BestConsolidate.com

Understanding the Function of Credit
What is Credit? Credit is the backbone and the engine behind the workings of the economy. Credit simply allows individuals and companies to borrow funds in good faith and pay it back over a specified time frame. Lenders base their decisions on who they should lend to by using your credit rating. Your credit rating is a numerical score that is based on your payment history. From your credit cards and loans right down to your phone bill, you will find a recording of each payment. It reports whether you pay your bills on time or if you are constantly late. And if you are frequently late, it records the amount of time taken to make that particular payment. Your credit report is pulled (viewed) every time you apply for a loan, credit card and even to have a phone line installed. Good Credit vs. Bad Credit How important is it to have clean or good credit? It’s very important because the worse off your credit is the harder it will be for you to secure a loan of any sort. It is important to keep on top of your credit finances and make sure that every payment is made on time and always make sure that you pay at least the minimum amount but always try and pay more if you can. If you currently have bad credit, you shouldn’t worry too much as there are ways to still secure a loan such as having a cosigner. If you choose to go this route, remember that you are both responsible for the loan as it will be taken out in your names. Also, there are many institutions that work with people with bad credit and they will assist you with the repair of your credit file. Here’s a list of a few companies to assist you: CreditAxis.com, DebtAdvocates.cc, Lexington Law Firm and more. Simply go to your favourite search engine and type in “Credit Repair” and see how many companies show up in your search. Warning: Be wary of those companies that promise to repair your credit promptly - ie “3 months or less”. Credit repair takes time, so do your homework before you commit to one company to assist you. Your Credit File If you have bad credit, the first step to repairing it is to pay off all of your bad debts. This is debt that is overdue and not up to date. You may not know this, but this information may stay on your file for up to 7 years. To assist you in this, I suggest that you get a copy of your credit report from one of the credit reporting agencies such as Equifax. Look it over thoroughly because you may find some mistakes which can be easily corrected with either a simple phone call or with supporting documentation. Sheldon C. Smith is the owner of http://www.sheldoncsmith.com, a site dedicated to keeping the public informed and educated about the mortgage and credit process. Found on http://credit.wspci.com/44304.php

I am Credit Repair publisher and writer.

How to Fix Bad Credit Rating
HOW TO FIX A BAD CREDIT RATING Free Yourself from Financial Problems All lenders, credit card companies included, need to know that what they lend will be repaid, with interest. To satisfy themselves on this point, all traditional lenders turn to a group of agencies to provide the information they need. Contrary to popular opinion, there is no central credit file shared by all agencies. Each agency has its own set of information files, which do not necessarily match with those held by their counterparts. Usually however, this will be the case, since agencies swap information on a regular basis. Agencies provide information relating to specific applicants, in return for a set fee per search ranging from a few pounds for enquiries about private individuals and over 100 for limited companies. Information is usually held for up to 3 years, with CCJs being retained for 7 years, even if the debt is subsequently cleared. All information, incidentally, good and bad is deleted after the appropriate period: 3 or 7 years. Inquirers can obtain details of information held on them. This is usually provided on a computer printout, and it should include ALL the information held about you. Typical details include your name and address, other residents at that address, how long you have resided there, possibly your date of birth, a listing of all known credit transactions, lender details relevant dates, repayment details, current status of the account and other information relating to previous borrowing. The amount of information passed on to specific lenders varies, usually depending on the level of service they pay for. Unfortunately, you don’t know which lenders subscribe to the more comprehensive information service any more than you know those who don’t. If in doubt, assume your prospective lender has access to all of the information held on your file. How to Obtain a Copy of your Credit Report There are two ways in which you can apply for a copy of your credit report. Under the How to Obtain a Copy of your Data Protection Act, 1984, you are entitled to view any information held about you on computer disk. You can request this information at any time. Your second legal right to information is when you have been refused credit. Here, you can apply for a copy of your report within 40 days of the refusal. The report must be provided free of charge. Outside of this period, the credit bureau will usually charge you a statutory fee of between 1 and 10, usually the latter. Contact all of the two main agencies listed below: Experian, Customer Help Service, PO Box 8000, Nottingham NG1 5GX Equifax PLC, Consumer Response Centre, Department 2E, PO Box 3001, Glasgow G81 2DT Having no credit history can sometimes be as bad as having a poor credit history. If lenders don’t know you, or your ability (more so your willingness) to repay the loan, there’s every chance they won’t give you credit. Fortunately, there are ways to establish a credit history - a good one. The secret is to start small, establish a minor line of credit, build a clean reputation for yourself, then go on to bigger and better things, increasing your credit rating several times over the course of future years. One of the most effective starting points is to open a current account with a local high street bank. Build up a reputation as a good, honest, straight-talking customer. Wait six months before trying to obtain credit. During this time, make sure you keep well in with the manager and staff. Your next step will most likely be stores. Most stores issue instant credit on presentation of a valid, current credit card. Your first card will usually have a low credit limit, maybe just a few hundred pounds. Don’t worry. In time, your level will be increased, sometimes significantly in a short period of time. Frequently, your credit limit will be automatically increased by the issuing bank. Alternatively, you can apply to have your limit reviewed and increased where appropriate. Once you have a valid credit card, with a higher credit level, you will be amazed at how easily other types of credit can be obtained! Fortunately, there are ways to offset most problems. If the entries are incorrect or misleading, you can have them amended or removed. Forms for this purpose are available from all main credit agencies. Removing Negative Items from Your Record Legally, you are entitled to view the contents of your credit report and to have erroneous information corrected or removed. First, you’ll need to obtain a copy of your report. When it arrives, study is carefully, noting any errors, inaccurate or outdated information, or other items, which are untrue or misleading. Next, write to the credit bureau concerned, pointing out all the errors, ambiguities and outdated entries. You can also have a statement of up to 100 words placed on your file to explain any negative entries to potential lenders. Allow up to 28 days for an amended copy of your report to reach you. If you haven’t received it in this time, contact the bureau again. If there’s anything you are unsure about, contact the agency again. Be persistent. If you want credit in the future, time and trouble taken to rectify your report will prove a more than worthwhile exercise. Let us Help you to Remove Debt

Specializing in providing intelligent solutions to lifestyle an entreprenuerial scenarios

Manage Your Money for Debt Free Life

Like most of general public, you may find that managing your money is an overwhelming task. But the consequences of not managing your money well can causes you to trap into financial crisis; when you are in the trap, more efforts and times are needed to get out from there.

With the enhancement for computer technology and many personal finance software have been released in the market, managing your money is no more a difficult task. The tough part is to get you started.

This article provides some information on how to get you started in managing your money. If you can’t do it all at least do more than you were doing, make progress. Then when that’s under control come back and add another chunk. Eventually you’ll have it all working for you.

The first step in managing your money is to figure out where you are at right now. To know this, you must list down all your ongoing expenses to a sheet of paper or into your personal finance system (if you are using a software application to manage your money). You may find that listing you ongoing expenses can be more difficult than it first seems; it is alright because everybody has the same feeling.

Ongoing Expenses

Try to list every dollar you spent within the last twelve months. Can’t quite remember everything? Start with the ongoing monthly expenses then add in daily and weekly expenses like food and transportation. Then focus on non-regular expenses like haircuts, birthday expenses, and vacations. Write down as much as you can. Once you have a yearly total then divide by twelve to get your real monthly expenses.

Incomes

Then, list down all your source of incomes including your job, gifts, garage sales, and income tax refunds. Once you have a yearly income figure divide it by twelve and your will get your average monthly income.

Compare your monthly income with your monthly expenses. If you get a positive result, you should glad that you have money left for saving or for other investment purposes; else you are adding debt to yourself and effort should put in place to find extra money to pay down your debt while making sure your necessities are taken care of.

Debts

List down your existing debt your owe exclude all those ongoing expenses listed above. Be sure and include all credit cards, car loans, and home mortgages. Then, add-in the loan’s interest rates, your monthly payment and any ongoing fees, like annual credit card fees, and determine how long it will take you to pay them off and the total amount paid. You may be shocked to see the figures; but relax, knowing these figures now will help to have a better picture on your debt situation and get them under control.

Assets

Your house, cars, investments, bank accounts or even your cash in hand are all your assets. Assets are what your own, list them down and compare them against what you owe (debts).

Get rid of debt

Now that you have a better idea of where you are and where you are headed. There are many methods which you can implement to reduce your debt and eventually eliminate them and enjoy a debt-free life. Among the common methods are:

• Debt Consolidation
• Debt Consolidation Loan
• Home Equity Loan
• Credit Counseling

Investment

Once you have your debt under control. Next, you can start to build your wealth. This means you will have to invest it with the expectation of getting more money, returns. Your money must make more money. The safest investments have the lowest returns. The highest returns come with the highest risk. Learning how to balance your tolerance for risk and make your investment based on your risk profile.

In Summary

Effectively managing your money is the only real way to get ahead financially. You must know the flow of your money in order for you to manage it effectively toward a debt free life.

Cornie Herring is the Author from <a href="http://www.studykiosk.com/CreditBasics/" target="_blank">http://www.StudyKiosk.com</a>. "StudyKiosk-Credit Basics" is an informational website on credit basics, <a href="http://www.studykiosk.com/CreditBasics/DebtConsolidation/Student_Loan_Consolidation.aspx" target="_blank">debt consolidation</a> and <a href="http://www.studykiosk.com/CreditBasics/DebtConsolidation/Bankruptcy_Debt_Relief_Attorney.aspx" target="_blank">bankruptcy</a>.