A Guide on How to Repair Your Credit

To compute your credit score, points are added when you make on time payments and points are subtracted when you pay late. Some other things that can have a negative impact on your credit score include large amounts of debt, making minimum or zero payments, repossessions or filing for bankruptcy. The following is guide on how you can repair your credit.

One way to remove the debts on your credit report is to file for a bankruptcy, which results to a clean slate in terms of your debt. Moreover, you will no longer have debts, and no longer lose points due to those debts and late payments. However, only a few creditors check the actual credit report.

Although you will lose points for filing a bankruptcy, it is not like having a large amount of debt where you lose points every month. For this reason, a few people consider filing for bankruptcy as a way to rebuild your poor credit.

In contrast, you can build positive information in your credit report by paying your current accounts on time or even before due. Paying on time also means having enough money available. To be able to have available money, you must also modify your spending habits or lifestyle.

Your credit score is a number that is somehow an assessment of your ability to pay your debts. In fact, paying off a small account will earn you as many points as making your monthly payments.

Contrary to belief of some people, repaying delinquent debts will not increase your credit score. It will even decrease your credit and remains in your report relative to the date of your last payment, unless you can eliminate it by discussing with the creditor.

In addition, marriage does not have any effect on your credit score. However, if you apply for credit as a couple, the person with poor credit will harm the one with good credit. It is recommended to wait for the completion of the repair process and not apply for joint credit.

Need Car Insurance for Bad Credit?

Do you happened to have bad credit and was wondering how you can get your car insured? Well, fret no more, for this article will help supply you with what you need.

If you were caught in an accident and you need an insurance to cover for damages then the PLPD is for you. PLPD stands for Partial Coverage Car Insurance, this does not include the vehicle’s damage it itself.

Aside from the PLPD, there is also the Full Coverage Car Insurance which adds crash and complete damage coverage to your car. The other areas included in this contract are the actual damage that the vehicle caused to itself. If you want it to be more wallet-friendly it is available in different deductibility levels. If for example you had a $2000 worth of damage to your car and you have $500 deductibility collision policy, then you will pay $500 for the damage and the insurance will cover the rest. However if the damage is less than the deductibility cost then you will have to pay for the whole damage. If you have a high deductibility then your insurance premium will be lesser.

What do you need now? For all car loans even without auto loans, financial institutions will need full coverage car insurance. The minimum requirements will be taken care of by the company, and which kind of deductible will be up to the buyer. The company that will handle the insurance will also depend on the choice of the costumer.

According to a recent study, customer satisfaction will depend upon five factors. These are the interaction of the salesman, the price they will set, the policy offerings, billings and how they should pay for the contract, and the claims of the costumer for damages.

In the end of the day, customers should be led to the right path in finding the right company to trust for their car insurance. These companies should be perfect for the type of customer in order to properly suffice their needs and their budget.

Shadow of Credit Crunch Lingers

Dubai’s starting to recover from the its old debt fiasco, but the local legislators and rating agencies are still not taking the risk on reopening its doors to Arabia Gulf’s cheap credit lending.

The current bad debt liabilities of the United Arab Emirates currently totals at Dh1.7 billion, that is $16.79 billion in the US currency this is according to the data of the Central Bank. The financial institution is currently strengthening its early-warning systems to avoid repeating the same economic problems from arising.

Standard & Poor ratings agency has already added the number of their employees in the Dubai. Other financial institutions are now calling for more qualified credit analysts to aid them with their jobs.

The Arabian Gulf has incurred a $26.1bn worth of bonds that has contributed to the growing demand for credit ratings. Maijid Al Futtaim Holding and other similar companies are now trying to take baby-steps into the Islamic industry’s bonds.

According to the S&P’s regional managing director, Stuart Anderson, the company is currently trying to increase the number of workers that they are sending out from Europe. They have also sent out many analysts from different countries such as Paris, London and Frankfurt. The number of workers they had in their branch based at Dubai only involved three people in 2007, but has increased to over 24 employees in the beginning of this year. Most of these workers are ratings specialists.

The ratings agencies are also giving out hazard signals that the number of uncollected debts is still not clear indications of the financial reality. There could still be a hidden warning though about these accounts if they remain unsolved.

Ratings agencies such as S&P and Moody’s Investors Service, have been giving out these warnings of the reemergence of a global economic crisis from renegotiated problem loans. The Central Bank however has taken effort to protect the UAE banks from the financial shocks that may occur these past few months, as they try their best to regulate the flow of the cash.

Capital One to Pay $210M for Deceit

Capital One Bank is charged to pay 210 million dollars for the costs and compensation for the settlement of the deceptive credit card practices it has been involved in. The penalty for this giant company was imposed by the Consumer Financial Protection Bureau.

According to the Washington Post, McLean, the manager of the bank that is based on Virginia should repay the customers who availed the credit monitoring and add-on services that they charged. The bank allegedly hired a third party to prey on clients who were jobless and were suffering from bad credit. The callers from the bank would tell the customers that the services were free or compulsory. Some of them were even promised that their credit scores will boost when they apply for the service and that is not all; they were also told that it will grant them debt forgiveness when they have illnesses. Some of the customers were enrolled in the deal even without their knowledge, and they were fined for it.

This case is the first ever that the CFPB or the Consumer Financial Protection Bureau is handling and investigating since its creation in 2011. Republican lawmakers are opposed to its establishment and have been trying to shut it down for two years. However, in its two year operation, the CFPB is stronger than ever and now it is going after Capital One.

According to the CFPB director, Richard Cordray, the agency is going to make sure that the companies that are practicing deceptive acts contrary to law will not be tolerated and they will make sure that they will pay for their insolence. Breach

Ryan Schneider took responsibility for the illegal activities that their bank has done. As the credit card division president he admitted that they are liable for the work that their employees have done for them. The bank will be paying $25 million worth of damages to CFPB, another $35 million will be paid to the Office of the Comptroller of the Currency and they will be reimbursing $150 million worth of cash to over 2.5 million of their clients who had availed the service from August 2010 and January 2012.

Five Steps on How to Keep a Good Credit Score

One of the advantages of having a good credit score is that you can get good rate on a mortgage or any other type of loan. However, lending firms are not the only ones who uses your credit score but also some insurers, cell phone providers, landlords, and employers. Here are five tips on how you can build and keep a good credit score.

First, make timely payments because 35 percent of your credit score is derived from your history of paying your debts on time. Sign up for free email alerts that the majority of credit card companies send to the consumers. These will remind you more or less a week before so that you won’t forget paying.

Second, be cautious about how much of your available credit you are going to use because 30 percent of your credit score is affected by the amount you owe. It is good if you use 30 percent of it but it would be best if you use only 10 percent or less.

Third, do not close your old accounts because it will decrease your overall available credit. As a result, it might increase your utilization as well which, in turn, could more likely have a negative effect on your credit score.

Fourth, consider applying for different kinds of credit such as installment loans, those with a fixed payoff period, and revolving loans, those loans that are open-ended. Some examples of installment loans are auto and student loans, and an example of revolving loan is credit card. According to the credit agencies, it is best to have a few of each kind of credit.

Fifth, check for errors in your credit report. You can get a free copy of your credit report once every year from the big three credit reporting agencies – Equifax, Experian and TransUnion. If there are errors on your credit summary, account information or personal information, contact the creditor immediately.