We recently discovered a site that shows promise. They have consolidated websites and other blogs that all relate to bad credit. Some of the sources are a good start on your research and some…not so much. It is worth a look though and we believe you will find some valuable info.

Click on the link below

Bad Credit Repair – Repair Bad Credit guides.

   I want to wish all of my loyal readers and subscribers a truly safe and happy New Year! I will be sharing some new tips over the next couple of days on credit repair and increasing your FICO credit scores over the next couple of days. 

   Be safe and we will see you on the other side of 2009!

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What’s the difference you may ask? Follow along and find out!

 People have the wrong notion of considering all kinds of debt to be useless and in some cases even harmful. Quite contrarily, sometimes your financial status can be rejuvenated by the help of your good debts. Credit repair and credit conditioning are MUCH easier when you know the difference between good debt and bad debt. Credit restoration doesn’t have to be the chore you may think.

 Each loan you obtain and even securing a new job may be founded on the differences between your good debt and bad credit debt. To have an idea of good debt and bad credit debt, the following instances might be helpful for you.

Instances of good debt

   How do you define a good debt? Well, it can be defined as something that is necessary for you but quite an expensive one. Purchasing a house is considered to be a good debt since it gives you shelter which is a basic necessity for you. Just don’t fall into the trap of thinking that your home is an asset. Just look at the current mortgage and home foreclosure crisis. 

   When compared with debts carrying high interest rates like credit cards, mortgages are preferable as they carry a relatively lower rate of interest. You also get the tax deduction.  A mortgage provides you with an amazing credit reference till your payments per month do not outgrow your budget.

   Buying a car is also a good debt. It is more beneficial for you if you drive it when you have consolidated your payments. But here consider the lowest rate of interest. Again, if you have great credit, you can get 0% interest on an automobile.

   Since the rate of interest of an equity loan is low and tax deductible, it is sometimes better to opt for home equity loan to finance a car.

   Your credit rating stands on your good debts and paying off within the scheduled time. So try to concentrate on these two factors to boost up your credit rating which is the tool to borrow money at cheaper rates and ameliorate your financial status.

Instances of bad credit debt

   The bad credit can be expressed as a debt carrying a high rate of interest created by purchasing something that was not essential to your needs. A vacation of luxury charged on credit card that is beyond your financial capability is an instance of bad credit debt.

   A larger section of people ‘gain’ bad credit debt by charging on a credit card which has a high rate of interest and which gives you the facility of extension of time period to pay off.

   To be free from bad credit debt, you need to make the full payment of credit card or pay it down as soon as possible. Commence with the card carrying the highest interest rate when you pay credit card down. After finishing with it, start with the one which has the next highest rate. This way you can finally break free from credit card debt.

   Again bad credit debt takes place on your continual late payments or no payments for your borrowed money. But always be alert that if your credit card takes the negative swing, your financial situation will be badly affected.

   Bad credit debt may prevent you from taking credit cards, loans and even ruin an opportunity of a fresh employment. The rate of interest will be high even if you at last succeed in getting a loan.

   Pay bad credit debt as quickly as possible to skip the charge of high rate of interest.

   So after reading this you now have a glimpse of the advantages of good debt and the negative effects of a bad credit debt. Hope this idea will direct you to drive safe on the road of finances.

Until next time!

You will be surprised how easy and uncomplicated credit repair can be when you just apply yourself and follow the golden rule…”treat others the way you wish to be treated”

Having bad credit and low FICO credit scores is serious business, and fixing that problem should be done in a business-like manner. Picking up the phone and yelling at the lender’s customer support representative is not going to help repair your credit; in fact, it may make it worse.  Think about the person on the other end of the phone. Oftentimes they are simple, hard working people who take a lot of crap everyday on the phone. Not to mention they probably don’t get paid very much and work in a small cubicle in some windowless call center.

I discuss in other postings how to handle these type of folks when you make a phone call to them, however for now I want to discuss what to do when you send out a letter to a creditor.

When you write a letter to anyone other than the credit bureaus (more on them later), make sure that your words are simple, concise, and professional. 

A simple credit repair letter can help you in a variety of ways:

 
1. Reduce your debt by negotiating repayment plans with your lenders, in writing. Especially in the current meltdown of banks, Wall Street, and the general market, this is probably the BEST time to be negotiating with your creditors. Debt negotiation letters can settle your debts, and erase bad credit, for a fraction of what you currently owe.  Your lenders will always want to recoup some of their losses, as opposed to having to write all of off your bad debt.  A simple letter can be very powerful in reducing the amount of money you owe, and perhaps avoid bankruptcy for you.

2. A well-crafted letter can also stop collection agencies and attorney debt collectors from harassing you.  It is your right to not be called in the middle of the night or while you are at work.  These companies sometimes “buy” your debt from the original lender, for a percent of the value.   Get these annoying parasites out of your life by putting it in writing.

3. Stop identity theft with a fraud alert letter.  If you suspect that an ID thief is using your personal identifying information to open a new credit account for their personal gain, place an “initial fraud alert” on all three of your credit reports (TransUnion, EquiFax, and Experian).  

This can only be done if you feel your personal information has been compromised.  The initial fraud alert letter requires that lending institutions call you at the phone number listed on your credit report to confirm any new transactions, effectively stopping any new ID theft, at least for the next 90 days.

4. Raise your credit score by removing inaccurate or negative information from your credit report.  Write to the credit bureau that is distributing the bad information, and spell out exactly why the data should be deleted from your report.  Perhaps you have paid off a loan that your report shows as outstanding.  Always include any copies of proof you may have, such as cancelled checks showing timely payments.  It never hurts to include the consequences that have resulted from the credit bureau including the inaccurate information as well.

Be sure to make a copy of all credit repair letters and any attachments for your own files.  It is all good evidence that you are working to establish a good line of communication with your creditors.

The impact of your credit repair letters will not be instantaneous.  But in a month or so you will likely find that your credit report will reflect the requested changes, that the identification theft has stopped, or that your lenders are negotiating in good faith with you in good faith to reduce your debt.  Keep in mind that you are repairing not only your credit, but also your good name and reputation.  

The pen is mightier than the sword.

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There are many strategies, tips, and techniques available on the Internet on how to repair your bad credit. Unfortunately most of them are old, outdated and ineffective!

Having great credit scores is THE most effective way to improve your finances and financial independence. When you build and maintain excellent credit, you control your future.

Discover how to repair bad credit and improve credit scores.

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