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How to Protect Yourself from Identity Thieves

bbcred — Fri, 13 Jan 2012 03:28:39 +0000

The best way to protect yourself against identity thieves is to be aware about their tactics. In this article, let’s take a closer look at their strategies and how you can avoid being vulnerable.

Exercise caution in using Social Networking websites. You may think that posting a few things about yourself on Facebook or Twitter is harmless but Identity Thieves and scammers are always on the alert. Online passwords are usually retrieved by answering challenge questions such as “What is your mother’s maiden name?”, “What is the name of your favorite pet?”, or “Which school did you go to in high school?” So the next time you open your Social Networking account, keep in mind that posting specific details on your profile can leave clues for ID thieves.

Don’t forget to set your Privacy Controls whenever applicable to limit the number of people who can view your page. When choosing a password, avoid using facts that are directly related to your personal life. Strengthen your password by combining letters, numbers, with special characters.

Do not click on links inside unsolicited emails. Identity thieves also send emails that contain links. The email may appear to be from a government agency or a reputable merchant asking the recipient to verify their personal information by filling out an online form. When clicked, the link will lead to a phishing website which is designed to steal all information on the page. If you need to check the website, manually type the complete URL on the address bar of your browser.

People should be wary about opening emails from an unfamiliar sender. Never download attachments no matter how enticing the message seems to be as these may contain a malicious program that can steal information from your personal computer. If you received an email from an unknown sender, delete it from your inbox right away.

Keep an eye on your credit card. When shopping at malls or dining in a restaurant, see to it that your credit card never leaves your sight. Instead of handing out your card to the waiter offer to take the credit card yourself to the counter. Do not let the cashier bring your card to another room as part of “verification process”. All steps that need to be done to ensure that you are the genuine owner of the credit card can be made in front of you. Why is this important?

Identity thieves use “skimming devices” that can scan credit card information in just a few seconds. A skimming device is very small that it can be hidden in a palm of hand. You might not notice that your credit card is already being swiped with a skimming device and all your credit card information have already been stolen.

Take a positive action immediately. What can you do if you suspect to have been a victim of identity theft? You can place your credit report on fraud alert by notifying the three major credit bureaus. You can also freeze your credit report to prevent identity thieves from trying to open accounts using your identity. When your place your report on a freeze, nobody will be able to make an inquiry on your credit unless you request the bureau to “unfreeze” it.

About the Author

Shelly Evans is a freelance writer and loan consultant. The website http://www.badcreditresources.com offers resources that specialize in providing bad credit loans and bad credit cards.

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New Year Car Loan Tips for People with Bad Credit

bbcred — Mon, 09 Jan 2012 01:08:45 +0000

If buying a car is on your list of “things to do” this coming New Year, one of the first things you should consider is your personal credit history and score. Is your credit score high enough to win a car loan lender’s approval? Is your credit history in good shape? Consider the following practical tips on how you can get approved for a good car loan deal to finance your car purchase.

Order your report. Consumers are entitled to receive one free copy of credit report from each of the three major credit bureaus annually. The start of the New Year is the perfect time for you to take advantage of your consumer right, especially if you plan to apply for a car loan.

It’s a good idea to check your credit report at least two months in advance before applying for a car loan or any type of loan or even a credit card. Carefully examine your report and in case you find errors, send a letter of dispute to the bureau that issued your report. Disputing credit report errors can take up to 30 days which is why you need to take action at least a month prior to submitting your credit application.

If your dispute is valid, the errors will be corrected. The bureau will send you an updated copy of your credit report for free. It will also notify the two other bureaus regarding the updates made on your credit file. This step can instantly boost your credit score by a few points.

Save a higher down payment. If you currently have bad credit, be prepared to provide a higher down payment. You should be able to save anywhere from 20% to 25% down payment. By doing so, you can significantly reduce the interest rate of your car loan and lower your monthly car loan payments.

Compare car loan deals. Be ready to spend extra time exploring the market and comparing loan deals offered by various car loan lenders. If you have good credit, you can surely get approved more quickly and have access to the best deals.

On the other hand, a poor credit score can be a major disadvantage since most lenders reserve their best offers to customers with impressive credit rating. Is it possible for you to delay your car purchase until your credit score improves? If yes, then you will be in a much better position to apply for a car loan and to negotiate with a potential lender.

What if waiting is not an option and you need to apply for a bad credit car loan? You need to more cautious in evaluating car loan deals since you might encounter unscrupulous lenders who are out to take advantage of your situation. Avoid getting scammed or ripped off by checking the interest rate, the fees, the terms and conditions. Check the reputation of the lending company and make sure that you are dealing with a legitimate and trusted lender.

About the Author

Shelly Evans is a freelance writer and loan consultant. The website http://www.badcreditresources.com offers resources that specialize in providing loans for bad credit and credit cards for bad credit.

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Wise Spending Tips for the Holidays

bbcred — Wed, 30 Nov 2011 23:42:40 +0000

The last few months of the year is considered to be the most profitable season for many merchants and businesses. With four different holidays fast approaching, the Halloween, Thanksgiving, Christmas and New Year – many consumers are willing to spend a little more despite the limited budget.

Are you ready to face the holidays this year? How can you survive the season without getting stuck in bad debt? Consider the following suggestions:

Zero in your credit card balances. Before the holiday season comes, make sure that you have no remaining balance in any of your credit card accounts. If you’re planning to use your credit cards for holiday shopping, it’s best to start with zero balance.

Prepare your shopping list. It’s always a good idea to prepare a list before heading to the department store or the supermarket. Having a list will enable you to avoid unnecessary spending and make the most of your budget.

Consolidate credit card debt. If you catching up with your monthly credit card payments in a struggle, consolidating your debts can be a good strategy. Transfer your balances to a credit card with a low rate or apply for a new card with zero balance transfer rate. This way, you can focus on paying off your debts without incurring extra fees.

Start saving early in the year. There’s no need to wait until the holiday months are near before taking action. Start building your holiday budget as early as possible to avoid getting into debt. If you can avoid using your credit card this year, you can greatly minimize the risk of bad debt.

Be creative and resourceful. Do you really need to buy new decorations this year? Perhaps you can still use old décor from last year or create ornaments from nature such as twigs, leaves, flowers, pine tree, etc. Old things can also be recycled to decorate the place. Instead of buying expensive gifts, you can still make your friends and loved ones feel special by giving gifts that you made yourself. You don’t need to buy greeting cards from bookstores. Rather than spend much on greeting cards, why not design and print your own cards.

Grab available discounts. Many retailers and shops host sale events months before the holiday season.

About the Author

Shelly Evans is a freelance writer and loan consultant. The website http://www.badcreditresources.com offers resources that specialize in providing personal loans and instant approval credit cards.

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Tips and Warnings On Bad Credit Personal Loans

bbcred — Thu, 02 Jun 2011 02:06:09 +0000

Due to the economic crisis, people are finding it more difficult nowadays to acquire financial assistance from banks and lending companies. Many lenders have very strict standards and if you do not meet the criteria, your loan application will be automatically turned down.

Typically, banks and lending companies offer secured loans which require the submission of collateral. If you cannot provide collateral, you may find it even more difficult to get approved for a loan. In fact, even with collateral, your loan application may still get declined if you have below average credit score.

Bad Credit and Personal Loans

What if you have bad credit? What are your chances of getting approved for a personal loan? In reality, the lower your credit score is, the slimmer your chance of getting approved for a loan gets. Your best option is to apply for a secured personal loan for bad credit.

Look for a lending company that does extend personal loans for bad credit. DO extensive research to make sure that you are dealing with a legitimate and trusted lender. Some lending companies that offer bad credit loans in the market do not have licenses and may actually try to rip you off by imposing excessive rates and fees. Be sure to investigate the lender’s background and track record before even thinking about submitting a loan application.

It’s a good idea to ask the bank where you have an existing savings or checking account whether they can offer you a loan despite your credit history. Don’t be afraid to speak with your banker. Explain the situation that lead you to bad credit as well as the steps you’ve done to improve your credit history. Politely request if you can be granted a loan with repayment terms that you will be able to keep up with.

Be prepared to submit a security. If you are home owner, using your home as collateral for your debts will greatly increase your chances of getting a loan despite bad credit. However, you need to be aware of the risks as well. Remember that if you fail to keep up with your loan payments, you could end up losing your property to your lender. To avoid such an unpleasant incident, you should create a repayment plan that you can follow throughout your loan’s repayment term. If you are not a home owner, you can use other valuable assets such as vehicle, lot, jewelry, etc.

In case you come across a lender who is willing to extend you a bad credit personal loan without security, do not sign up the contract right away. Do some investigation first. Check the lender’s background and track record of service. Carefully read and understand the terms and conditions. See to it that you will not be charged with hidden fees. You can expect the rate of interest to be much higher if the loan is unsecured but you should still make sure that the lending company complies with the lending laws of your State.

About the Author

Shelly Evans is a freelance writer and loan consultant. The website http://www.badcreditresources.com offers resources that specialize in providing bad credit loans and bad credit cards to people with bad credit.

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Bad Credit Debt Consolidation Tips

bbcred — Thu, 05 May 2011 01:22:29 +0000

If you are struggling to keep up with debt repayment, it might be time for you to consolidate your debts. Some people may frown at the idea of debt consolidation but when managed correctly, it can be an efficient solution to bad debt.

Many lending companies in the market offer debt consolidation loans. Typically, a debt consolidation loan is a secured loan, guaranteed by the borrower’s property or asset. Aside from asking for collateral, most lenders strictly require good credit.

But what if you have bad credit? Does this mean you are not eligible for debt consolidation? Not necessarily. If you do your research, you should be able to find lenders who are willing to extend debt consolidation loans for borrowers with bad credit.
If you credit score has fallen within the last few months as a result of late payments, then you should act right away to protect your personal credit. In this case, acquiring a bad credit debt consolidation loan can help you.

How Does it Work?

By acquiring a debt consolidation loan, you can use the money to pay all your debts at once. Afterwards, you will be subjected to pay only one loan with a single rate of interest. Consolidation is an advantage because you can significantly reduce your monthly payments. Instead of managing multiple creditors with different rates, you only have to deal with one creditor- your debt consolidation lender.

Will debt consolidation affect your personal credit? Initially, your credit score may significantly drop when you take out a consolidation loan. This is because you will be using up a high percentage of credit line in a single account. Take note that credit utilization makes up 35% of your credit score.

However, once you have consolidated your debts, you can work towards credit improvement. As you pay off your debt consolidation loan each month, you will also be improving your credit score. After six months or 12 months of consistent payment, you should have already made some improvement in your credit score.

How to Consolidate Debts Successfully

Create a realistic repayment plan before acquiring a debt consolidation loan. See to it that you will be able to afford your monthly loan payments. If needed, you should make adjustments with your spending and reduce your personal expenses. Do you need to take a second job to ensure prompt payment of your debts?

If you seriously want to regain good credit fast, you should submit your monthly payments on time throughout your loan’s repayment term. Keep in mind that even a single late payment may hinder improvement of your score.

Take note that you should also submit on time payments to all your creditors. If you own credit cards, you should be able to pay all your credit card charges on time. Be careful about incurring new debts especially while you are still in the middle of your debt consolidation loan payments. Indeed, the key to successful consolidation is to practice self-discipline, motivation, and consistent submission of payments.

About the Author

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What You Should Know About Bad Credit Lending

bbcred — Wed, 16 Mar 2011 22:22:22 +0000

Bad credit can be a huge hindrance especially when in search for financing. Of course, many lending companies prefer customers with good to excellent credit. Fortunately, there are still opportunities open for people with bad credit.

If you have less than perfect credit score, then a subprime loan is an option. But just because you have bad credit does not mean you should be treated with less respect. However, if you do your research, you should be able to find reasonable lenders that offer a good deal.

Different Types of Bad Credit Loans

Bad credit loans are generally divided into two major types: secured loans and unsecured loans. A secured bad credit loan requires the submission of collateral while an unsecured bad credit loan does not. Secured loans usually have lower rates and fees on account that the debt is guaranteed by the borrower’s property.

If you plan to apply for an unsecured loan, you might consider getting help from a co-signer who has good credit. By having a co-signer, it is possible for you to get a reduced rate and more flexible repayment terms. However, remember that you co-signer will be accountable to pay your loan in case you default from your payment. It’s important that both of you understands the consequences involved when you sign up the loan application.

Bad credit loans can also be categorized according to the purpose they serve such as bad credit car loans, bad credit mortgage loans, bad credit personal loans, bad credit business loans, bad credit consolidation loans etc.

A Few Points Can Make A Big Difference

Before submitting your loan application, check your credit report first to make sure that there are no errors which could be pulling down your score. IS it possible for you to wait until your credit score improves before applying for a loan? If yes, even just a few points can make a big difference in the rate interest you will get.

About the Author

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Should You Get A Bad Credit Personal Loan?

bbcred — Sun, 20 Feb 2011 23:28:30 +0000

People apply for loans or financing for different reasons. Some people need the money to pay their bills or tuition fees. Some borrowers need the extra cash for a family vacation or home renovation. Sometimes, quick financial assistance is needed when emergencies arise. Personal loans can be used for many purposes and these loans can either be secured or unsecured.

Whatever your reason is for taking out a personal loan, it’s important to be aware of your credit status before submitting your application. Do you have an impressive credit rating? Or do you have a poor credit score? Needless to say, having a high credit rating is advantageous because it ensures quick approval of your loan and it gives you access to the best loan deals in the market.

For borrowers with poor credit, a bad credit personal loan is a viable option. However, the rate of interest for bad credit loans is expected to be higher than regular loans because there is a greater risk involved.

Without good credit history to back you up, a lender will automatically consider you as a “high risk customer” which means the possibility of default is much higher. To make up for the risk, most bad credit loan lenders charge a higher rate of interest on this type of financing.

Should you get a bad credit personal loan? The answer will depend on the situation you’re in. However, before making a decision, consider the following pointers:

Other options. Have you considered other possible ways for you to produce the cash you need? For instance, you might be able to borrow cash from your friends or relatives until you’ve gathered enough fund to use for the emergency. Do you have a property which you can sell? Before applying for a bad credit personal loan, think about other options which can save you from the high interest rates.

Check credit report. Even if you already know that you have imperfect credit, it is still a good idea to order a copy of your report from the three major credit bureaus so you can check its accuracy. If there are errors in your report, having them corrected can instantly increase your score by a number of points. Even the slightest increase in your score can make a big difference in the interest rate you will get.

Watch out for scams and rip-offs. Loan scams abound in the market. Unscrupulous lending companies may trick borrowers to sign up for a bad credit loan by offering quick approval and incredibly low rates. If you’re not careful, you could be victimized by their deceiving tactics. Therefore, it’s important not just to compare the rates and fees, but to check the background and reputation of the lending company as well.

About the Author

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How to Build Your Personal Emergency Fund

bbcred — Wed, 12 Jan 2011 22:58:59 +0000

Do you have a personal emergency fund? Many consumers don’t have one which is unfortunate because when the recent recession hit, many families were seriously stricken by the unexpected turn of events. Many workers have become unemployed and even those who are in high-paying positions have been let go by the companies they work for.

Hence, it is always smart to build a fund for emergencies. Even if you have a small salary, you should still set aside a portion for your personal savings. In this article, let’s take a look at how you can build an emergency fund even if you live from paycheck to paycheck.

Build your motivation. Being motivated is very important so you can strive to do the tasks you’ve set out to do. But where do you find motivation? If you have a family, then they are definitely the most powerful source of encouragement. You can also set personal goals and use them as you motivation.
Create a new budget list. Jot down all expenses each month, including the smallest cents. Find items on your list that you can eliminate. Try to save even the smallest cents. Remember that even the littlest costs can become big when added up together.

Can you give up your magazine subscriptions or switch to a lower cable plan or internet plan? Can you arrange carpooling with a neighbour or friend? Can you bring packed lunch to work or school? Create a new list and calculate how much you can save by crossing out the less important expenses.

Shop around before buying. Spend time to shop around and compare prices first before making a purchase. IF you plan to apply for a new loan, insurance plan or credit card, evaluate your options carefully.
Bring a shopping list. If you plan to go to the supermarket, create a shopping list so you’ll exactly what you need to buy. Plan you meals for the whole week so you can buy ingredients in bulk, which is cheaper than buying in piece. Calculate your estimated budget for grocery and bring only the exact amount you need.

Pay your bills on time. Submit your utility bill payments and credit card payments promptly to avoid paying the extra costs such as the interest rate and late fees.

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How to Create A Budget Plan that Works

bbcred — Sun, 02 Jan 2011 23:09:05 +0000

You heard it from financial specialists that it’s important to create a budget plan. And now, you’re ready to make your own plan. However, creating a budget plan is just the first step. Successful budgeting largely depends on how you follow the plan you’ve created. So how can you make a budget plan that works? Check out the following tips.

Monitor your spending. In order to develop a good plan, you need to know your spending pattern. Monitor all your expenses for a month, making sure that you write down everything you spend on- from the largest amount down to the smallest cent.
After a month, study your list of expenses and based upon that, you can begin to develop a workable monthly budget plan. Carefully check your list for items that you can possibly eliminate. For example, do you have magazine subscriptions? If yes, do you really find time to read them or do they just pile up on the shelf? You may consider unsubscribing and completely slash it out of your list.

Set automatic payments. Allocate at least 10% of your salary to your savings account by arranging an automatic payment system. You can also set automatic payments to pay your credit card bills or loans. This way, you can be sure that you will not miss a deadline.

Set goals and prioritize. Depending on your present financial situation, you should define a clear goal and work towards achieving it. For example, if you currently have debts to pay, debt repayment should be on top of your priority. Therefore, you need to create a budget plan that matches with your goals. As soon as you’re able to pay all your creditors, then the next thing you can focus on is building your personal savings fund.

Contribute to your retirement fund. No matter how much income you’re making, it’s important to contribute to your retirement fund regularly. Take advantage of the opportunity to pay only a portion of this fund if you are an employee. Keep in mind that retirement savings include tax privileges so it’s a good way to invest.

Maintain a good balance. You need to make a plan that will be practical and doable at the same time. For example, if you plan to cut down on your food budget, you need to make sure that you’ll find ways to save without compromising you or your family’s health. If a family member gets sick because of poor eating habits, you’ll end up with an even a bigger debts to pay on medical bills.

Give yourself a break. It’s not a good idea to completely give up your budget on recreational activities. However, if your earnings is barely enough to cover for all your expenses, find leisurely activities that you can do on your own or with your family that does not involve a huge amount of money.

About the Author

Shelly Evans is a freelance writer and loan consultant. The website http://www.badcreditresources.com offers resources that specialize in providing bad credit personal loans and credit cards to people with bad credit.

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Avoid Bankruptcy Using Your Home Equity

bbcred — Sun, 31 Jan 2010 21:03:42 +0000

Did you know that declaring bankruptcy will not always release your from all your debts and obligations to your creditors? Since the New Bankruptcy Law took effect, the application process for bankruptcy has been made more complicated.

Under the New Law, an attorney cannot decide for you as to which type of bankruptcy you should seek. Even if you would like to aquire a Chapter 7 bankruptcy to be released from all your debts, it will not be for you to decide.

Rather, the bankruptcy court judge will be the one to decide whether you are qualified for a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. To be discharged from all debts, you need to get a Chapter 7. To start with, you must take the “Income Means Test” to determine if your present income enables you to handle repayment. If you pass the test, you can file for a Chapter 7 Bankruptcy. If you fail, the judge will require you to file for a Chapter 13 bankruptcy which will put you under a mandatory repayment program.

A Chapter 13 bankruptcy will subject you to a mandatory repayment program. Yes, you will still be accountable to pay your creditors under a repayment plan which lasts up to 5 years. Under the bankruptcy provision, your creditors can only impose a maximum interest rate of 10% to your debts. A certain percentage (depending on your salary range) will be automatically deducted from your monthly wage and sent to your creditors as payment.

Avoid Bankruptcy Through Home Equity

With the changes made in the New Bankruptcy Reform Act, you might want to seriously think about the pros and cons of your actions before going through the process bankruptcy.

In addition, the New Bankruptcy Law requires all applicants to undergo and complete a credit counselling course with an accredited agency at least six months prior to filing. Your credit counsellor can help you find an alternative solution to your problem, one that best fits your situation.

Rather than file for bankruptcy right away, have you considered other alternatives to recover from your debts? For instance, you may take out a Home Equity Loan so you can pay off your debts one step at a time.

Taking out a loan from your home’s equity loan gives you the chance to pay your creditors right away and stop your debts from further accumulating. True, there are still risks involved since you can lose your property if you fail to keep up with your loan payments. Nevertheless, you can ask advice from a trusted credit counsellor on how you can come up with a repayment plan that will help you get out of your debts and complete your home equity loan payments on time.

Furthermore, before obtaining a home equity loan, find a lending company that offers a low interest rate and a flexible repayment term. Carefully check the Terms and Conditions before signing up your loan contract.

About the Author

Liz Roberts is a freelance writer and loan consultant. The website http://www.badcreditresources.com offers resources that specialize in providing bad credit loans and bad credit cards to people with bad credit.

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