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Once again making it to easy for people to purchase something they can't afford is once again setting you for for failure. What I am seeing is this because I'm on the ground fighting to help people with credit is the high price of autos.
Let us not forget the 2008 housing crash, easy money sent us down the tubes by banks offering easy lending and thousands took advantage of it. I still have client that are still dealing with the repercussions today between bankruptcy's because of it and auto repossessions.
The cost of a new auto has increased so much that lenders are extending payments out to 8 and some to 10 years. This might very well be the new CRASH. Auto dealers are pushing sales anyway they can get them and people are falling for it to drive the car they always dreamed of but not thinking of the consequences.
Most people only drive a car for 3-4 years and most of the time the car starts giving you problem by that time so, you trade it in and will upside down, oh but they don't tell you that. By the time you you pay interest on your car you have paid for it most likely 2 times over, just think about a interest paid for 6 years or more. STOP and think about what your doing before you sign on the dotted line, how bad do you want it. Read the information below, let's be smart and learn.
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This is something that you really need to think about. A lot of people think you should tuck them away or even cut them up I feel differently and here is why.. Let's start with this, credit card companies make money off the interest on the card they give you, if your not using it someone else will.
These are some things to think about,
1. If you don't use the card they can reduce the amount.
2. If you don't use the card they can at their discretion close the card.
If the card is closed by the creditor, that is the way it will show up on the credit report if its closed by the consumer it will report as well that way. Closing your cards will hit your report no matter how its closed and lower your score by points. I say do not cut them up, leave them open using them often, I would apply a large amount then by the statement date pay it off. I have heard people say they don't want to pay interest on a card they do not use. I say take the balances down to maybe $30.00 and even if you pay 25% interest your only paying $7.50 in interest if that depending on your rate. This will benefit you in the future if you keep the card open because you now have available credit as well as it lower's your debt to income.
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If you should get a call from a collection company, Never ever give them your personal information, remember they called you or sent you collection information by mail or phone. If the item was on your credit report you can write them, if you call them block your number and do not give anything but the file #. Remember they are building a file on you..
Never give them you SS# or full name just give the information you have from their company if sent by mail, let them know that you received this information or phone call and ask why? if they can't help you from there ask for their mailing address. This a game they love to play, I have had them say we don't respond to letters, WHY I THINK TO MYSELF? Because once again they are gathering information on you and your being recorded they will tell you that or suppose to at the beginning of the call. If you do not get this information ask why they can't provide the information and who your speaking with, make sure you get the state, date and time of the call. DO NOT I mean DO NOT provide them information unless your prepared to pay up.
Turn around and write the Bureau's letting them know that you tried to contact the parties and they would not provide you any information as well or would not give you a mailing address to correspond with them in letter form. Understand the bureau's alway write you saying they confirmed the debt.. Tell them you demand to have the item removed from your credit report ASAP, all letters sent certified.
**Remember collection companies need to validate the debt**
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.Credit repair can be tricky, its all going to depend on what's on the credit, the statue of limitations for your state and if you have acknowledged that the debt is your's. There are a lot of reports that have information from someone else on it with the same name or birthdate. Remove out dated addresses phone numbers and jobs if you have been job hopping, remember lenders look for stability.
You can write the credit bureaus and ask them for your full credit report, if you have been turned down for credit or have not gotten a report in a year you can get one free from each bureau. You will need to send them information to assure them its you, I send everything by certified mail, remember this is your information in an envelope you want to have information on it being delivered.
You get it back and you go to work on finding items that are wrong, dates, names amounts ...etc ask them to remove the items. Now remember these bureau's are only reporting what someone has sent to them.
I personally start building my clients credit with a secured card because you need some good credit to help in the process, remember if all is removed you have nothing lenders look for history. Always remember credit it like a baby you have to grow it. This is what your credit should look like so now do your home work.