Saturday, May 4, 2019

High Risk Merchant Services - What You Can Expect

High Risk Merchant Services - What You Can Expect
Offering your customers the option to pay via credit card is crucial for your business. Especially in the case of online businesses, card payment is the only option customers have. Third party agencies offer merchant processing services that include credit card processing to businesses. But herein lies the catch. While everyone is willing to support low-risk businesses, businesses that are risk do not get as much support from merchant service providers to help them open a merchant account.

They are offered only by specialized service providers.

Are You a High-Risk Merchant?

You qualify for these services if your business is categorized as a high-risk business. The online businesses that come under this category typically include those in the following areas- adult entertainment sites, those related to health and beauty such as websites selling weight loss, skin care, muscle-enhancing, and other similar products including nutritional and beauty supplements. Detective services, online dating sites, lotteries sites, sports consulting sites, etc are some other examples of these businesses. These businesses inherently risk for obvious reasons.
 Person Holding Coins

This type of merchant services are also required for high volume businesses, because these are more susceptible to credit card fraud. Small companies with low volume sales are also considered because they cannot afford the necessary fraud screening.

The individual business/ business owner characteristics are also important. Businesses not accredited with the local business bodies, those with poor/inconsistent credit histories, or where the business or the owner has been blacklisted due to any reason are considered high risk.
If you are a merchant, you will find it difficult to get a merchant account, which is crucial to enable credit card transactions. Hence you need the assistance of merchant service providers who especially cater to the needs of these type of merchants.

High Risk Merchant Services - What You Can Expect

These type of merchant account, providers charge enormous fees for their services. Merchant service fees are way higher than those charged for regular businesses.

For setting up a regular merchant account, often the setup fees are negligible or even nil. In case of these type of merchant accounts, your high fees start right from this point and include very high processing fees.
CBD oil

However, considering that enabling payment by credit card is crucial to the success of your business, you have no choice but to give in to the demands of merchant service providers. But as always, you must choose your service provider wisely and make sure you are not being taken for a ride.

How to Choose a High-Risk Merchant Services Provider

Ask around and choose a provider with a well-established reputation in the field and who is well spoken of for the range and quality of services offered.

Sunday, April 28, 2019

Some Realistic Tips to Help Improve Credit Score

Some Realistic Tips to Help Improve Credit Score
Black Calculator Near Ballpoint Pen on White Printed Paper

Each person's situation is different. But whatever your circumstances are, there are some important things you must pay extra attention to when you endeavor to improve your credit standing.

To have a noteworthy credit history, you should have a robust credit score, to begin with. Your score will be used each time you apply for a loan, to calculate your insurance and interest rates, for background investigation when renting an apartment or apply for a job.

It has been proven that most "quick-fix" methods to improve it are most likely to backfire on you so take extra caution when taking any advice that claims to improve it very quickly. The only advice that can help you reconstruct your credit is to regulate it responsibly over time. If you have not actually started on it, then it's about time you do some major repairs to your credit history before you can expect any improvements in your credit history. Here some useful tips to help you achieve that:

1.) Make sure you have a copy of your credit reports

You need to have a copy of your credit report that documents your credit standing. Your credit report will include a list of accounts that have negatively affected your credit score. You can get copies of your credit report from three chief credit bureaus--TransUnion, Experian, and Equifax to know which accounts need an overhaul and which ones are just doing okay.

2.) Establish your credit reputation

One concrete way improves credit score is to take out a loan and make purchases using your credit cards. For you to establish a credible reputation to your creditors, you must first work on building your credit identity. Ensure that you only charge purchases you are able to play with or else you will end up deflating your credit further.

3.) Let the credit bureau review their records to determine if they are correct

There are times that for you to boost credit standing you can simply let your credit bureau review your credit records if indeed they are correct. As opposed to what most people believe, credit bureaus are not always faultless; they are not immune to errors. You should make a comparison between all your purchases with that of your credit history record. If there are errors to your credit history, dispute this with your bank and have them fix it as soon as possible.

4.) Remember to pay all your bills and debts on time

Updated bill and debt payments are one of the most crucial attributes in having an impressive financial record. Even if you only owe a small amount, you still need to make payments on time. In addition, for you to be able to know on methods on improving credit score, you should also refrain from overextending yourself, reduce outstanding debts, and avoid getting credit unnecessarily.

5.) Get professional advice

Professional services like consumer credit consultations are there to help you if you are already swamped with your current financial situation. You can find the hotline to your credit counseling agencies on your credit card billing statements.

In conclusion, when it comes to knowing how to improve credit standing is just a matter of taking responsibility and control when applying for loans and using credit cards. User your common sense and always take concrete financial advice before you acquire these financial options.

What You Need To Know About Credit Card Processing Services for Merchant Accounts

What You Need To Know About Credit Card Processing Services for Merchant Accounts
Finance is the elixir of life for businesses. It is the cornerstone in the foundation of new enterprises, it allows multiple opportunities for growth, it favors expansion plans and it shields businesses from unforeseen, unfortunate circumstances. Money, therefore, should be managed well.

Black Point-and-shot Camera Near Macbook Pro
The first two steps towards managing business finances are:

1. Establishing a merchant account
2. Implementing a merchant processing agreement

Both these steps are prerequisites to getting started with credit and debit card processing for your business. And, in today's day and age, where people do not carry bundles of cash with them and where checks keep getting obsolete by the day, accepting card payments determine how advanced your business is.

What is a Merchant Account?

A merchant account is specialized to accommodate a merchant's business needs by allowing him/her to accept debit cards, credit cards, gift cards, and other modes of electronic payment made by customers for the merchant's goods and/or services.

A merchant account involves 4 key players:

• The merchant
• The merchant's financial institution in which he holds an account
• The customer
• The customer's card issuer

So, when a customer buys a merchant's goods and/or services by paying for it through an electronic medium (credit, debit or gift card) issued to him by his banking service, the transaction is passed on to the merchant's financial institution for approval. Once the transaction is approved by the financial institution in which the merchant holds an account, the amount gets credited to his / her account.

Who is the Payment Processor?

The payment processor, the vital link in the merchant account circle, is the financial institution in which the merchant holds an account. A card processing company is usually a third party appointed by the merchant himself to manage credit card, debit card, and gift card transactions. The merchant processing company or the payment processor oversees the transaction of fund removal from the credit card holder's account and fund deposition in the merchant account.

Why Should You Hire a Credit Card Processing Service?

Credit card processing services offer merchants a bunch of value-added benefits for their merchant accounts. Choosing a reputed and experienced credit card processing service provider can be very beneficial to your business enterprise. Listed below are some of the benefits you can avail of upon hiring a card processing service.

• Merchant processing companies offer packages depending on the merchant's business size and industry.
• The merchant need not be physically present to oversee any transaction as the credit card processing company handles the process.
• Hiring a card processing service helps you keep pace with the ever-changing payment industry.
• Accepting all types of electronic payments, such as mobile payments and online payments, is made possible.
• Frauds can be reduced due to the dismissal of bad checks and counterfeit notes.
• Merchant processing companies make tech support available 24 / 7.

The biggest boon of hiring a credit card processing company to manage business transactions is the freedom it allows you to focus completely on expanding your business.


Tuesday, February 26, 2019

Credit Card Processing: How the System Works

Credit Card Processing: How the System Works
Open Gray Cash Box Beside Scatterd Coins
Establishing a merchant account for your business enterprise is the wisest financial decision you will ever make for the growth, expansion, and success of your business. Once you've set up a merchant account, you can accept credit and debit cards payments from your clients for your products and/or services. You can also arrange to accept online and mobile banking payments for your products and/or services.

A merchant account opens up new avenues for your business; therefore, giving your business many more opportunities to flourish. But, have you ever understood how the credit card processing system works? Have you tried to perceive the complexities of the players involved in the process and the intricacies of the system?

While it is not entirely essential for you to know the inside and outside of the card processing system because your Merchant Service Provider will do the needful for you; it is good for you to acquaint yourself with the system on a general basis.

The Participants Involved in a Card Transaction

A typical credit or debit card transaction involves the following players:

• The customer
• The merchant
• The payment gateway
• The customer's credit card issuer
• The credit card interchange
• The processor at the acquiring bank
• The merchant's acquiring bank

The Route the Money Takes from the Customer to the Merchant

Let's take an example to understand how the card processing system works.

Suppose that a customer walks into a clothing store and she finds a bag that catches her eye. She immediately proceeds to the payment counter and makes a payment of $100 towards her purchase with her cards.

The cashier at the merchant's store accepts the cards and uses a card swiping machine to set the process into motion.

• The $100 amount makes its first stop at the payment gateway where the payment is first authorized with a minor reduction in the amount.

• Now, $99 travels to the appropriate processor and after a minor deduction is submitted to the card interchange as $98.5.

• Once the transaction gets clear at the interchange, it moves on to the issuing bank with a further deduction where the issuing bank verifies the availability of funds in the customer's credit/debit card.

If the transaction is declined, it makes its journey back to the customer from here.

• If the transaction is approved, $98 reaches the processor at the acquiring bank, just one step closer to the merchant account.

• Once authorized, $97.5 gets deposited into the merchant's account, which is now at the merchant's disposal.

(The figures and fees involved in card processing are based on the number of players in the process, merchant type, card type, and risk factors)

In the present age, quite a number of payments are made electronically, especially with the extensive use of credit and debit cards and online funds transfer. Although typical card processing takes seven participants, the entire transaction amazing takes a maximum of five seconds for approval.

Plastic money has certainly established a place for itself in the industry, and establishing a merchant account to avail of its benefits is beneficial to the growth of your business.




Article Source: http://EzineArticles.com/8084610

Learn About Your Credit Report and Score

Learn About Your Credit Report and Score
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Maintaining a good credit record is a tough task. You have to be careful about paying all your bills on time and settling the mortgage installments. A late payment or a missed payment can affect your report and get you negative points. You have to be careful against identity theft in order to safeguard your credit scoring. Taking assistance from agencies offering credit reports can be very helpful. They can help you understand what exactly is going on with your goodwill statements and give you accurate evaluation based on that.

Importance of credit report
There is a lot of risks involved in lending money, and banks are very cautious with it. Before lending money the bank needs to make sure that you don't have any unpaid bills or bad debts. So for that reason, they check your credit ratings. Symbolically it's like a green signal that enables them to go ahead. This is becoming important as lenders are checking credit scores rather than analyzing the actual goodwill statements for approving loans for their customers. In order to have a good credit score, your goodwill statements need to be flawless. You can get your report from goodwill statements agencies and check what score you have.

Correcting the discrepancies
Credit agencies maintain your data, and sometimes you face the misfortune of having incorrect data recorded under your name. Once you get your reports from all the three national credit agencies, look for errors. If you find any gaps, contact the respective agency and get it corrected. You can also get to know who is doing a credit search on you. If you find out that you are being credit checked, and you haven't applied for a loan or a credit card, alert the agencies about it. You can get the contact numbers and working hours of the customer services online. There are numerous websites offering to provide a free credit report. No credit card company would accept your application without doing a credit check on you.

Choosing the Right Firm
When you are trying to get help from a credit reporting agency you need to be careful not to fall for traps that promise to improve your score overnight. Bad scores just do not vanish like that. You need to curb your desire for spending and focus more on saving money. A good agency will give you access to your goodwill statements. An experienced company will provide all the necessary details and break it down for easy understanding when offering goodwill statements. Make it a practice to check your report once before applying for a loan or credit card so that you won't have to face the risk of your application being denied.




Article Source: http://EzineArticles.com/8146610

Managing Change Effectively

Managing Change Effectively
Round Brown Coin Lot

At some point or another, everyone must learn about managing change effectively. It is such a good feeling to have a solid plan in mind for your future. Maybe you are in school working toward a degree; maybe you are saving to buy your dream house. In any case, you weren't planning for any major detours in your life. Effectively managing change can be the difference between thriving in spite of the change and falling apart because you can't adapt to changes in your plans.

When your path towards the future changes, clinging to what you had can be one of the biggest detriments to moving on. You must search for a new goal or a new way to achieve it. Failing to accept the change, will also hinder your ability to see what the future will truly look like.

Cut out Negativity

Another roadblock people face when they are trying to manage change is negative people. Combating the influences of people around you that can't accept change, is almost as difficult as fighting those feelings in yourself. Change management sometimes involves limiting your interaction with these people or cutting them out of your life entirely. This can be difficult, especially if these people are your family or close friends, but if they can't support your new outlook on life, then they are holding you back.

Prepare for Changes

Some changes come suddenly, like an illness or accident, but you can prepare yourself for other changes by continually reassessing your situation and being proactive when you discover signs of change. If you start seeing the signs of change coming, try to change it. If you can't change it, then you can prepare for it or at least understand how proper change management can affect the outcome of a situation.

Channel Your Energy

Being bogged down with feelings of how unfair it prevents you from using your energy to formulate a new goal. The change probably is unfair; good people die, get sick, and lose their jobs. Unfortunately, the relative unfairness of a situation does not ease its effects; but the way you manage change and accept it can turn an unfair event into a blessing. Many people see unplanned negative events as unfair because they feel a sense of entitlement; that they deserve a perfect life; but the fact is that almost everyone faces situations that derail their perfect plans. Your method of managing change dictates how you let the situation change your life.

Instead of focusing on what you have lost and hoping for things to change back to the way they were, focus on your goal, attaining it, and the new way you're going to get there. Imagine yourself achieving your goals and keep your mind occupied with the rewards of the future, rather than wishing that the change never happened. It won't be easy, planning for the future wasn't easy the first time, and this time will surely be harder. is the first step to re-calibrating your goals and methods in a direction that suits the current situation.

Change Management Includes Overcoming Fear

The fear of the unknown is yet another barrier to effectively managing change and re-designing your plans for life. You may fail! Part of the joy of achieving a goal is the uncertainty felt on the journey. Re-formulating your plans may be a scary decision because there is no guarantee you will succeed, but you will almost certainly fail if you do not acknowledge the change and start working on alternative ways to get what you want.

Here are some tips that can help you in managing change:

Anticipate change-be ready for anything!
Monitor change-keep assessing your situation, so you aren't suddenly surprised by a change
Adapt quickly to change-time spent wishing things didn't change is the time you could have spent working towards a new goal
Remember these tips for managing change because things can change again!
Change management can be difficult, but realizing the daunting task ahead of you may be the most difficult part. Once you throw yourself knowingly into your new reality and stop being afraid of the change and how to handle it, you will feel good. Effectively managing change will offer you a better chance to enjoy your life!



Article Source: http://EzineArticles.com/8164224


Tuesday, February 12, 2019

Choose an Efficient Merchant Provider to Apply for Merchant Account

Choose an Efficient Merchant Provider to Apply for Merchant Account
When a business owner wants to apply for a merchant account, they may figure that they need to go to a local bank just to be able to open this type of fund. This account enables just about anyone to quickly and easily get paid on the Internet in a more secure manner. The account will be able to detect credit cards and enable the business owner to get paid by this form of payment. This is why a lot of individuals have been making the switch to using this type of fund and they are trying to apply for vendor account funds right away to see the benefits that they have.

Silver Iphone 6 Beside Red Visa Card
Being able to apply for merchant account funds is actually easier than most business owners know. The truth is that these funds can be found and applied for right on the Internet. In fact, most people are able to open their own account within a matter of minutes and have it linked to their own business. This ensures that they will be able to easily get their money when they need it and provide the customer service that they require. When customers are able to pay by credit card, they may make better use of a particular business because of this simple fact.

For most people, having a high-risk merchant account will enable them to easily make use of the payment options that they need in order to run an online store. All online stores need to accept credit cards as a form of payment because this is how most people are going to be paying for the items that they are buying. This is definitely a problem for stores that do not have this option, so it is definitely a consideration to keep in mind for companies that do not currently have their own high-risk merchant account for themselves to use.

There are a lot of companies out there that offer this account facility, so it is a good idea to research a variety of them thoroughly and to decide what the business owner wants without any issues revolving around costs. It is true that a lot of vendor accounts have high rates, but this is something that can be avoided as long as the business owner researches the companies before doing anything else. There are so many businesses out there that have the right types of accounts for them to use, so this is a consideration to think before planning to apply for a merchant account. Having a merchant account can be beneficial to any company that based itself online and is trying to sell items to the general public and receive payment right on the Internet.



Article Source: http://EzineArticles.com/8265307

How Debt Consolidation and Debt Management Can Help With Credit Repair

How Debt Consolidation and Debt Management Can Help With Credit Repair
When you find yourself getting in trouble, many people turn to debt management companies or a debt consolidation company? Sometimes these companies can help you with negotiations of your debt but sometimes they can dig you into a deeper hole than you first started in.

Photograph of Person Holding Black Leather Wallet with Money

Do your homework before you start up with their services. Check the Better Business Bureau. Google the company and seek for reviews. Read through them. Check reviews on Yelp. You want to arm yourself with as much information as possible. Check the state's Secretary of State to see if they are listed. How long have they been in business? I'd hate for you to start services, pay the company's fees just for them to close down and not do anything for you.

Before you start, also check with the creditor or collection agency. See what they can do for you. Ask for options, whether for a payment plan or a settlement. Ask if you agree to payment, would they be willing to delete the entry from your credit report once it's paid. Don't let them tell you they can't do that. If they do, ask them what law states that. There ISN'T one!!! So let them know that you're aware. Also let them know by them telling you that they CAN'T do it, that you deem that to be providing misleading information. Empower yourself with a little bit of research.

But one thing I would like to stress before establishing any type of relationships is to ask what they are going to do with the funds that you pay. Too many times I see people who enter into an agreement with a company. They first pay the fees. Then they continue with their monthly payments until a large enough sum is reached before they will try to work out a settlement. During this time, there could be a lawsuit filed which is the last thing you want. I'd suggest asking 2 questions before starting:

1 - Can you stop a lawsuit from being filed?

2 - If a suit is filed and a judgment is entered against me, can you stop the execution of the judgment?




Article Source: http://EzineArticles.com/8285425

Wednesday, February 6, 2019

Beware of Credit Repair Companies As They Do Not Provide Any Results

Beware of Credit Repair Companies As They Do Not Provide Any Results
Nonprime credit these days can be obtained very easily and by no fault of your own. Sure there are instances of financial mismanagement and job loss but the world is suffering from an identity theft epidemic as well. What used to be an unusual thing now it is something that has happened to you, a friend, or a family member at least once. Stealing a credit card number to make purchases is one thing, but the trail left behind from someone who successfully used your social security number can be quite long and difficult to remove. None the less, there has to a proven solution to not only fix those mistakes but also prevent them from happening.

So assuming that any of the scenarios have occurred to you, you don't really find out until it's too late. This is when you apply for some sort of credit and you get denied. Many of you may already know the status of your credit. Either way, let us assume that you are actually seeking to get it repaired. There are many reasons for better credit including a new or reliable car, moving to a better place to live (buy a new home or rent a nice place), perhaps a credit card because it is cheaper than payday loans by far, and other things. Oh yeah, there are employment issues as well.

Most of us do web searches for everything, including credit repair. In addition to the credit repair signs you see all over town, there are other ways credit repair companies or individuals get your attention. Once they have it, it normally goes like this... " we are glad you are seeking to repair your credit... in order to repair your credit, we will need a copy of your most recent credit report and our service fee." Remember, nobody works for free these days, and their fee can be an upfront fee, usually in the hundreds or it can be with a monthly retainer, like a popular law firm that starts with an L. Regardless of how you come to terms with them, they tell you that they are providing a service and based on the items of your credit report, this process will take some time. So if you are paying a monthly fee, this could be for... who knows...

Six Banknote Bundles
One more thing, are you going to give someone the tools they need to steal your identity? (Your credit report which has your social, date of birth, addresses, employment info, and such).

Here is the worse part, let's say, that you paid your fee or your monthly retainer and it has been 11 months since you started your credit repair. You go apply for a loan somewhere and you get denied. So you contact your company or so-called law firm and ask them why you were not approved? Their automated response it's similar to "well sir/ma'am, we offer to repair credit but we cannot guarantee that you will have your credit applications approved because we do not know what companies you have applied for and what they look for. We mainly focus on bad credit and try to repair it." So after having that feeling of getting ripped off by someone, you try to get a refund because why on earth would you fix your credit if your credit applications are going to get denied... correct? again, their automated response goes like this... "We cannot give you refunds on service because we have to pay our staff, this is not a product but a service, hence there is no refund on services... "

Unfortunately, it is not illegal in the United States to offer services, take money, and not provide what you offered. It just becomes a civil matter if you have the money to go that far, and normally the judge goes with the service provider. Not only is this a massive waste of money but if you value time more than money (like I do), it's a double loss.

Lucky for you, there is actually a way to get your credit goals accomplished for real. Before we dive into that, let's define accomplished. If you want to get your loan applications approved, get an UNSECURED credit card, upgrade your vehicle, and buy a house, then this is for you. Also, if you wish to get your credit fixed without sharing your personal information such as your credit report with anyone, then this is also for you.

There is a way to correctly repair your credit regardless of what is on it, and turn it into a prime credit file that banks and financial institutions pay to get into their book of business. You ask how is this done? well, very simple actually. Banks and financial institutions have tactics that they use with their own clients to increase their book of business. You don't do not need a crystal ball to know that every credit applicant does not get approved. Do you wonder what the banks do with the now approved clients? Well, depending on the type of business they are trying to bring and if it is a current client of theirs, they can walk them by the hand and take them from denial to approval. This only works if the client follows their instructions, step by step. And most of them do because they are seeking the financial product in the first place.

Not every bank will do this for their clients. Examples are, lets say the credit file will need more time than average to repair, lets say the clients loan request is not substantial for their time, lets say they are just too busy... the bottom line is that not everyone gets the help they want, and normally get turned away because it is not illegal to not help someone with bad credit.

The same tactics that are used by these institutions are now available to you in a video course that takes less than a day to complete. These are not new tactics or procedures, but instructions that have been behind their walls for decades, with proven results. Here is the actual kicker, not every credit file is bad, in fact, there are many applicants that do not get their credit applications approved that do not have collections or other negative things on their credit report. Most are simply missing the other ingredients that banks look for before issuing credit approval. The procedures are designed to generate credit approvals on many tiers but your credit gets repaired by default, but it is not the main purpose of the program.

In conclusion, do not get ripped off by these companies who say they will get your credit fixed only to find out the hard way that nothing was ever accomplished. This credit course comes directly from the only qualified source of information to properly accomplish your credit goal, which is the banks.




Article Source: http://EzineArticles.com/8285287

Wednesday, January 30, 2019

Good Credit Opens Doors to Financial Endeavors

Good Credit Opens Doors to Financial Endeavors
Man Holding U.s Dollar Banknotes and Black Leather Bi-fold Wallet

Getting a good financial status report leads to being able to buy a home or a car at attractive interest rates as well as getting a bank loan without any hassles. To establish a good rating the best thing to do would be to have an overall understanding of a finance score. There are certain things that an individual needs to do in order to get a good score. Paying bills on time and in full is one of the main criteria to go up the scale. A credit score is usually broken into the following components which are payment history, debt usage, credit age, account mix and frequency of application of credit. People can with the help of 3 bureau credit reports review their finance history for any potential inconsistencies.

Understanding the concept of credit is mandatory

To start with an individual must learn to work with limits on a credit card. Credit cards have a way of sucking in people's will power as payments do not need to be made immediately. It is always advisable to pay all dues on a credit card in full rather than opting for the minimum monthly payment. Paying only the minimum due would mean paying with interest as well as credit score diminishing. This would come out as a potential inconsistency when 3 bureau credit reports are being viewed. Being aware of interest rates is a good thing for anyone who is borrowing money.

Financial History Reports are made by national bureaus

Financial History reports for landlords can be obtained by the reports made by the three national credit reporting bureaus which are known as Experian, Equifax, and Transunion. Each of these bodies maintains one report on each individual. The information in each report may differ as creditors do not have to report account information to all three bodies. Judging creditworthiness is done based on a financial history report which provides a detailed history of an individual's current and past financial transactions. The report would include loan amounts, payment history, dates on which accounts were opened and default if any.

Landlords must be approved before running a credit check on tenants

In order to give credit reports for landlords, companies insist that the landlord goes through a vigorous verification which would include the submission of proof of rental property, identification proof, and address proof. This kind of approval can take anywhere between two to ten days or can happen in a matter of seconds.


Some landlords charge their tenants for the report and some are cautious and do not with the fear of losing good tenants. There are some landlords who start moving on this process after the prospective tenant leaves a deposit on the property.

Monday, January 28, 2019

How to Rebuild Your Credit

How to Rebuild Your Credit
If you are like many and wondering how to rebuild your credit the best ways possible, you might be interested in a plan to get you there. Many people are intimidated by credit because for so long it was a mystery what exactly was calculated to come up with your credit score.
 Piggy Bank With Coins

When you begin looking to rebuild your credit you have to start with the basics, like figuring out if you can afford your current bills. The simple truth is that you cannot expect to repair your credit if you do not have the money to do so. I always recommend that you take some time and tally all of your monthly payments with all of your daily expenses. Then take your income and minus the previous calculation which shows how much money you are actually left with after you pay for all your expenses. If that number is negative you have to make some cuts. You just have to think of anything that you spend money on all the time, but really don't need. This might just end up being a trip to the store before work or a stop at the bar after work.

Do not cut up all your old credit cards, this is not going to help. You just need to stop overusing them and start using them wisely. Use the credit cards as a tool to boost your credit rather than something that will harm your credit. You want to use your credit cards, but not much more than a little bit each month. Doing this will keep your credit going, but you are going to have to be paying off more than you are spending if you want to do the right thing.

When you are rebuilding your credit you are going to need to understand credit utilization which is a major factor in the building blocks of credit management. Imagine a credit card company said you could have $1,000 in available credit and you had used $350 of that, your credit utilization would be at 35% which is right around the maximum that you would want to take it. I always recommend that you never exceed this number and if you do, you bring it back down as fast as you can. When you reduce your utilization your credit goes up fairly quickly.

One of the many factors in rebuilding your credit is trying to eliminate any past due accounts. Anything that is in collections needs to be paid off. This is the best way to have them report that it is paid in full so that your credit can begin to heal itself. This can be a long and difficult journey, but it will be worth it if you can get your credit back up to where it needs to be.

Once you have developed a budget that works well with paying off all of your bills make sure that you are using any extra money on your highest interest-bearing accounts. Pay all extra amounts to the highest interest account because those are the ones that you are losing the most money on. This may not seem like it factors into your credit score, but in the long run, it will matter. This is going to put you on the fast track to financial success which always goes hand in hand with a rising credit score.

Total accounts is another factor of credit scores. The more lenders willing to give you credit, the better you appear. This shows that you are someone who has a lot of options and you have not burned many bridges along the way.



Article Source: http://EzineArticles.com/8513126

Friday, January 25, 2019

PPI Calculator Online - Information You Need On Your Fingertips

PPI Calculator Online - Information You Need On Your Fingertips
200 Banknotes Lot


Payment Protection Insurance (PPI) seeks to cover monthly repayments on credit card, loan and/or mortgage for various events, including unemployment, accident, sickness, hospitalization or death. The cover is sometimes referred to as credit insurance, loan protection, loan repayment insurance, account cover, payment cover or ASU (accident, sickness & unemployment) insurance.

A simple way of confirming whether you have taken up PPI is to check the product statement to determine the premiums paid. Furthermore, you can check the policy booklet and credit or loan agreement that shows the information on PPI.

· PPI complaint

It has come to the attention of the relevant authorizes that PPI has been mis-sold. Mis-selling of PPI was commonplace because the sales team was encouraged to sell the cover for their benefits. In most of the loan deals, where PPI was provided, the banks made a larger profit from the policy than they otherwise made from the loan.

As a result, banks and other financial institutions were advised to refund all mis-sold PPI. Therefore, it is advisable to find out if you are eligible for PPI claims. When you know the details of your PPI, you will know how to process your complaint. With the assistance of a PPI calculator, you will know how much PPI to claim.

· PPI claims

PPI was designed to help customers who for any reason, such as sickness or unemployment, are unable to make payments. However, in many cases, PPI was sold to people who were not eligible, like the self-employed. A PPI refund is eligible if PPI was sold under the impression that it was a requirement for the loan type you were seeking.

You are also eligible for a refund if you were not sure what the PPI was or if it was factored on the loan. Therefore, if you suspect you have been mis-sold PPI, you need to find out how much compensation you are entitled to. Entering the correct information on a PPI calculator online will help you obtain a true estimate.

· Claims Management Company

If you choose to skip the PPI calculator, you can get in touch directly with a claims management company, by simply completing a quick claim form. You can talk to the company's representative to help you raise a complaint. The company will be able to assess the information and recommend a way forward.

If the policy was canceled more than six years ago, it is highly unlikely the seller will have documents supporting the transaction. Nevertheless, the claims management company will seek to perform the necessary investigations. If you have any supporting documents in your possession, the company will be able to use these documents to perform a full investigation.




Article Source: http://EzineArticles.com/8613828


How Important Is a Good Credit Score?

How Important Is a Good Credit Score?
Good credit scores can do much more for you than what you might think, while a bad one can slow you down. Checking your credit report every year is important. If something on your report isn't right, you need to get it fixed right away. Beyond just checking your credit report, you also want to check your credit score. Even though scores range from 300 up to 850, you should aim for at least 700. Consider the following ways your credit score is going to help you.

Woman Holding Card While Operating Silver Laptop
Credit

High credit scores allow you to obtain loans, credit cards, and other credit lines. With a higher score, you are also going to get better interest rates, which helps you to save money and keep the payments affordable. Make timely payments and don't make an abundance of changes all at once to keep your credit score up there.

Housing

If you want to purchase a home, you need good credit to do so. Your credit score also plays a role in renting a place as well. Most complexes are going to check your credit when you fill out an app. Poor credit could get you denied for housing. Pay bills on time and keep your balance on credit cards low.

Employment

If you have a credit file that is blemished, you might end up being denied employment in a number of different sectors. Credit unions, banks, government agencies, insurance agencies, and the military place a lot of weight on your credit file. If you have a history of not making your payments on time, collections and charge-offs, you might be denied employment or entrance into the military. When accounts fall behind, call the creditor to make a payment arrangement with them.

Insurance

The monthly premium you pay for your car and home insurance depends on your credit score. Insurance companies will use your score as a means of determining whether you are a good risk or not. You might end up being denied coverage or stuck paying a higher premium than what others will in the same category as you. Take care of any accounts that you have open. Don't open new accounts unless you need to. Opening too many, too quickly will cause your score to go down.





Article Source: http://EzineArticles.com/8590158

Wednesday, January 23, 2019

Credit Counselling: Is It Right for You?

Credit Counselling: Is It Right for You?
Reputable credit counseling organizations can advise you on managing your money and debts and help you develop a personalized plan to deal with your money problems. An initial session typically lasts an hour, and maybe some follow-up sessions and workshops.

Debt Management Plans: If your financial problems stem from too much debt or your inability to repay your debts, a credit counseling agency may recommend that you enroll in a debt management plan (DMP)... Don't sign up for one of these plans unless and until a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money.
 Person Holding Black Card Holder

How a DMP works: The counselor will develop a payment schedule with you and your creditors. Your creditors may agree to lower interest rates or waive certain fees to accommodate the plan. You will agree to deposit timely payments to the counselors' trust account from there they will pay your unsecured debts, like credit cards, student loans, and medical bills etc. Most likely you will be required not to apply for/or use any additional credit will participating in the plan.

Is a DMP Right For You? Here are some other important questions to ask if you're considering enrolling in a DMP.

How does your DMP work? How will you make sure that all my creditors are paid by the applicable due dates and in the correct billing cycle?
How is the amount of my payment determined? What if the amount is more than I can afford? Don't sign up for a DMP if you can't afford the monthly payment.
How often can I get status reports on my accounts? Make sure that the organization you sign up with is willing to provide regular, detailed statements about your account.
What debts aren't included in the DMP? This is important because you'll have to pay those bills on your own.
Do I have to make any payments to my creditors before they will accept the proposed payment plan? Some creditors require a payment to the credit counselor before accepting you into a DMP. If a credit counselor tells you this is so, call your creditors to verify this information before you send money to the credit counseling agency.
Most reputable counseling agencies are non-profit organizations, to find a local service you may visit: http://www.justice.gov/ust/eo/bapcpa/ccde/cc_approved.htm or www.NFCC.org

Be aware that "non-profit" status doesn't guarantee that services are free In fact, some credit counseling organizations charge high fees so before signing up ask for a copy of their fee schedule.

Use Caution When Shopping for Debt Relief Services: Avoid any debt relief organization whether it's credit counseling, debt settlement, or any other service that:

charges any fees before it settles your debts or enters you into a DMP plan
pressures you to make "voluntary contributions," which is really another name for fees
guarantees it can remove your unsecured debt from your credit report
tells you to stop communicating with your creditors, but doesn't explain the serious consequences
tells you it can stop all debt collection calls and lawsuits
guarantees that your unsecured debts can be paid off for pennies on the dollar
won't send you free information about the services it provides until you provide personal financial information, like your credit card account numbers, and balances
tries to enroll you in a debt relief program without reviewing your financial situation with you or teaching you budgeting and money management skills
Home Equity Loan: If you own your home you may be able to lower your cost of credit by consolidating your debt through a home equity loan or second mortgage. But these loans require you to put up your home as collateral. If you can't make the payments or if your payments are late you could lose your home.

What's more, consolidation loans have costs. In addition to interest, you may have to pay "points," with one point equal to one percent of the amount you borrow. Still, these loans may provide certain tax advantages that are not available with other kinds of credit.



Article Source: http://EzineArticles.com/8618217

Dealing With Debt: How to Battle Bankruptcy When All Seems Lost

Dealing With Debt: How to Battle Bankruptcy When All Seems Lost
When facing a surmounting debt problem, your worries might first tend towards the food in your cabinets, the clothes on your children's backs, or the mortgage payment for the home you're living in. It can be easy to forget that on top of all of that debt can have a tremendously destructive impact on your credit score, and can carry legal implications if you've been habitually negligent or dismissive of debt collectors. You're not alone - in fact, a recent study illustrated the fact that a whopping one out of three U.S. adults has debt in collections.

Two Persons Holding Premium Credit Card
Most people's impulse is the escape their crumbling financial situation by turning towards short-term solutions, such as the dreaded payday loan. Despite the fact that these loans carry prohibitive interest rates, most people in serious debt are too concerned with the day-to-day survival of their household to consider more reasonable options to resolve their financial situation in a sensible manner before resorting to inevitable bankruptcy.

So, what is the sensible way to approach an impossible-to-pay debt?

1. Stop the behaviors that got you here in the first place!

The most tragic part of personal debt is that it is often preventable by following simple financial practices. People who spend more than they earn without considering their month-to-month leeway, make unplanned purchases, or neglect even the most basic aspects of maintaining the budget quickly find that they can hold on to a dollar about as well as one can hold onto water. Recognize these behaviors and others in order to prevent from getting into this situation again - or making your bad case even worse.

2. Work with your lenders

Debt collectors may be rude and threatening, but it's their job. More importantly, they might not even be a problem if your debtors were aware of your financial situation. Most reputable institutions are willing to listen to people under extenuating circumstances and alter the terms of the loan based on your personal situation. After all, for the most part, their end-game is getting money from you under terms that you can manage - not drive your credit into the ground and end up with a defaulted loan.

3. Prioritize your highest interest debts

During times of financial crisis, it is best to put a hold on any low interest accruing accounts except to avoid delinquency. Instead, prioritize on your debt which is accruing the largest amount of interest. This means contributing more than the minimum payment as much as possible on these accounts, and then prioritizing the next highest interest rate once that one is paid off. For any hope of getting past a stage of crippling debt in your lifetime, focus on cleaning up the nastiest interest rates in your debt portfolio first.

4. Consider long-term payment plans for drastic situations

"If it seems too good to be true, it isn't." There's an expression with more than a grain of truth. And this comes to mind whenever one hears about the services offered by debt counseling services. However, while you should always be wary of institutions which make hard and fast promises such as "debt free in 12 months", debt counseling can be a very viable option to those with unmanageable debt situations. As long as you take care to pick the right debt counseling service for you, you can find that managing your debt is far simpler and interest rates become significantly less problematic when your case is being dealt with by a reputable service.

While being in debt to your eyeballs can be overwhelming, remember that communicating your situation to debtors, keeping your own spending habits in check, and reviewing all of your options are all necessary courses of action before your situation snowballs into something even worse.



Article Source: http://EzineArticles.com/8659397

Monday, January 21, 2019

Securing Bad Credit Loans

Securing Bad Credit Loans
Bad credit loans are becoming increasingly popular, not only among regular individuals but also among companies. The concept is indeed an innovative one, bringing a breath of fresh air for those who are in need of financial solutions, but who are considered illegible by most banks. Whether you want a loan to remodel the house, pay unexpected medical interventions, pay the money for college or purchase new equipment for work, there are many companies that offer bad credit finance solutions. The process is usually centered on the online environment, one of the main missions of specialized companies being to save time and reduce the application and approval time to a minimum. So, if you are wondering where to get no credit loans, you shouldn't prepare for queues and simply open your computer and fill in the application form whilst sipping from a cup of tea. Without a doubt, this service that takes out the stress out of loans and it is considerably simpler than its banking equivalent. However, there are some conditions to keep in mind. Due to the fact that specialized providers work with clients associated with a higher risk, these clients need to offer some sort of security for the loan, as a guarantee that they will pay the money back. In fact, the vast majority of bad credit loans are secured. Here is what you should know about this concept.

1 Us Dollar Banknotes

A secured loan means that you have to offer a valuable object for security. Most of the time, companies ask their clients to have a vehicle in order to secure the loan. It can be a car, motorcycle or boat - anything that is valuable and not too old. Some exceptions can be made for old cars if they have a high value. What if you don't have such a vehicle? In that case, one solution would be to apply for a joint loan with a friend or family member who possesses such a vehicle. Make sure you use a vehicle to secure the loan only if that vehicle is legally owned by one of the joint borrowers. Of course, these conditions may vary from company to company, but, as a general rule, it is obligatory for one of the borrowers to own that vehicle.

Also, if the vehicle hasn't been paid for yet (is still under finance), it is unlikely for the loan to be accepted. The same goes for leased vehicles. Basically, you need to have a fully paid, registered, non-leased vehicle that you can use as security. The majority of borrowers are quite happy with this condition and the speed at which bad credit loans can be obtained compared to regular bank loans. The amount of paperwork required is minimum and, although there isn't a complete guarantee that application will be approved, at least the borrower can receive a clear answer in a couple of days. Terms are usually quite flexible and the chances of getting a loan for people with bad credit history is sufficiently high. Last, but not least, interest rates are also flexible so those who are going through financial problems might be able to find a streamlined solution.




Article Source: http://EzineArticles.com/8693883

What Are The Basic Guidelines For Any Credit Repair Service? How Does It Work?

What Are The Basic Guidelines For Any Credit Repair Service? How Does It Work?
Round Brown Coin Lot

There are a couple of ways a credit repair organization can help you enhance your credit score. Some of these organizations just help you get false data evacuated. They will have you send them your credit report and let them know what data you accept to be inaccurate. At that point, they will compose letters to the lenders or credit departments in an attempt to have the questionable items removed. This can take a while due to the validation process. Since a lender did not bring out an advance with a gathering org, they can't demonstrate it is owed them. Much of the time you sign an agreement with a repair org and they charge you an expense to compose these letters and arrangement with the creditors and credit reporting agencies. As per "The Credit Repair Organizations Act," the credit counseling organizations can't charge you until some type of work has been done. This could be a setup of an account or a review of your credit profile. They should likewise provide you a duplicate of the "Buyer Credit File Rights under State and Federal Law," before you sign a contract with them. Verify you are dealing with a credit repair organization that is true blue and read the contract.

No Upfront Payment

Credit repair companies may not approach you for cash before providing some sort of service first. Any credit counseling service that attempts to collect payment from you before you're a review of your situation is in direct violation of the law. Never pay for credit repair service until you have consulted with them and been advised of your options. On the off chance that a con artist tries to swindle you out of cash by requesting payment before providing some type of service, report him to the Federal Trade Commission.

Shopper's Bill of Rights

Credit repair companies must provide you a rundown of your rights in regards to credit repair, including data about what you can accomplish on your own. Case in point, an honest credit repair company must let you know that you have a right to acquire a free credit report once a year from each of the three significant credit authorities and that you are qualified for an extra free report on the off chance that you are turned down for credit.

Evacuation of Information Rules

No credit counseling company can expel negative data from your record as a consumer if the data is correct. Case in point, in the event that you petitioned for Chapter 7 bankruptcy in the past seven years, you can't expel that from your financial record. According to, credit repair services in NJ and other areas are not permitted to claim they can remove all negative data from your history paying little heed to its exactness or to what extent prior the negative data was accounted for.

Cautioning

The Federal Trade Commission says that on the off chance that you submit unlawful movement while endeavoring to repair your credit, you can be brought up on government charges regardless of the fact that you conferred the action on the recommendation of a credit counseling company. Along these lines, stay far from companies that encourage you to question each negative thing on your record of loan repayment paying little mind to its precision or offer to get you another Social Security number or other ID with the end goal of misrepresenting your financial record.



Article Source: http://EzineArticles.com/8743577





Everything You Need to Know to Repair Your Own Credit!

Everything You Need to Know to Repair Your Own Credit!
I am going to teach you how to fix your credit. I am not going to share everything that I know with you about credit scoring models or algorithms but I am going to share the process with you. I am doing this because I want you to know what you are doing when you go about fixing your credit. If you have bad credit and are a DIY type of person this article is for you. I am going to cover everything in this article from A to Z.

Coins on Brown Wood
The first thing that you need to do is review your credit for inconsistencies. A full 79% of credit reports have one error or another. Cases of mistaken or stolen identity, same or similar names reporting on the wrong report, incorrect amounts, duplicate accounts, and many other forms of errors being reported on credit profiles to abound. Go over your credit report very carefully looking for inconsistencies such as those listed above.

Once you have identified the errors that you want to correct it is time to move on to the next step. You will want to dispute those items with the three major credit bureaus. Write a letter you each of the three credit bureaus explaining to them what you believe the error is and request that they delete the item being reported in error from your credit report. Proper formatting is an important ingredient in order to ensure that your dispute is handled properly. The credit bureaus are going to want to make sure you are who you say you are. For that reason, you must always submit your dispute letters with a copy of your driver's license and a bill with your address on it (such as a utility bill). If you have recently moved they may want to see additional verification so include a pay-stub, social security card, or W2 form.

There is no guarantee that disputing an item with bringing about the removal of that item from your credit profile. If the item is genuinely being reported in error there is a high likelihood that it will be deleted. Creditors have 30 days to validate an account that has been disputed otherwise it is automatically deleted. If an item is validated but you are certain that it is being reported in error you can challenge the validation. That process begins with first requesting the documentation from the credit bureaus that the creditor used to validate the account. A good example would be if an amount is being reported incorrectly. Such as if you paid off an account but it is still reflecting an amount owed. In that case, obtain dated proof of your release from the debt obligation to compare to the documentation used for validation, which may show that the validation is dated.

If you are unable to have an item deleted through the dispute process there is a good chance the collection agency or creditor may be more pliable and willing to negotiate after an item has been disputed, validation challenged or is currently in dispute. As a last resort, you may want to attempt to negotiate a settlement with the creditor; this is only if you are unable to have the item removed through any other means. However, there are a few ground rules here that you need to take into consideration. Again, if you are certain that the item is being reported incorrectly or is not yours all together; do not acknowledge the debt as being yours.

The first thing that you should ask for when the creditor answers the phone is for the agent to come back on an unrecorded line. You have the right to speak on an unrecorded line and generally, the agent will be happy to oblige. He or she will put you on a brief hold and come back on a line that is not being recorded. Once they are back on the line with you tell them that you are calling about account # (fill in account number). If you do acknowledge ownership of the debt, that could restart the statute of limitations back to 0 days since the last date of activity. It is important not to make that acknowledgment in the event that you are unable to reach an agreement. It is not uncommon to get the settlement down to around 40% or 40 cents on the dollar. Collections and profit & loss statements come off on their own seven years from last activity while items discharged in bankruptcy come off in 10 years.

Cleaning bad credit from your credit profile is the first step in establishing repairing your credit. The next step is to re-establish credit. Sometimes when you make a lot of changes to your credit profile in a short period of time you may see a dip in your credit score in the first month after. The reason for this is because while you are deleting derogatory items you are also deleting transaction history. This is normal and it will rebind in the subsequent month so long as you have established some new trade-lines (credit account).

Those with perfect credit have multiple seasoned trade-lines varying in type. Usually a couple of revolving account, an installment loan or two, and an amortized loan such as a mortgage. The more seasoned a trade-line is the more weighted it will be on your credit report. If you have the option of having a friend or relative add you as an authorized user on a seasoned trade-line that will accelerate the time-frame in which you are able to increase your credit score. However, with a clean slate, you should still be able to significantly increase your score over the next couple of months.

Open a couple of credit card accounts to start with. You will want to limit your inquiries to no more than 3 in any 6 month period. For that reason it is a good idea, if you have cash on hand, to start out with secured credit cards. Secured cards come with guaranteed approval and do not require a credit pull so you will be able to limit the inquiries on your account. Another great option is Aarons Sales & Lease; they are the only rent to own company that I am aware of that reports to all 3 major credit bureaus. When establishing new credit try to limit your new credit inquiries as much as possible.

After establishing a couple of new credit card accounts make sure that they are open and active. You will want to use the cards to build up some positive transaction history. At the same time, you will have to use them carefully to maximize your credit utilization. Never exceed 30 percent of the available balance as that is the sweet spot in where your account is open and active while still maintaining a large percentage of available credit. It's a good idea to make a small purchase or two once a month and then pay your bill after you receive it in the mail to ensure that it posted and the activity on the account will be reflected on your credit profile.

There is a lot more that goes into it than the information that I have provided here. There are specific calculations that we can do based on credit scoring models that allow us to estimate scores at particular intervals. Though, in order to remain compliant, I never quote time-frames or make guarantees because there are always variables that could disrupt the work that we are doing. The information provided here is more than enough for you to go out and fix your own credit. There is nothing that we can do in that regard that you cannot do yourself. You can take the steps outlined in this article and fix your credit.

If you do not have the time to put the work into this processor would rather just leave it to the professionals we are here to help. Northern Finance Group employs highly trained credit repair professionals and we are willing to work with you in every step of the way. Our rates are reasonable for the high level of service that we provide and we can ensure that your credit reaches the heights that you are striving for. If you have been turned down for credit and need to get your credit repaired as quickly as possible please give us a call for a free consultation.




Article Source: http://EzineArticles.com/8750189

Bad Credit Buyers Expect to Pay Higher Interest Rates

Bad Credit Buyers Expect to Pay Higher Interest Rates
The first step toward improving your borrowing power is to know your rights and responsibilities. Nobody but you is usually to blame for your bad credit rating, so start out by assuming responsibility for your bad financial choices. Acknowledge that you've made some mistakes, and start working to improve those mistakes by addressing the problem head-on.
 100 U.s. Dollar Banknotes


Know your credit score.

Get a FREE copy of your credit report and know the reality of what is showing up on your credit for collections, for late payments or for any other reason. If you have a good credit report showing up, know about it, point that out to your lender and remind the lender as you're going through the process that you've been responsible on those areas.

Deal with bad credit reporting.

If some of your financial information is missing or miss-reported, correct that. Write letters to the reporting agency explaining or asking for bad information to be removed from your credit report. 30 days after disputing a report, if it isn't confirmed, it will be deleted. Take advantage of that option to have bad reports deleted from your documents.

Pay off low balance debts.

If it's a low balance, pay it off, and ask that it be removed from your report. Most companies will allow paid off debts to be removed from your credit report if they no longer have you as a liability on their records.

Request good reports.

If you've paid on time, and you have some good reports that aren't on your credit report, this is the time to request those reports be placed on your financial profile. Do the work and ask your creditors to make those good reports too.

Keep track of changes in your financial documents.

By keeping track of your credit report and any changes in your credit score, you'll be better able to prevent the possibility of identity theft, or at least identifying the source and cause of any identity theft problems that may arise on your accounts. This may come in handy if anyone ever does take your debit card, or steal your identity.

Maintaining a legal shield of some kind to protect yourself from identity theft is always a good idea, but in lieu of a specific paid program, keeping close track on your own financial documentation is the best option.




Article Source: http://EzineArticles.com/8787974

Wednesday, January 16, 2019

How Credit Counseling Can Help Your Financial Challenges

How Credit Counseling Can Help Your Financial Challenges
Black Card Holder Beside Belt



Debt is arguably the greatest plague in our society today, it has a way of creeping up on us if we let it. It's crucial to keep debt manageable and reasonable in order not to incur painfully large interest charges or struggle to make our payments. Even for those who manage debt well, unexpected life changes can result in difficulty making ends meet.

When debt seems to overcome our lives the first course of action is to take a look at the budget. Finding unnecessary expenses to cut back on can help us pay down debts and keep monthly bills current if we aren't in too bad of a situation. But what happens when we can't solve our debt problems with budgeting?

Sometimes we need outside professional help. It's hard to admit when you're having money troubles and to go to someone else, but if you don't gain control over your debts, your credit rating will suffer and you might live the rest of your working life trying to get out. So it is important to take control and make a change before it's too late.

Some debtors turn to consolidate their debt as an answer to debt problems. Others may even consider bankruptcy. What they do is transfer high-interest debts to a lower interest credit card, or they put up the equity in their homes to get the money to pay them off. While these options can provide lower payments, they are not without drawbacks. Closing numerous accounts and putting all of your debt into one account can negatively affect your ratio of debt to available credit, lowering your credit score. And if you use your home equity to secure the money needed to pay off debt, you're putting your home at unnecessary risk.

The most popular option for those with debt problems is credit counseling. Credit counseling agencies offer help with budgeting, and in some cases, they will set you up with a debt management plan. A debt management plan involves negotiation with creditors to obtain lower interest rates and lower payments. The debtor makes one monthly payment to the credit counseling agency, and the agent forwards payments to each creditor.

A debt management plan can help you get out of debt faster, but it can also impact your credit. A note is added to your credit report stating that you are undergoing credit counseling. This means that you can't get new credit. However, the notation is removed once you've paid off your debts.

An overabundance of debt can wreak havoc on our finances and our credit scores. It can also be the cause of undue stress. By seeking help at the first sign of trouble, we can often prevent our debts from spiraling out of control.




Article Source: http://EzineArticles.com/8798828

Credit Repair Companies - Find Credit Experts and Certified FICO Professionals - Improve Your Score

Credit Repair Companies - Find Credit Experts and Certified FICO Professionals - Improve Your Score
Late payment of credit bills or defaulting from payment can seriously affect one's credit scores. It affects a person's credibility in securing a loan or a credit card in the future. This can cause dangerous repercussions and leave the person dependent on others for money. It is always advisable to keep your credit score clean.

But sometimes even the most organized person may end up with a bad credit score. Luckily, the law provides a chance to help the person out the situation. This is where the credit repair companies come into the picture.

Man Holding U.s Dollar Banknotes and Black Leather Bi-fold Wallet


ROLE OF CREDIT REPAIR COMPANIES

Credit repair companies have a primary goal to 'improve the client's credit score'. They offer legal credit solutions to help improve their client's credit score. They study the report of the client to look for any inconsistencies. Once having identified disputable items on the report, they take it up with the creditor to challenge the report. If the inconsistencies cannot be verified, then the company helps you file for damages. Some companies also offer credit management services to teach the client how to maintain a good credit score.

BEWARE OF SCAM COMPANIES

A person must always be aware of the service they choose. There are companies that scam desperate people, who are badly in need of help. There are other companies that use illegal means like identity theft to make it look like there is an improvement in the credit score. It is illegal and a felony to do so and if discovered, the person may face jail time.

INDICATORS OF A GOOD COMPANY

It is very easy to tell a good company from a bad one. Here are a few indicators that it is a scam.

The company asks for payment upfront. Any citizen is legally entitled to pay the credit repair company only after the case is settled.
If the company promises to erase the credit record, it is clearly a scam. It is impossible to delete it. One can only improve the credit score.
When the company asks the client to create a new credit identity using Employer Identification Number (EIN) instead of the social security number, it is undoubtedly a scam company.
If the company asks a person to file all the items in the record as false irrespective of the validity, then it is a scam.
FIND THE BEST CREDIT REPAIR COMPANY

Self-acclaimed Credit pros, may not be professionals after all, although as an industry they are one of the top sought after services in the country. Understandably, without money or credit life's dreams are halted in a hurry. Be sure to look for a team of certified FICO professionals, who offer professional and legal credit solutions and help can anybody with a bad credit score. Check reviews and see if the company has a record of being successful and customer friendly in all their cases. The clients' testimonials are proof for the good work they can do.

WHAT SETS A CREDIT PROFESSIONAL APART FROM THE REST?

Payment is accepted only after the client's requirements are met and payment plans are also available.
The client can cancel their service at any time they see fit.
They offer lifetime support for the cases they handle.
The team of FICO certified professional experts guarantee success and do not oversell.



Article Source: http://EzineArticles.com/8849285