Don’t Make a Deal to Get Better Credit

Who would not want to try out a deal, when it will only take you a couple of bucks to get a better credit score?

Today, a lot of ads from fliers to large billboards offer this opportunity for customers but really, even if money is indeed to boost your credit you do not need other people to do that for you. Oftentimes, instead of helping you gain a better credit, they give you with a bigger headache.

Take the experience of Pine Bluff, he gave $500 so that he could have his credit score improved. His long wait for the credit status improvement never paid off. Bean Eagle, the man he gave the money, was nowhere to be seen.

After searching for Ben’s whereabouts, the authorities found out that he has been locked behind bars for over a year, and he’s got another year to go to for his sentence: insurance fraud.

Clients should be careful who they give their trust to. Here are some things you should always put to mind: don’t trust anybody who asks for money in exchange for good credit or if that somebody tells you that talking to credit bureaus will be no help.

Bad credit is not the kind of problem that goes away overnight. When someone asks you to drop everything and leave it all to them that they will take care of your problem, they are lying.

Anyone who is really willing to help you restore your credit will ever charge money. They will not take the responsibility of improving your credit score for you.

So, you want to have better credit? Take these tips at heart: first step in recovering from bad credit, pay bills on time, even if you just pay for the minimum amount. If you fail to pay on time, don’t wait after a month to settle the account.

Second, always check your credit score and review them for possible mistakes. Finally, use money to pay for your purchases and bills until your credit account is back on track.

Benjamin Eagle may be behind bars, but he’s not the only criminal who’s willing to prey on unknowing clients.

1.5 Million Credit Blunder by Global Payments

One of credit cards’ worst histories of security breach has occurred this year. Visa and MasterCard users are facing the possibility of having their personal information stolen and according to sources Global Payments was the one to blame.

No records of credit card accounts, Social security numbers, house address and much other information were said to be taken from the archives of the company. However, Global Payments admit that they have been the mishap of the system and they estimated that about 1.5 million of their subscriber’s records have been tapped.

According to the company, though personal info was not taken, the possibility of identity theft and fraud may happen. In 2007, Heartland Payment Systems a company that manufactures swipe machines for credit cards also had their system hacked and 130 million credit cards were affected. For this weakness in their security, they had to pay a $139 million worth of legal charges in 2009, and it is very likely that Global Payments will suffer the same fate.

Visa has already removed the company’s name from its official list of providers; this is until they fix their security system. This does not prohibit Global Payment from delivering its job;though the move momentarily marks them for potential danger. The company expects to be restored in the list after they have updated their safety measures.

Last year, Global Payments had over 2.44 billion dealings with its 800,000 merchants all over the United States, making it rank seventh in the business.

Though investors may become hesitant in investing to the company after the incident, this does not mean that it will run out of business. Heartland, which had its blunders, was able to regain its loss. If Global Payments handles this fine, they will get their name reinstated in Visa’s list in no time.

Teens Should be Financially Literate

The month April has been declared as the National Financial Literacy Month. The purpose of this is to educate teenagers to be financially literate. It is very important for your young teenagers to know about credit rating before they are allowed to have credit cards. They have to know that lenders are investigating credit information before they issue credit cards. Educating teenagers to be financially intelligent would help them properly manage their finances in the future.

Avail of your free credit report. You can get a free credit report from the three big nationwide credit bureaus, Experian, TransUnion, and Equifax. These three bureaus have a common website at www.annualcreditreport.com. The free credit report is provided once every 12 months. You can also link to the Federal Trade Commission website at www.ftc.gov for free credit report.

Review with your teen the credit report. Evaluate your own credit report with your teen. Discuss with him or her every detail of information reflected in the report so that he or she can avoid financial pitfalls in the future. Discuss   most especially the importance of paying on time.

Essential information you need to discuss:

The credit report compiles the following information: Payment behavior of consumers, current balances and other information related to consumers’ credit cards and loans. Bankruptcies and liens are also compiled in the credit report. This information is reported by financial institutions to the three big credit bureaus.

What is the purpose of credit report? Credit report is the basis of lenders in approving or denying a loan or a credit card. It is also the basis of determining the rate of interest. A good credit history allows borrowers to get a new loan at favorable interest while a bad credit history requires a higher interest rate or it can even lead to a loan rejection.

Pay your bills before the due date. Credit report records every payment made. Payment made on or before the due date is a major factor in building an excellent credit rating. When the credit rating is excellent, consumers get the best interest rate for future loans, credit card and mortgage.

Renting an Apartment with Poor Credit

It might be difficult to rent an apartment if you have bad credit because a number of privately-owned apartment complexes ask for credit checks. If the applicant does not conform to their standards, they will refuse the application. Also, your application will still be declined if you have poor credit score, even though you have the income.

The answer to this dilemma is to completely avoid the credit issue. Other privately-owned apartments prefer applicants who have good recommendations from past landlords. However, an increasing number of private owners require credit checks so that they know who the good tenants or bad tenants are.

If you cannot get away from the credit issue, then you need to handle your poor credit report positively. The following are some steps to take to improve your bad credit.

First, get a copy of your credit report from either of the three credit reporting bureaus, Experian, TransUnion, or Equifax. Assess your credit report, or you can also ask help from a banker or financial manager, or you can also consult the internet. If you discover some erroneous information, discuss it with the lender so that if proven otherwise, the credit agency will cross it our on your credit report.

Second step is to converse with your prospective landlord. If you are uncertain of the impact of your credit report, ask questions to your prospective landlord.

Third, you can choose to look for a co-signer. Even though you have bad credit, asking a parent, spouse, or friend who has good credit will make renting an apartment easier. However, this might be a risky alternative because both your credit and your co-signer’s credit will be hurt if you make overdue or unpaid accounts, so make sure to always pay on time.

Lastly, you have to be ready to pay promptly. Other landlords accept tenants with bad credit but they increase the charges or monthly payments. Moreover, other huge corporations also accept tenants with poor credit but they have to pay more expensive security deposits.

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Avoid Credit Repair Scams

One of the negative impacts of the worsening economy is the increase in number of people who would like to repair their poor credit ratings. Because of this, there are many credit repair services that offer  assistance to help these consumers with poor credit ratings on how to fix them. But consumers are warned about credit repair services that are engaging in tricking people.

There are things that consumers must be cautious about a credit repair company:

• The company misrepresents the amount of savings the consumer can save or the substantial reduction in the consumer’s debt through getting the services they offer.
• The company sets a definite time to achieve the goal of repairing the poor credit rating of the consumer.
• The company provides an inaccurate percentage of outstanding debt.
• The company charges an upfront fee before giving the service to repair the bad credit.
• The company advises the consumer to make false statement about his credit history.
• Before signing a contract to get the service of a credit repair company, he should ask a copy of the “Consumer Credit File Rights under State and Federal Law” and he should also ask for a written contract of his rights and duties.

The contract must include:

• The amount of payment that is required.
• The description of services that will be done to fix the bad credit.
• The estimated time to attain the goal of repairing the credit.
• Cancellation form notice that needs to be filled up in case the contract is cancelled.
• A clear statement that no charges will be paid in case the contract is cancelled within three business days.

The consumer is advised not to waive any of his rights. He can file a complaint with BBB at www.bbb.org or with the FTC at www.ftc.gov and at www.coloradoattorneygeneral.gov.

It requires patience to repair a credit. You have to start now and choose the right road and avoid scams.

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