal. You can save some money by ordering a copy of your credit report from one of these credit bureaus at a regular interval of four months, instead of paying for the credit monitoring services.

®    Make paper applications – Though all the three credit bureaus permit you to file your complaint or dispute online, yet it is better to send them a written application every time you want to get some negative information removed from your credit report. Dispute letters should be sent via certified mails and in return must request receipts against each one of them. All these letters will help you to show them as a record of your efforts to get those negative items removed from your credit reports in court.

®    Send them to the proper address – In order to send your dispute letter to the credit bureaus by certified mails, you’ll have to make sure that you are sending them to proper mailing address. For instance, the address of Experian is P.O. Box 9701, Allen, Texas – 75013. For addresses of the other credit bureaus, you will find them on their respective credit reports. If you are unaware of the exact ways to file your dispute letter, then study the concerned websites of the credit bureaus.

In addition to that, you should keep track of all your phone calls made to the representatives of the credit bureaus. For instance, you need to keep a record of the date of your call and the name of the representative you spoke to. Apart from the disputing errors on your credit report, you should also study refer to them after undergoing a credit card consolidation program. This will help you to know whether or not your creditors have received the payments and reported your credit accounts as paid, in accordance to the agreement.

To know more read here

Credit Report Errors More Expensive Than You Think

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Credit Report Errors or Derogatory Language Could Cost You a Job

For all the reasons you can imagine, errors on your credit report can be expensive.  They can keep you from getting important financing or increase your interest rate on loans.  In short, errors or misinformation can cause:

a.  Inability to buy a home, a car or get an education

b.  A reduced credit score requiring higher monthly payments for a home or car, possibly running to hundreds of dollars more per month

c.  Never-ending problems in the case of identity theft

But few people realize the credit report error can also cost you a job.  A Society for Human Resource Management 2012 Survey estimates that 47% of employers use credit checks when making a hiring decision.  Even if your position has nothing to do with handling money, many employers use your credit profile as an indicator of your level of responsibility or integrity. I know that in my industry, financial services, all employers use credit checks not only when they make a hiring decision but also on a regular basis as a checkup on their agents.  So a less-than-optimal credit report or credit report error can keep you from getting a new job, can keep you from getting appointed with an insurance company or losing an appointment if you’re an insurance agent or even get you terminated.

Here’s the rub.  You likely find out about a credit report problem at the most inopportune time such as when you need to borrow money or need to change jobs.  The remedy is to do an annual check of your credit report.  You might pick a date like your birthday or specific holiday to track your credit report which you can do in just a few minutes.  Every consumer can access a free credit report from each of the three credit report companies at annualcreditreport.com.

The key is to scan the report carefully.  Look for any errors or even misleading information.  For example, I had a lender use the word “suspended” regarding an equity line on my home.  In fact, the lender had suspended all equity lines in my state when housing values fell.  I had to take the lender to small claims court to get this wording changed which I did successfully.  So not only look for errors, but anything that might spook a lender or employer.

If you find errors or misleading language, contact the credit bureaus through their websites and simultaneously contact the financing institution that is reporting that tainted information.  If you can’t get the issue fixed in 2 to 3 weeks, don’t delay.  File a claim in small claims court is I did because you never know when you may be depending on a clean credit report for your next job or chunk of funds you may need.

Should you have a negative credit issue that cannot be removed from your credit files because it is true, it may actually be a good idea to disclose this on an employment application so you can frame the situation on the best light.  Should an employer find negative credit information when they do their background check, they won’t bother to ask you to explain.  They just won’t hire you.