Credit Repair

Guidelines to help you repair your bad credit score all by yourself…

Credit Repair
Credit Repair information.

Guidelines to help you repair your bad credit score all by yourself…

By: Diana (Credit Resource Staff Writer)
If you are unable to make your bill payments on time, it gets listed as negative items on your credit report. Exceeding credit card balances also have a negative impact on your report and lowers your credit score. In this situation you can get credit help all by your own efforts.You can clean your report and repair bad credit score by following a few simple strategies. Some of the guidelines that can help you increase your score are:(continued below)

Guidelines to help you repair your bad credit score all by yourself…

Prepare a budget: You should plan out a budget for yourself and start saving each month to repay your debts. You can improve your credit score by becoming current on delinquent accounts.

Don’t use credit cards: As a first step to repair bad credit score, you must stop using your credit cards. If you don’t do so, you may accumulate more debt.

Order your credit report: The Fair Credit Reporting act provides you with the right to order free copy of your credit report from the credit reporting agencies (Experian, Equifax and Trans Union).

Clean your report:You should examine your report for incorrect or incomplete listings that reduce your credit score. Next, you should inform the credit bureaus about inaccurate or incomplete items by substantiating your claims with relevant documents. The consumer reporting agencies will provide you with a free copy of your report if the items you questioned result in a change.

Negotiate with creditors: Contact your creditors if you find it difficult to make your monthly bill payments on time. Your payment history makes up 35% of your credit score. So, you should negotiate with them to pay off collections and charge-offs.

Don’t close delinquent accounts: You should not close delinquent accounts including credit cards as it may have a negative impact on your score.

However, if you are unable to improve your score, you may seek professional help. There are different credit repair companies that can assist you to eliminate negative listings from report. Once you fix your report, you should open new accounts and apply for new credit cards in order to further increase your credit score.

About The Author
Diana is a financial writer with more than 5 year’s of experience in finance field & wrote many articles on topic like how to get credit help, credit repair tips, credit card consolidation etc. She is also a member of a forum based community where she shares her experience & knowledge with the forum members & visitors.

Credit Repair

Debt To Income Ratio And Not Income Determines Your Credit Score

Credit Repair
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Debt To Income Ratio And Not Income Determines Your Credit Score

by Michael Redbourn
Surprising as it might seem on first hearing, your credit score is simply based on a debt to income ratio, and how big or small your income is, is only relative to your outgoings. It’s Quality And Not Quantity.

Your credit score merely attempts to predict your ability to make payments based on your past payment history and your current level of debt, and no attempt is made to predict how much debt you’re able to take on based on your present income.(continued below)

Debt To Income Ratio And Not Income Determines Your Credit Score

Two Different Metrics.
Lenders use different metrics to understand how likely it is that a would be borrower will be able to repay a loan, and the two most commonly used ones are Front-end and Back-end Debt-to-Income (DTI) ratios.

The names are a mouthful, but they simply describe ratios that are used to compare your fixed outgoings to your monthly income, and they don’t do a lot more than give the lender a sense of whether you’ll be able to honor your new commitments or not.

A high DTI indicates that a large portion of your income will be eaten up by existing obligations, meaning that the higher your DTI is the less likely it is that you’ll be able to manage any new obligations.

What Is PITI!
PITI has nothing to do with feeling sorry for somebody, but is a person’s monthly housing expenses and they’re made up of principal, interest, property taxes, and insurance (PITI).

Front-End DTI.
A front-end ratio is arrived at by comparing a person’s monthly housing expenses to their gross (pre-tax) monthly income, and things such as mandatory homeowner’s association dues, and mortgage insurance are added to the PITI.

Most lenders look at a candidates annual income and expenses rather than at his or her monthly ones, and they use Front-End DTI to gauge your capacity to pay for either your proposed or current housing.

Historically lenders considered a housing figure of 28% as one after which housing would be deemed overly expensive, but this figure has gradually been raised and now stands at 30% in the U.S.

A great number of private mortgage companies stretched the number to 33 percent during the mortgage boom and the results were catastrophic.

Back-End DTI.
Back-End ratio, is essentially the comparison of a person’s total monthly debt payments, which is made up of PITI, plus ALL other monthly debt payments, to their gross monthly income.

“ALL”, means exactly what is says and it includes all traditional debt, such as credit card payments, medical debts, student loans, auto loans, child support, alimony, judgments, and any other monthly loans or obligations.

How Healthy Are You?
32 percent is fantastic and anybody with this kind of ratio is welcomed by smiling faces and open arms by lenders, the ratio is an extremely conservative debt load and poses the lender very little risk.

33-36% is also thought to be extremely manageable by lenders since the debt load would seem to present minimal risk.

37-42% would be considered OK for a short term loan but if you’re after a long term one then try to get your ratio down a little before applying.

A debt ratio of 43-49% is considered high and it indicates possible future economic problems. If you’re in this bracket then start to pay off you credit cards and other debts as quickly as possible.

If you’re at 50% or higher then warning signs are flashing and sirens are wailing. You must improve your ratio quickly or you’re going to be in big trouble. If you don’t know how to solve the problem yourself then see a credit counselor right away. You’re staring debt settlement and bankruptcy in the face.

It’s All Relative.
The above information will have hopefully given you a good basic understanding of how debt heath is figured out, but front-end and back-end DTI metrics are relative.

If you have young children that you’ll have to put through college then you should keep your debt ratio lower than a couple with no children, or whose children have finished their education.

If you have really little credit card debt, and don’t have and auto loan or much other debt then you can allow yourself the luxury of a higher ratio.

About the Author
The author of this article was a film producer, and award winning film sound editor for many years. He has long been interested in finance and economics, and one of his websites -> is for folks that need $1000 – $5000 quickly, with most applicants getting their money within 48 hours.

Credit Repair Debt Beat Down 2009!!

Ask Dealers, Vendors And Creditors For Better Deal And You’ll Most Likely Get One

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Ask Dealers, Vendors And Creditors For Better Deal And You’ll Most Likely Get One

The Credit Resourceby Michael Redbourn
If you ask most people why they don’t haggle more before they hand over their hard earned money, they’ll more than likely tell you that it’s because they don’t feel comfortable doing it, but the bottom line is that there’s no reason why asking for a better deal should make anyone feel uncomfortable or embarrassed.

In general, men find it harder to haggle than women and the reason is partly upbringing and partly cultural, and if you’ve visited the far east, middle east, Mexico or South America then you’ll have noticed that negotiating a price is normal, and if you don’t do it then you’ll most likely be considered stupid, and even worse, you’ll spoil the fun that the dealer would have got from haggling. (continued below)

Ask Dealers, Vendors And Creditors For Better Deal And You’ll Most Likely Get One

There is a well known story in Mexico which goes, “How do you make a shopkeeper mad in Mexico?”, and the answer is, “you enter the shop and ask how much something costs. The store keeper tells you $155 and you pay him the $155 and leave. The merchant slaps his leg and asks himself heatedly why he didn’t ask for more”.

Let’s be clear that I’m not talking about negotiating in a coffee shop, or your local supermarket, but you can definitely negotiate a better price in more places than you’d probably imagine, and you’d be really silly to buy expensive jewelry, or a car at the asking price, and you might well be able to lower the price of even things like dental work if you just push a little.

The First Truism

a) Something is worth what somebody is willing to pay for it.

If a quick example would help you better understand this, then you need look further than at what happened to the prices of real estate in the U.S. over the last year or so. Folks purchased homes at highly inflated prices and lenders approved mortgages believing that prices just had to keep going up. They went down because people wouldn’t pay the prices.

The Second Truism

You have the right to ask for a better price, an extended warranty at no extra cost, or a first-time-customer discount etc. and the seller has the right to refuse. There is nothing shameful about asking for these things, and certainly no shame in being turn down.

The Third Truism

The vast majority of sellers would much prefer to give you a 5-10-20% discount rather than have you leave the store without buying anything. In lots of countries the seller will probably follow you down the street yelling that you’ll get a much better deal if you’ll just come back, but that’s highly unlikely to happen in Europe or the U.S. or Europe.

You’re the one that needs to ask for the better price, so here are six negotiating tips.

1) A Bird In The Hand

Offer to pay cash and you’ll almost always get a discount. There are lots of different reasons for this, but the main one is that it costs the dealer between two and five percent when you pay with a credit card.

If you want to play with the seller’s head a little, then offer him a Diner’s Club or American Express card and then ask if there’s a discount for cash.

They charge vendors nearly twice as much as Visa and Master Card.

2) Don’t Talk Too Much

After you ask for a discount, keep quiet and wait. It might not be easy but you must leave the ball in the seller’s court.

3) Make Sure The Seller Spends A Lot Of Time With You

Someone that walks into a store and immediately asks for a discount will have far less chance of getting one than somebody that has taken twenty minutes of the seller’s time.

4) Never ever say, “I want to be honest with you”.

How would you feel if after several minutes of conversation somebody said, “Let me be honest with you”.

You’d have to ask yourself what he’d being doing up until then.

5) Take It Or Leave It!

Don’t ever say, “Take it or leave it”.

You’ll hardly ever get a better deal by giving an ultimatum, and you’ll more than likely bring about a quick and sorry end to the negotiating process.

6) Never Say “What’s the lowest price that you’ll accept?”.

First of all, the seller will never tell you, and secondly he’ll have serious doubts about wanting to deal with you at all.

Negotiating With Creditors

Negotiating with credit card companies or other lenders is not dissimilar to negotiating with vendors.

1) Asking a credit card company to lower your interest, or forgive a part of your debt is not a shameful thing to do.

2) A lender would much rather have you repay a part of you debt than have you file for bankruptcy.

Supposing Negotiating Just Isn’t For You.

If it’s simply not in your nature to negotiate, then see if you can get somebody that you know to do it for you, and if you pay him then you should both come out like winners.

I used to hate selling my cars, and didn’t want to quibble with the dealership where I was buying the new car, or haggle with private parties, so I used to call a friend of mine who excelled at wheeling and dealing, and after finding out what a good blue book price would be, I’d tell him that anything that he got over and above that price was for him, and we’d always both end up happy.

If you’d prefer to have a third party negotiate with your creditors for you, then be sure to choose an agency or company that’s Better Business Bureau affiliated, and if bankruptcy is an option then check out where you can get a free consultation with a local bankruptcy attorney.

There is certainly nothing wrong with getting the best deals that you can get, and not even trying would really be selling yourself short, so next time you want to purchase something, remember the above tips and put them to good use, and save yourself a growing amount of money.

About the Author
The author of this article was a film producer, and award winning film sound editor for many years. One of his primary interests is economics, and one of his websites -> features a large number of extremely popular articles about the world’s economy in general, and bad debt loans, debt consolidation, debt settlement, and bankruptcy in particular.

Credit Repair

Credit Repair Red Letter Days

Credit Repair
Credit Repair Information.

Credit Repair Red Letter Days

by Ian Webber
Credit repair can have a uniquely measurable payoff. In fact, never before has quality of your credit so quickly translated into dollars and cents. Virtually all of the credit market sectors, from credit card issuers to mortgage lenders are now pricing on a risk basis. This means that every single point on your credit score means more money in your pocket. Higher credit scores mean lower interest rates on every loan you are approved for. (continued below)

Credit Repair Red Letter Days

You Will Be Victorious
A small investment in credit repair today can easily generate a return of tens of thousands of dollars over time. If you have any credit issues whatsoever, you simply cannot justify inaction. If you are afraid of confronting your credit report now is the time to overcome your fear. If you are intimidated by the credit bureaus, now is the time to stand up for your rights. If you are worried that your credit repair will rouse collectors from their docile repose, worry not. Put knowledge and the law on your side and you will emerge victorious.

A Dose of Reality
You should start your credit repair adventure with a dose of reality about the organizations you will be confronting in your search for credit accuracy, the credit bureaus. The credit bureaus have no governmental status or charter. They are business like any other for-profit corporation. And, although they do a decent job of managing data files on over 200 million Americans each, they are more focused on profitability than the perfection of your credit report. In fact, the entire credit repair dispute process is a real thorn in their side, which they administer reluctantly and in as minimalistic a manner as possible.

The Role of Patience in Credit Repair
Understanding the modus operandi of the credit bureaus should also give you the understanding of the need for patience. Your disputes may fall through the cracks. And this may happen more than once on the road to credit repair success. But you will reach your goal if you keep on plugging along. There is no need to get riled up about inadequate dispute processing on the part of the bureaus, nor will it do anything except raise your blood pressure. Keep your eyes on the prize. If you do not get the result you need, stay focused and send another round of concise dispute letters right back out again.

Sharpen Your Pencil
Understanding the lax nature of the credit reporting system must also illuminate your perception of the content of your own credit report. Given the importance, and potential financial impact of every single point on your credit score, you must look at your reports with a skeptical eye. No longer should you believe blindly in the content of your report. Question everything. Here are some of the most common errors that people uncover when they begin their credit repair in earnest; underreported revolving limits, closed accounts reported as open, paid accounts reported with a balance, and duplicate accounts. All of these sneaky little errors can hurt your scores and cost you money.

When in Doubt, Dispute
Another area that you should pay close attention to in your credit repair endeavor is the collection section. Collectors are easily the most blatant reporting offenders. Collectors purchase and sell collection accounts on a regular basis. Many collectors will give up on an account within six months if they cannot collect. They then sell the account to another collector who will try his luck. By law, when a collector sells an debt to another collector or returns it to the original creditor they must extract their own account from your credit report. Unfortunately, there is no motivation for them to comply with this law. On the contrary, since there is no penalty for non-compliance it only represents extra work. Examine all collection accounts with a critical eye. When in doubt dispute!

Credit Repair Assistance
Many people are just too busy to learn the credit repair process, or to keep track of the ongoing disputes and re-disputes that are necessary to continue in an organized and successful manner. The job requires patience, time, and knowledge. If you cannot manage it on your own do not despair, you can hire a professional credit repair service to do it for you. They will insure that the job is done completely and done right. Whatever path you choose you should start your credit repair journey today. Your credit matters.

About the Author
Copyright © 2009 Ian Webber. All Content. All Rights Reserved.
Ian Webber is an expert in consumer law and credit repair. Ian is a graduate of the London School of Economics and The University of Chicago where he earned his LLM. Ian consults with one of the leading online credit repair services and is currently based in Florida.

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