Free Credit Report Repair Guide
Your FREE guide to Credit Repair and Credit Card Debt Relief!
As seen on the Yahoo home page:
Citigroup introduces a new product called e-savings accounts. This savings account will give higher than normal interest rates in an effort to attract more customers.
More customers they can then cross sell them on lines of credit and credit cards! Will a 4% interest rate savings account off set the 17% to 30% credit card rates they charge!
No way!!! Be careful of the true intentions of this offer.
The three major credit reporting companies have come up with the “ultimate” new credit worthiness system. The new name of this system is VantageScore.
Hmmm so now that the credit reporting companies now have to give out copies of the old fico reports free isn’t it interesting they have come up with a new product to sell.
Any way you slice it you can be sure this program is not in favor of the consumer.
Google launches finance Web site
The Good news is you have more choice to get financial info. Move over Yahoo and MSN Google has launched their own site.
The site is in beta and is in the no frills style Google is known for… You may want to check it out: http://finance.google.com/finance
Paying late:
This is the number one factor in determining your fico score. Also if you pay late you give your Credit Card company the ”right” to raise your rates some time as high as 30% or more. And guess what they will. They are in business to make money and do not care about you or your family.
Going over the limit:
Again just another chance for your Credit Card Company to raise your rates. Simply put just don’t do it.
Simple rules I know but you would be surprised how many of us do break these two rules and as a result we suffer.
So I went to yahoo.com and clicked on the finance link. There was nothing on the page on how to deal with debt. So I clicked on banking and Credit link and still nothing on how to deal with credit card debt.
I then clicked on Credit Cards and finally there was a link on the left side navigation under education: dealing with debt. Ok so now we are getting somewhere. I click on the link and get an error. The page can’t be found…
Hmmm. So Yahoo really wants you to sign up for Credit and loans but they don’t really want you to manage your debt?
Sounds familiar. Please if you are going to use credit be sure to do so carefully. If you need help please check out the many articles and resources in our blog.
If you are looking for REO listings I have found a Free source. It’s provided by Countrywide, one of the largest Morgtage lenders in the U.S.A. CountryWide has made their searchable database open to the public. There are hundres of properties so take a look and see if anything is in your area.
Simple Guide to credit counseling
I am sure you have seen the TV commercials from debt consolidation companies lining up to help you out of your financial situation. But will they really help you or could they do more harm than good? Questions you must ask yourself before you engage them for help.
A simple fact: The debt counseling industry rakes in about $7 billion a year! Wow! This is a huge number. So any company offering to make your debt disappear or help you through the “tough times” has a very large profit motive. So you should do your homework. There are many legitimate debt counseling companies but there are many that are fly by nights trying to cash in on this $7 billion a year industry.
If you can pay all your bills on time and are current on all your bills then don not use credit counseling! This is not the proper debt reduction method for you.
Consider credit counseling if:
• Can’t pay your minimum payments
• Late consistently
• In collections
• Unable to negotiate better terms with your creditors
What to watch for:
• But be careful of high up front fees.
• Missed payments
• If the company makes promises that are too good to be true
The bottom line:
Some lenders will look at enrolling in credit counseling as a negative and will not lend to you. Others will not. So it’s really a personal situation if you want to contact one of these services. If you do, be very careful because there are many sharks in the water and there are some very legitimate companies. Do your homework.
Can paying old debts hurt your credit score? Yes.
First off let me tell you I believe in paying all your debts on time and in full. I believe this for moral and legal reasons, so this post is not away to validate not paying old debts.
So here is the issue. If you have old debts that are delinquent, charge offs, or in collections and pay them off in full this can cause your Credit Score to drop drastically. Why? Because the payment on the old debt will actually update the negative marks on your credit report? It could inspire a new round of collection.
Some people advise you let the statue of limitations run out on your account and hope your score goes up because the account is no longer showing on your report. Others say you should, and have a moral obligation to pay your debts no matter the impact on your credit report. This is a personal issue each person has to make for themselves.
Minimum Credit Card Payments are going up. Yes the pain will be felt world wide on this one.
New federal guidelines that require significantly increased monthly minimum payments will hit second half of this year. What does this mean to you as someone who carries a balance? Your minimum payment will go up. But let me give you more details…
How does this affect the borrower and the bank?
You monthly payment goes up. This means if you can barely make your minimum payment now, it will get much harder to make the minimum payment in the very near future.
Banks don’t like this not because it will force more people to pay off their debt faster but because it will mean more people will default on paying there debt.
“Banks will not only have increased losses, but reduced revenue as well,”
So please if you can start paying off your credit cards as soon as you can. Don’t let this new law force you over the edge into Bankruptcy.
Sample letter: (This is a sample and does not qualify as legal advice. Please consult your attoreny before using this letter.)
Suggested Settlement Letter
I, YOUR NAME HERE, will pay your company, CA NAME, the amount of $XX as full settlement of this account.
If you accept this agreement, I will send you a money order or certified cashiers check for the settlement amount of $XX in exchange for a full deletion of all references regarding this account from my credit profile and full satisfaction of the debt.
This agreement is binding and will be void should you not hold up to your end of the agreement. Furthermore the debt will be deleted from my credit profile at all three credit bureaus or the bureaus your company regularly reports to in the course of doing business.
If you agree to the above, please acknowledge with your signature and return a copy to me. Upon receipt of this signed acknowledgment, I will promptly send you a money order or cashiers check in the amount stated above.
The alleged debtor, YOUR NAME HERE, does not admit liability for the claims made by COLLECTION AGENCY. The purpose of this settlement is merely to avoid the potential future costs of litigation. Both parties agree that this settlement for X% of the disputed debt shall be confidential and in no way an admission of liability or acknowledgment that the debt is valid.
Both parties agree that no future reporting or verification of the alleged debt shall be provided to any credit bureau.
Notice: This agreement is restricted. This is not a renewed promise to pay but rather a restricted settlement offer only. By not signing below, you agree that the debt has not been renewed nor have any concrete written agreements been exchanged.
Creditor’s Authorized Signature: ____________________________________
Date:
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