Can Bad Credit Affect Your Personal Relationships?

If you’re married your wedding vows probably included a phrase about your taking each other “for better or for worse.”  If that’s the case, why do more than half of the marriages in the United States end up in divorce?

One of the things that people argue about most, one of the things that is the reason that so many people get divorced is money - or the lack of it.  If you and your significant other have been squabbling amount money the odds are that your credit score is bad.  If staying together means anything to you then you may want to take the steps to improve your credit and to improve your financial situation.

A lot of people would love to repair their credit but they don’t know what steps they should take to repair it.  If you want to fix your credit then you will have to learn as much as you can about it as possible.  The tips that you’ll find in this article are designed to give you some of the information you need to know that could help you to repair your credit.

The first thing you’ve got to consider is that you need to be really motivated if you are going to be able to turn things around.  If you’re lackadaisical about trying to fix your credit you won’t really get anywhere.  Although at times it might seem as if you’re trying to push a very large boulder uphill, it isn’t impossible to turn your situation around.  However, you can’t lose your motivation to succeed or you could easily fail.

Don’t Open New Accounts

Repairing your credit could be difficult if your credit is being polled creditors or if you are trying to open new accounts.  Although it will take time to improve your credit, when potential new creditors check your standing it has an immediate negative impact on your rating.  Therefore, whenever you are trying to improve your credit rating you should avoid opening new accounts and having your credit history checked.

Consumer Credit Counseling Services

One of the best things that you can do to repair a poor credit history is to get help from a consumer credit consultation company.  Nonprofit credit counseling services can help you to establish repayment plans with your creditors.  The plans that they negotiate can often lower the amount of interest that you will need to pay and lower the amount that you owe.

If you ask for help from a consumer credit counseling company they can help you to get back on track.  It’s certainly a much better option for your credit score than declaring bankruptcy.  In addition, some creditors don’t want to work with people who seem to have overwhelming debt.  If you are being harassed by debt collectors and they are refusing to work with you then it would definitely be in your best interest to work with a credit counseling company.

If you qualify for counseling your counselor might be able to consolidate your debts.  He or she might even be able to persuade debtors to eliminate or reduce certain charges.

If you feel that credit consultation would be good for you and your family then you should gather as many details as possible about your credit situation before contacting the agency.  This way you will look as if you are prepared (because you will be) and that you’re serious about wanting to repair your credit.

If you are having marital problems and/or problems in your personal relationships, all might not yet be lost.  If you are proactive and start to work on fixing your financial situation and your bad credit together the two of you may still be able to save your relationship.  The ball is in your court, so why not start today?

What do Credit Repair Companies Really Do?

For most of us fixing poor credit can be quite a challenge.  But it’s only a challenge if you’re not aware of all of your options.  Like most other things, if you want to be successful applying for credit in the future, you will first have to get educated about the laws of credit repair.  Read this article and you’ll find the steps you need to take to make it less challenging and easier for you to repair your credit.

Give Yourself Time

The first great tip for folks who are looking for credit repair help is that they should make sure to give themselves plenty of time.  No matter what you do, credit scores won’t go up overnight.  It takes some time for you to build a solid credit history of timely payments.  So make sure that you don’t get discouraged if you don’t see the improvements you want right away.

Pay Off the Lowest Balances First
Here’s a method that can make you feel good while helping you pay off your debts more quickly.  Start by paying off the credit card that has the lowest balance first.  You’ll feel a sense of accomplishment when you knock off this account.  Once the balance reaches zero, add the money that you had been using to pay off this account to the one with the next lowest balance.  Then wash, rinse and repeat.

Pay Your Bills on Time

The way that you pay your bills accounts for almost a third of your credit score, so make sure that you always pay your bills on time.  If you make late payments they stay on your credit report for seven years and that alone will adversely affect your credit score.  If you haven’t been paying all of your bills on time you should start doing so now.

Credit Repair Companies

Credit repair companies can help you to repair your credit.  However, while there are a lot of reputable credit repair companies that will help you to restore your credit there also have been quite a few scams popping up.  There are a number of things that you can do to protect yourself when choosing the right credit repair company for you.

First, you should let the Better Business Bureau be your guide.  Call the BBB before committing to hiring a credit repair company.  Luckily a lot of people have already filed complaints against the companies that charge fees for services that they didn’t render and you could get this valuable information by the end of the call.

Remember that if a company’s promises or their offers seem too good to be true they probably are.  If you recognize the unscrupulous tactics that disreputable credit repair companies use you can avoid hiring one. 

The Credit Repair Organizations Act prohibits credit repair companies from accepting any payments before they have rendered their services.

So if a company asks you to pay them money in advance you should scratch them off your list immediately.  That’s because it is not only underhanded, it’s downright criminal as well.

Instead, you should look for a company that informs you about your rights and tells you the steps you could take to improve your credit score for free.

As you read in the beginning of this article, figuring out how to fix your credit can be challenging.  But you can repair it relatively easily once you know what to do.  Apply the advice you’ve just read about and you’ll be on your way to raising your credit score and being able to secure the loans you want in the future.

4 Ways to Get Out of the Bad Credit Slump

As all too many people have been finding out, it’s really easy to overspend your income and end up with a bad credit score.  Even if you miss a few monthly payments, in the eyes of your creditors you name can quickly turn to mud.

However, having bad credit does is not necessarily the end of the world.  Luckily, there are a number of steps you can take in order to fix bad credit.  Take the time to consider and use the information that you’ll find in this article and you will see your credit score rise.

Keep Track of Your Credit

The best way to keep a good credit rating high and to improve a poor credit rating is being vigilant about where you stand credit-wise.  Whether your credit is good or bad you should keep track of it by making sure that you pull reports from all three of the major credit reporting agencies.

These agencies have been known to make mistakes.  Even if there’s a mistake on just one of their reports your ability to get a mortgage or finance a car could be adversely affected.  If you know there is a mistake you can take the steps to rectify it.

Are the Collection Agencies Calling?

If you’ve just run into some payment problems and the collection agencies are beginning to call you, you should not dodge their calls.  That’s because you have 30 days from when you receive a collection notice to make a payment.  After that it will show up on your credit report.

If you speak to them within those 30 days they will usually want to work with you and may permit you to break the payment up into a couple of monthly payments.  Doing this would be a win-win scenario because they will get their money and the problem won’t show up on your credit report.

Protect Yourself from Credit Repair Scams

If your credit is poor you may be tempted to follow up on an ad or a commercial that runs along the lines of, “Completely legal new credit identity.  Call now!” or “Credit problems?  No problem!”  Beware, though, because legitimate credit repair companies would never make any claims like these.

Credit repair companies that advertise in this manner are probably trying to scam you out of your money.  They are not going to try to help you with your credit score.  Before falling for any of these scams you should thoroughly research how you can help raise your credit score yourself.  Do this and you can save a lot of money while improving your credit rating.

Limit Your Applications for New Credit

Did you know that every time you apply for new credit that the company you apply to will generate a “hard” inquiry on your credit report?  These inquiries will work against you in two ways.  First, they will slightly lower your credit score.  Second, lenders could then perceive you as a credit risk because in their eyes you seem to be trying to open multiple accounts in a short amount of time.

So instead of submitting a lot of applications, you should first make informal inquiries to the credit card companies about the rates they charge.  Then, after you’ve put together a short list, submit a formal application to the one with that offers the best terms.

Nobody ever said that it would be easy to pull yourself out of debt.  Depending on the amount of debt you’ve accrued your journey might be long and a bit arduous, so be prepared for it.  However, what is significant is that once you begin to repair your credit you will see that it will start to improve over time.

How to Improve Your Credit in a Faltering Economy

The economy is still in the midst of the worst recession in memory.  People are still losing their jobs.  Banks are still foreclosing on properties.  Brokerage firms are still making lousy recommendations.  It’s not surprising, then, that even if you’re the most careful person in the world you could easily find yourself in a situation where your credit score starts to plummet.

If you’re going through some hard times you may be wondering “When will this all end?” and   “Where’s the bottom?”  You really don’t want to know.  So, instead of focusing on the downside, let’s focus on some useful things that you can do to improve your credit rating and get back on track.

Here’s a great tip that has no downside.  One terrific way to get information about how to repair your credit is to visit your bank.  Banks are a terrific source of reliable free information about different ways that you can repair your credit.  You have nothing to risk by going into your bank to discuss your particular situation with a professional.

Do you feel that you lack the self-discipline to repair your credit by putting together a budget, and sticking to it?   Or do you not even know where to begin to formulate a repayment plan with your creditors?  If so, then it could be a good idea to get the help of a credit counseling organization.  If you’re short of cash you shouldn’t let it stop you because some of these organizations are non-profit.

However, just as you would check out credit repair services before getting their help, you should check out the reputation of any credit counseling organization before you sign an agreement with them.

Once you’ve signed a contract with a reputable credit counseling organization you’ll find that they will help you to develop the skills you need to manage both your debt and your money.  They could also give you instructions on how to put together a budget that will work for you.  Some of these organizations even offer complementary workshops and educational materials.

Sometimes hiring an attorney whose specialty is credit repair could be a better alternative than hiring a credit counseling service.  While lawyers are usually considerably more expensive they are often more trustworthy.  Credit lawyers are committed to putting their client’s best interests first, ahead of those of the lenders.  So, if your credit problems are really serious and you have the money to hire one, a credit attorney could be your best option.

Whether you get outside help or decide to do it alone, you’ll find that you’ll really have to tighten your belt and put as much money aside as you can every month in order to pay off your debts.  This could mean that you won’t be able to eat out or buy that new pair of shoes you had your eye on, but you’ll appreciate your higher credit score and the peace of mind that will come with settling your debts.

Learning how to fix your credit rating is really only half the battle.  Now that you’ve absorbed the information in this article and are privy to a number of helpful ways to improve your situation, you will need to put what you’ve learned into action in order to benefit from it.  Just remember, if you have the right information and the intestinal fortitude, then just about anything is possible.

Credit Repair Tips That Work

When your credit is bad if you’re like other people you might feel upset, you may be discouraged and you could feel like a failure.  Although not too many people talk about the different ways that you can repair your credit there are a number of things that you can do that will increase your credit score.  Here are some of them.

In order to fix your bad credit you need to stop yourself from borrowing any more money.  When you are tempted to buy something ask yourself if you really need it and if you can really afford to purchase it.  If you cut down on your unnecessary daily expenses there’s a good chance that you will be able to put enough money aside to repay your creditors.

Stop the Bleeding

If you are in debt and having trouble paying back what you owe the first thing that you should do is stop the bleeding, so you should avoid using any credit cards.  This way you won’t acquire any additional debts that you cannot pay.  As a rule of thumb, even if you’ve been paying off your cards you should try not to charge anything that you can’t immediately pay off.

Pay Your Bills on Time

Make sure that you pay all of your credit card payments on time each and every month.  Not only will this help to maintain your credit status with the credit card companies, it will also help you to avoid having to pay higher interest fees.  Make sure to make at least the minimum payment if you can’t pay the entire balance off.

Keep All Your Credit Cards

It’s ironic, but if you close any of your credit cards it can actually hurt your credit rating because it may make you seem unreliable.  So, do not get rid of your credit cards.  Keep your credit cards open but try not to use them unless there is a real emergency.

Credit Repair Services

Since the economy has faltered the number of people who have seen their credit scores plummet has dramatically increased.  As a result the number of companies that offer credit repair services has increased as well.  Because a number of them are unscrupulous you need to learn as much as you can about any of the credit repair services that you’re considering using before you hire them.

Do as much research as you can before hiring a credit repair service company in order to protect yourself from throwing money away on a service whose main goal is to put money into their pockets.  This will help you to avoid being the victim of a scam.

Once you’ve found a company that you want to work with you should not pay them before their job has been completed.  This will help to ensure that you are getting what you pay for.  It is also illegal for credit repair services to charge you before they have completed the work.

When you repair your credit it could alleviate all of the bad feelings you’ve been experiencing as a result of having poor credit.  The tips you’ve just read can help you to be proactive about repairing your credit.  Put them into practice, fix your credit, and soon you’ll be able to enjoy life a lot more.

How to Fix Your Credit Problems

If you are having problems with your credit you may be relieved to know that there are things that you can do to protect and repair your credit score.  After reading this article you’ll have the information that you need to get you on the road to fixing your credit problems.

Should You Declare Bankruptcy?

Recently a friend asked me if he should declare bankruptcy. Ironically, he has a very good credit score.  He has a house full of kids and he had made some bad investments and accrued a lot of debt.  He had not much money left out of his paycheck after paying off his bills and wanted to give himself a bit of breathing room.  My advice to him was that he should try credit consultation instead of declaring bankruptcy.

If you’re in a similar (or worse) situation you may need to swallow your pride and see a credit counselor.  Sometimes having a knowledgeable person help you sort your debt out, one who can make a viable plan for you to repay your debt, may be all that you need.  The best credit counselors can help you to avoid things as serious as foreclosures and bankruptcies.

Request a Higher Credit Limit

If you have been paying your bills on time and are not anywhere near your maximum limit on your credit card you may be able to improve your credit score by requesting a higher credit limit.

When your credit limit is increased, if you don’t charge any more than you usually would your debt to available credit ratio will decrease.  In turn, your credit score will increase.  However, you should not make too many requests to too many creditors in a short amount of time because it may seem that you desperately need more credit for one reason or another.  If that happens then this strategy would work against you rather than help you.

You should also keep a close eye on all of your credit cards because a lot of lenders have unexpectedly been lowering the limits on their cards.  If your limit is lowered the percentage of credit that you’re using will increase and your debt to available credit ratio will go up with it. This will negatively affect your credit score.

Follow Up on Collection Debts

People who have paid off collection debts have been unpleasantly surprised to find that their credit score has not increased.  The reason this often happens is that collection companies usually don’t contact the credit bureaus to have the debts removed from their clients’ credit histories, even though they list it as paid on their own books.

When you are paying off your debt part of your negotiations with your creditor should be that you’ll pay of your debt if they promise to have the debt deleted from your credit history once it’s been paid off.  Do not trust their word; get it in writing.  Then, once you’ve paid off this debt in full your credit score will increase after the debt has been deleted from the books on the credit bureaus.

If you are responsible you will be able to manage your money more wisely and repair poor credit.  If you follow the advice in this article you will also increase your credit score and be able to sleep better at night.