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June 04, 2006
Build Credit in your Name
If you have delinquent credit and are married, you might want to build your credit in your name instead of using your spouse. Somebody has to have stability. Also if you are divorced and all the credit cards of credit information are in your spouse’s name you will need to reestablish your credit in your name.
The advantage is that credit bureaus cannot list the negative accounts against you if you are divorced. Once you have copies of your credit report you will then need to cancel all joint accounts. If you contact the creditors to resolve the issues on your credit report be sure to ask the creditors to take in consideration your spouse’s credit history.
It is important to bring into light your spouse’s credit history when applying for a loan. Let the lenders know that you are now divorced and starting your own credit line. If you apply for credit cards, be sure the cards are in your name and use them wisely since this helps to rebuild your credit quicker than most sources. Make sure that you pay minimum balance on the credit card accounts each month to avoid delinquencies.
If at all possible when you see that your funds are low; pay your bills rather than making a purchase on your credit card. Once you bills are paid be sure to make a payment on your credit card. This method not only keeps you out of trouble with other creditors, but offers a solution for repairing your credit.
If you can afford to pay your bills each month and use your credit card be sure to only purchase items you need and keep it at a minimal. If at all possible payoff your credit card balances each month to avoid interest. Interest rates cost an additional hundreds of dollars in the long run, so paying off your dues on time can save you money. If you don’t have credit cards and decide to choose a card be honest on your application and look for the best interest rates available.
If you are in debt it is wise to payoff your dues before applying for a credit card, unless you intend to use the card to get out of debt. If you plan to use the card to get out of debt search for the best interest rates, as well as cards that offer cash back on your spending. There are tips for managing credit cards to repair credit. It is important that you are consistent with the use of your name.
For example, if your name is Robert Leon Swisher Jr., always sign your name accordingly. Do not use your card dishonestly for advantages. Few people believe that lying can get them out of a problem. The truth lying gets you in deeper. If you are filling out an application for credit cards tell the truth. It is important that you understand the timeframe to apply for a credit card.
If you are out of work, lived at your resident for less than a year or you have negatives on your credit report, this is not a good time to apply for a credit card. If you are stable it is always wise to apply with lenders where you have done business with them at a later time.
Building your credit after divorce is difficult at times. However it is not an impossible task. It is important that you are aware that most credit card solicitations are gimmicks that only offer you a solution for hanging yourself. Instead of getting out a rope, it is wise to stay alert, and investigate any credit card offer made available to you. Finally, you want to avoid low introductory rates on credit cards since after about six months the interest rates often hit the roof.
Posted by creditreportsolution at 11:41 AM | Comments (0)
June 03, 2006
Credit Repair for Identity Theft Victims
Identity theft victims are those people that loose simply because someone has stolen their identity and run up their bills. If you are victim of Identity Theft you are well-aware how difficult it can be to get back on your feet again. Identity Theft victims often have to go through a series of steps to repair their credit and identity.
First, it is important to avoid Identity Theft by protecting your Social Security Card, Driver License and other important information about yourself. However, if you are already in the credit bureaus labeled under the Freud Alert, then you may find yourself giving up. Identities are stolen in several ways.
The Internet is swarming with predators waiting to mess up someone else’s life. People may stand over your shoulder peeking down at you while you are keying in your PIN number at the bank. You might have been in a relationship and the person decides he/she owns you and when you break up that person takes your identity.
There are several ways that your Identity can be stolen. The solution is then protecting your identity with shields that no one can break through. If you are a victim of Identity Theft then your identity needs to be protected more so than ever. This sounds crazy since someone already has your ID. You will need to stay alert to the activities that affect your credit report. It is important that you keep updated copies of your reports at all time.
If you notice activity, immediately dispute the claims against you. Be sure to file a police report since you will need these reports to show the 3 bureaus and others that your identity has been stolen. Once you receive the reports be sure to send copies to each credit bureau so that the companies can get you on record.
The companies are going to put up a Freud Alert once the copies are evaluated. Here is where you need to stay alert. Instead of Freud Alerts, the companies can put up a FREEZE on your accounts. A Freeze gives you the options that Freud Alerts will not. For example, if you go to a bank and apply for a loan with a Freud Alert on your accounts, most likely you will be turned down.
However, if the banks see that you have a FREEZE on your accounts, they will investigate and possibly give you the loan. Freeze means that someone has affected your life by stealing your identity, while Freud means that someone has committed a criminal act on your account, and that someone could very well be you. You will also need to report any checks that you suspect were stolen.
Monitor your banking account at all times to make sure that no out of place activities are going on. It is important that you alert your utility providers and anyone that you have open accounts with. If you have credit cards report them immediately to get replacements. You may even want to cancel your current bank account and open a new account.
This will offer a source of protection. It is also important that you contact your Social Security Office to find out if your Social Security has been used out of place. If actions have been listed on your card, be sure to let the Social Security Administrators know. Making others aware of what is going on in your life, can spare you additional headaches. You are already a victim of criminal behaviors, why not take the steps to repair your credit and restore your life. Finally, you will need to contact Washington D.C. or the Identity Theft Clearinghouse, Federal Trade Commissions and let them know you are a victim of Identity Theft.
Posted by creditreportsolution at 04:14 PM | Comments (0)
June 02, 2006
Credit Card Abuse - The American Horror Story!
It is the modern American horror story, but one now being seen increasingly throughout the world...
A successful middle class consumer, with a good income and excellent credit history, enters middle age knowing that it is time to start saving for retirement. Then something unexpected happens. It may be good news, such as the birth of a new baby, or it may be bad - an illness, a family emergency, a divorce...
It has become quite common for the middle-aged, middle class consumer to have many bank and store charge cards at any given time. And most, if not all, are carrying large balances. In 2005, the average consumer had nearly $10,000 in credit card debt, or even double or triple that if loans for cars and other large expense items are included. Worse still, in 2005, the credit "rules" were changed...
First, many credit companies have now doubled the minimum monthly payment to four percent. In itself, this is not a real problem for most consumers. Most cardholders probably pay this anyway.
Second, with no usury laws to stop them - and despite inflation rates from 1-to-3 percent - credit companies have pushed interest rates for "problem" cardholders to 30 percent or more.
Third, if there is a problem with any creditor, such as a late payment, other creditors have the option to cut their card's credit limit (often to the current balance), double or triple the interest rate and cancel any "special offers".
The "Six months no interest" or "Zero interest on all balance transfers for one year" are attractive offers. But the slightest infraction involving even one creditor and the next bill may include full interest charges - from the start of the offer.
It only takes one creditor to turn someone with a decade of good credit into a "problem" customer. A bill one day past due may cause an account to go up in interest, down in limit or both. And this can spur other credit card companies to follow suit meaning that in a short time all your credit cards could be charging a high rate of interest, over-limit fees and even late charges when your bank account is hit by the high rate of interest.
Now a double minimum payment becomes a serious problem, as that original $10,000 total debt begins growing by $250 a month in interest, plus up to $500 in accumulated over limit fees and another $500 in possible late fees!! You can begin to see the problem...
And what about bankruptcy to solve the problem? Not any more. As of 15 October 2005, it became virtually impossible for an American consumer to declare personal bankruptcy. At least, not without a lot more cost, a lot more time - and the certainty of losing everything, including home and car.
The moral of this story is this. Take another look at those colorful bits of plastic in your wallet, the ones offering those great promises of "easy payments" and a better lifestyle. See them now for what they really are...Viral monsters, ready, willing and able to destroy the cardholder's life in the blink of an eye.
Next time, think about handing the sales clerk some colorful cash instead.
Posted by creditreportsolution at 03:15 PM | Comments (0)
