CREDIT IMPROVEMENT TIPS WORTH APPLYING FOR YOUR CREDIT SCORE

Anyone who wants an approved credit application should first see to it that he or she has a good credit report. If yours has a few blemishes, though, you can still work on improving credit rating. How?

Check out the credit improvement tips explained here.
Having a good credit report is important especially if you’ll be applying for a loan, want to borrow money from a bank, or if you’re hoping for an approved credit application. Improving credit rating may not be as easy as pie, but the point is, it is something viable. Here are several credit improvement tips that can help people enhance their credit scores:

Tip A: Work things out with your lenders.

If you’re going through a difficult time and it’s affecting your bills and loan payment, you can still talk things over with a bank representative or your loan officer. Though having an agreement with the financing firm or the bank won’t automatically give you a good credit report, it can help improve your ratings. Once your creditors allow you to pay your debts on lower or cheaper terms, call the credit bureaus and make sure they include those agreements in your file. Remember that if you have ‘lower debts’, you can more easily pay on time, and that can give positive results, even an approved credit application.

Tip B: Review credit files thoroughly.

One of the credit improvement tips that are really important in improving credit rating is for you to order copies of credit-reports from all 3 credit bureaus: Equifax, Trans-Union, and Experian, and then, check every information or data, even the tiniest ones, and see if they are correct. Even the smallest error e.g. wrong mailing address, wrong payment tagging i.e. on time payment tagged as late, and all that, can prevent you from having good credit report.

There’s a dispute process you can follow if you see a mistake in your file; you should make the dispute immediately as that can make an approved credit application possible for you. Keep in mind that you should have proof whenever you make a dispute as the bureau staff will be investigating thoroughly to determine whether they should indeed remove the negative piece from your report or not.

Tip C: Pay beyond the minimum payment amount indicated in your statements.

If you can, you should strive to pay more than the amount indicated in your bill’s ‘minimum payment’ field. By giving more than this amount monthly, or regularly, you’ll be charged lesser interests and you’ll pay off the full debt faster.
Improving credit rating is doable for as long as you employ the techniques discussed in this piece. Do not disregard the importance of a good credit report, as without it, you may not be given approved credit application.

How can you remove Hard credit inquiries from your credit report?

Hard Credit inquiries may have a negative effect on your credit report. Find out how you can get the unauthorized credit inquiries removed from your report to improve your score and also your chances of future credit.

 Too many credit inquiries may make you look credit hungry and may project you to be in some kind of a financial trouble. This is the main reason why you should take care to remove unnecessary and unauthorized inquiries from your report. According to the Fair Credit Reporting Act (FCRA), you can get credit inquiries removed from your report so that it doesn’t hurt your score too much and so that you can seek further credit without much difficulty.

Credit inquiries may be removed by following some simple steps. They are:

1. Identify harmful inquiries: You need to find out which credit inquiries mentioned on your report is turning out to be harmful. For this you need to get all 3 of your reports and check minutely. The inquiries are usually mentioned towards the end of the report. Some of these may be simply promotional and are not shown to prospective grantors. These are not to be worried about. Identify only those that are shown to prospective creditors.

2. Identify contact address of inquirers: Experian usually lists the addresses of those who have made a credit inquiry. Match all three of the credit reports and see if you have all the names and their respective addresses. If not, then you may call the credit bureaus to find out their addresses.

3. Prepare letters to send: The FCRA allows only authorized inquiries to remain on the report and the rest must be removed. Prepare a letter to all the bureaus asking them to remove all unauthorized inquiries on your report.

4. Read documents carefully: In reply to your letter sent to the bureaus, some creditors may mention that the inquiry had been authorized by you. Read the documents carefully and look for evidence whether or not you really did authorize the inquiry.

Creditors usually remove unauthorized inquiries when disputed. If they refuse to remove credit inquiries that are not authorized, you may contact the State Banking Commission and lodge a complaint. Credit inquiries are supposed to fall off your report after 2 years of it being reported. In case it doesn’t and in case you do not want to wait for so longFree Articles, you may follow the steps mentioned above to remove credit inquiries from your report.

HOW TO REMOVE LATE PAYMENTS FROM YOUR CREDIT

Remove Late Payments From Your Credit

How to remove a late payment from your credit. A 30 or 60 day late pay is relatively easy to remove, however a 90 or 120 day late pay will be harder to erase. Late payments are not equal; a 90 day or 120 day late pay will cause a large amount of damage and is seen as a very negative mark by lenders. However a 30 day or 60 day late payment will not do much damage.

You can remove a 30 and 60 day late pay from your report by contacting the lender and asking them to erase it. Frequently they will do this in order to keep you as a customer and in their good graces.

A phone call and a letter including the reason is the most effective method. Also be respectful and nice to them because they do not have to remove this mark.

A 90 and 120 day late pay is much more difficult to remove. However if your account is still open then you should contact the lender, and ask for removal of the mark.

It is a good idea to make sure your account is up to date before asking them to remove the item from your report. The lender will often look at your payment history to see if late payments are common with your account.

If you can not get the mark removed we suggest you dispute it directly with the credit bureaus. This is done by creating a dispute letter and mailing it to each bureau or you can hire a service to do this on your behalf.

This item will be on your report for a maximum of seven years. Additionally your account will be charged off after 180 days of delinquency.

A lender can remove this mark because they report monthly to the bureaus and can choose what to report to them. Thus if they do not report your late payment the next month then it will not be on your credit history.

You will find it very difficult to have the lender erase this mark if your account is not up to date. Additionally there is information that claims negative items on your credit must stay there for seven years.

This is falseScience Articles, seven years is the maximum amount of time most negative items can remain on your report. The Fair Credit Reporting Act passed by Congress made this law. There is no minimum amount of time a negative item has to be on your report.

In sum if you can not negotiate removal of the mark directly with the lender you should dispute it with the bureaus. This is done through a dispute letter written yourself or by hiring a service to do it on your behalf.

 

HOW TO REPAIR YOUR CREDIT SCORE FAST IN 30 DAYS

Your credit wellbeing is slightly like your physical wellbeing -there's no quick path to a flawless credit score or impeccable wellbeing; its a long haul venture. Anyway generally as you can start settling on sound eating methodology and activity decisions today, you can do likewise for your credit.

Here are a couple of things you can attempt at this moment to support your credit wellbeing.

Undertaking: Ask for a higher credit limit.

Conceivable profit: Lowers your credit card usage.


Strategy: Calling up your credit card organization may appear as an overwhelming undertaking, however in the event that it could help your credit wellbeing, shouldn't you isn't that right? Most organizations survey credit constrains on an at regular intervals premise. In the event that its been a while since you've gotten a credit cutoff expand, you can take a stab at asking for one.

Most importantly, realize that this strategy will probably just work in the event that you've had a fabulous record with your credit card organization. Discover your creditor's telephone number on your most recent explanation or via looking on the web. Ring them and get an operators on the telephone. Once you're conversing with somebody, let them know how great of a client you've been, the way you've generally set aside a few minutes, and how you've appreciated utilizing the card. After this beginning structure, let them know that you'd like to demand a credit farthest point increment.

Watch out for: Sometimes, credit breaking point expand solicitations can accompany another hard request to your credit. Make a point to inquire as to whether this will happen so you recognize what's in store and in the event that in any case you'd like to experience with your solicitation.

Errand: Write a "Goodwill alteration letter" for a past late installment.

Conceivable profit: Removes a late installment from an overall gorgeous credit report.


Strategy: If you've as of late made a late bill installment when you're conventionally in charge, asking to have that one, little dark imprint evacuated could work for you. In your letter, you'll put forth a defense for why the wrongdoing ought to be uprooted. Show what a dependable client you've been and the extent to which you've enhanced your budgetary circumstance since this one oversight. Model your letter after this illustration and hold up around 30 prior days catching up, in the event that you haven't heard anything.

Watch out for: Remember that your credit card organization doesn't need to evacuate the wrongdoing, so be arranged for that occurrence.

Errand: Make a plan to pay down your credit card obligation at a quicker rate.

Conceivable profit: Lowers your credit card usage.

Strategy: If you have a tendency to convey adjusts on your credit cards from month to month, work out a plan to pay down your obligations quicker so you can get your credit card use rate to lower than 30 percent- -that is the rate that credit masters propose.

First and foremost, see where you remained by looking at your current rate in your Credit Report Card. At that point, see your rate on individual cards in your My Accounts area. For the cards reporting more than 30 percent, chip away at those first. If you've been making the base installments on those cards, build that reimbursement rate so you can consistently diminish your usage rate.

Watch out for: While you're chipping away at bringing down your parities, abstain from depending too intensely on your credit cards. Else, you'll simply switch the majority of your hard reimbursement work.

Undertaking: Transfer your credit card equalizations.

Conceivable profit: Strengthens your obligation pay-off arrangement and builds your aggregate number of records.

Strategy: When you have bunches of distinctive credit cards with fluctuating parities to reimburse, making numerous installments every month can appear precarious. There are a few cards that offer starting parity exchange rates, significance on the off chance that you exchange all or some of your other cards' parities, you won't pay any interest on those equalizations for a year or two. These advancements differ via card, so dependably audit the terms painstakingly with a delegate. In case you're interested in opening an equalization exchange card, our accomplices have numerous offerings - figure out how to pick the right card for you first.

Watch out for: In many cases, in the event that you don't pay off your offset exchange totally amid the early on period, you'll need to pay interest on the whole exchanged sum when that period is up. So this strategy is beneficial for you in case you're truly prepared to handle your credit card obligation.

Errand: Get freed of credit report slips.

Conceivable profit: Gives you a more precise record of your credit history.

Strategy: While some credit report lapses don't influence your credit score whatsoever (like errors in your individual data), others can extremely affect your capacity to get sanction for credit (like off base harsh imprints). End result: Cleaning up your credit report ought to be a top need. Utilize this regulated manual for help you through the methodology of cleaning up your reports.

REPAIR CREDIT SCORE USING SECURED LOAN

it's much less demanding to get awful credit than it to settle it, however you've presumably officially evaluated that. Getting new credit is key to revamping a terrible credit score. Notwithstanding, past credit slip-ups can be about difficult to succeed, particularly when new creditors and banks are unwilling to provide for you another opportunity. What do you do when you have to re-make your credit, however can't get a credit card? You can get a secured credit card.

What is a Secured Credit Card?

A secured credit card meets expectations much the same as a consistent credit card. You swipe your card to make buys that deduct from your credit limit. You reimburse the equalization with regularly scheduled installments or at the same time. The significant contrast with a secured credit card is that you're obliged to make a store against as far as possible on the record. The security store is guarantee held on the off chance that you default on credit card installments.

A secured credit card's credit cutoff is half to 100% of the security store you make. Case in point, on the off chance that you make a $500 store for a secured card, your credit utmost will be in the middle of $250 and $500.

Be keen in picking a decent secured card. Secured credit cards normally have expenses that customary credit cards don't. This incorporates application charges, preparing expenses, and yearly charges. Be careful with cards with high charges on the grounds that they can extraordinarily diminish your store and at last, your credit limit. The best secured credit cards have low charges and great investment rates.

Use Secured Credit to Change Your Credit History

Most awful credit comes as an issue of poor installment history. You can show better installment propensities, actually when you can't get credit the conventional route, by getting a secured credit. You can't demonstrate a restored capacity to make opportune installments until you have another credit card.

Before you seek a secured credit card, verify the creditor reports to no less than one of the three noteworthy credit authorities. If not, the card won't profit you regarding re-building your credit in light of the fact that future creditors won't see your great installment history. In the event that the card backer doesn't report your installments to the significant credit authorities, it won't be incorporated on your credit report or reflected in your credit score.

After you've been endorsed, recall that your motivation for the new secured credit card is to assemble a positive credit history. That said, don't utilize the card to make obligation. Rather, utilize your secured credit card to make little buys that you can fork over the required funds every month. In the event that you can't bear to pay for a buy, don't charge it.

Transitioning to Unsecured Credit

Numerous credit card organizations change over your secured credit card to an unsecured card following one or two years of auspicious installments. Regardless of the fact that you can't change over your secured credit card, you may get affirmed for an unsecured credit card with an alternate creditor following 12 months of on-time installments.

On the off chance that you seek a credit card and get denied, abstain from putting in more applications. This makes you search frantic for credit. Rather, keep making auspicious installments on your secured card and apply again inside six months. You'll get a letter from the credit card backer clarifying why you've been denied and you can utilize this data to choose what you ought to do ne

HOW TO REPAIR YOUR CREDIT REPORT

There is probably for heading a fruitful money related life, a credit report is vital that shows positive patterns of the holder. Individuals who are battling with a terrible credit report that is pretty much complimenting, will encounter or have officially accomplished the results of having an awful credit report beyond any doubt. Case in point, in the event that you have a terrible credit report and you are attempting to take a rent of a house, then the inhabitant supplier may turn down your application by assessing that you have an awful credit report. A terrible credit report turns into the most troublesome impediment when individuals are attempting to acquire an advance. Advance offers with an awful credit report are rare in the business sector and the borrower's winds up with high investment rates for such credits. That is the reason, it is critical that you ought to make powerful moves to repair badcredit report.

There are different steps to repair terrible credit report. The majority of them can't demonstrate a result overnight, yet some of them have the office to demonstrate a snappy and positive response.these fast steps can have an incredible effect on enhancing your credit reports and awful credit repair gets to be simple with the assistance of them. The snappy steps to enhance your creditreports are:

Looking into your credit report:

In some cases, the credit reports may contain flawed cases or debate made by the credit reporting organizations. To have a snappy change, you can make a concentrated survey of your credit report so as to distinguish if there is any presence of such missteps on your credit report. In the event that there is any, then you have to claim towards the credit reporting organizations to quickly evacuate such debate. As an issue, you will have a powerful terrible credit repair and your credit reports get a moment help.

When you approach towards the credit reporting organizations about lapses of your credit report, attempt to gather composed confirmations about it. This will make your case solid and help you to maintain a strategic distance from the possibility of refusal of rectifying the debate.

Setting up an installment update framework for your bill installments:

An installment update framework helps you to help in the opportune time to remember installment of existing money related obligations.sometimes, individuals neglect to pay the bills, miss the dates or make a late installment and it makes a terrible effect on their credit report. On the off chance that there is a setup of installment update frameworks, then you will effortlessly get informed in opportune time and have the capacity to pay your advances or other monetary commitments in perfect time. This will help you to get a successful awful credit repair.

Abstain from utilizing credit cards:

Presently, utilizing credit cards for paying up monetary commitments have turned into a famous pattern. Still, it is not a decent practice for your credit report. In the event that you are paying up your current obligations by utilization of a credit report, then you are not really paying an obligation; you are simply moving one obligation to another. It is a decent practice to utilize hard money on paying up your bills, obligations and other monetary commitments. Incessant utilization of credit cards will heap up a ton of obligation and it makes a terrible effect on your credit report. So attempt to dodge the utilization of credit cards regarding managing obligations.

REPAIR CREDIT SCORE AFTER STUDENT LOAN DEFAULT

The most effective method to Fix Delinquent or Defaulted Student Loans

In case you're behind on your student loans, now is the right time to address the issue head on.

Overlooking the issue, or trusting those school obligations will some way or another vanish isn't going to offer assistance. Actually, the more drawn out you put off managing past-due student loans, the more harm you can do to yourself monetarily, and from a credit viewpoint.

Luckily, there are some moderately easy approaches to manage student loans when you've gotten behind on those installments.

This is what you have to know to alter reprobate or defaulted student loans.

Reaching your lender or credit servicer is an absolute necessity

To handle your student advance situation, you'll initially need to connect specifically to your lender or credit servicer.

Your alternatives for clearing up a defaulted credit will to a great extent rely on upon what sort of advance it is (i.e. government or private), and also your own particular current budgetary circumstances.

The accompanying guidance applies to those with government defaulted loans.

Your government advance is thought to be in default on the off chance that you were planned to start reimbursement, yet haven't made an installment for 270 days. Now and again, default in fact starts on the off chance that you haven't made an installment for 330 days. In any case, once you're in default a considerable measure of terrible things can happen.

The administration can grab your government pay duty discount check. The feds can likewise embellish your wages, taking 15% of your disposable pay to put to your defaulted student advance. Furthermore, evidently, your defaulted student loans can and will likewise be accounted for to the credit departments, harming your credit score.

Luckily, there are a few fixes for these issues.

First off, you can bid a pay garnishment, by keeping in touch with the U.s. Bureau of Education and clarifying your present budgetary scrape.

The Department of Education permits you to have a hearing, and the office normally settles on a choice about your compensation garnishment inside 60 days after that hearing. Meanwhile, however, any compensation garnishment that has as of now started will keep on being in power.

Restoring a defaulted student credit

While looking for alleviation of a pay garnishment is one cure when you have defaulted student loans, what you truly need to do to bring your student loans out of default is "restore" your advance.

Credit recovery obliges you to make 9 or 12 on-time installments on your student loans in a sum you can manage. (Those with Direct Loans and Federal Family Education Loans, for example, Stafford Loans or PLUS Loans, need to make 9 regularly scheduled installments; people with Perkins Loans must make 12 regularly scheduled installments).

The uplifting news is that once you experience advance restoration, its sort of like getting a money related and credit do-over.

All past negative data about your student loans will be totally erased from your credit documents and your credit slate – the extent that those defaulted loans go – will be wiped totally clean.

Once you're out of default, you're additionally qualified to get extra government student loans in the event that you require them, which may be the situation on the off chance that you were considering reapplying to class to complete your undergrad studies or maybe winning a graduate degree.

Different choices to settle a defaulted student credit

It's paramount to note that keeping in mind the end goal to get your student loan(s) out of default, you do have a couple of different choices other than credit recovery. Particularly, you can:

•  Consolidate your loan(s)

•  Pay the loan(s) off totally

•  Get the loan(s) completely released or drop

For most borrowers, notwithstanding, the last two plan B are likely not reasonable choices. Full wiping out of student credit obligation is uncommon, yet is possible on the off chance that you are totally and for all time impaired. The individuals who volunteer, or serve the general population investment can get incomplete advance abrogation.

Concerning paying off your loans totally, apparently, on the off chance that you had the cash to reimburse your school obligation you would've effectively done that and wouldn't be in your current pickle, correct?

How credit combination assists with defaulted school loans

Credit combination can, as said, bring your student loan(s) out of default status. You do this by making only three regularly scheduled installments — on time, and in any sum that you and your lender concur upon.

To see whether you fit the bill for advance union, contact the Federal Direct Consolidation Loan Info Center at 800-557-7392 or go online tohttp://loanconsolidation.ed.gov.

When you call, the staff there will have the capacity to exhort you what your regularly scheduled installment will need to be for those three months while your advance is in reimbursement. This three-month procedure may sound incredible, however there is one noteworthy drawback to merging: your credit stays discolored.

Despite the fact that your credit will be forked over the required funds" "on your credit report, after you get another advance through union, your past student credit default still stays on your credit report for a long time from the time the default initially happened.

That is the reason I support experiencing with the more drawn out, 9-month student credit restoration process. It will get you once more making progress toward having a clean credit record.

Furthermore, assuredly from now on, you want to make your student credit installments on time in any case.

On the off chance that that is the situation, run with credit recovery and get a changeless money related fix for your defaulted student loans, and a real update for your cre

FAST CREDIT REPAIR INQUIRIES HURTING CREDIT SCORE

 Credit inquiries take place when you apply for a loan , a credit card or an insurance policy and the lender checks your credit report to assess whether to grant you the loan or not. Each time an inquiry is made by the lender or outside companies it is recorded on the 3 credit rating bureaus. Too many credit inquiries in a short period of time can hurt your credit score badly. Credit inquiries remain in your credit report for a period of 2 years. There are many other factors that reflect in your credit report which affect your credit score adversely. So Before planning on the removal of your credit inquiries first work on removing the major areas (i.e. is late payment history, high debt –credit utilization ratio, collections etc) from your credit report.

Yes too many credit inquiries hurt your credit score to a certain extent as they give an indication to the creditor that you are using too much of  credit and are financially irresponsible.

Credit inquiries are basically of two types –One form is hard inquiry which takes place when you make an application for new credit .The other type of credit inquiry is soft inquiry which is the result of

A lender checking your credit report

You’re ordering of your own credit report

The main aim is not to remove all the credit inquiries from your credit report but mainly those that are not authorized and sufficient enough to not hurt your credit score is anyway.

Fast credit repair steps that you need to take for removing credit inquiries from your credit report

The first step would be to inquire which credit inquiries are hurting your credit score. This information is available in your credit report .so Order your credit report from all the three credit bureaus. Look at the inquiries section in your credit reports and search for inquiries that are shown to the creditors.

The second step would be to look for the names and addresses of the inquirers. Search for the inquirers in all the three credit reports.

The third step-Once you have collected the names and addresses of the inquirers. You need to send letters to each of the inquiring creditor requesting them to remove their inquiries.

The fourth step –Most inquirers will delete their inquiry as they do not have evidence that proves your authorization. But there are many creditors who have documents that prove that you had given an authorization for a credit inquiry. In such a scenario you can inform the creditor that there application form was highly complicated to be easily read and understood .You can always threaten to file a complaint against the creditor to the state banking commission for the deceptive form in case the creditor does not agree to remove the inquiry.

In many cases there is a possibility that the inquirer might ignore your mail and not respond in any way. Make sure that each of your letters is sent through a certified mail and that you receive a receipt of the letter being delivered to the inquirer. This will help in keeping track of the date the letter was received by the inquirer. If the inquiring creditor does not respond within a span of 30 days time  ,you will have reason to call the inquiring creditor and ask for removal of the inquiry .In case the inquirer does not agree then you can threaten the inquirer of filing a complaint against him to the Commission.

EASY REPAIR CREDIT AFTER CHAPTER 7 AND CHAPTER 13 BANKRUPTCY

Bankruptcy can have a very detrimental impact on your credit score. Bankruptcy will display on your credit report for a period of up to ten years which can hurt your credit score badly. And if are not filing for bankruptcy and letting your debts go the collections departments can further negatively impact your credit score. Bankruptcy can bring down your credit score by 160-220 points. Bankruptcy can make it extremely difficult for you to get approval for a home loan or credit cards by the financial institutions.
What you can do is take certain measures to increase your credit score and this you can do by managing your existing credit well which can gradually increase your credit score and make your financial situation better despite a bankruptcy showing on your credit report.

Chapter 13 bankruptcy
Chapter 13 bankruptcy can stay on your credit report for a period of up to seven years. The debts that come under bankruptcy are shown in a very different manner in your credit report. Even if the debts associated with bankruptcy have been completely paid off .These paid off debts do not drop off from your credit report and continue to reflect on your credit report for a period of 7 years

Chapter 7 bankruptcy
A chapter 7 bankruptcy stays on your credit report for up to 10 years. Usually the debts associated with chapter 7 bankruptcy get settled within a few months after filing for bankruptcy, so they should clear off from your credit report before the expiry of the bankruptcy. But the paid off debts are dropped off from the credit report only after completion of 7 years.
However as the debts get older, they have less impact and significance on your credit score.

HOW TO REPAIR CREDIT AFTER BANKRUPTCY
Certain measures have been listed below that can help in credit repair after bankruptcy

KEEP A TRACK OF YOUR CREDIT SCORE
It is very important to check your credit score regularly particularly after filing for bankruptcy. Make a list of all the debts that are associated with bankruptcy and check their status regularly after every few months once the debts have been cleared.

START THE PROCESS TO REBUILDING YOUR CREDIT AS SOON AS POSSIBLE
Whether you have filed for chapter 7 bankruptcy or chapter 13 bankruptcy. It will clear off from your credit report after a period of 7 years or 10 years. In case none of your accounts are open for a period of more than 10 years, then you will have no credit history and zero credit which will make it difficult for you to get any approval for loans by the lenders in the future.
Therefore. It is very important for you to start building your credit soon after the bankruptcy has been discharged from your credit report to rebuild your credit score and credit history.

-get a secured credit card-In case of secured credit cards you are required to give the credit card issuer a lump sum amount of money as a collateral security and you are issued a credit card by the company with a credit limit equivalent to the amount of collateral security given by you to the credit card issuer. These cards have membership fees so read the application form carefully before applying for the card. Secured credit cards are easier to get as compared to the normal credit cards, as the lender is at no risk in granting the credit to you.

Get a car loan-Getting a car loan is very much easier as compared to other loans in case you can make a large amount of down payment.

KEEP YOUR OLD ACCOUNTS OPEN
Older accounts can help improve your credit scores even after declaring bankruptcy. Length of your credit/payment history which makes up to 15% of your total credit score is not affected by bankruptcy. The only way to maintain the length of your credit history is to keep your old credit accounts open and active.

AVOID APPLICATION OF NEW CREDIT ACCOUNTS
In the computation of your credit score.10% of the score is determined by the factor that whether you have applied for new credit accounts. It is important to apply for new credit to rebuild credit score after bankruptcy make sure to keep the account balances to minimum. Lenders will consider you to be an extreme risk if you apply for too many new credit accounts in a short span of time.
To sum it up,
A bankruptcy reflecting on your credit report can definitely hurt your credit score badly, but as you take the necessary steps to rebuild your credit and be more responsible in handling your finances, bankruptcy will have very less impact on your credit score as eventually it will drop off from your credit report.

FINANCE CHARGES ON NEW UNUSED CARD

Does the headline sound familiar. Have you been in such a situation where there have been financial charges and late fees reflecting on your new credit card statement when there has been no transaction done by you on your card? A very common scenario faced by most credit cardholders. It is due to this reason that most people prefer to stay away from applying for a credit card and instead use cash or their debit card for making payments.

Have you ever wondered the reason behind these charges? It has been  just 2 months since you received your new credit card. You have not even used it for making any purchase through it. Despite non usage, you are being asked to pay interest and late fees on your credit card. In such cases what happens is that most credit cardholders get furious and upset and throw away their credit cards and decide not to use them. They call the bank and convey on the phone that they would like to close their credit card account without going through any formal procedure. What follows is that the credit card does not get closed. With each passing month the charges multiply and the account gets delinquent. The collection department contacts the credit cardholder for making payment of the total amount due. In some cases settlement is made. But this experience creates a negative opinion in the minds of the credit card holders that it is very risky to use this financial instrument called credit card.

However the main reason for the charges on a non usage credit card is misinformation. It usually happens when credit card holders apply for credit cards through external sources and not directly from the concerned financial institution. These external sources give false information to the credit card holder that the credit card is lifetime free. No membership fee would be charged on it to lure the customer to apply for a credit card through them. But what happens is that the credit card is issued and there is no fee waiver on it. So in the first month statement the credit card holder would find the membership fee charge reflecting in the credit card statement. When the credit card holder chooses to ignore to make payment of the fees as the fee reflects as the amount due in his statement. This results in a financial charges and late fees being levied to the credit card holder in his credit card statement on the fee amount.

What should be done in such situations-The first is that always apply for a credit card directly from the bank or financial institution. This will help you to know under which scheme your credit card has been issued i.e.-free card, first year fee waiver,card,life time free card etc. In case your application has been approved for a free card with no membership fees and a fee is charged in your credit card statement, you must call the bank immediately and inform them that the charges are not applicable as you were issued a membership free card. The concerned bank will put forward your request to the concerned department for a fee waiver, or guide you as to what needs to be done in such a situation. But never ignore any  charges that show in your credit card statement.Whenever in doubt about any transaction on your credit card call the bank immediately for a clarification and take the necessary steps as directed by the bank for rectifying  the transaction in your credit card account to avoid facing any difficulty in the future.

Credit card is the most flexible form of payment that can be used .All it requires is a certain level of responsibility on your part to use it wisely.

NEED HELP WITH CREDIT

To Repairmy credit rating might appear to be a very difficult task. The scoring model appears to element in huge amounts of data and makes it appear to be as though you have no influence over my credit score.

This is mistaken. In the event that one can make a few positive efforts we can absolutely  repair credit rating.

1. Debating and evacuating terrible credit things on my report. We can do this ourselves or contract an administration however it will help repair credit rating the most.

2. Pay off any confirmed awful credit thing on my report. In return for my installment have the loan specialist expel the thing from my credit report.

3. Pay  bills on time. It is assessed that missing an installment can harm a decent score by up to 50 focuses.

4. Open another credit line. This is best on the off chance that it is a rotating line of credit, for instance an unsecured credit card.

When we make our regularly scheduled installment we will be making a positive installment history.  In the event that you experience issues opening an unsecured credit card then get a secured card. Twofold check and verify my credit card is accounted for to every one of the three real authorities.

Furthermore attempt to keep my month to month parity at 10% of my accessible credit. Doing this shows the authorities that i do indeed utilize my credit  capably.

5. Pay off expansive obligation. My credit rating will get a knock in the event that i have high accessible credit to obligation. The authorities need to verify that i am not overextended and by revealing to them i have accessible credit my score will get a knock.

These five elements are the main things I have to worry about when attempting to enhance my credit score. There is one last component anyway it is shadowed in contention.

6. Piggy back creditfeature Articles, this is the point at which i am  included as an approved client a record with a high credit utmost and low adjust. The profit i  get is the record is not given an account of my credit history.

This strategy has been generally ill-used and the scoring model has balanced its recipe to rebate approved clients. However there is a level headed discussion over if this change has happened yet or not.

In aggregate on the off chance that i can make forethought of strides one through five then i will enhance my score. With a high credit score my personal satisfaction will likewise move forward.

CREDIT RISK SCORE

Credit risk score is a numerical tool that is used to assess your credit worth. It very accurately indicates your financial responsibility and is used by financial institutions and lenders to determine your creditworthiness,your eligibility for  approving loans and the rate of interest to be charged on your loans. Be it mortgage lenders, credit card issuers they all check your credit score before approving your application for credit.

The credit risk score range is usually between 300-850.A higher credit score is more preferable as it shows superior credit history.A person with higher credit score will have more of lenders competing for his business with lower interest rates and good terms on loans.

An individual with a lower credit score on the other hand will be granted loans at very high rates of interest and may even find it difficult to convince lenders to put up their money

A good understanding of how credit score works can make you help you in making wise financial decisions that can lead to low borrowing costs for you.

Credit risk score is basically governed by three major factors which contribute towards determination of overall credit score

The first factor is making payments on time-Paying your bills and dues on time is one important element that contributes in assessing your credit score .More than 1/3 of your credit score is determined on the basis of whether bills have been consistently paid by you on time. for calculating credit score more emphasis is given to recent activity of the past 24 months.Every late payments made by you will badly hurt your credit score and bring it further down.Paying your bills on time can definitely give you a fairly good credit score.

The second factor  is your outstanding debt-The higher your outstanding debt,the less attractive you will be as a borrower for potential lenders and less likely that you will be able to convince them to grant you loans at reasonable terms.(in other words new loans will be issued to you at extremely higher rates of interest ,with higher collateral requirements and with additional documentation requirements.

A higher outstanding debt will bring down your credit score drastically. Try to keep a low debt –income ratio for getting a good credit score.

The third factor involves other consideration which determine the credit score sucha as :

The length (duration) of the borrower’s credit history

Different types of credit a borrower has-credit cards,mortgages and other loans

How much new credit the borrower has recently received-too many new credit applications means financial irresponsibility by the borrower and will bring down his credit score.

The duration or length of time the borrower has had a good credit history.

The lenders or creditors  are usually focus on  two aspects of your credit history-the first aspect is how good has been your payment history and second is your total borrowings history

For eg-If your debt outstanding is very high and the fact  you have been very regularly paying your debt  it is unlikely that the lenders will lend you money.

If you have never ever  borrowed any amount of  money ,this might make the creditors cautious and they may not approve your application for loan.

If you have borrowed money(like financing a car or home loan) and have successfully paid it off then you represent the image of a responsible and reliable borrower to the lender.

To sum it up ,your credit risk score is a sum total of

Your payment history-35%  your credit-debt ratio-30% your credit history-15% your new applied credit-10% and your credit types-10%.More than 90% of your credit score number is based on the past 24 months activity done by you.The older your bad debts or negative accounts the less likely they are to affect your credit score.

WHAT ELEMENTS IMPACT CREDIT SCORES

ELEMENTS THAT IMPACT CREDIT SCORES

LATE PAYMENTS

Your  payments history  accounts  for nearly thirty five percent of your credit score calculation.Make late payments will adversely hurt your credit score.Always pay your monthly credit card dues on time to keep your credit score in the excellent range

MISSING PAYMENTS

Not making payments at all on your credit card bills can damage your credit score to a great extent.Every month when you miss your credit card payment you are getting a step closer to having your account charged off.

ACCOUNT CHARGE OFF

When you miss making your credit card payments every month,the creditors think that

 you are not going to pay your dues at all and they get your account charged off.An account charge off can drastically bring down your credit score and put you in the bad credit score category.

ACCOUNT FORWARDED TO THE COLLECTIONS DEPARTMENT

The creditors usually hire collection agencies to collect payment from cardholders who have not being making payments of their dues despite regular reminders.The creditors might send your account to the collections department even before it is charged off.An account showing collection  status impacts a credit score negatively.

FILING BANKRUPTCY

Bankruptcy can completely destroy your credit score.It is better to look for alternatives before planning to file for bankruptcy.

HOME FORECLOSURE

Lagging behind on mortgage payments will  result  in the lender foreclose your home.The late payments on your mortgage will hurt your credit score badly and make it difficult for you to get approval for mortgage loans in the future.

CLOSING OLD CREDIT CARD ACCOUNTS

A very important factor that is taken into consideration when calculating your credit score is the length of your credit history.The longer your credit jistories the better it is for your credit score.Closure of old and oldest credit cards accounts will make your credit histories seem shorter than it is.This can hurt your credit score badly.

APPLYING FOR TOO MANY CREDIT CARD ACCOUNTS OR LOANS

Nearly 10% of your credit enquiries account for your credit score calculation.Applying for too many credit cards or loans with a short span of time can hamper your credit score.Try to keep applications to a minimum. 

CREDIT IMPROVE SCORE

A credit score that is between 350 -620 is regarded as a bad credit score. since these days everything revolves around credit score you need to take steps to raise it to  higher levels to turn it into a good credit score.

A Credit score is based on the payment history of existing accounts for the past1- 2 years, ratio of used credit to unused credit(limit to balance).A low ratio can even give you a bankruptcy score.
STEPS TO CREDIT IMPROVE SCORE

The first step that you can take is to get your credit report to know what exactly is your credit score before looking for ways to improve it.

Bring down all bills upto date and avoid late payments.If you are late even by a day the credit agencies are notified about it.

To avoid delayed payments try to make payments of your bills online as this will ensure that all your bills are paid on time.

Pay down all your credit card dues and loans that you currently have. work on getting the entire outstanding amount on your cards and loans cleared off.

Making payments on time will create new payment history for you which in turn will bring up your credit score.

To improve bad credit-Make sure to pay more than the minimum amount due especially on your credit cards as the minimum amount due hardly covers the interest payments that are charged on your credit cards every month.

As you pay off these lines of credit do not close them let them remain open as closing lines of credit will create a bad effect on your credit report.

To improve bad credit keep lines of credit open but do not use them.

Any credit card crossing over 50% of available credit line should be paid down to under half (i.e less than 25%)of the total credit line.

Settle your balances-Try to pay off any account that is with the collection agents.Contact your creditor  and make a settlement on the total dues on your card.this will allow you to pay off your debts for lesser amount than you owe which in turn will help to improve your bad credit score.

In case you have bad credit or no credit and have no credit card a/c then in such a case Try to obtain atleast 2 credit cards and make their monthly payments on time.This will improve your bad credit score.

Best way to fix credit score

FIXING CREDIT SCORE

CREDIT FIX SCORE

The need to fix Your Credit Score Yourself  arises when  your credit score is very low or bad and it is difficult to get approval for loans.

The first step that is required to fix your credit score is to procure your credit report From the three credit bureaus.

The credit  highlights the problem areas that need to be worked on which is Resulting in bad credit score.

If the report indicates that your credit card debt is very high then start paying off the debt on the credit card with highest interest rate.followed  by making payments(even if minimum amount due) On your other credit cards. if you are not in a position to pay the total amount due on other cards,try to make some payment every month so that no late fee Charges are levied on your card.

In case you Have a savings a/c and credit card a/c with the same bank , you can go for auto Debit facility wherein your payment are automatically made from your savings a/c every month. This way you will be saved from late payment charges every Month.

The balances carry forwarded on your credit card should not be more than 10% of your total Credit limit. As outstanding balances rapidly brings down credit score. Easily Fix this by paying off the total outstanding amount on your card.

Some credit cards also offer EMI facility which means that once you have made a purchase on Your credit card and the amount is big and you can not pay it off in one go Then you can make payments in installments. You can call the institution and Discuss the EMI scheme that you would like to go for (i.e. 3 months, 6 months , 9 Months) and the fixed amount (EMI) that you have to pay every month.

But remember That your credit limit gets blocked for the amount you have taken this Facility. IF there are other purchases made on your credit card and skip the Payment then the interest charges are added to your EMI which further increases Your debt. The EMI scheme is offered by a few institutions so you need to check Up with them before deciding on making a big purchase.

Don’t pay Off dues on  credit cards that have been written Off as bad debts  by the collection Agency .By paying on them the credit card gets activated and it adversely affects Your credit score.

Make Arrangements for payments with the collection agents and clear your dues one at A time.

Keep your Debt to credit ratio under control. Try to maintain a position where there is Very low liability to you or zero credit. This will help in keeping your credit Report clean and debt free.

Keep your Credit inquiries to a minimum. Not more than 2 to 3 per  year for any type of loan

HOW CAN I REPAIR MY CREDIT SCORE

REPAIR CREDIT SCORE

HOW CAN I REPAIR MY CREDIT SCORE

My credit score reflects my payment /credit history. It indicates how regular i have been in making my payments and how well i have handled my credit. Credit score is very vital be it for getting employment, insurance, loans  (car, mortgage).It is one of the most important factors taken into consideration by financial institutions and lenders before giving approval for any loan.

A high credit score is acceptable   as it can get you loans on good terms and many other attractive credit offers. A poor /low credit score on the other hand can make one’s life very difficult  .To build my credit score i need to repair it. This might take some time and require patience .The important steps that i need to take to repair credit score are discussed below.

Procure my credit report-If i do not have my credit report with me. Procure it from all the three credit bureaus. My credit report has data that was used to derive my credit score and it may contain certain errors. My need to check for any errors such as  are there any incorrect late payments  on my accounts and whether the outstanding amount due on any of my credit card accounts is incorrect . If there are any errors in my credit reports, i need to report them to the credit bureaus.

Make timely payments-This is the most important factor that majorly affects my credit score. I need to set up payment reminders with my banks for payment of my monthly credit card dues. If i have a bank account and credit card with the same bank, i can avail the auto debit facility where my amount due or minimum amount due  on my credit card is automatically paid directly from my bank account every month on the due date.

Pay off all my debts-This will help a lot in repairing my credit score. Clear all my dues. Stop using my credit cards and try to pay off debts towards the highest rate of interest credit cards first and make minimum amount due payments on the other cards to avoid late payment charges.

Delinquent payments have a negative impact on my credit score. The more prompt and timely payments i will make on my credit card the more it will help in raising my credit score and build a good credit score for me.

Keep my credit card outstanding debt low .pay off all my revolving credit debts.

Don’t open new credit card accounts and do not close unused credit card accounts as this will very negatively hurt my credit score. Closing unused accounts will further bring down my credit score.

If i want to repair my credit score then i need to focus on repairing the errors in my credit history and taking action to fix those errors. These above mentioned steps will definitely raise your credit score from a low level but it will take some time and requires patience and discipline at your end.