One tragic outcome of a divorce is that each partner more than likely will have damaged credit and be in need of credit repair.

But, a large number of my students and coaching clients  are severely damaged by divorce. There are a few things to consider to keep your credit protected.

Most couples merge all their finances during marriage and then one spouse manages everything. During divorce you will want to separate all accounts. Be aware of what accounts you have and whose name is on them. A joint account has both spouses names attached and both are responsible for seeing that any debt is paid. If the divorce decree states that one spouse is responsible for paying the credit card bill both parties are still responsible for the balance. Creditors do not know who agrees the pay the card and they do not care.

Quite often a joint account will remain open and one spouse will run up a large bill. Both spouses are responsible for this even after divorce. If you and your spouse have a joint account you will want to call the creditor and change it to an individual account. Creditors are not obligated to do this. They can require you to reapply as an individual. An account must be paid in full before it can be closed or changed.

If you have an individual account with an “authorized user” you will want to remove the authorized user. As long as they are authorized they can fully charge the card. The only person responsible for any debt is the account holder. Typically, the account is reported on the card holder’s credit and the authorized user’s credit. If you are an authorized user and the account goes negative it may affect your credit.

You will also want to dissolve any other joint accounts including bank accounts. When cancelling a bank account be sure to do it together, the legal way. You also may want to just remove one of the spouses name and divvy up the funds accordingly. You will also need to remove one spouses name from any joint loans including auto.

Deciding what to do with the house can be a little trickier. On a home loan it is not as easy to just drop one person’s name from the account. If one person decides to keep the house they will need to refinance the home in just their name. If this is not possible, the best thing to do to protect every one’s credit is to sell the house and divide the profits. Many divorcees have found their credit destroyed after their former spouse let the home foreclose. Informing new creditors that you are divorced and not responsible for the debt will not help you.

Once you dissolve all joint accounts you will probably be left with some liquid assets. With the help of your attorney you can divide any remaining cash. This is the legal and most sensible thing to do.

You will also need to notify all creditors and banks of your divorce. If a collector is calling on a debt that you are not legally responsible for you will want to let them know that you are no longer married and therefore not responsible. You may also want to notify them in writing to expedite the filing,

Once you get all your joint accounts closed and everything settled it is important that you check your credit regularly. Quite often people are surprised when, months later, something belonging to their former spouse pops up on their credit. Be sure to read over your credit report carefully looking for accounts that are not yours. Even if it is a positive account you will want to have it removed. You never know what might happen with an account. Be sure to check your credit on a monthly basis. If there is a problem, you may want to learn how to improve credit score

Divorce can be a very difficult and emotionally challenging time. Credit issues and high court fees do nothing to ease the situation. If you are separating from your spouse or thinking about divorce, take the proper steps to separate your finances and all accounts. Our world today is run off credit so it is important to protect it. By taking these measures early in the process you will prepare yourself for a new life that is not held back by a low credit score.

To learn more tips on how to fix bad credit, visit my website at www.CrushingTheCreditBureaus.com

Improving Your Credit Score is easy when you follow people in the know. First, your dispute letter to the credit bureaus needs to be short and to the point. Don't cite the constitution or threaten them with a lawsuit. Instead of being a junior legal eagle, just make sure that each of your dispute letters have these three elements:

• Number 2 - Why you are disputing it
• Number 3 - What specific results you are seeking
• Number 1 - What exactly you are disputing

Every dispute letter must contain these three elements. Look at this example of a dispute letter to see what I mean: DON'T USE MY WORDS!!

The credit bureaus may consider your letter frivolous and dismiss the dispute if it looks too much like one of hundreds of other letters copied from a credit repair course. With that said, take a look at one of my sample letters to the credit bureaus:

• Dear Credit Bureau Name
• Your Name
• I am disputing the Sears account appearing on my credit report, number XXXX, for the reason of (mention one of 13 reasons below).
• Your Date Of Birth
• Your Address
• Please delete. Thank You.
• Re: (account and reason for your dispute goes here)
• Your Social Security Number

Below are the 13 reasons from which you can choose to dispute your bad account:

• Creditor Classification
• Opened/Not Accurate/Inaccurate Terms
• Account Transferred To Another Lender
• Inaccurate Late Pays
• Obsolete Account
• Incorrect Balance Being Reported
• Inaccurate Remarks
• Incorrect Date
• Original Creditor Not Listed
• Account Type Inaccurate
• Account Closed By Consumer
• Not Liable For the Account
• Incorrect Account Designation

Using one of these reasons are the simple and smart way to increase your credit score-no threats, law school tryouts or plagiarized credit repair book letter. This letter has potentially powerful benefits-if the first reason is verified by your dispute letter, then write a second letter citing a different reason on the list. By providing a different reason for each account with each bureau, you will repair your credit little by little with each credit bureau.

Before reading this article, you might have told them that the account is "not yours" (as most credit courses instruct you to say) and prayed that they won't be able to verify it in the 30-day time limit. However, you now have an arsenal with which to dispute each and every negative account on your credit report.

Let me reassure you of some important truths: There are many myths disguised as truths when it comes to credit repair. There are also hidden secrets that the credit bureaus don't want you to know about how to fix your credit and only a select few have this knowledge. I hope you can now begin restoring your credit with effective methods rather than false myths. For More Information on credit repair Click the link below and go to our website. Author Bio: Mark Garcia will teach you how to Improve Your Credit Score fast with his FREE Instant Access to a 3 minute video about his own credit repair story. You can also download a special report on the "10 Most Dangerous Mistakes That People Make When Trying To Fix Bad Credit" available at Crushing the Credit Bureaus.

Improving Your Credit Score isn't difficult when you follow good advice. First, your dispute letter to the credit bureaus needs to be short and to the point. Don't quote the Bill of Rights or play legal tag with your lawyers. Fixing your credit is not about legal intimidation; it's about these three points:

• Number 3 - What specific results you are seeking
• Number 1 - What exactly you are disputing
• Number 2 - Why you are disputing it

Write every dispute letter with these three points. Take a look at this example of a simple dispute letter: DON'T USE MY WORDS!!

Credit bureaus don't like letters that appear to be copied out of a credit repair course. That said, below is a sample letter to the credit bureaus.

• Re: (account and reason for your dispute goes here)
• Dear Credit Bureau Name
• Please delete. Thank You.
• Your Date Of Birth
• Your Name
• I am disputing the Sears account appearing on my credit report, number XXXX, for the reason of (mention one of 13 reasons below).
• Your Social Security Number
• Your Address

Next, choose one of the 13 reasons below to enter into your dispute letter:

• Incorrect Date
• Inaccurate Late Pays
• Inaccurate Remarks
• Incorrect Account Designation
• Account Closed By Consumer
• Account Type Inaccurate
• Obsolete Account
• Creditor Classification
• Not Liable For the Account
• Opened/Not Accurate/Inaccurate Terms
• Original Creditor Not Listed
• Incorrect Balance Being Reported
• Account Transferred To Another Lender

Good credit scores start with good reasons of dispute like these, no legal mumbo jumbo or plagiarized boiler plate letter that they've seen hundreds of times. The beauty of this system is twofold- if the credit bureaus verify your first dispute letter as accurate, then craft a different dispute letter using another reason or item. When you provide a different reason to each bureau for each bad account, you will repair your credit one by one.

Before reading this article, you might have told them that the account is "not yours" (as most credit courses instruct you to say) and prayed that they won't be able to verify it in the 30-day time limit. But by being an informed consumer, you now have a treasure trove of reasons to choose from.

To sum up: There are many myths disguised as truths when it comes to credit repair. And there are many secrets within the credit repair system that you cannot know without the help of a qualified expert. I hope that you are now armed with the knowledge of truth so that you won't fall victim to false information as you improve your credit score. For More Information on credit repair Click the link below and go to our website. Author Bio: Mark Garcia will teach you how to Improve Your Credit Score fast with his FREE Instant Access to a 3 minute video about his own credit repair story. You can also download a special report on the "10 Most Dangerous Mistakes That People Make When Trying To Fix Bad Credit" available at Crushing the Credit Bureaus.

More credit repair technique videos have been added to the site

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   Hello Everyone and welcome to 2009! I have been pouring over the many  e-mails that my students and followers of this blog have been sending to me. I will address some of the more common questions and topics each week here at the blog. One that keeps coming up is; what to do if you have been caught up in this financial crisis that most Americans have found themselves in.

   First off, Don’t Panic! I know that losing a home, losing a job, being WAY behind on credit card payments, or having a car repossessed  may seem like the end of the world. Trust me…is isn’t. This too shall come to pass as they say.

   Today, many Americans are falling on economic hard times.  Through no fault of their own, companies have downsized and passed out pink slips to countless good employees.  Even if new positions are found the next day, they generally come with a significant pay cut. Thus, it is impossible to meet mortgages, pay student loans, or keep up with minimum credit card payments. Even when the economic crisis is over, many individuals will need to know how to repair credit following financial hardship.

   Generally, credit report repair can take up to seven years to accomplish.  Credit history, good or bad, stays on the books for a significant amount of time. Potential lenders need to know how money issues have been handled in the past, how finances are today, and whether individuals are a good credit risk for tomorrow.

   However, knowing how to repair credit is the first step in rediscovering financial freedom and getting out from under the burden of debt for good!

Begin by:

·      Living within your means

·      Getting rid of temptation

·      Making payment arrangements with creditors

·      Combining debt

·      Seeking advice

   Learning how to repair credit may sound simple in planning, but the execution may be one of the most difficult tasks you have ever undertaken.

Live within your means

   In today’s society, it is so easy to get into the mode of buy now, pay later.  Department stores sometimes offer significant discounts if customers apply for the store credit card.  Even the federal government wants to give incentives for lenders to provide more credit for potential borrowers. Of course, any savvy individual knows how this philosophy can spell financial disaster. 

Instead of falling into the financial trap, live within your means and discover how to repair credit by simply saying “no” once in awhile.  For example, if a daily latte does not fit into the family budget, start putting coffee in a thermos before going to work.  If going out to eat, followed by a movie on Friday night means gambling on whether the utility bill can be paid this month, make a simple dinner at home and rent a movie.

Getting rid of temptation

   Learning how to repair credit means getting rid of temptation to keep digging in that pit of financial woes.  Make sure you cannot spend it, if you do not have it. Yes, it is time to put ALL of the credit cards through the shredder.  If the pain is too great, a good friend will be glad to do the deed for you. Then, you can escape the trap the majority of Americans have fallen into over the last few years.  Pay cash, or walk away.

Making payment arrangements with creditors

   The next step in learning how to repair credit is contacting all the companies to whom you owe money.  Set up a feasible plan to eradicate the debt.  Most people are willing to work with customers who are genuinely making an effort to escape the debt trap. They simple need to have a plan you can both live with, until the debt is resolved.

Combining debt

   One of the biggest obstacles to learning how to repair credit and reach financial freedom is the massive interest rates on credit cards.  Most people would faint if they truly understood the interest being charged each month, and how many years it will take to achieve a zero balance with only the minimum payment.  Multiply the problem by six or seven credit cards and it is now a financial disaster!

   One of the first lessons in learning how to repair credit is combining debt.  Many card companies offer cheap interest rates on balance transfers. Naturally, they would rather be making a profit than leaving the charge to a competitor. By transferring debt from a credit card with higher interest, you might save hundreds, if not thousands, of dollars over time.

Seek advice

   Last, but definitely not least, seek the advice of a credit repair expert.  For example, if you live in Texas, you may want to look up credit repair San Antonio in the yellow pages or online.  The key is to find someone who has the knowledge to help you get out of debt ASAP.  Then, credit repair can begin in earnest, as the wounds of debt begin to heal.

   Look, there are many credit repair books, tapes, seminars, and services out on the Net. Of course I am bias to my credit repair advice, but there are also some very reputable sources of info. Just realize that you can do better than most so called credit repair companies. 

Stay tuned!

Your Credit Score Insider 

Mark

www.CrushingTheCreditBureaus.com

Hello All,

  I am attending a 3 day real estate training here in San Antonio. I will post more info and some very relevant informational nuggets that have been shared about credit repair for real estate investors. It’s comforting to know that his philosophies fit almost exactly with what I have been teaching to my students and clients all along. 

Stay Tuned!

Mark

   With the baby boomer generation approaching retirement in the next few years, the retirement facility industry has been striving to provide for a great expansion in residency. These retirement facilities, however, are working to provide an experience that will satisfy the requirements of future residents who are looking for something more than just a place to stay. As a result, the newest retirement facilities are offering more than ever as far as amenities and accomodations.

   Retirement facilities all over the country have sought to improve their accomodations in recent years. This means that most communities will now have a full range of amenities, such as tennis courts, swimming pools, golf courses, and fitness facilities. The range of home options have increased greatly as well. Future residents will find that options are available, with everything from basic condiminiums, all the way up to homes with million dollar property values.

   For the retiree that may need a little help from day to day, there are many communities that offer assisted living accomodations. These are full fledged apartments, with kitchens and living rooms. A full time staff is onsite to assist residents if they need help, but the experience is unobtrusive. Another option for those with some needs can be found in shared condominiums, where a resident lives with another person of similar age. This is a great way to meet new people, and also have someone around in case help is needed.

   At the more expensive end of the spectrum, retirement resort facilities offer huge luxurious homes for those who can afford them. There are many such retirement facilities throughout Florida, such as Lake Ashton.
   Lake Ashton is a resort that caters to the every need of retirees, and has all the modern amenities that you would expect. Lake Ashton has a championship golf course, clubhouse, tennis courts, and more. Retirement facilities such as this are becoming increasingly common, especially in areas such as the Florida Panhandle.

   Finding the right retirement facilities must be a balancing act for retirees, taking both budget and lifestyle standards into account. It is important to carefully budget expenses at resort style facilities, so be sure to take thorough account of your funds before making such a huge investment. Although the highest end retirement facilities can offer a five star hotel type experience, their amenities do not come cheaply.

   I wanted to share with my readers some insight a couple of colleagues shared with me over the weekend when I was speaking at a Private Money Investment Seminar for Real Estate Investors In Atlanta.

   One of the topics that came up was how these real estate investors could help some of their clients or customers that they are working with on real estate transactions. Some were other investors who needed high scores to qualify for loans, others were investors who needed to sell a property and they wanted their buyers to fix their bad credit.

   Every time you turn on the TV or open the newspaper, you see stories of people who are suffering from the financial effects of bad credit.  They are in over their heads with credit card debt, and may be at risk of losing their homes to foreclosure.  I mentioned to the attendees of my workshop presentation that “Hey, you know a little something about credit repair – you will able to raise your own credit score recently.  You are the perfect candidate to help other people solve their credit problems.  You can become a credit restoration specialist.”

 In this article I wanted to give y’all some tips for preparing for this fast growing field.

Tip #1:  Get smart.  

   Gather all of the information you will need to be successful.  Invest in manuals or other educational materials that provide you with proven tips and techniques for helping others with their credit problems. My book Crushing The Credit Bureaus would be a good start.

Some publishers offer home study courses, eBooks, and even audio CDs that will help you build the knowledge base you will need.

Tip #2: Stay legal.  

   This past week there were over 30 Credit Repair Companies that were shut down by the FTC. Most of them I had never heard of, but some of them were household names in the credit repair world. There are an increasing number of laws and regulations being enacted to protect consumers in financial trouble.  

   You need to be aware of them all.  And remember that some of the legal information will be specific to your state.  You may even have to be licensed or certified to practice in your area.  You will want to share legal disclosures and disclaimers with your clients; this protects you from legal risk while informing your client of what you can and cannot do legally.

Tip #3:  Be reputable.

   Consumers in trouble will be wary of those offering to help – they may have been burned by a shady credit repair company in the past.  It’s up to you to deal with your clients honestly, and with integrity. Joining a better business bureau or other professional organization in your area will help add to your credibility.
Tip #4:  Loose Lips, Sink Ships.  

   Your clients will be entrusting you with private, personal financial information.  You must respect the confidentiality of the information you are given.  A sure way to ruin your career in credit restoration is by violating that trust by sharing that information with others.

Tip #5:  Select a method.  

   You can provide your credit restoration services on a private, one-to-one basis, or by holding credit counseling classes for a group of clients.  You might offer a free seminar, where you describe what you can do to improve your client’s credit and raise their credit scores.  Use the seminar to build your base of paying clients.

Tip #6:  Stay current.  

   Lawmakers are finally taking action to help solve the average American’s credit problems.  You need to find a resource that provides you with frequently updated information about today’s laws, regulations, and techniques related to repairing credit.

   The success of your credit restoration business will depend on your ability empathize with your clients, negotiate with their lenders, and carefully document all your efforts.  Credit repair is an art, not a science.  You won’t be able to help 100% of your clients.  But if you are realistic in your goals and apply yourself diligently, your clients (and your bank account) will thank you.

Stay Tuned,

Your Credit Score Insider,

Mark

You may not spend much time thinking about  your debt-to-credit ratio, but it weighs heavily on your FICO credit score and can affect your ability to get a loan.

Most of my students and clients know all too well that charging up to their credit limit on their credit cards will result in a “over limit fee”, a possible interest rate adjustment upwards, and a guaranteed hit to their FICO credit scores.

I wanted to remind you that not only going over your credit limit can cost you, but just approaching your credit limit can have costly consequences as well.

How you ask? Well let me explain…

There is a factor in the FICO Scoring Algorithm that takes into account the amount of credit you have on each of your unsecured credit accounts (credit limit) and how much of that limit you are using.

Why is that so important you ask? It all comes down to your debt-to-limit ratio, or “debt utilization”.

Your debt-to-limit ratio is calculated by dividing what you’ve spent by your total credit limit.

If you have a $5,000 limit and you’ve charged $4,000 this month, your debt-to-limit ratio is 80%, which is enough to signal to lenders that you are a high risk borrower.

As a result, lenders may increase your annual percentage rate (APR) or deny you a loan – even if you pay off your credit card balance every month and have never exceeded your limit. Some folks are even finding that their credit limits are being reduced to lessen the exposure to the banks.

More importantly though is that your FICO Credit Scores will be negatively affected.

About 14% of Americans use at least 50% of their available credit, according to Experian‘s 2007 national score index study. But, experts recommend keeping your debt-to-limit ratio under 30%, or even under 10% if possible. My students know the EXACT percentage to use that will result in the highest possible FICO Scoring Algorithm.

That means if your limit is $5,000, then you should aim to charge less than $500 a month.

The lower your debt-to-limit ratio, the better your credit score will be. And to that end, there are two basic ways to improve your debt utilization: raise your credit limit or lower your debt.

Raise Your Limit, Lower Your Debt

Your credit card limit is listed on your monthly bill, but it can change from one billing cycle to the next. That’s because credit card issuers can raise or lower your limit as they see fit.

But even though credit card issuers generally dictate what your limit is, consumers do have a say. You can call and request that your limit be raised, as the more available credit you have, the better your debt-to-credit ratio will be.

If you have a good credit history,  your credit card issuer will up your limit, but if your history isn’t great then they can say ‘No,’ which isn’t necessarily a bad thing. You also need to be current on your payments and not overcharged your credit limit.

Getting turned down for a higher credit limit may be a blessing in disguise. Chances are it’s a signal that you should reduce your spending or pay down yourcredit card balances instead.

When paying down debt, it’s important to consider that your debt utilization is calculated per card and cumulatively. That means that leaving one card nearly maxed out will negate all the hard work you’ve done paying down the balances on other cards.

And a higher limit isn’t always better. If you are a spender and the temptation is there to spend more than what you can really afford, [then a higher credit card limit] can send you into the debt spiral.

It’s also possible that potential lenders will view a sky-high credit limit as potential debt, which can count against you if you are trying to get a mortgage or a car loan.

Ultimately, it boils down to how you handle debt. If you handle debt responsibly, then go for a higher limit. But, consider whether that higher credit limit is going to represent temptation to run up additional debt.

Pitfalls to Avoid

Closing unused cards is a bad idea.  Account history is a major part of your FICO credit score and having older accounts with positive history is key.

When you close an account the amount of overall available credit decreases, which could cause an increase in your [debt] utilization and inadvertently lower your score.

*******

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.

Sign-Up right now for Mark Garcia’s FREE online newsletter to find out how to do exactly that

Go here:  http://www.CrushingTheCreditBureaus.com