by Adam | Mar 13, 2015 | Credit Repair
On Monday March 9, 2015 the three main credit reporting agencies announced major changes to the way they will handle disputes and report medical bills. Equifax, Experian, and TransUnion announced the agreement after months of negotiations with New York state Attorney General Eric Schneiderman. The goal of these new rules is to reduce reporting errors and make them easier to correct. These credit reports are used to determine your credit score, which affects your ability to get a loan and is used to determine the amount of interest you’ll pay. How will these new reporting rules affect you and your score? Increased Quality And Accuracy The reporting agencies are focusing on increasing the accuracy of reports and handling disputes. Changes include: Eliminating reports on debts that didn’t originate from a contract or agreement—for example, this would stop reporting on tickets and fines Working to help victims of fraud and identity theft Helping consumers navigate the credit bureaus by providing instructions when there is a dispute Increasing transparency by giving customers more information when they contest a claim These changes are intended to make it easier for consumers to contest claims and correct errors. Medical Bills The reporting agencies are overhauling the way they handle medical bills in an effort to improve the accuracy and quality of reports. There will now be a 180-day waiting period before medical bills are reported. This change is designed to allow insurance payments to go through and to give consumers a chance to handle any discrepancies. The reporting agencies will also remove previously reported medical debt that has been paid by insurance. This is...
by Adam | Mar 5, 2015 | Credit Repair
Are you struggling with bad credit and can’t figure out why? You’re not alone. There are several sneaky factors that lower your credit; simple things like applying for new credit or closing a credit card account can cause serious damage your credit score. Read the following 12 things that can also hurt your credit while appearing seemingly harmless. 1. Late Payments Because your payment history equates to 35% of your credit score, frequent late payments on credit card bills can greatly damage your credit score. 2. Avoiding Payments on Parking Tickets Many places in the U.S. send all unpaid parking tickets to collection agencies. The larger your account grows with collection agencies, the more damage is done to your credit. 3. Requesting an Increase on Your Credit Limit Though requesting an increase may help your credit in the long run, it can cause serious damage to your short-term credit if it initiates a serious inquiry into your credit. 4. Renting a Car with a Debit Card If you choose to pay for a rental car deposit with a debit card, the rental company had the right to pull your credit report. This causes a hard inquiry of your credit and can ultimately lower your score a few points. 5. Defaulting on a Loan Loan defaults, which are similar to credit card charge-offs, prove that you have not upheld your end of the loan contract and will likely hurt your credit. 6. Maxed Out Credit Cards Over-the-limit or maxed out credit card balances equate to 100% of your credit utilization and can be, perhaps, the most damaging thing you can do to your credit. 7. Financing a...
by Adam | Feb 27, 2015 | Credit Repair
A credit card can be a powerful tool if you use it correctly. One of the biggest advantages of using a credit card is getting the rewards that accumulate every time you make a purchase. Use the following tips to make sure you are getting the most out of your credit card. 1. Choose Something You Will Use There are many different rewards cards to choose from. Some cards offer cash back, some offer gift cards, some offer discounted merchandise and some offer travel discounts. The best rewards for you are the ones you will use. Cash Back This is the simplest and most practical option. With cash back, you are free to use your rewards for whatever you choose—there are no restrictions. If you aren’t sure which rewards you’d use most often, go with cash back and keep your options open. Gift Cards Gift cards are a great option if you’ll actually use them. Don’t settle for a rewards card that gives you gift cards to an obscure restaurant 3 cities away—choose one that will give you gift cards for stores you already shop at regularly. Merchandise Merchandise rewards can be fun, but make sure the products available are things you’d normally want. If you’d already planned on purchasing a new camera or blender, this could be a great option. If you would never buy those speakers on your own, merchandise rewards might not be the best fit for you. Travel Mileage And Points Travel discounts are very valuable rewards—as long as you can use them. Remember that many rewards programs come with restrictions about how you can use...
by Adam | Feb 20, 2015 | Uncategorized
Worried about how bankruptcy will affect your credit score? Maybe you have already filed for bankruptcy and are working on rebuilding your credit? Whatever your situation may be, rebuilding a credit score, especially after bankruptcy, can be difficult but not impossible. The following are some facts regarding how bankruptcy affects your credit score, how you can rebuild your credit after bankruptcy, and a few myths about bankruptcy that you should be aware of: Filing for Bankruptcy Here are simple steps to filing for bankruptcy: First, you should be aware that filing for bankruptcy is not actually SIMPLE, and sometimes, depending on your situation, there are other options worth considering. Make sure you sit down with an attorney to discuss your options and to talk about filing for bankruptcy before you go about refinancing your house, filing for bankruptcy, etc. Determine whether or not you qualify for chapter 7 bankruptcy; this is based on your income compared to other similarly sized families. If not, you can try chapter 13 “debt consolidation.” Decide if you are going to file for bankruptcy on your own or if you are going to discuss your situation with a lawyer. You will have to pay somewhere between $30-$50 dollars for mandatory credit counseling. Complete all the necessary paperwork; this is where help usually comes in handy. Next, in order to file a petition with the court you will need to submit all your paperwork along with your credit counseling certificate. Attend the meeting of creditors. Within 45 days of the creditor’s meeting you will need to complete a post-filing personal financial management course. This usually...
by Adam | Feb 13, 2015 | Credit Repair
For many people, credit card use becomes a cycle of debt that can be difficult to get out of. It may seem like all your efforts to chip away at your debt are fruitless, and that adding more to your credit card balances is the only way to stay afloat. People in a cycle of credit card debt often live paycheck to paycheck, with nothing left over to add to savings. Fortunately, you can break the cycle. With dedication and some advanced planning, you can pay down your credit cards and keep yourself from slipping back into debt. But how? Here are the steps you can take to gain control of your finances and remain free from the crippling cycle of credit card debt. 1. Combat feelings of hopelessness First, remind yourself that getting out of debt is achievable. If you foster feelings of hopelessness, with thoughts such as “I can never pay off my high credit card balances, so why bother,” then you’ll never find the motivation necessary for success. Instead, tell yourself that getting out of debt is not only possible, but easier than you think. It’s going to take some time, and you may feel like you’re not making much progress, but little by little you’ll be closer to your goals of financial stability. 2. Force yourself to stop using your credit cards To get out of debt, you can’t continue to add to your already-bulging credit cards. Months of payments can be eliminated by a few purchases, so eliminate the option entirely. The simplest way to reduce credit card debt is to stop using them altogether while you’re paying them...
Recent Comments