Top 5 Bad Credit Fixes

There are 5 common ways to fix your bad credit. Although some people may not be aware of them, these methods are nothing new and have been around for quite some time. The following is a list of the top 5 ways to fix your bad credit:

  1. Make Payments on Time
  2. Increase Available Credit
  3. Pick 1 credit card to focus on.
  4. Pick 1 thing you can live without.
  5. Stop using credit.

Why you should make credit card payments on time

There are many lenders (auto, mortgage and credit card companies) that access your credit history before making a financial decision on your behalf. One category that always gets a good looking over is your payment history, because it shows the lender how responsible you are with making your payments and making them on time. The good is if you have missed a payment here and there it is not a huge deal but if you miss payments a few cycles in a row that is not good. It is like when you are interviewing for a job and they call your last employer and they find out you were late quite a bit. On the other hand if you were late to work once every 2 months it won’t be mentioned. Same principal for making payments on time with your credit cards.

In addition, when you miss a payment you become subject to a few issues with credit card companies. First, your credit card will attach a late payment fee and in some cases they may give you a penalty interest rate. As if your life is not already hard enough, obviously there is a lot going on if you missed a payment. Then they add insult to injury with this punishment. Also you become subject to universal default where other credit cards can legally penalize you for missing a payment on a totally different card. This is not the make a bad choice and only the witnesses find out scenario, everybody finds out.

Why you need to increase your available credit

Your goal is to get out of debt and fix your credit score. You can begin working towards this by increasing your available credit. The amount of available credit is what makes so many people have bad credit scores. They have literally used up more than 70% of their available credit (for example your credit limit is $2,000 and you have $200 available). This hurts your score so much because it shows the lenders and/or credit card companies that you do not have enough cash and you need to rely on using your credit card. So, if you pay down your balance and increase your available credit, you send a different message to credit card companies. Eventually, your available credit increases in 2 ways: by you paying the balance down and the companies will usually extend your credit line while your paying down your balance and based on how long you have had the line of credit.

Why you need to pick 1 credit card to focus on

It happens all the time, people get motivated and do drastic things that are not helpful in the long run. For example you commit to losing weight and you exercise for 2 hours the first 2 days, but by day # 3 you are sore and exhausted so you stop working out. This happens with paying off credit cards. People get extra money and instead of paying off 1 card they make payments on 3 credit cards. Although they reduce the balance on all of them at the end of the day they still have 3 credit cards instead of the 2 they would have by focusing on 1 card at a time.

Why you need to pick 1 thing you can give live without

Getting out of debt is about sacrifices and not wasting money. Some people have to keep up with the latest trends and place themselves further in debt. I have done it too and then it hit me by iPhone 6s plus. I was buying new iPhone after new iPhone and then I realized I do not have 1 iPhone that is not in mint condition. They all can play the same games, display the same apps etc. so I am wasting money buying a new iPhone every release. I won’t buy the iPhone 7!

Another example is coffee, I learned that kcups are not economical they are just quick and convenient. I also learned that $2.50 for a venti at Starbucks every day is of $14.00 and a 32oz bag of Starbucks Dark Roast is 17.00 at BJs. Before I learned about BJs I was paying the 2.50 but I thought I was doing it right because I was using my cash back debit card! However, the Bjs bag is much more economical.

Why you should stop using credit cards

I increased my credit score (FICO score) tremendously a few years ago just by not using my credit cards for a few months. I recently wrote a blog about it because it was around this time a few years ago where I noticed the big bump in my credit score, I had finally joined the 700 club! Additionally, the interest on credit cards even if it is low is ridiculous. In my state we complain all the time about taxes on products, well credit card interests rates are a bit higher than taxes. Lastly, if you do not pay off entire balances by the end of promotional periods your balance nearly doubles.

Bonus #6 Hire a Credit Repair Agency

Here is a bonus the number 6 way to fix bad credit is to hire a credit repair agency. By law you are entitled to a free consultation from credit repair agencies. According to the Federal Trade Commission (FTC) the Credit Repair Organizations Act requires consumers of credit repair services to receive a copy of their legal rights and it protects customers from being charged prior to services being performed. The resources on this page will elaborate in more detail about this law.

In closing using the methods listed above will certainly help anyone’s credit score improve. Making Credit Card Payments on Time, Increasing Available Credit, Picking 1 credit card to focus on, Picking 1 thing you can live without and Not using credit cards are the most commonly used ways to fix bad credit. When in doubt contact a credit repair agency and make sure you understand the terms that you are agreeing to.

5 Harmful Credit Report Myths

As the world rockets toward an all-digital economy, maintaining good credit is more important than ever. With that said, the use of credit cards has increased for everyday purchases, making them a key to participate in online shopping.

A 2015 study by the Federal Reserve Bank of San Francisco found that the share of American retail purchases made with cash dropped from 40 percent to 32 percent between 2012 and 2015. That’s an astonishing eight percent change in just three years!

Given the importance of credit, it is no wonder that consumers are increasingly worried about their credit scores. Requests for credit reports from American credit reporting agencies have skyrocketed in recent years.

Here are five of the most pernicious myths, along with the facts about maintaining your good credit.

MYTH #1: YOUR CREDIT SCORE IS A SINGLE NUMBER
A credit report does provide a single number to potential lenders, but it contains a great deal of additional information as well. Your credit report includes details about the loans you have taken out and the credit cards you have been issued. Details about your payment history are included. The report contains a wealth of information for the lender. Lenders count on all of that information when making a determination about whether to extend credit, what your credit limit will be, as well as the types of credit you might be eligible for.

America’s three credit reporting agencies almost never report the same score when asked to analyze the same person’s account. There are several reasons for this. Second, different lenders report credit information to different credit reporting agencies. Most lenders report to all three, but many do not. Finally, different lenders may calculate credit scores slightly differently.

That’s just for generic scores. You’re also likely to have a different score calculated according to the specific criteria of lenders in real estate, for instance, and/or auto loans, and department store credit cards. the following

· Current accounts. Note that credit cards and mortgages are analyzed according to different criteria.

· Payment history. Lenders want to know whether you pay your bills on time.

· Outstanding credit. Reporting agencies calculate your outstanding balance compared to your total amount of available credit.

· New credit. If you have recently opened a bunch of new accounts, that could be a red flag.

· Credit history. Lenders want to know how long you have been borrowing.

Thus, lenders take much more into account than a single number.

MYTH #2: CHECKING YOUR CREDIT REPORT WILL HURT YOUR SCORE
This pestilent myth has a basis in fact. If your credit report shows a great many inquiries from potential lenders, that may indicate you are in financial trouble and shopping around for loans. A flurry of requests for credit reports can be a red flag.

The credit reports you request don’t show up as negatives on your history. In fact, many lenders believe it is a positive sign that consumers stay on top of their indebtedness by checking their credit histories at least once a year. It’s part of good credit management. Requesting a credit report is more likely to increase than diminish your chances of getting new credit approved.

MYTH #3: THE BEST WAY TO IMPROVE YOUR CREDIT SCORE IS TO PAY OFF ALL YOUR ACCOUNTS AND CLOSE THEM
This myth is partially correct.

Conversely, closing your accounts can have the opposite effect. Lenders and reporting agencies care about how much of your current credit limit you are currently using. That is, they are less interested in how much you owe than in how much you owe compared to how much you are approved to borrow. Sounds complicated, right? Think of it as a ratio. The following example will help shed more light.

If you owe $5,000 in credit card debt, that may not be significant if your credit limit across several cards is $30,000. On the other hand, if you have just one card with a limit of $5,000, then the $5,000 in current debt is quite significant and may disqualify you from opening an account with a second lender.

When you pay off your credit cards, you are decreasing the ratio of credit used to approved credit. That’s great. When you close the accounts, your approved credit is reduced, and that means future credit purchases will represent a higher utilization of your total approved credit. In other words, closing the accounts actually hurts your credit score.

MYTH #4: A BAD PAYMENT HISTORY DOESN’T AFFECT CREDIT SCORES ONCE ACCOUNTS ARE UP TO DATE
Unfortunately, getting caught up on payments doesn’t erase your history of late payments, accounts referred to collections, and bankruptcies. All of that information stays on your report for up to seven years – or longer, depending on the type of bankruptcy.

Getting current is still important. It’s a great sign and it reassures lenders that you are serious about paying your debts. Lenders understand that sometimes circumstances cause us to fall behind on payments. What they need to see is that you are committed to repaying what you borrow and that you don’t walk away from debt.

Missed payments stay on your credit report for three years. If you are a good customer but you are temporarily having trouble paying your bills, it’s worth calling the lender to see if you can reschedule payments. Many lenders are willing to work with customers to allow a few months without payments as long as they are arranged in advance. These arrangements are not reported to credit agencies and do not harm your credit score.

That said, it is still true that a bad payment history continues to affect your credit score for years, even after you have brought the accounts current.

MYTH #5: ALL CREDIT REPAIR SERVICES ARE SCAMS
Corrupt companies have given the credit repair industry a bad name. A simple Google search will reveal many companies that promise to erase derogatory information in your credit report for a fee.

Reputable credit repair companies do exist, doing a lot of good for a lot of people. They understand the rules about credit reporting and how to use those rules to improve your score.

Credit repair services can have incorrect and harmful information removed from your report.

Repair services might advise you to petition creditors for goodwill corrections, in which they remove information about a few late payments from an otherwise unblemished account history. effective A reputable agency can also provide reliable advice on prioritizing payments to existing accounts, applying for new credit, paying down your old debt, and much more.

Many lenders give extra weight to recent credit activity. Showing a trend toward responsible debt repayment can persuade them to be more forthcoming when extending new credit and favorable terms. Follow your credit repair agency’s advice and you could well find yourself with a higher score and more access to home loans, auto loans, and credit cards than you dreamed possible.

Credit Repair Guide to Mending Your Credit Score

Is your goal to mend your credit standing?

Then you need to reflect on many variables before getting started on building your credit. Credit is good in many ways, and bad in a handful of ways. credit puts stress on us because we’ve to keep a rating in order to get the respect we deserve.

Most of us have our very own struggles in life and some of us more so than others do. There are numerous reasons a person’s credit Is flawed. we often require to maintain an increased degree of accuracy or else. Since, we don’t like ‘or else’ Then we have to perpetually look for a solution to keep our credit standing at a good rate. The good qualities about credit are it will give you a resolution when times are hard, and when you want to build credit.

To get started mending your credit then you must discover various methods that may help re-establish your credit ratings. One thing you are going to do Is get copies of your credit reports. the disadvantage Is you will have to pay for the reports unless you apply for a charge card or loan. Be sure to avoid applying for cards and loans as the more you apply the greater it affects your credit ratings.

when you make an application for a lending product or credit, the creditors will ask for copies of the credit report, which adds points to your credit score and it stays on your report for around 3 years. the more points you possess, it will take away from your score, that is certainly more important than your credit. As soon as you make an application for a credit card or loan, then you definitely have one advantage of getting all 3-credit reports free.

Today everyone is checking credit, so your score is always affected in one way or another. At the moment nearly, every business will check your credit history, so for anybody who is buying an automobile avoid allowing the sales reps to check your credit until you know this is certainly what you want.

it really Is helpful to have an updated credit report, which most lenders will inform you “oh we can not use that.”This Is ok; tell the reps” you aren’t checking my credit until I’m sure this is exactly what I want to do.” the credit report offers them an sketch of what they will be using.

Understanding The Fact

As soon as you have made application for your credit reports, it is possible to move onto phase 2. When you have had any charges on your credit report, that seem to be suspect You’ll want to speak to the 3 credit bureaus immediately, petitioning the charges.

the claims against your report have an impact on you, this means you have the right to file a claim with the Fair Crediting Reporting Act (FCRA). in 1971, the us Congress passed a law to protect us against claims filed on our credit report that don’t belong to us.

Reap the benefits of this law. Geting a grasp on the steps to credit repair Is vital so you can get on the road to building credit. After you have disputed your credit history errors, you should next plan to wait a minimum of half a year before trying to get a loan or a credit card. After about six months, virtually all credit bureaus take off the errors completely.

Be careful that sometimes its possible you have to argue with the bureaus, Since in some cases they neglect to remove the errors. If you have any delinquencies against your credit file Be sure to look after them right away if possible. While you wait, the six months be sure that you carry on paying your bills on time. If you do not have the money to pay the bill entirely, Make sure you make acceptable payments on the bill to avoid a bad credit score reports.

Those that intend to apply for a lending product later, it is important to meet all payments necessary of you. In addition, it’s wise to maintain an updated copy of your respective credit reports always ready if possible. we are advised to monitor our credit reports regularly so that we know where we stand with our credit. In the event that your goal is to heal your credit, taking the initial step would be the beginning of building an ideal credit score and rating.

Comprehending credit Files

should you be in debt and nagged daily by creditors you need to understand your credit Files to mend your credit. for anybody who is delinquent in payments your credit score Is affected, and often you can’t apply for a loan. There can be exceptions But if you can obtain a loan or bank card you’ll be paying high interest rates. your credit file determines your fate in life.

If your credit history has a low score most landlords, bankers, or providers will turn you down when you apply for a loan. But if your credit file indicates you happen to be the lowest risk then you most certainly will Benefit from getting a loan, apartment, credit card, or whatever you make an application for.

credit ratings are a ‘numerical’ system that determines an individual’s credit rate and score. credit ratings generally rate from ‘300 to 850’ the scores are higher If you have an outstanding credit rate. For those who make an application for a lending product and the loan companies are unable to find your credit report you are often viewed as being a mishap. what this means Is you, have not established a credit history and no one can definitely tell if you’re a good or a bad risk.

This is the reason why you have to establish credit at an early age. when you make an application for variety store cards, credit cards, electricity cards or other items that give you credit, then you definitely are on your path to establishing a credit history and your file Is on record. the challenge with applying for credit cards or loans, or any type of credit, Is that Whenever we commence our parents in many cases are co-signers. therefore If we cannot make payments our mum and dad are obligated to repay the debts.

The Fact remains that If we make an application for employment, make an application for an condominium, or take out an insurance policy we’re creating credit. your credit Files tend to be stored in computers at TransUnion, Equifax, and Experian. the law protects us to some degree when it comes to credit repair. To understand all the legalities, along with how our credit file affects us is a central feature to repairing our rating.

credit bureaus are coordinated and watched by the Federal Trade Commission under the requirements of the Federal Fair credit Reporting Act (FCRA) and follows up with the State Laws. when you experience credit Files with inconsistencies the Fair credit Reporting Act covers you in the sense that it necessitates the credit bureaus to delete or make the info obsolete on your credit report.

this guards you if you are a victim of Identity Theft, or almost every fictitious accusations made against you. the credit bureaus are needed by the Laws to list accurate information on credit Files by gathering the acceptable information against you or for you.

The law protects you in the sense that it regulates the credit bureaus by only permitting them to list negative reports against you for a limited time. The law Also regulates who can see your credit file. if you’re trying to find mortgage finance, license, public assistance, insurance, landlords, and courts can request your credit file without your permission.

However, if you are seeking a job under certain circumstances the employers will require a written authorization form from you. Utilities are under The law and these companies cannot deny you services despite the fact that you have a bad credit score.

as we discussed There is certainly many services able to check your credit report. the drawback Is Whenever your credit Is checked, points are added to your file. the more points added to your credit file affects your credit so it is best to be aware and only apply for what you need.

In case you have adverse credit and trying to repair your credit then you will be sure to call for copies of the credit file,and understand your score on the file, and if you think you happen to be a risk i suggest you apply for loans or credit cards after you have cleared your credit report.

Take Observation

Fixing your credit takes observation on your part. We often get two kinds of bills in the mail. Bills that are classified as past due and bills that happen to be recent. Truth be told ignoring your bills is only delaying and it doesn’t help fix your credit.

For those who have current bills and you have no overdue charges make sure you take care of these bills first, since by paying this tends to help you stay out of the credit bureaus. It’s important you have a steady cash situation to get out of debt. In case your job doesn’t pay enough to make ends meet, you might want to look for a job that pays better wages.

This will help you be free from debt faster. When you get your up-to-date bills looked after you next must give attention to your late bills. In the event you haven’t reached the credit bureau yet, deal with the bill immediately. Working closely within law, I can inform you that should you make even a minute payment towards a bill it might probably help you from hitting the credit bureau. The fact is, should you be making any type of effort to pay off a bill it would keep you out of Court.

The most important step to mending credit Is staying up to date with your bills if by any means possible. When you think you can not make a payment It’s wise to make contact with your creditor letting them know there will be a delay on payment. credit card companies often prefer that you just call them to work out a payment scheme and every now and then creditors will even decrease your monthly obligations, or maybe your bill. The very best solution then Is observing, and striving to repair your credit.

Many people have house payments, car loans, credit cards, and other forms of loans, including Utilities. There is certainly two types of debts that eat our money, so to understand these debts is a central feature to correcting your credit. Secured debts are any debts which have collateral attached. To explain your mortgage can be described as a secured loan that once you miss a payment you may be living in the streets. Car loans are a guaranteed way of getting back on your feet again for those who miss a few payments.

As a consequence, car loans are secured, and it Is your obligation to make payments. Some department store plastic cards are secured, for the reason that they ask you to definitely put up collateral if you miss payments on the merchandise purchased. Unsecured debts are Utilities, rent, personal loans from family or friends, student education loans, most major credit cards, and the like. Because of this it is more important to pay off secured loans vs unsecured loans. Secured loans again are house payments, car payments and so forth.

You might have more to lose by ignoring secured loans than what you have to lose by ignoring unsecured debts. Should you have a mortgage and think you cannot make ends meet, you need to check into a lot of the possibilities from your lender. There might be a second home loan available that gives cash back or other great benefits that could help you to get out of debt and repair your credit.

Don’t wait until it’s too late. For anybody who is seeing a poor outlook however it isn’t so out of hand that you just lost complete control, get up and take your control back. You will find mortgages available that provide overpayments and underpayments.

Therefore you are able to over pay one month against your loan and underpay against your loan the following month. Many of the loans even provide a vacation pay. If you don’t want to embark upon vacation you can use the bucks to pay for your mortgage. These types of loans can often be paid sooner than other types of loans.

When you have credit cards, it might be wise to make an application for a credit card that lets you pay off other cards. Often there is an answer to getting out of debt. Again, the most important tool for getting away from debt is always to keep a close watch over your bills, pay off any secured bills first, and work your way through each bill as you go.

A Complete Review Of The Major Credit Reporting Agencies And Credit Reports

Today we have grown into a nation looking for instant gratification, the buy now pay later syndrome. So, without a good credit rating it will be very difficult to get the things you want at the time you want them. Consumer credit has become widely accepted as a substitute for ready cash, so having good credit is the key to your future of getting all you deserve, and the key to opening doors that make your life more comfortable and worry free.

As a consumer it is to your benefit to fully understand how credit works and every aspect of what is involved when you apply for any type of credit, including the major credit reporting agencies that hold your credit report file. When you understand what the banks and other creditors are looking for, and you know what is in your credit report, you will be able to control your financial future and make the best choices for yourself and not accept anything less than what you deserve.

When you apply for credit, lenders want to know about you, your employment history, your income, your assets, and most importantly they want to know about your credit history. A lender will get lots of information directly from you through a credit application, then, they will pull your credit bureau reports to confirm this information and review your credit references and credit report scores. Then upon evaluation of your credit application combined with your credit report, the lender will determine your credit risk and make a final decision on whether or not to grant you credit and at what rate of interest they will charge you.

So, now that you know the process of getting credit, let us take a deeper look into the factors that can either be an asset or liability to you when applying for credit – your credit report.

What is a credit report

Your credit report is your financial resume, a summary of your financial reliability, containing both personal and credit information. Your credit report is maintained by credit reporting agencies, also known as credit bureaus, and provided to lenders, employers, insurance companies, landlords and other companies who have a legitimate need for this information, based on the federal Fair Credit Reporting Act (FCRA). Your credit and personal information is reported to the credit reporting agencies from various creditors, in most cases electronically, instantly updating your file.

What is in my credit report

Your credit report is divided up into five main areas: personal profile/identifying information, inquiries, credit history, public record information and your credit score.

PERSONAL PROFILE / IDENTIFYING INFORMATION – this is where all your personal information is recorded – your name including any alias and possibly your spouses name, current and previous addresses, Social Security number, date of birth and current and previous employment. You might find some of this information is incorrect or incorrectly spelled, this can occur when creditors pull your credit bureau as they usually enter in the information though the computer where data entry errors can occur, and these mistakes will update your credit bureau report. However, if there is information that is not even close, such as an address, this should alert you to investigate this further as it is a possibility that you may be a victim of identity theft.

INQUIRIES – in this section you will find listed all the parties that have requested a copy of your credit report and the date it was done over the past two years. There are two types of inquires, soft and hard. A hard inquire is when you have applied for something and is initiated by you, for example, you have applied for a loan or mortgage or completed a credit application for a credit card or even applied for insurance. These hard inquiries are the ones that appear on your credit report and are visible to creditors when they access your credit report. A soft inquiry only shows on your credit report when requested by yourself and do not show to the creditors. A soft inquiry can come from your existing creditors that are monitoring your account, companies that are looking to offer you promotional applications for credit and each time you request a copy of your credit report.

CREDIT HISTORY – in this section you will find an itemized list of your credit cards, loans and mortgages, both currently active accounts and past closed ones. The information reported includes, type of account, when it was open, the high balance or limit, monthly payments, date of last payment, how the account is paid including any late payments, date of last activity and a rating of how the account was paid.

PUBLIC RECORDS – this information is obtained from local, state and federal courthouses and includes bankruptcy records, foreclosures, tax liens, monetary judgments, court-ordered payments, and over due child support payments. Public records are a negative credit reference and will lower your credit score. They also stay on your credit report anywhere from six to ten years.

CREDIT SCORE – your credit report scores are a rating determining you credit risk and the likelihood of defaulting on a loan. Lenders will use this score as a tool to assist them in deciding whether or not they will lend you money. Your credit score is a snap shot of your credit at that point in time, and can change on a daily basis. The score is a three digit number ranging between 300 and 850. Statistics show that the higher the number the less likely you will default on a loan, therefore you are a good credit risk; and the lower the number the greater chance there is for you to default on your payments, making you a greater credit risk.

When your credit score is low, you still may be able to borrow money but, you will most likely have to pay a higher rate of interest and you may not get all the money you request and possibly have to pay additional fees, basically you are at the mercy of the lender. However, the higher your credit score is the more you are in-charge, you can get any loan at the best possible rates with no restriction.

Your credit score is a complicated calculation, where the credit reporting agency takes into consideration many factors, including but not limited to, your payment history – late payments, both current and previous will bring down your score; your credit balance in relation to you limit – if you are at your maximum credit limit or if you are over it will bring down you score; the number of inquires – if you have to many in a short period of time it will bring down your score; the length of time you have had credit, the total number of outstanding debts and any derogatory information or public records, such as bankruptcies, collection, judgments and written off accounts – will bring down your score.

Where does the information on my credit report come from?

Your credit history information is gathered at companies called credit bureaus or credit reporting agencies. There are three major credit reporting agencies, Equifax, Experian and Trans Union. They receive information voluntarily from creditors and the credit reporting agency updates and maintains your credit report file with this information. Creditors report, loans, credit cards, mortgages, on a regular basis electronically. Your file is also updated when you apply for credit, as the information from your credit application is submitted to the credit reporting agencies when they pull your credit report.

Who are the major credit reporting agencies

There are three major credit reporting agencies. Equifax, Experian and Trans Union. These are independent companies from one another, and it is important for you to know that they do not exchange information. This means that it is quite possible that you not only have a separate credit report with each of them, but that they may contain different information. There are hundreds of smaller credit bureau companies across the country however these major credit companies are the largest and the main bureaus that the banks and financial institutions use. You will find that creditors may use one of the three credit reporting companies, however it is not unusual for them to use all three.

Who has access to my credit report

The Fair Credit Reporting Act (FCRA) contains rules regarding who can access your credit report. Generally speaking, a credit reporting agency may only provide information from your credit file when the requested relates to the extension of credit, collection of a debt, a tenancy applications, an application for employment or insurance, the issuance of special licenses or potential financial dealings that involve you. The law also gives these companies access to your report as part of an ongoing business relationship. An example of this would be you have a loan at a bank and you miss your payment, this gives that bank a right to obtain an updated copy of your credit reports. Credit card companies use this option a lot. They consider it part of the maintenance of your account. As credit cards are revolving (not a closed end loan), a customers circumstances can change, so credit card companies will obtain updated credit reports on their customers to review them and look for warning signs of a customer getting over extended in credit which could result in problems fulfilling their obligations. This is how credit card companies can either raise or lower your credit limit or interest rate automatically. However, in the case of an employer, this law does not apply and they need the employee’s permission each time they wish to request a copy of your credit report.

You are also entitled to copies of your credit reports, and today with the internet there are many fast and easy ways to obtain credit reports online. You can purchase a copy from each of the major credit reporting agencies, Equifax, Experian or Tran Union, the cost may vary however, under the latest Federal Trade Commission (FTC) rules they are restricted to the maximum amount they can charge you. Check with your state laws, as some states require the credit bureau companies to provide you with a copy of your credit report periodically for free. The FCRA gives you the opportunity to receive a copy of your credit reports if you have been denied for credit or other benefits based on your credit report, you are entitled to receive a free credit report from the credit bureau that provided the report. The FCRA also allows you obtain
totally free credit reports. If you suspect that you are a victim of identity theft or fraud, if you are unemployed or if you receive welfare assistance.

Rebuild & Keep Good Credit Ratings by Understanding Your Credit Cards

Secured Credit Card is similar to a prepaid credit card since the funds you are using are actually yours and not the issuer of the credit card. Generally people who apply for secured credit card or prepaid credit card are people with poor credit or unemployed. Prepaid Credit Card spending limit is the amount of money you loaded to the card. There are no interest or finance charges on a prepaid card. With secured credit card, your credit line could be from 50% to 100% of your deposit depending on the institution giving you the secured credit. Therefore the company giving you the secured credit card has zero risk.

Secured credit card can be very beneficial because it gives you an opportunity to rebuild your credit history and you are able to make purchases just as if you had an unsecured credit card. Many companies require that you have a credit card to make purchases, such as car rental, airline tickets, etc. Ensure that the company issuing the secured credit, routinely reports customers’ payment history to any of the three main credit bureaus namely Experian, Equifax and Trans Union. This reporting to the credit bureaus will rebuild your credit history over time.

Closing unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage financially. By not applying for too much credit within a short period of time is another factor that will help in rebuilding your credit rating. Additionally, even though secured credit is like prepaid cards, they do have certain fees attached.
Benefits are similar to that of an unsecured credit card, such as usually being paid interest on your balance in the bank, using Automated Teller Machines (ATM) to make deposits, withdrawals, and making purchases at participating merchants. Following the above steps will strengthen your credit rating.

Unsecured Credit Cards are issued to individuals with good to excellent credit rating. Credit ratings depend on certain criteria, such as one’s ability to repay loans. These criteria include payment history, employment history, and financial stability. Individuals with excellent credit will most likely receive a lower interest rate. A major factor in maintaining excellent credit is making your loan payments on time thus avoiding late fee penalties.

Customers should read the credit agreement to ensure that they understand their obligation to the creditor. Making payments on time will strengthen your credit rating. Unsecured credit cards has numerous advantages such as low interest rates, high credit limit, business name options, no annual fees, and low APRs on balance transfers up to 12 months. Closing unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage financially. By not applying for too much credit within a short period of time is another factor that will help in maintaining a good credit rating.

Rebuilding your credit takes time, patience, and consistency. If you consistently pay your bills on time, you will see an improvement in your credit ratings over time. There are no quick fixes for improving your credit report except for mistakes or inaccuracies that can be corrected, hopefully in your favor. Your credit information is maintained by the credit bureaus namely Experience, Equifax, and Trans Union for seven years. Therefore poor credit information will remain on your report for seven years. The good thing is that as negative information disappears with positive information, this will definitely rebuild your credit rating.

Applying for secured credit card can be very beneficial because it gives you an opportunity to rebuild your credit history, and you are able to make purchases just as if you had an unsecured credit card. Many companies require that you have a credit card to make purchases, such as car rental, airline tickets, etc. Ensure that the company issuing the secured credit, routinely reports customers’ payment history to any of the three main credit bureaus namely Experience, Equifax and Trans Union. This reporting to the credit bureaus will rebuild your credit history over time.

Business Credit Card
Business credit cards are very popular for small business owners because of the many benefits they offer. Benefits includes 0% Intro APR on balance transfers, no annual fees, high credit limit, low interest rates, cash rewards, bonus miles, free online account management to choosing card design etc., At iCreditOnline.com we have some of the best business credit cards from American Express, Advantage, Chase, Bank One, Bank of America, Discover, Citibank, Household Bank and more, with online credit card approval. Why waste time going to a bank when you can get a decision in less than 60 seconds with secure online credit card application. Online Credit Card Approval with Online Credit Card Application is fast and easy!

Student Credit Card

Having a student credit card while still living at home or attending school away from home can be an advantage. It gives the student the opportunity to establish credit at an early age and to start asserting their independence. It comes in handy in case of emergency, it is less trouble and safer to carry a student credit card than to carry cash. Parents find student credit cards to be very convenient. They are able to make deposits to their children’s account while they are away from home. Students should be careful with their credit card receipts to avoid identity thief.

If you consistently pay your bills on time, obtaining students credit cards is a good way to established credit rating and start building a good credit history while in school. Establishing and maintaining a good credit rating will make it easy to purchase a car, a home or obtaining a personal loan in the future. For students who are not committed to their financial obligation, getting a student credit card is not a good idea. Running up balances, finding yourself in debt, unable to make monthly payments will destroy your credit rating.

Student’s credit cards generally have high interest rates. At iCreditOnline.com we offer some of the best student credit cards from Chase and Discover with 0% APR introductory rate for 6 months, no annual fees and online account access. Online credit card approval with online credit card application is fast and easy!

Explanation of some of the credit cards we offer:

0% Intro APR Credit Card or Balance Transfer Credit Card gives you the benefit of using this credit card without making any interest payment on the principal for a stated period of time. This credit card is marketed to individuals with good credit rating who want to transfer balance from a high interest credit card to a 0% intro APR credit card.

Cash Rewards or Cash Back Credit Card earns a percentage on purchases made. This reward or cash back is credited to your account.

Debit Card takes the place of carrying a checkbook or cash. This card is used like a credit card with certain limitations, such as not being able to rent a car. Purchase transactions are contingent upon having enough funds in your checking or savings account to cover the purchase. Verification of funds requires entering your Personal Identification Number (PIN) at a point-of-sale terminal.

Low interest credit card saves you money. Having a good credit rating qualifies you for some of the best low APR credit card offers.

Prepaid Credit Card spending limit is the amount of money you loaded to the card. There are no interest or finance charges on a prepaid card. Therefore the company giving you the prepaid credit card has zero risk. Generally people who apply for prepaid credit card are people with poor credit or unemployed.

Secured Credit Card is secured by the amount of funds you have in your account. Your credit line could be from 50% to 100% of your deposit depending on the institution giving you the secured credit.

Unsecured Credit Card is issued to individuals with good to excellent credit rating. Credit ratings depend on certain criteria, such as one’s ability to repay loans. These criteria include payment history, employment history, and financial stability. Individuals with excellent credit will most likely receive a lower interest rate and can receive instant online credit card approval. A major factor in maintaining excellent credit is making your loan payments on time thus avoiding late fee penalties.

Travel Rewards Credit Card benefits may include travel accident insurance, free rental car collision/loss damage insurance, rebate on gasoline purchases, frequent flyer points or bonus miles towards airline flights, free quarterly and annual account summaries.