Credit Clean Up Archives - Your Colorado Springs Realtor

Debt Negotiation

Hilary — Sun, 15 Dec 2019 03:30:46 +0000

Debt Negotiation

Talk Down Your Credit Card Debt

By HILARY JOHNSON

Debt Negotiation

Talk Down Your Credit Card Debt

Credit card debt is the number one form of debt in the country and every day more and more Americans are finding themselves in deeper and deeper with credit card companies.

When the payments seem high and many and the interest rates are beyond comprehension, you may be looking for relief. Debt negotiation can bring relief to the situation and allow you to fight for your hard earned money and still make your creditors happy.

Debt negotiation is a form of debt management that allows for the debtor or a representative of the debtor to negotiate the terms of the loan with the credit card company to reach a settlement amount and form a pay off or reduce the interest rate, thus bringing relief to the debtor.

What this means for you is a way to pay off your credit card balance while saving a little money or by bringing relief to your monthly payments and shortening the amount of time it takes to pay off your balance by decreasing the interest rate.

You need to have the account balance, monthly payment, interest rate, creditor and full creditor contact information. Knowledge is power in this instance and the more you know about the company and how the company compares to your other accounts, the better the negotiating power you have.

While, credit counselors are trained in the art of debt negotiation and if you are absolutely unable to make the calls and negotiation yourself, you can find a credit counselor who offers debt negotiation services and have them make the calls for you. With that said, with a little courage and some confidence you can negotiate your own account and contracts with great success and a few tips.

The first step to successful debt negotiation is to know as much as each of your credit card accounts as possible. Pull out all the information for each account you have a make a short list of the following information for each account to have readily available when you call.

Tip #1: The most important thing to remember when negotiating with your creditors is that you MUST be speaking with someone authorized to make changes to your account, otherwise you are wasting your time.

Only certain supervisors are authorized to offer settlements and make changes to accounts and most people you talk to are only there for customer service and billing calls. Ask for a supervisor or account specialist before starting your pitch.

Tip #2: Put together some pay off money and know your back up bargaining chips. The best thing you can do is offer a pay out or settlement offer. To do this you need a lump sum that you can pay them to settle the debt if they agree. If you are unable to offer this, then you need to have the information in front of you to negotiate other conditions like a lower interest rate.

For this you should have other credit card offers and accounts in front of you to offer what other companies are offering you. Many credit card companies would rather meet a lower interest rate, than lose your business.

Tip #3: Don’t take no for an answer. What this means is that if they don’t go for a settlement or pay out option, don’t give up. Instead ask for a lower interest rate or a loyalty credit to your balance. If they are resistant to lower your interest rate tell them you have other offers that you have been considering transferring your balance to that offer a lower interest rate.

They will often at least match it, if not beat it. Even if your account is default, they would rather you stay with them and pay it than close the account and leave their company.

Debt negotiation can be a great tool for lowering your interest rates, monthly payments or finding a way to pay off credit card debt. These tactics can all bring success when partnered with a confident attitude and understanding of the credit card industry.

With a little work and negotiation you can be well on your way to a life without credit card debt.

The post Debt Negotiation appeared first on Your Colorado Springs Realtor.

Poor Piggy

Hilary — Mon, 09 Dec 2019 02:48:06 +0000

Poor Piggy

He Didn’t Clean His Credit In 2019..Don’t Be Like Piggy

By HILARY JOHNSON

Poor Piggy

Didn’t Clean His Credit in 2019

IT TAKES TIME

One of the hardest elements to come from the entire process of improving your credit report is that it takes time. Sometimes, it takes a long time.

Those who find errors on their credit report will have the ability to remove them which may or may not give you a boost in your credit score. This depends greatly on the type of mistake you have removed.

For example, if you remove problems with:

Your name

Your address

Past employers

Other personal information

Chances are good that you will not see any change in your credit score since these items do not have a direct link to it.

On the other hand, if you find mistakes and have them removed like those in the following list:

Debts that are not your own that are removed
Outdated debts that are negatively impacting your credit score
Collection accounts or judgments removed Inquiries
Late payments, missing payments
Over the limit reports

Or similar types of items, you should see a rise in your credit report for doing so. The amount of increase is really unknown since these complex formulas are not made public knowledge. The key is that over the long term, such as in the next six months to a year, you will no longer fell effects by the negative mistakes and this will help to boost the ongoing credit score you have.

TIPS FOR INCREASING YOUR CREDIT SCORE QUICKLY

There is no one way to raise your credit score. It is a combined effort of everything you do over the course of your life having to do with credit. The key here is to make the best choices overall. It is difficult and time consuming at best, but ultimately it will give you the best results over all. Maintaining your credit report and credit score is perhaps the longest journey you will be on throughout your life. There is never a time when you can take a break.

Some things to do to ensure the highest credit score is in reach:

Get your credit report clean of any errors on it by reporting and disputing these with each of the three credit reporting agencies, TransUnion, Equifax and Experian.
Keep an eye on your credit report. At least one time a year pull each report, examine it for potential mistakes and keep it clean.
Don’t make payments late. One of the worst things you can do is send in your payment late. This is an instant warning sign to potential lenders: he or she is struggling with debt; beware! Send your payment in at least a week prior to the due date to ensure punctuality.
Do not go over your credit limit, like late payments this is another instance of struggling to make payments.
Keep your debts low. Pay off as much of or all of your debt each month. This shows to lenders you are a good credit risk and that you deserve more credit available to you.
Stay on top of the changes credit bureaus and Congress make to credit reporting. Small changes can make a significant difference in the way credit reporting happens and therefore what your credit is.
Use credit when you need to, but keep yourself in check.
Don’t request multiple lines of credit at one time. When shopping for the best rates on a credit card, insurance product, or home loan, do so using estimated credit scores rather than allowing several companies to pull your report.

Keep your personal information personal. This includes your Social Security Number, address and historical information about you. Report any risks of identity theft as soon as you see them.
Live within your CASH means. In other words, make sure that 90 percent or more of your purchases are made using cash. Get off the credit lifestyle and you may find that your credit score goes up and you have more money in your pocket each month. It does take a long time to build a successful credit report, but the process itself is one that teaches you how to use money wisely. It does not matter what has brought you to this point today. The only thing that truly makes a difference is what happens tomorrow.

Clean up your credit report first. Then, and ongoing, maintain it and use credit wisely.

You will then have more doors open to you each month and you will have credit available to you when you need it.

The post Poor Piggy appeared first on Your Colorado Springs Realtor.

Use Debt Consolidation to Raise Your Credit Score

Hilary — Fri, 29 Nov 2019 03:16:59 +0000

Use Debt Consolidation

To Raise Your Credit Score

By HILARY JOHNSON

Use Debt Consolidation to Raise Your Credit Score

Debt consolidation is a form of debt management that allows you to find a way out from under debt while still avoiding bankruptcy, garnishment and other extreme financial measures. Debt consolidation allows for you to use one loan to a pay off all other accounts and loans you have leaving you with one monthly payment and interest rate.

The way this can help your credit score is by allowing your current accounts, regardless of status, to be considered paid and in good standing. You also open another loan account which shows a certain level of good credit and it then becomes your responsibility to pay the payments on time to keep the debt consolidation as a positive loan in good standing.

There are many debt consolidation companies and with any consumer driven industry there are fly-by-night scam companies to watch out for. When looking for a debt consolidation company and loan take the time to do a little research and learn as much as the company and the people who work for that company as you can.

You should also ask for references to talk with real people who have experienced the company and staff members you are considering. The company and employees should be trained and certified to work on debt consolidation cases and offer debt consolidation loans that are reputable and quality.

Before contacting a debt consolidation company you should take the time to get your debt in order.

This includes making a list of all the debt you want to include in the debt consolidation. For each of the items you include on the list, the following things should be included: creditor, creditor contact information, monthly payment, interest rate and current balance. This will give you an idea of the debt you have and the basic information about each one.

You also need to total it all up and write it in big numbers on top of the list. This is often one of the hardest parts of debt consolidation, as you have to look at the whole picture and if you haven’t been keeping track along the way, it can be overwhelming. But, this is among the first steps to taking control of your debt, instead of letting it control you.

Debt consolidation can also be followed by other debt management tactics, like debt negotiation, that can help to minimize the debt to allow you to take out a smaller loan and save you more money in the long run.

Many credit counselors are trained in the art of debt negotiation and should offer that as a service with your debt consolidation. When you negotiate your current debt you have the opportunity to settle at a lower amount than the current balance, which helps your debt consolidation loan and your repayment over the life of the loan.

If you are looking for a way to get out from under debt and help your credit rating and score, debt consolidation could be the right choice for you. Debt consolidation is a smart way to get rid of debt while still preserving integrity on your credit report and can boost your credit rating.

When all your debts are paid, this changes the status of the account and when your credit score is recalculated it should reflect this new positive status and boost your credit score. This can bring you hope and instant success in getting your debt under control.

The post Use Debt Consolidation to Raise Your Credit Score appeared first on Your Colorado Springs Realtor.

Understanding Your Credit Report and Score

Hilary — Sat, 23 Nov 2019 03:04:46 +0000

Understanding Your Credit Report and Score

Use Our Handy Guide To Understand Your Credit Report TODAY!

By HILARY JOHNSON

Understanding Your Credit Report and Score

Your credit score is based on a formulation used by the credit reporting agencies that creates a general average of your credit history and assigns a number to show whether you have excellent, good, fair or poor credit.

While, your credit score is an average of your credit history, it is often the first thing creditors look at when deciding whether or not to give you a loan or credit account. While, you are unable to change the credit score directly, you can change and better your overall credit and credit report which will directly reflect on your credit score.

You can go through the process alone, or you can enlist the help of a credit counselor which can help with the process, paperwork and the law surrounding around what you are allowed to change and dispute and what you are not.

Request all of your current credit reports

Your credit report is available from each of the three major credit reporting agencies, including Experian, Equifax and TransUnion. All of these agencies have a web site where you are able to order your credit report that can be delivered in paper form or instantly electronically. Once you have your credit reports, print them out. This will take lots of paper, but it worth it to have them spread out in front of you for the best results when looking over them.

When looking for a way to improve your credit score there are many steps in the process and it will take a little bit of time for the improvements you make to reflect on your credit score.

Know your credit

You may not know your current credit or have kept up with what is on your credit report until now. This is a big mistake. You should purchase, or get a free credit report, once a year to check for mistakes or fraud. If you never have, you will need to pay extra close attention to the items on your credit report.

Go through your credit report with a highlighter

Go through every part of your credit reports including the personal information, highlight anything that is incorrect. This should include wrong addresses, name mis-spellings, accounts and other items you don’t recognize. Also, mark items that are yours but that you may dispute the balance, interest rate or other parts of the account.

Follow the directions for disputing inaccurate information

At the end of the printed and electronic credit reports are the instructions on how to dispute items on your credit report that you feel are inaccurate. You can complete this process in writing or online.

When doing so you will need to provide ample proof of the item you are disputing, whether that’s receipts for an item you paid or proof of your identity to dispute an identity or past address problem. You should also always make copies of everything you send in to the credit reporting agency.

Regardless, of the information you find on your credit report, it’s important to understand how credit works and how you can improve and dispute the information on your credit report.

The most important thing to take away from this is the need to get all three of your credit reports every single year to check for inaccurate information. This is not only smart financial practice, but one of the best ways to protect your self from identity fraud.

The post Understanding Your Credit Report and Score appeared first on Your Colorado Springs Realtor.

Restore your Credit after Identity Theft

Hilary — Sun, 17 Nov 2019 02:31:21 +0000

How to Restore your Credit after Identity Theft

Tips To Put Your Credit Back On Track

By HILARY JOHNSON

How to Restore your Credit after Identity Theft

Identity theft can be a terrible thing and when left unnoticed or unreported can ruin your credit and borrowing power for the long term.

Though identity theft can cause major problems with your credit and drop your credit score dramatically, there are ways to work to recover from identity theft and restore your credit to what it once was. One of the first things to remember is the quicker identity theft is reported the easier it is to remove from your credit.

Regardless, of whether you reported quickly or were too embarrassed to come forward, you need to contact your credit accounts, the agencies that house your personal information and the police to make a complaint and start the process to recovery.

The first step is to try and find out the extent of the damage caused and you can start with that by ordering and printing your current credit reports from all three agencies. You then need to sit down and go over them with a fine-toothed comb and highlight anything that you don’t remember, is completely incorrect or you are unsure of.

Then take the time to contact the creditors listed for those accounts in question and get as much information about the accounts or incorrect purchases made on the account. They should send you hard copies in the mail and this will become part of the dispute and evidence folder you are going to build.

Many companies now allow you to call and report theft on the account and will freeze the transactions while you and they investigate the situation.

Do this with all affected accounts, creditors and agencies, gathering as much information as possible with each one. Once you have done that, make two or three copies of all the evidence you have. You will want to file a copy of everything with your police report, plus keep your own copies when it comes time to turn everything in for dispute.

This can stop the debt from incurring in the first place and falling into a default status while you are trying to take care of the situation. Take advantage of this feature on any affected accounts that have them.

At the end of each of your credit reports are the instructions for how to file a dispute through that particular credit reporting agency. Make sure you read it over a couple of times and understand it completely.

This can be the difference between a successful dispute and one that gets tossed in the trash. You must follow the guidelines completely and understand there is a waiting period where the creditors get to investigate and respond to the items you are disputing.

Regardless of the level of identity theft that has occurred there are ways to bounce back and preserve your credit for future borrowing and good credit standing.

Your credit score will take longer to bounce back than the information on the credit report this is because it is not updated as often. Always keep track of all your accounts and what their current status is. Also, keep all important papers in a fire-proof safe and the originals in a safe-deposit box with a bank you can trust.

With a little diligence and some hard work you can bounce back from identity theft and protect yourself against being a victim in the future while still maintaining a good credit rating and fulfilling your financial dreams.

The post Restore your Credit after Identity Theft appeared first on Your Colorado Springs Realtor.

Prevent Identity Theft

Hilary — Thu, 07 Nov 2019 02:14:23 +0000

Prevent Identity Theft

From Happening to You.. We Show You How!

By HILARY JOHNSON

Prevent Identity Theft

From Happening to You..We Show You How!

Identity theft is a terrible crime and it happens to thousands of people around the country every day. With the onslaught of technology and the sophistications of the identity theft industry, you can often fall into a trap without even knowing it’s right in front of you.

The best way to protect yourself and your families are to follow a few easy tips that can protect you from identity theft criminals and the mind-blowing damage they can cause both emotionally and financially.

Tip #1: Protect you pieces of identity.

It’s important to protect the items that share your identity. This includes you social security card, your state identification, your work identification, your car registration and insurance cards, your birth certificate, stocks, bonds, investments, banking information, credit information, vital records and anything else that can be used to gain more information about you to use against you.

If you are a mother, or even a single parent, you likely carry the same information for your children. They are most vulnerable because they have not yet entered the credit world and though their date of birth will be accessible to potential creditors, it is often not checked.

You should only keep copies of your social security, vital records and all investment or banking information in your home. These should be kept in a fire-proof safe that is bolted to the floor of a closet or secured to the house in some other way. The originals should all be in a safety deposit box with a bank you can trust.

Tip #2: Monitor your credit.

It’s vitally important to purchase and monitor all three of your credit reports on a yearly basis. You can order them for your children too and it’s a good idea to do so. This gives you the chance to get familiar with your credit report and learn how to look for and dispute mistakes on a regular basis which will allow you to catch theft in enough time to recover from the theft and work with creditors and reporting agencies to restore your credit back to the way it was.

Tip #3: Shop and spend wisely.

This is most important if you shop online. There are so many options for shopping online now and the convenience is amazing with next day to your door service without every having to go to the mall, grocery store or other place.

You can also pay bills online and maintain your investments, but all this access leaves you wide open to thieves who can hack in and monitor the financial information you put into and save in your computer and online accounts.

To help avoid this erase your cookies on a regular basis and only shop on sites that are certified secure.

There are many ways to prevent identity theft and with a little practice you and your family can help guard against identity thieves and avoid a terrible situation.

Working to prevent identity theft can also make for a quicker recovery if a theft does occur and help you to bounce back with minimal damage to your credit and future borrowing power. To win the fight against identity thieves it’s important to stay diligent and always be watching for mistakes and things on your credit and accounts that just don’t seem right.

Teach your children to do the same thing from a young age and they will learn to respect their credit right from the start.

The post Prevent Identity Theft appeared first on Your Colorado Springs Realtor.

10 Ways To Improve Your Credit Part Two

Hilary — Mon, 28 Oct 2019 02:43:40 +0000

10 Ways To Improve Your Credit

Part Two

By HILARY JOHNSON

Ten ways To Improve Your Credit

Part Two

#6: DO USE CREDIT

You are likely confused. Didn’t we just say not to use credit but to pay down your debt? This is true and should be something that you spend a good deal of time doing. If you are carrying debt month to month, it is likely costing you great deal of money. Paying down your debt as much as possible is a must to get your credit score up. The problem you may encounter, though, is that once you have paid off that credit, you have no real credit history for the current period.

So, what do you need to do? Work to pay down your credit. If you are carrying debt month to month, pay it off as quickly as possible. You will definitely want to maintain only lower balances whenever it is possible to do so.

Once you have it paid down to a level you feel comfortable about paying off within a month’s time, use your credit again. However, there are some very strict guidelines to remember here:

Only make purchases you can pay off within the month. You want to get the bill and pay off the entire balance.
Know your grace period, or the amount of time you can borrow money without accruing any finance charges. Most lenders have a 25-day period between months that allows you to use the credit line and pay it off without incurring any finance costs.
Use credit only when you need to. Instead of making large purchases using credit, use it for those costs that you are confident you can repay each month. For example, you may want to use a credit card for your gas purchases throughout the month, knowing you will have the funds to repay the debt. This allows you to accumulate no debt month to month.

Credit card debt is not a good thing. Still, in order to have a good credit history, you will need to use credit from time to time. Show that you are a good credit risk by making payments on time each month to pay off the total amount of money you borrowed throughout the month.

#7: PAY MORE THAN MINIMUM PAYMENTS

One of the mistakes many people make is to make payments on their accounts but only to make minimum payments. The minimum payment on your account is perhaps the worst payment to make besides no payment at all. Even paying a few extra dollars is better. Here is why.

If you pay just the minimum payment on a loan, any loan, it is likely you will pay that debt for years longer than you need to. On a credit card, borrowing just a few thousand dollars may mean only paying $50 a month to repay this debt. But that minimum payment is only a fraction larger than the finance charges for each month. You will remain in the loan ten, twenty or even thirty years depending on the amount of debt it is. For this reason, it is exceptionally important for individuals who are carrying debt month to month to pay off that debt as quickly as possible by paying more than the minimum payment.

Look at it another way. You may not have thought about paying extra per month on your mortgage payment but this too can help you. For example, if you pay a few hundred dollars extra each month on your loan, or you may payments every other week rather than once a month, you could cut five to ten years off the loan’s length. This also means a savings of hundreds of thousands of dollars in interest charges. Use a credit card calculator or mortgage calculator to figure out what you are really paying to borrow those funds and to pay it back so slowly!

#8: BUILD CREDIT WITH SECURED CREDIT CARDS

Perhaps you already have bad credit. Cleaning up your credit card and removing any of the old, outdated information there should help. You may also see an improvement in your credit score if some of the creditors are unable to prove your obligation to pay the loan. Yet, even when you do clean up your credit report, the damage to it over this period of time can be harsh to your credit score. One way to boost it is to obtain new credit and work towards showing that you are a good risk by making payments on time and keeping your balance low.

Like all good catch 22’s, though, to build credit means that you would have to have access to it. The good news is that there are options available for doing just that. These are called secured credit cards. Your goal is to find a credit card that’s secured that also reports to credit agencies. Many now do this since it is far more attractive to the borrowing when it does.

A secured credit line is quite different from a standard line of credit. Here, the credit line you are given is based on the amount of cash you have paid towards the card in the form of a deposit. For example, you pay $1000 of a deposit and therefore have a $1000 credit line of credit to use. You’ll use it and make payments on it as you do with a standard line of credit. The difference here is that your balance is there for “just in case” situations where you may default on the loan. The lender has protection from this.

At the same time, your good credit habits are also helping you to get a better credit score since the card is reporting each month to the credit agencies.

#9: KNOW WHEN YOU NEED HELP

There will be times when you just cannot get out of debt on your own. You may find yourself struggling to make enough money to meet just the minimum payments not to mention paying more than you owe. If you are struggling with your debt load, seek help. There are a variety of for profit and not for profit options available to help you to get out of debt.

In order for your credit to improve, you need to get out of debt first. If you cannot do this on your own, the next best option is to secure the help of a professional who can work with you and your lenders to get the debt paid.

One option to consider is debt counseling. These professionals work with your lenders to get a lower monthly payment, to reduce the amount of interest charged to you and sometimes to lower the amount you owe. You’ll be on a monthly payment plan requiring you to make a set amount payment each month. That single payment is divided by the counselor and paid to each of your lenders every month. Debt counseling can initially hurt your credit score, but over time, you will be paying down your debt and therefore find your way out of the debt hole. You may see your credit score increase because you are paying off the debt.

Bankruptcy is another option for some, when all hope is lost in making monthly payments. Take it easy, though. Bankruptcy will put a black mark on your credit report for the next ten years! That is a long time to have a hurt credit score with no way to clean it off your report.

#10: LIVE THE LIFESTYLE YOU CAN AFFORD

Perhaps the most important bit of help available to you is this simple sentence. You need to live the type of lifestyle that you can actually afford, not one that is reliant on credit cards. The sad fact is that if you take away all of the debt you had, you probably would have much more money per month to buy what you want and to live the way you want to. The key is not to have to pay the finance charges that often hurt the average consumer.

Determine what your lifestyle is by using a cash only system for at least one month. For that entire month, do not make any type of charge to your credit cards. You will need to still pay them on time, including your mortgage loans.

Instead of charging dining out or purchases to a credit card, only use cash. At first, you may find this very limiting, but imagine if you actually had all the money available to you that you are currently paying towards your debt each month. What you may find is that it is not only affordable to live on cash only but it may be a better lifestyle with less stress.

Making good decisions about credit is difficult to do, for anyone. Yet, you can easily accomplish this by spending your time making good financial decisions overall. The process will allow you to walk away finding yourself in a financially sound situation rather than a financially poor situation.

Use these ten tips to help you through the process of cleaning up your credit debt, not just today but going into the future, too.

The post 10 Ways To Improve Your Credit Part Two appeared first on Your Colorado Springs Realtor.

Save Your Credit

Hilary — Wed, 16 Oct 2019 01:40:29 +0000

Save Your Credit

While Getting Rid of Student Loan Debt

By HILARY JOHNSON

Save Your Credit

While Getting Rid of Student Loan Debt

Student loan debt plagues many Americans around the country and is not a debt that can be erased with bankruptcy or other financial tactics. Student loans seem to creep up on many people as they are deferred during the time in school and then appear ready for payments to be made upon graduation when you are trying to find a job and gain your standing in the world.

While, school loans tend to be the best loans out there with lower interest rates, reasonable payments and deferment options for those having difficulty paying the payment, they do need to be paid and if they are not can have negative repercussions if left to default. School loan debt can be dealt with through debt consolidation loans and can often find a lower payment or interest rate than you are currently paying.

Debt consolidation companies offer debt consolidation loans which are designed specifically for those who need help in getting their monthly loan payments under control by consolidating them into one loan with only one monthly payment and one interest rate.

The debt consolidation company issues you a loan for the amount of all your loans and then pays off your existing loans. This can bring instant relief from harassing phone calls and letters, as well as bring a good standing closure to your existing accounts which can help save your credit rating and score.

When looking for a debt consolidation company it’s important to do your homework and find out as much as the company, the staff and the loans and services offered as possible. They should never ask you for money before the services are complete and many non-profit companies offer debt consolidation services and loans.

If you are checking out their web site look for certifications, staff information, services offered, company history, loan information, physical address and contact information and real customer testimonials.

Before meeting with a debt consolidation specialist you will need to gather together your school loan information and have an accurate account of what you owe and to whom.

Sit down and make a list of all your school debt with the following information for each account: creditor, current balance, interest rate, contact information and current monthly payment. This will give you an overview on what you owe and what the loans look like. Then take a breath and add up the total of school loan debt you have.

This may be hard if you have no idea what you owe, but it’s important to be knowledgeable about your debt before seeking help. The more the debt consolidation company knows about your situation, the better they can fit you with a loan and the right services to help your specific debt situation.

Debt consolidation can be a great way to help you get your school loan debt under control and save your credit at the same time before you default or cause a negative impact on your credit report and score.

When considering a debt consolidation plan take time to meet with a credit counselor to plan for the future and learn how to handle your finances and future loans successfully to avoid having to find additional services or financial help.

Take the time to learn as much as you can about your credit, financial status and more early in your adulthood to best plan for your financial success.

The post Save Your Credit appeared first on Your Colorado Springs Realtor.

Debt Consolidation

Hilary — Sat, 12 Oct 2019 01:30:10 +0000

Debt Consolidation

How You Can Find Relief From Medical Debt

By HILARY JOHNSON

Debt Consolidation

How You Can Find Relief From Medical Debt

Medical debt is a heavy weight on many households around the country. Medical debt is often not something that can be predicted or planned for and with medical insurance as fickle as it is, you never quite know the burden you are going to be left with.

While, medical debt can be bankrupted, it’s important to try to find alternative ways to deal with it to avoid extreme financial decisions, like bankruptcy or garnishments.

Debt consolidation is just one way to work with medical debt and find a way to pay it all without defaulting and causing major financial repercussions. Debt consolidation works by working with a debt consolidation company who can offer you a loan to cover the cost of all your medical bills and leave you with only one loan with one monthly payment and one interest rate.

This can often bring instant relief from harassing phone calls and letters, as well as relief from the high multiple monthly payments you are likely making to keep up with your medical debt.

Credit counseling companies should also completely inform you of the work you can do on your own and the laws surrounding debt consolidation and credit repair.

Debt consolidation companies can be found online and in physical financial institutions. When looking for a debt consolidation company it’s vital to take the time to do ample research about the companies you are most interested in to make sure you are working with a credible company with quality loans and staff.

There are more regulations surrounding debt consolidation and credit counseling companies, there are also still many fly-by-night companies taking advantage of people everywhere. Take the time to look at the web site of the debt consolidation company you are most interested in and there should be ample information on the web site about the business, the people who work there, the services they provide and other information.

Look specifically for full contact information including a physical address, authentic customer testimonials, certifications for the company and the financial advising staff and information about fees for their services. You should never be asked for money before the services are completed, but you should know what to expect to pay for the services they are offering.

Before you approach a debt consolidation company to be matched with a loan, you need to know and understand the level of medical debt you are dealing with. To do this pull out all your medical bills and credit report (for past bills) and make a list.

For each account you should list the creditor, creditor’s contact information, current balance, interest rate and what you are currently paying per month. This will help you understand how much you have been paying monthly to try and keep all the accounts at bay and see your average interest rate, so you can shoot for lower numbers on both parts when you are shopping for a debt consolidation loan.

The hard part comes next, you need to add it all up and write it in large numbers on top of the list. This can be intimidating, depressing and just plain hard, but the first step toward taking control of your medical debt is through facing it head on with honesty.

The post Debt Consolidation appeared first on Your Colorado Springs Realtor.

10 Ways To Improve Your Credit

Hilary — Sat, 28 Sep 2019 02:37:34 +0000

10 Ways To Improve Your Credit

Part One Through Five

By HILARY JOHNSON

TEN WAYS TO IMPROVE YOUR CREDIT SCORE

Part One Through Five

Your credit report is one of the most important tools you have in the financial world. It defines who you are to lenders of all types. Removing errors from your credit report, or “cleaning it up” is only one part of the process. You need to ensure that you are doing everything possible to keep your credit report in stellar shape so that you also look great in the eyes of a credit card company or home mortgage lender.

Part of this process is to tackle the errors on your credit report. That is the right place to start since this information is hurting you for no real reason. As you wait to find out if the errors will be removed by the credit reporting agency, take some time to work through the following steps.

These ten methods to improving your credit score are simple and straightforward, but they also provide you with the resources you need. They may not be easy to do and most of them require time. Nevertheless, making key decisions right now will help you to get back on track and have a high-ranking credit score.

Keep in mind the importance of a quality credit score. With many banks and lenders tightening their lending practices, they simply are not giving out the types of loans you may be used to getting with an average or lower credit score. In fact, if your score is not in the upper 700’s, you may be unable to get a home loan without a significant amount down.

The days of having a 400 credit score and getting a great line of credit may not be back anytime soon. Therefore, take steps right now to improve your credit score so you do not have to hope that you can get that home of your dreams.

#1: MONITOR YOUR CREDIT REPORT

As we have talked about, knowing what is on your credit report is the key to being successful at managing it. But, just pulling your credit report one time is simply not going to cut it. You need to know what is happening on your credit report regularly.

It is an option to get a copy of your credit report for free only one time per year from each of the three credit bureaus. This means that you can get a copy of your report every four months for free. Most of the time, the information included on one will be the same as all three reports. Nevertheless, there can be differences, which is where you need to be cautious.

If you have found very few mistakes on your credit report up to this point, do not worry about doing anything more than what you are already doing. As long as you are monitoring the report every four months, you should be all right and you should catch errors often enough.

On the other hand, if you have a credit report that has been full of errors, especially those concerning identity theft or larger scale problems with address mistakes and problems with particular creditors, it is best to look for a service to help monitor your credit. These services are available through each of the credit reporting agencies, TransUnion, Equifax and Experian.

There are a variety of types of service and reporting options to consider here. For example, you may choose to have just a copy of your credit report sent to you each month. You may want to watch your credit more closely and want to have a new report more often, such as every few weeks. You may want to know your credit score, too. The more often you need to know your credit report information, the more costly the reporting costs will be. The credit score is usually an additional cost to the credit report.

Reporting services like these can range in cost from $10 a month up to $30 or $40, depending on the type of service you select. Choose what works best for your individual needs. It may not be necessary to have a product that provides you with a large amount of information or frequent reporting, unless you have been having significant problems.

#2: USE CREDIT WISELY

Credit is like a gift. You get it, but only for as long as you take care of it. Stop taking care of the gift, and it will fall to pieces. It is much more difficult to pick up those pieces and tries to put the puzzle back together than just to maintain the gift in the first place.

Take credit seriously and only use it when you need to use it. For example, it is important to realize that credit that is used during the month should be paid off within the month. That way you do not pay any financing charges and your balance remains low.

It may be important to know what the credit reporting agencies think is important when it comes to credit reports:

Low balances compared to the amount of available credit Payments are made on time.
You do not have too many credit cards.
The amount of total debt you have is not too high, or higher than what is considered appropriate for your income level. This is a debt to income ratio.

It is best to keep the credit you have low in use. Make your payments on time and be sure that you are monitoring your credit limits as often as possible. Paying off the balance on your credit cards on time is quite helpful to maintain a low balance and saving yourself a good deal of money in the process.

Credit is a necessary for purchasing a home and buying a car, most of the time. You will need it throughout your life, which is why you will need to keep your long-term financial goals in mind when using credit for any reason.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

#3: PAY YOUR DEBT DOWN

If you are like most Americans, you have a sizable amount of debt already. How in the world will you be able to get your credit score up if you are struggling with a large pile of debt? The tips provided here should be a great place to start. The key is to work towards your debt step by step until you can pay it down totally. In other words, if you have a lot of debt, just start working towards paying it down now.

There are two main objectives to consider when paying down debt. Choose the method that works best for you.

Pay down your debt pay making the minimum payments on all of your accounts except for the one with the lowest amount owed. Pay this one with as much as you can until it is paid off. Then, take all the extra you have (including the minimum payment from the first paid off account) and apply it towards the next lowest debt you have. Keep going one by one. The benefit here is that you are paying down your debt quickly: you will see results more often at first, which is great motivation to keep going.
Apply the same practice as in the last method, but this time, arrange your debts by the amount of interest that is charged on them, with the highest debt being paid off first. This way, you are able to pay down the type of debt that is costing you the most. Technically, you will pay less on the debt this way, too.

In either of these options, stop using your credit cards regularly. Put them away. Save them for a rainy day. Put away $1000 into a savings account for emergency needs. Use it just for emergencies. This keeps you from applying too much debt to your credit cards. Eventually, you cut your debts considerably.

#4: MONITOR AND LIMIT INQUIRIES

As mentioned earlier, inquiries on your credit report will detract from it. It is inevitable to have some, especially if you are looking for new lines of credit. The key is to keep them as low as possible. On your credit report, there is a separation between the two types of inquiries, those that affect your credit score and those that do not. The goal is to monitor both, though. If you are prone to accepting credit cards if offers are sent to you, sign up for a do not mail registry. You can opt out of future credit card offers by visiting the website of the Consumer Credit Reporting Industry at OptOutPrescreen.com. You can also locate the Federal Trade Commission for your state and request that these offers stop that way, too.

While you are watching your credit report, keep an eye on the credit

inquiries, too. You definitely have to ensure that those that count against you are monitored. Report anything that should not be there. In addition, if they do not come off your report within two years, these too should come to the credit reporting industry.

What about the way that you use those credit inquiries? The best way to keep them off your credit report is to ensure that you are not over applying for lines of credit. Here are some tips:

Choose one or two cards to apply for at any time. Limit the number of applications you file within 3 to 6 month periods.
When you are shopping for the best insurance or credit card, ask for quotes from the service providers without allowing them to pull a credit report. Let them know the approximate credit score you have. This will allow you to compare several lines of credit or insurance companies without having to subject your credit report to too many inquiries.
For larger loans, such as a home mortgage loan or car loan, again obtain quotes for loans based on your approximate credit score. This also protects your credit. Many lenders allow you to do this right online. If they do not, look elsewhere for the loan you need.

#5: DON’T OVER OBTAIN

Many times, it can seem like lenders are willing to give you an unlimited amount of credit. Beware of this. Lenders may see your credit report and believe you are a good risk. They may not realize that three, four or more credit lenders have also noticed this and also have offered you lines of credit. It is easy to get too much credit.

You may be thinking, “is there such a thing as too much credit?” The answer to this is yes! If you have too much credit, lenders will begin to freeze up on you. The problem is the credit to income ratio, or the amount of money you bring in with the amount of potential credit you have available to you. If you have too much credit, the lender may determine that you are too risky to lend more money to, even if you have a lot of open, available credit.

In this situation, you may not have a problem unless you are hoping to get a large loan such as a home loan or a home equity line of credit. In these situations, you may be limited. Obtain only the amount of credit that you need to have. Even if you do get offers from a variety of other lenders over the course of time, you do not have to get them all!

In situations where you receive an offer for a lower interest rate than the rate you are already paying, consider closing the original line of credit prior to accepting the new line of credit. If the account will close after you pay it off completely and it is not one of your oldest credit cards, you may find closing it to be an easy decision.

The post 10 Ways To Improve Your Credit appeared first on Your Colorado Springs Realtor.