Today, now more than ever, it is important to have a good credit score. Bad credit can keep you from having a phone, utilities in your name, getting an apartment and even obtaining insurance. There are easy ways to fix your credit. This can be done easily and for free in many cases. Poor Credit Loan services are expensive and can be avoided if you take these few steps to fix your low score.

5 Actions That Hurt Your Credit Score

Inquiries; When you open a new account or apply for a loan or credit line it puts an inquiry on your credit. Too many of these can reduce your credit score.

Late payments; If you send in late payment to your existing lines of credit your credit company can post this on your credit report.

Debit to Income ratio; If you carry a high amount of debt in loans and credit lines this will bring down your credit score. Be sure to pay down any loans that you have.

Outstanding bills; If you allow any outstanding bills to go to collections it will negatively affect your score.

Judgements or charge offs; If you allow a bill to remain unpaid for a long period of time the company may decide to “charge it off” or file court paperwork and get a judgement against you. Once a debt goes this far it can take years to clear it off of your credit report.

Here are 5 steps you ca take to you fix your bad credit score

Obtain a copy of your credit report; There are 3 major reporting agencies. Check with each one and look for discrepancies.

Dispute any discrepancies; If there are discrepancies contact the reporting agency and ask them to correct the problem. Your can do this online or request that the proper form be sent to you.

Close credit accounts that you no longer use; if you have credit accounts that you no longer use close them. It is important to note that if you have an account that has been open for a long time this can effect your score in a positive way. You may want to consider transferring debt from newer cards to the older one and closing the newest card.

Pay off old bills on your reports; Once you have verified the accuracy of your credit reports, start paying off the companies that you owe. In some cases you can contact them and negotiate a lower pay off amount. Don’t be afraid to negotiate.

Credit cards; pay your credit payments regularly, on time, and keep the amount you owe at least 50% of your limit. Remember if you inquire about a lower interest rate they can raise the rate and also this puts an inquiry on your report.

Remember that almost any action on your credit report can bring your score down. So be aware when applying for new credit and asking for adjustments on your current interest rates. As you do these simple fixes on your credit report you may see a dip in your score, but it will soon come back up as your score is updated. Generally this can take up to 60 days.

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 loan and bad credit credit cards.

Resources for YOU:

• Bad Credit Cards
• Bad Credit Repair
• Bad Credit Secured Credit Cards

If you have been the victim of identity theft, your credit report (and score) has almost certainly taken a hit. The good news is that boosting your credit score following identity theft is possible. It might be challenging, but there are definitely ways to get it done.

Obviously the credit bureaus and your creditors and lenders will not be aware that you are a victim of identity theft. Unless you tell them, the lenders will just assume it is you who is taking out the new lines of financing and not paying things back. This will really mess up your credit report. If your report has already been damaged, here are the 4 steps you have to take to repair it:

Get your credit report from all 3 bureaus

Often times looking over their credit report is what first lets people know their identity has been stolen. However, if you already know you have been the victim of identity theft, it is still important to look over your reports from all 3 bureaus. In most instances, you will find more evidence you did not know previously.

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After all, the thieves will probably use your information to take out new lines of credit, not pay them back, and let you reap the negative affects. You might not even know this unless you looked at your credit report. Therefore, make sure to look through all your reports and take careful notice of any lines of credit you did not open, and money spent you did not account for. If you have unpaid balances, it will obviously hurt your score significantly.

Do a police report

After you have done the above step, now it is time to do a police report. This is the first step for recovering your score once the damage has been done. Since identity theft happens so frequently, today all you have to do is call up the police where you live and do the report by phone. Just be sure you get the report number from them, because you will need this when you have to call up the various bureaus and creditors.

Get in touch with the lenders

Once you have a list of lenders, you must start contacting them to let them know immediately what has happened. Otherwise, you will begin getting collection calls. You might want to call them, as well as send them a letter. Attach the police report with the letter for further proof.

Improve your credit score

Once you have taken the above measures, you have to begin getting the mistakes erased from your credit report. Of course, this can often be a time consuming process, because the bureaus have to look into everything before they erase it. Just be patient, and you will get your credit report fixed shortly.

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.

Resources for YOU:

• Bad Credit Credit Card
• Bad Credit Repair
• Guaranteed Approval Credit Cards

Poor credit can have far-reaching effects on your life. Credit reports are commonly pulled when an individual applies for a new loan or credit card, but it can also be pulled by an employer during a job application process or by a new landlord. Many people who have poor credit do need to apply for a loan from time to time, and often the purpose relates to their ability to provide for themselves. For instance, it is not uncommon for an individual with poor credit to apply for a debt consolidation loan or for a new car loan so they have transportation for work.

The Challenges of Getting a Bad Credit Loan

It is often far easier to obtain a low when you have good to excellent credit scores. However, everyone needs to apply for a loan

at some time. Lenders review credit scores to determine their risk in lending to you. A lower credit score indicates that a person has had trouble with finances, and this is a riskier lending decision.

Altered Loan Terms

Some banks may decline your loan request altogether, but others may approve your loan with altered loan terms. Each lender and bank has different lending guidelines in place, so there is hope for a approval after an initial decline. However, a bank or lender who is willing to lend to you will likely offer you altered loan terms. The altered terms may include a lower loan amount, a higher interest rate, or sometimes a combination of both. It is also common for a bank to require automatic payment withdrawals. These altered loan terms will be in place to reflect the risk they see from your credit history.

Improving Credit Scores

Credit scores will naturally improve over time as payments are made regularly and balances are reduced. Often a loan obtained by a person with poor credit is expensive because it has higher interest rates. It is a good idea to consider refinancing your loan within a year or so after getting loan approval, provided you have taken steps to improve your credit rating. You may find at this time that your credit scores have increased and that your loan request is less risky to banks now. At this time, a lower interest rate may be obtained with lower monthly payments may be obtained.

Getting a bad credit loan can be difficult. It is important that a borrower anticipates that a loan request may initially be declined and that loan approval may come with altered loan terms. While loan terms may not be favorable now, taking steps to improve a credit score can set the borrower up to benefit from a loan refinance in the future.

About the Author

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

Resources for YOU:

• Credit Repair
• Bad Credit Car Loans
• Secured Credit Credit Cards

If you’ve got bad credit because of a bankruptcy, foreclosure or just poor debt management, it can be hard to get the credit you need to boost your credit score. That’s where bad credit credit cards come in.

Bad credit credit cards are cards that are specifically marketed for people with bad credit.

Many of these cards have to be secured by a bank account or some other form of collateral. You either send the card company an initial deposit or you link the card to an existing checking or savings account. Because of this collateral, there is very little risk to the credit card provider, which makes these cards easy to get, even for people with really bad credit. Interest rates are often lower on secured credit cards, too.

As long as you get a card that reports to credit bureaus, and most of them do, you will be able to boost your credit score by using the card responsibly.

Use your bad credit credit card for things you would normally buy, such as gas, groceries and prescription medicines, and then pay the bill off every month. By making timely payments and keeping your balances low, you will help to start rebuilding your credit.

These two aspects of credit management account for about two-thirds of your total credit score, so using your bad credit credit card in this manner can help boost your credit score.

These cards can also help you build account history if all of your previous card accounts were charged off and closed as part of a bankruptcy or debt settlement.

Bad credit credit cards work just like other cards when it comes to interest rates and fees. If you carry a balance on the card, you will pay finance charges, and if you pay late you will incur late fees. Many of these cards also carry an annual fee.

An alternative to using these types of credit cards is to become an authorized user on someone else’s credit card, such as a spouse or a parent. This can be difficult, however, because if you have bad credit, it may be difficult to find someone who wants to risk their credit to help you out.

Prepaid credit cards are also an option. This is a credit card that you essentially “buy,” like a gift card. If you choose to use one of these cards, make sure it has a credit builder option and reports your usage to the credit bureaus

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 cards and bad credit home loans.

Resources for YOU:

• Secured Credit Cards
• Bad Credit Loans
• Instant Approval Credit Cards

Reviving a dead credit score has never been as important as it is right now considering the failing state of the economy. Maintaining a high credit score can mean the difference between being approved or denied for an important loan, a lucrative job offer, or even a place to live. By using bad credit repair techniques, you can ensure your credit score stays high enough to get approved for any loan, home, or job application you apply for.

What Can Negatively Affect a Credit Score?

Late payments, maxed out credit cards, too many credit cards, and even closing old credit card accounts are just some of the reasons why a FICO score can be low. By understanding what will lower your score, you can work to improve it by doing just the opposite.

By combining all your credit cards into one single debt consolidation loan, you can almost instantly raise your credit score while saving you money on interest and payments. By taking out a loan for all the credit card balances, you are raising your available credit which is a large part of bad credit repair.

Another great option for credit repair starts with obtaining a copy of your credit report. This is easy to do and can be done online through various websites for free or sometimes a small fee. After obtaining a copy of your credit report, you will want to use a highlighter and scan through all the various entries on the report noting any mistakes you come across. If you find and dispute any mistakes on your report with the reporting credit agency, they are legally obligated to review and remove any inaccurate information within 30 days of your dispute. That means they must verify the information is correct and if it isn’t it’s taken off your report! This bad credit repair technique alone will raise your score quicker than you probably thought possible.

Other ways to improve your credit score is to protect who sees your report. Unfortunately, if too many people pull your credit too many times, it negatively affects your score. This means every time you apply for a new loan, they consider it a “hard pull”, which basically means it’s recorded. Creditors look down upon too many credit pulls as it may mean you are desperate and in financial trouble. Lenders are less likely to approve you if you appear financially unstable, so keeping your credit inquiries to a minimum is the best way to keep your score as high as possible.

By using these techniques for credit repair, you will quickly see your score rise to the level of automatic approval and acceptance. There’s no better feeling than being almost instantly approved for that new loan that will give you what you need.

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 cards and personal loans for bad credit.

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Before you start searching for the best secured credit card account, we suggest that you consider first the factors we have listed below. We believe that by doing so, you can improve your chances of ending up with a line of credit that will suit your needs and budget.

Four Factors to Think About 

• Your personal finances. Credit applicants, such as yourself, are always reminded to take the time to review their personal finances before they start shopping for a credit card. Why?  Because creating a budget will give you the chance to consider if you really need and can afford a new secured credit card. Ask yourself, do I NEED a new credit card, or do I just WANT a new credit card.

So, when you create your budget, make sure you list all your bills.  As you know, secured credit cards are secured by a deposit you make to the credit card company. By creating a budget you can figure out how much money you need to save each month until you have enough for your security deposit and fees. On the other hand, if your budget reveals that you are basically living paycheck to paycheck and that your income barely covers your monthly expenses then, it might be best to wait until you become more stable, financially before you consider getting a new credit card

• What do you know about secured credit card accounts? It is also important that you research the different secured card programs. Look at the rates, fees, credit limits and the length of time it will take the card to go from a secured card to an unsecured card. If you are trying to rebuild your credit, you must make sure they report to the credit bureaus. Otherwise, your effort to responsibly manage your secured line of credit and thus improve your credit score will be in vain.
• The credibility of the card issuer. Only work with companies that you know and trust. You want to make sure that they are accredited by the federal or state government. By doing this, you can be sure that they will comply with the rules and regulations of the government and will honor your rights as a consumer.
• How a secured credit card can help you achieve your financial goals. Secured credit cards are not only a great way to re-establish credit, but they can also help you with reaching your savings goals. Many card issuers will allow you to increase your credit limit by making deposits to your secured credit card. This means that by the time it becomes unsecured, you will have a nice big savings account!

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 credit cards and personal loans for bad credit.

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Indeed, consumers usually shop more frequently and spend bigger during the holidays and with the Valentine’s approaching, shops are gearing up for more sales.  For merchants, Valentine’s day presents an opportunity to boost their sales.  For identity thieves and scammers, the holidays are also present opportunities to victimize unsuspecting shoppers. How can you protect yourself against ID theft, especially this holiday season?  Here are some reminders:

Secure your computer, notebook and smart phone.  If you own any device that can connect to the internet, see to it that it is protected with an anti-virus and anti-spyware program.  A recent study by Norton reveals that more than 1,000 internet users in the US are not fully aware about the threat of ID theft when connected online.

The study, entitled “Connected but Careless”, further reports that 4 out of 10 consumers access the internet through their smart phones and 52% of these users are not equipped by even a basic level of protection.

This is truly an alarming number especially since identity thieves are using the internet to execute their crimes more conveniently and in a much bigger level.  If you do not have an anti-virus program installed in your computer, tablet, or smart phone, you are exposing yourself to identity theft.

Use strong passwords. When creating a password, do not use details that can be found on your profile page as these can be easily detected.  Create a password with at least 10 characters and a mix of letters, numbers and special characters to make your password strong and difficult to guess.

Based on the report, “Connected but Careless”, nearly half or 46% of people who use the internet admitted that they never change password of their email account while 31% never change password on their baking accounts.  Furthermore, 42% never change passwords on social networking websites and 71% use the same passwords for almost all their accounts online because it is easier to remember.

It’s a good idea to update your passwords every once in awhile to minimize the risk of ID theft.  Instead of using the same password for different accounts, you should use a unique password for each account, especially with banking and financial accounts.

Log out from your online account after each use.  Even if you are using your personal computer, it is still recommended that you log out of your account after each session.  Say no when your browser asks you to remember or store your password.

It might seem inconvenient having to type in your password each time you need to log in to an account but taking this extra measure of precaution is definitely worth it rather than expose yourself to the risk of identity theft online.

Purchase online from a reputable merchant.  If you want to do your shopping online, check the reputation and track record of service of the seller.  It might be tempting to buy from a less known merchant to enjoy the lower price but you always have to consider if the merchant is a trusted one.

About the Author

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

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Would you like to repair bad credit? The good news is that there are a lot of steps you can do on your own to get yourself out of bad credit.  In some cases, getting help from a credit repair company may be necessary but even then, knowing the right steps to do will still give you an advantage. Consider the following bad credit repair strategies:

Check your personal credit report. Order your report from the three major credit bureaus – Experian, Equifax and Trans Union.  This way you will be able to check the status of all your accounts and make sure that there are no errors which could be pulling down your score.

Fix errors in your report. If you discover errors in your file, it is your right to dispute these items and demand for correction.  The Fair Credit Reporting Act clearly states that the credit bureaus should immediately respond to credit disputes made by consumers by conducting an investigation on the matter.  If you found errors in several accounts, send a letter of dispute for each account.

Upon receiving your letter, the bureau will start the investigation which can last for up to 30 days.  If your dispute is valid, the errors will be removed from your report which can significantly boost your credit score.  The bureau will also send you an updated copy of your credit report for free and will notify the two other bureaus about the changes made to your credit history.

Pay your bills on time. Timely payment is crucial in repairing bad credit.  Keep in mind that payment history makes up 30% of your total credit score.  Thus, even occasional late payments can negatively affect your score especially if you have a record of delinquent payments in the past.

Pay past due debts. If you owe those debts, then it is your responsibility to pay them.  If you’re having a hard time catching up with your payments, speak with the creditor involved and try to arrange for new repayment terms that suit your current financial situation.  If you can’t pay all your debts at once, check which debts can be paid off first.  This way, you can lessen the burden of repayment one step at a time.

Be careful with bad credit loans. If you decide to take out a bad credit loan to pay your debts, keep in mind that subprime loans carry higher interest rates so there is a greater risk if you fail to keep up your repayment.  Do your research first and look for a bad credit loan lender that offers a reasonable deal.  Remember that even though your credit score needs improvement, you still deserve to be treated fairly and with dignity.

Be patient and keep track of your progress. Repairing bad credit does take time.  More importantly, you will need hard work and determination to pay your debts and recover from bad credit.  Nevertheless, you should never lose hope and keep track of your improvements by regularly checking your accounts and your credit report.

About the Author

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

Resources for YOU:

• Repair Bad Credit
• Bad Credit Car Loans
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Search the internet and you will find hundreds of companies and organizations that offer credit repair services to consumers in need. The question is, which one of them is for real?  Which company can you trust to help you repair bad credit? 

If you are not sure about what to look for, you can easily be a victim of fake credit counselling agencies or illegal companies that are out to make money.  On this post, we present valuable tips on how you can choose the best credit repair service out of the many choices in the market.

1) Check history.  It is recommended that you look for a company that has been providing credit repair services to consumers for at least five years or longer.  This way, you can easily check the company’s track record and be sure that you are dealing with a company you can trust.  You may come across newly established credit repair and credit counselling agencies but you should be a lot more careful as there are many companies out there that offer debt relief services without a license.

2) Use the internet to compare.  It will be much easier to do research and comparison online.  This way, you can save time and effort as you examine the kind of service that each potential credit counselling agency or credit repair company offers.  You can also check out websites that review top credit repair companies in the market and read testimonials from consumers as well.

3) Know the terms of payment.  The Credit Repair Organizations Act clearly states that credit repair companies cannot demand payment unless the services have already been rendered. Thus, if an agency asks for an upfront payment before providing help, you should take your business somewhere else.

Furthermore, agencies should not impose excessive fees.  After all, they are offering assistance for consumers who are stuck in bad credit.  See to it that you are aware of the exact fee you are expected to pay after the credit repair service has been provided.

4) Watch out for counsellors who earn by commissions.  Find out how a credit repair company pays its counsellors.  If a counsellor is paid on commission basis, there is a risk that a counsellor will insist that you sign up for a Debt Repayment Program or that you take out a debt consolidation loan from the agency even though other solutions are available.

5) Check the BBB.  Another way to learn about a company’s credibility is to check the Better Business Bureau.  The BBB gives ratings to different businesses in the US based on performance, credibility and other important factors.  You will also be able to see if there have been records of complaints or cases filed against a credit repair agency from the BBB.

6) Understand the legal process.  You should be well aware about what kinds of services a credit repair company or credit counselling agency can do for you.  Some agencies may resort to illegal practices and if you’re not familiar with law, you may be tricked into signing up for the wrong kind of credit repair service.

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 cards and personal loans for bad credit.

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A car is a big investment and for many people, it can only be possible with the help of a loan provider.  If purchasing a car is included in your plans for the next year, then you should start looking into your credit report and see where you stand.

It is no secret that the best car loan deals are reserved for people with excellent credit.  Lenders are willing to give their best offers to customers who have proven their creditworthiness. If you have a low score, it can be a serious drawback when trying to acquire financing such as a car loan.

Does this mean you should forget about your plans to buy a car if you have bad credit?  Not necessarily!  However, there are some things that you need to consider if you need a car loan but with bad credit.  Check out the following pointers:

Improve your credit.  You can do something to improve your credit score beginning today up until the first quarter of 2012.  You might need to work on credit improvement for the next few months to achieve a suitable rating.  Of course, this would depend on how bad your current score is.

Order the latest copy of your credit report from the three credit bureaus so you know exactly where you stand.  If there are errors in your report, keep in mind that these can be fixed by sending a letter to the bureau that issued your report.

Disputing credit report errors can take up to 30 days because the bureau will conduct its own investigation.  If your dispute is valid, the errors will be corrected and you will see a considerable improvement in your score.

If you can wait a bit longer until your credit score increases, you will be in a much better position to acquire car financing.  If you can delay your car purchase for another six months as you work on repairing bad credit, you will be able to qualify for a lower rate.

Buy an affordable car.  What kind of car are you planning to purchase?  If you have bad credit, your options will be limited.  You can do your research, compare lenders, and try to negotiate but the offers will not be as good as the deals available to customers with good credit.

If you must buy a car at this time, it’s only smart that you choose an affordable car that will serve your purpose.  Obviously, this is not the time to invest on your dream car.  You can do that once you have regained a good credit score through timely submission of your car loan payments.

Refinance your bad credit auto loan.  You can get approved for a car loan by seeking out lenders that provide special car financing programs for people who are credit challenged.  After acquiring a loan, submit your monthly payments consistently and make sure that your payments are reported to the major credit bureaus.

After six months, check your report to see your progress.  If your credit rating has significantly improved, refinance your bad credit car loan to enjoy a lower rate.  You should refinance your car loan as soon as your credit improves.  Remember, car loans are often accompanied with a short repayment period and refinancing is just like taking out a second loan.  If you wait for another year or two, you might as well finish the term rather than go back from scratch.

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 credit cards for bad credit.

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