Back to Blog
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.
Back to Blog
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**
Back to Blog
.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.
Back to Blog
Are you in credit card debt with a high interest rate and can't SEEM to get out? how many cards do you have and are they high limits? Instead of making a personal loan with a high interest rate you can do this. If your credit is decent meaning no late payment you can do one of two things. One obtain another credit card with a zero interest rate, make sure that the card is offering anywhere from one year to 14 months and transfer your balances from the high interest cards to that card.
You need to make sure that the card your transfering to is going to cover the amounts of the combined high interest cards. Do not close the high interest cards, leave them with a low balance maybe $50.00, because you have transferred the balance do not charge them up again if so you are defeating the purpose. Do not close the high interest cards doing so will drop your score dramatically and you do not want that. You can usually get a zero interest card with no annual fee as well, make sure your paying large amounts on the new card to pay it off within the time allowed. **Caution** if you do not use them from time to time some companies will choose to close the card so make sure you keep them active with small amounts you pay off or down to $50.00-$100.00 a month..GOOD LUCK!
Back to Blog
Are you tired of crazy high cell phone bills? lets look at how to bring down your bill.
1. Stop paying for the latest phone's, if a phone is not working to make you money its not worth the price.
2. If you purchase insurance, I would only use it for the 1st year then cancel it, if your like me and don't drop your phone or loose it, you don't need it. The insurance company is going to give you a refurbished phone and usually does not work as well as the one you had.
3. Are you a senior? ask for the discount.
4. Are you using all of the minutes you pay for and if not are they rolling over to the next billing cycle if not cut down your minutes.
5. Don't be afraid to call around and compare, ask for the best deal and let your current subscriber know what you can get. **closed mouths don't get fed**
6. If your phone is paid for you do not need insurance, if your switching services make sure that they send you all sign up information before giving the OK.
Remember your in control of your money
Back to Blog
You sign up with a credit repair company it can be big or small, but do you get what you pay for?
Many people don't know, they go by the hype the advertisement thinking that In a month the credit will be good.., NOT!.
Most of the time the credit repair companies if you don't know will pick the easiest items on your report to remove 1st, its the string along. You get something back showing some removals and you think WOW! they removed items, what you don't know is they may have already been out of the statue of limitations anyway and should have been or must be removed.
A lot of people don't know how to read their reports anyway so they think this is wonderful, its not I fight everything. Is going to take time to remove items, sometimes you may need to settle certain ones. Credit repair is not easy, it takes time and if your not in it for the long haul don't even start. New debt can be a fight and may come down to settling. If you have already spoken to a collection agency you restart the debt and acknowledge from that date so thats another fight. Get in touch with someone that is in the fight for you not your pocket.
Back to Blog
This is something no one wants to think about, money gets tight you may have lost your job. Its always better to let the owner know what is going on, ask them not to file an EVICTION. (1) one because it will stay on your credit for 7 years, you can fight it with the statue of limitations at some point but its costly and hard to remove. (2) it will be virtually impossible to rent any where else or maybe in an area you want to rent in.
When you see it coming you need to contact your leasing manager or owner let them know what is going on and if you can get out of the unit before they file would be great. Ask them how you can pay the amount you owe within a certain amount of time, pack your stuff and move out. Remember when they file with the court you also pay additional charges which are court fees and it's going to be applied to your credit.
As well leave the unit as clean as possible so that your not charged extra, fix any holes in the walls, clean the carpet, stove, refrigerator, bathrooms and by all means take pictures of everything for your record's. This may also show up on your credit report but not as an eviction if you don't pay the amount that you left . Remember when you rented you are suppose to give a 30-60 day to move out so that they can re-rent your unit, you may be charged for that but ask to have it paid over time if so.
Back to Blog
When we start talking about credit repair you need to take a look at the whole picture. People think that they can remove all of the derogatory items off their credit and the score will shoot up. This is not necessarily so, let's stop and ask our self this.. if I have 6 pieces of credit and 4 or them are negative and we get them removed depending on what it is, its only going to move you a few points.
Credit has to have a History its like a plant, you need to water it and fertilize it and it grow. Credit is the same, you pay your bills on time and it grows. While items are being removed we start adding credit to help it grow, there are ways to do that. You can apply for a credit card and might need to get a secured card, or you can ask a family member to add you to their card to get you going.
There are on line places where you can purchase credit which they call a trade Line. What is a Trade line you ask? well its credit your purchasing that belongs to someone else that is willing to sell to you for a certain amount of time to get you where you need to be to purchase what ever item you need to acquire. So you do have choices, you can build you credit your self depending on what is going on in your like or try the short cut. Most people who take the short cut may not learn their lesson and want to just move fast through life never learning how to use credit, which one are you?
Back to Blog
Credit card and credit card debt are two different things, there are a lot of people who say they don't want a credit card and that's understandable. This is the thing, you need to know how and when to use your cards. Most people who are scared of them or shy away from them are either two things..
1. They had them and abused them or
2. Can't get one
Let's talk about the 1st one, people get cards and max them out on silly things especially if they are 1st time credit card users. I have seen a lot of kids go into debt with these cards fresh out of college its that 1st taste of freedom, they offer them at booths when kids are enrolling. Party time, your friends want to shop or party and why not.
Then we have the after effect, burnt that card up meaning maxed out, usually once you have one you apply for another and before you know it they are all maxed and your done. Now you need to get a secured card and the interest is high. The chances of you paying off that card is little to known, most start at 20% and above. Understand that you can ask any credit card company be it secured or not to lower your interest rate.
Do not and I mean DO NOT.. be afraid to ask them to lower your rate, if they don't do not close the card just apply for a card with either a lower interest rate or a zero interest if you can get it for a year, transfer your balance pay it off within the year, make sure before you do that ask them if you do not pay off the balance within the year what would your interest be on that card. Always and I mean always weigh you options. What do you think as well?