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Top 9 tips to fix your credit yourself

fix your credit yourself

Having a good credit report is vital as it directly influences your credit score. If you don’t have a good credit score, you won’t be able to get a loan. Even if you manage to get a loan, the interest rate will be very high. So, you will end up paying thousands of dollars more than someone with a good credit score. People often make stupid mistakes that make their credit scores go down, like missing mortgage payments or paying their bills late. These must be avoided. You must always maintain an average credit score and try to improve it. If your credit score is below average, you must fix it. Many people go to a credit repair service provider to fix their credit. But most of them don’t know that you can take the necessary steps yourself without going to a credit repair service. It is expensive to hire such a company. So, if your credit report is poor and you want to improve it, try doing it yourself. Here are some tips how to do it.

Analyze your credit report

You should check your credit report from the three credit reporting agencies. You can get help online on how to read your credit report. If you find that any of the information is incorrect, you can file a dispute. If you don’t recognize any of the items in your credit report you should ask an expert about it. Someone may be trying to get credit in your name and so you might see some unrecognizable items on your credit report. These items can be fraudulent. For example, if you haven’t made any late payment but notice such payment in your report then you will know that something is wrong. Also, if you see a huge balance on your card that you have not used, then you should report to the credit reporting agency immediately. You should check everything in your credit report thoroughly.

See how you can improve the payment history

If you have any late or missed payments, it can affect your credit score. This record will stay on your credit report for 7 to 10 years. If you have a huge amount of debt and have missed payments recently, then it will have a great impact on your credit score. You should try to make payments on time to improve this score.

Learn about Credit Utilization Rate

Credit utilization ratio is the amount you owe to the amount of credit you have available. That is, it is the balance-to-limit ratio. If you have high credit utilization rate, then it can affect your credit score. So, as a rule of thumb, you must keep this ratio below 30% always. You should pay your debts on time and try to increase your credit limit to achieve a good credit utilization rate. However, there is a drawback to increasing your credit limit. You might be more tempted to use the credit and get into more debt. So, you should control your spending habit.

Don’t apply for too many credits at a time

If you open too many credit accounts within a short time, the lenders will consider you as a risky client. It might affect your credit score negatively. So, before you apply for any new credit card, you should think about the effect it will have on your credit report.

Keep credit accounts open

Suppose, you have multiple credit accounts and you have paid off some of the accounts in full. In such case, don’t close those accounts. Keep them and it will have a positive impact on your credit score. If you have a long credit history, your credit report will be good. Keeping those accounts that you have paid off will show a long credit history. Even if you have some credit cards that are unused, keep the account open; it will contribute to your credit history.

Make your account separate after divorce

During a marriage, you might have a joint credit card or loans that you have con-signed with your spouse. Your spouses’ credit score will have an impact on your credit report. So, after a divorce, you both should try to pay off the balance and close the account or get one person’s name removed from the account.

Don’t allow excess inquiries

When you apply for a loan, the potential creditor contacts your credit reporting agencies to know about your credit history. The inquiry made is added to the credit report and the record stays there for two years. If you do a number of inquiries within a short period of time, your credit score will come down drastically. However, when you are trying to get a car loan or mortgage, your inquiries won’t affect your credit report for a 30 to 45-day period. All inquiries will be considered as a single inquiry in this case.

Don’t consolidate balances to one card

Though it is a good option if you have too many high interest credit cards, it will significantly affect your credit report. So, try not to consolidate your debts.

Try not to file for a bankruptcy

Filing a bankruptcy can hurt your credit report significantly. For up to ten years, the record will stay on your credit report. Bankruptcy doesn’t make you free from your financial responsibilities. You won’t be able to fix your credit easily and you won’t get any mortgage or other loans.

Using these tips you will be able to improve your credit report; however, it might take up to 12 months to see any significant change in your credit score. You don’t need to go to a credit repair firm to improve your credit report; you can do it yourself by implementing some of the strategies just mentioned. You should be cautious about credit repair firm that provides 100% guarantee to improve your credit score. No one can guarantee it. So, take out your credit report and study it thoroughly to find out ways to improve your credit score yourself.

How can you Remove a Credit Card Charges Off and AFNI Collections?

How can someone remove charge offs

Charge off is that type of worst types result so that they can provide you with the credit reports. It is not good for you to get such kind of the results. The creditors can write off debt in the form of loss, it can provide you with best possible balance and also can cancel the account. By the time you get the account charged off, you might have gone through significant damage to the credit. You may have the issue of credit limits so that you can individuals. There are chances for you to get the best kind of the results when you ask yourself about how can you remove a credit card charge off?. Charge Offs can remain in the credit report for more than about 7 years. It is not a good thing to have such a negative entry for that longer period.

Charge offs is not something the creditor has forgiven your debt but it is that creditor can make any kind of attempt till the time you pay that money. It is also possible for creditors to even make a legal move in such a context. The future lenders are creditors can take the charge off with great seriousness that you may be denied with any loan or credit card in the future. You can also visit aaacreditguide for more information,

Talk with Creditor

helping with credit repairIt is always good for you to talk with the original creditor than the debt collector regarding the charge off. Once if you get a charge off then it can be hard for you to deal with that as it is going to devastate your entire credit report. It is good for you to talk with the original creditor so that you may start negotiating so that you can remove this thing called charge off. It is necessary for convincing creditor for removing charge off out of credit report when you are making payment. It is good for you to make an estimate of the amount that you can pay before you actually negotiate with the creditor.

Removing AFNI Collections

If you have AFNI collections in the credit report then it can be another damaging part for your credit. These collections can stay in the credit report for more than 7 years of time. It is good for you to know more about and the business they do so that you can try to avoid in getting the AFNI collections in credit report of yours.AFNI collections is actually a the collection agency which has got the reputation of using the harsh tactics for getting people for paying money that they not even owe. It is necessary for you to use legal recourse for you to get the kind of the thing validated. It is necessary for you to seek the necessary legal recourse so that you can provide with best kind of results It is also possible for them to have the credit report written in the inaccurate way. You can better complaint against them or do the necessary steps to remove AFNI collections from your credit report.

Best Ways To Repair Your Credit Score

No matter what the reason for your poor credit score like too many late payments or a financial crisis, you need to repair your credit score. Without a good credit score, your loan applications get turned down and you end up with high credit card rates. So if you need help rebuilding your credit score, here are the best ways you can repair it.

  • You need to first know how poor your credit score to fix it. Get a credit report from the major credit reporting bureaus and compare them. If there are some scores which are very different from the others, there’s an error holding you back, which has to be reported.

Send a letter describing the error to the credit reporting bureau, with copies of any supporting documents. The bureau has 30 days to confirm the disputed error failing which the error is deleted.

If all reports are similar, late payments are most probably the culprit for your low score. If this is the case, contact the creditor for a payment plan and if you have a dispute with the creditor, explain your side of the story through a note to the credit report.

  • Next, pay all bills on time. This is very important to repair your credit score. You could set automatic payments on your bank’s online bill-paying system. As insufficient funds to cover the automatic payment may hamper your credit score, make sure your account always has a cushion to cover these payments. If you can’t pay all your bills on time, at least reduce the blow by defaulting on only one, perhaps highest monthly payment.
  • Next, avoid frequent use of credit cards as credit card payments figure 30% of your credit score. Ideally, spend only 10-20% of your available credit limits wherein you are offered the best interest rates. It’s however better showing you can handle credit wisely through occasional balances on your credit cards instead of not using any credit at all as it proves you can use credit well.
  • Shift your credit card balance to a card with 0% interest. This way you end up with lower interest rates as long as there’s 0% interest on the card’s amount. Consequently, you can pay more and clear off your debt as soon as possible.
  • Another option is to get a debt consolidation loan where all your debt is merged into one single loan. The benefit here is there is only one person you are answerable to every month, and only one payment to make.

This single payment works out cheaper than the combined monthly payments of individual debt amounts. With a lower and cheaper payment to make, the chances of your clearing your debt are higher, which in turn helps you quickly repair your credit score.

These are the best ways to repair your credit score. Don’t expect miracles overnight. You need patience and perseverance wherein you slowly but surely find your credit score improving.

5 Ways to Spot Credit Repair Scam

Do you a bad credit that needs to be repaired quickly? Being desperate for better credit can leave you vulnerable to credit repair scams. Don’t let yourself be taken advantage of. Here are five ways to tell if a credit repair scam service is trying to make you a victim.

1. You are kept in the dark about your legal right.

All legitimate companies that offer credit repair services operate under a set of laws known as the credit repair organization act. These companies are supposed to issue their clients with a copy of consumer credit file rights under state and federal law. This document informs the consumers their rights to obtain a credit report and dispute inaccurate credit information.

If you are not issued with this document, think twice about letting such a company repair your credit. In fact, think thrice and all these thoughts should be NO!

2. You are asked to create a different credit identity

It is never ok to impersonate or give wrong information about your identity. This may get you in trouble with the state laws. If any credit repair company is requiring you to fake your identity, be sure that it is not a legitimate company. It should be reported Federal Trade Commission.

3. You are not issued with a contract, or an incomplete contract is issued.

If you don’t receive any contract from a company you signed on to get services from, this is scam! A genuine contract should contain the following: a) Amount to be charged b) The name and address of the credit repair company c) Details about the service which will be performed d) The date by which these services will be performed e) A statement to let you know that you can cancel the contract within three days if you are not comfortable with it.

4. The company offers to perform illegal services

Some credit repair companies make shady claims that they can help you remove unfavourable but accurately reported information from your credit report. Not only can they do this, but attempting to do so is wrong. You may end up in problem with the state laws. Still, you will be wasting money for a service you will never get.

5. The company requires payment before service

It is against the law to require any payment before any service is delivered to you. Genuine credit repair companies will always let you know the means of payment, and also the payment will be done on completion of the service. This means you should only pay when the have actually completed the service such as removing charge offs.

If you identify any of the five signs of a credit repair scam, please don’t sign a contract with such a company. If you already have signed one, consider cancelling it.