Can You Really Erase Bad Credit?

There are still a number of companies which send out emails, promising you a quick fix to repair bad credit. Some even go so far as to imply they can ‘erase bad credit’. These type of companies charge a significant fee and can’t accomplish anything you can do yourself. So, you may ask, what are the three ways to erase bad credit?

The first is the easiest. If you have debts showing on your credit report that are not your debts, write the creditor and ask for proof that the debt is yours. They may have mistakenly attached Mary H. Doe’s debt to your report – and you’re Mary J. Doe. Should the creditor fail to provide proof that you own the debt, within 30 days, the law prescribes a remedy: the illegitimate debt must be wiped off your credit report.

The second way doesn’t really erase bad credit, but it does correct your credit picture. If you have a debt you own, but didn’t pay, pay it off if it’s small enough. If the debt is larger, contact the creditor and make a payment arrangement you can fulfill and pay it off over time. Each timely payment serves to incrementally improve your credit score and also demonstrates new  financial responsibility.

The third way to erase bad credit? Well, this method takes a long time – seven years, to be exact. Seven years from the date you incurred the debt, the entry is dropped from your credit history and report. Until then, that black mark sticks with you and looks bad!

Most people with bad credit didn’t earn that rating intentionally, by simply opting to skate out on their debts. For example, if you lose your job or suffer some other financial catastrophe, the last debt you’re going to worry about paying is on a canceled credit card or perhaps a doctor’s bill. You’re going to be worried about maintaining the credit that’s still viable until your finances improve. Nonetheless, those bad debts sit on your credit report, bringing your credit score down and gradually excluding you from future loans or credit you may need.

Give your budget a very close look. Choose just a single legitimate bad debt showing up on your credit report and start paying it off. Cut luxury expenditures to the bone to improve your cash flow. When one debt is paid off, move right on to the next, until all old debt is paid, while your current active credit is maintained on a timely basis. While this strategy may sound painful, the austerity route can be surprisingly satisfying, as you see your credit get cleaned up and your credit score improve.

The bottom line is that the only bad credit you can effectively ‘erase’ are debts that aren’t yours. Those promises to ‘erase bad credit‘? It’s a myth. Do it right.

A Credit Card That Helps Eliminate Credit Card Debt

In a world where people are constantly worried about cyber security and protecting their financial information from hacker schoolkids in China, everyone seems to have overlooked a certain important source of risk to their cards – the cardholders themselves.  We all have credit cards that give us a line of credit that far exceeds anything we could ever afford to pay back. If we aren’t careful each time we fish a card out to pay an expensive restaurant bill or an impulse shoe purchase, we could get stuck with a runaway credit card bill in no time. MasterCard has a new plan now though, to help eliminate credit card debt-saddled families to find a little self-control.

They call this service inControl; as a matter of fact, Britain, that shares the kind of consumer culture we struggle with, has had this in place for quite a while now. It’s like your mother watching over your spending habits and telling you, “This far, and no farther”. If you get a card that has MasterCard’s nanny on board, any time you try to charge something to your card after you’v spent a certain amount, you’ll be declined. You will be declined by design (and not by accident as it usually happens). They have another incidental option to add on to this too – you can ask your bank to refuse all charges from certain countries. If your fear is that you will be targeted by cyber thieves from China or India or any of the former Soviet republics, you can ask your bank to make sure that no charges are ever allowed if they seem to be coming from any specified countries.

One wonders why MasterCard is bending over backwards to help you eliminate credit card debt or any possibility of it. The competition, Visa, Amex or Discovery just doesn’t seem to want any part of it. All they do is, to allow you to ask to be alerted when you cross a spending limit. If you choose to ignore the alert, you can go your merry way and spend as much as you want. Which just raises the question – in a country where people use their credit cards to routinely spend themselves into ruin, why hasn’t anyone come up with this yet? It just makes home budgeting that much easier. You just can’t spend at all over what you’ve determined to be safe when you’re all nice and sane sitting before you computer and managing your budget on Mint. Perhaps the credit card issuers never wanted to be your conscience when you went overboard because they actually profited from it.

You may think you already have this facility on Mint. Whenever you go over the limit, Mint sends you an alert. There’s just one little problem with Mint’s take on it – it doesn’t do live alerts. It takes up to a day to retrieve your spending information from the bank, to see where you’ve got carried away. In that one day with no alerts, you could probably do yourself a lot of damage. This would be a great idea for a credit card for a teenager in college. Not only could you put a cap on how much they spend, they can also make sure that they don’t ever get to use their cards at certain unsavory locations – perhaps at a watering hole.

Helping eliminate credit card debt is a great thing for the health of the nation. Usually, credit card companies don’t really see it that way. Whatever you spend over what you can actually afford to pay back, you pay interest on. And that is their main source of income. If they could only see that a healthy nation makes for healthy company, they wouldn’t be this shortsighted.

Struggling? Debt Consolidation Loans For Bad Credit Can Help!

The number of people with bad credit are quickly overtaking those with good credit! Blame it on the economy, politicians, greedy bankers and a tad of poor judgment on the part of consumers, lured in to more debt than they could manage. Soaring medical costs and a rising cost of living also figure in to this messy picture. Whatever the case may be for you personally, all you know is that you’re in debt up to your eyeballs and need a way back to a sound financial footing. One answer to this pervasive problem is debt consolidation loans for bad credit risks. Let’s see how you might apply this strategy to your finances, in a way that gets you back on track and on your way to an improved credit rating.

Lending institutions all have one objective: accruing cash. Although they enjoy added cash with penalties for late payments and higher APRs, their goal is not to bury you in debt to the point that you’ll simply default. They do want to squeeze you as much as the law allows, but if they were to cut everyone off, they’d soon go out of business. When you find that it’s next to impossible to meet all of those monthly payments in a timely manner, it may be time to look into debt consolidation loans for bad credit.

The purpose of debt consolidation loans is to give you an opportunity to tie up all of your monthly debts in a single monthly payment you can afford. There are consumer advocate organizations which make this their mission. When you’re looking for debt consolidation loans for bad credit resolution, look for websites with a ‘.org’ suffix. These are non-profit ventures which serve to help people with bad credit and no visible way out of their predicament, meet their obligations and save their credit rating.

There is a charge for their services, but it’s nominal, especially when you consider the benefits. A legitimate debt consolidation service has a wide network of contacts in the credit world. You present them with all of your debts and they set to work to reduce your total debt and monthly payments to an amount you can reasonably manage. They will contact creditors, on your behalf, and can often negotiate a lower APR, as well as getting the creditor to agree to waiving certain penalties you may have been assessed.

By the time the consultant has finished evaluating and mitigating as many adverse factors in your debt picture, they’ll put it all together in a packaged loan, giving you a single monthly payment that your income can support. Depending on your debt, it may take up to three years to entirely wipe out your debt, but in the end, your credit rating will be good and you won’t owe anyone.

Debt consolidation loans for bad credit may be the perfect medicine for your financial health!

How To Get A Credit Card For People With Bad Credit

Following the flush economic times during the 90s, almost everyone got bit in the wallet, coming in to the 21st century. As a result, there are now lots of people looking for a credit card for people with bad credit. Due to the size of this new market, bankers and other lenders have come up with just such a product. I suspect that if they didn’t address this need, they would have few customers left! The mission of any bank is to make money, duh.

So now, the banks have devised a new model of credit card, for people with bad credit. Granted, you’ll probably have to accept a higher APR than you’d like and won’t get the credit limit you might have formerly enjoyed. However, those APRs and credit limits can vary substantially, depending on the ‘points’ you accrue on the application. For example, if you have both a checking and savings account which you’ve kept in good shape – no overdrafts and regular deposits to your savings account, with few withdrawals – you’ll pick up a few points on their risk-factor evaluation.

How about your assets? Do you own your car, or are you still paying on a car loan? Owning your car is another plus, so long as it’s a fairly recent model. Your payment history does weigh heavily in the banker’s decision making process. If you’ve got a few late payments glaring out from your credit report, but you have a legitimate explanation, such as a major medical crises, or temporary job loss, don’t hesitate to tell the loan officer how this affected your ability to make timely payments and what you’ve done to correct the situation. Keep in mind that the loan officer wants to give you a line of credit and start collecting some interest, which goes right into the bank’s coffers, as profit. With the credit card for people with bad credit, it’s usually only a question of how much it will cost you and how big your line of credit will be.

If your credit history is really bad, you might get turned down. Before you apply for the credit card for people with bad credit, get a copy of your credit report. You’ll want to clean up any entries that don’t belong to you and pay off other debts you’ve overlooked or defaulted on first. You may find several small debts like this. Your best strategy here is to correct and eliminate as many bad marks as possible, before applying for the credit card for people with bad credit. Once you submit your application, this information appears on your credit report. If you get turned down, this lowers your credit score. Creditors view this application and turn-down to be indicative of a desperate consumer, obviously living beyond their means.

If your application is approved, be sure to read all of the fine print of the terms. If you don’t, you may get a surprise letter from the bank, letting you know your APR has just risen another 4%, along with a $75 penalty fee for one late payment! This is no way to restore your credit rating. Whatever you do, be sure that payment is made on time and that you don’t exceed your credit limit.

If you take good care of this financial opportunity, you can ask the bank to review your account in six months and possibly get a reduction in the APR as well as a higher limit. After all, that bank doesn’t want to lose your business to a more flexible competitor.

Use the credit card for people with bad credit to your advantage. Stick with just the one card until your credit rating improves. Then you’re well on your way to a credit card with friendlier, more manageable terms. Good for you!

Credit Card Cash Advance

Welcome to the era of credit cards! Any way you slice it, the almighty credit card has become a significant aspect of living today. While some people say it is a bad thing, others say this form of plastic money has made so many things possible for everyone. You no longer have to wait until payday in order to purchase something. The only downside is, this spending can get out of hand at times. Unfortunately this can mean debt for some people. Then again, you must keep in mind all of the ways credit cards have assisted you over the years. There are certainly some pluses to having a good credit card, and one of them is the credit card cash advance.

Just think; twenty five years ago, you could not even resort to a piece of plastic for a credit card cash advance. You would not have even heard of such a thing. Back in the 1980s, credit cards were just coming about for the middle class. For many years these pieces of plastic were only for the rich or affluent crowds. Nowadays almost anyone with a job can acquire a credit card. Of course your income will have a bearing on the credit limit you receive. This can be a wonderful thing in certain instances. For example, maybe you need a credit card cash advance at some point. This is one way to acquire instant cash for an emergency.

If you are unclear how a credit card cash advance works, it is basically a portion of money pulled off of your credit card. For instance, let’s say you have a 10,000-dollar credit limit on your Visa. Well, you can pull $800 off of the card, just like that. This can come in very handy if cash is needed, and credit is not allowed. However, you must keep in mind the APR or annual percentage rate that applies to the credit card cash advance. These are typically at their highest points for cash advances. In other words, the interest can be pretty hefty, if you choose to pull cash from your credit card. It is commonly over 20%.

An easy way to get better informed when it comes to credit card cash advances is by checking out the websites for major credit cards. Try looking at Chase.com, ShieldFunding.com, or GenesisCapitalFundingGroup.com. These sites all offer ample information and advice regarding credit card cash advance loans. It is prudent not to pull money from your credit card if you do not need to. Also, it is a good idea if you do pull money off of your credit card, to avoid taking out more than you need. This way you will owe less money in interest for the cash withdrawal.

Be Sensible With College Student Credit Cards

When you are in college, every cent tends to count. If you have already been through school and paid your own way, then you can certainly relate to this. After tuition and textbooks are covered, you hope you have enough money for room and board. There are months where the dollar has to be spread pretty thin. Hence the common macaroni and cheese meals that college students are known for. This is where college student credit cards come in handy. Although you may not have known it, there are various options when it comes to credit cards for college students these days. These can really assist you with getting through school.

If you have never applied for a credit card, you should first know that it is a very easy and convenient process nowadays. Especially when you consider the fact that it is all done online. If you have a computer and access to the World Wide Web, you will certainly have no difficulties applying for college student credit cards. Furthermore, it does not take long to fill out a simple application. You will need to know your basic information, so that the company can run a check on you to see if you are worthy of a student credit card. As a college kid, you are not likely to have any dings on your credit yet.

The reason many students appreciate college student credit cards is the additional funds they have access to when needed. Have you ever been in a situation where you did not have enough money to cover one or two of your monthly bills? Or, maybe you successfully paid all of your bills for the month, but now lack the additional funds to buy groceries for the week. This is definitely where a student credit card can come in handy. You can simply charge the bill and pay it off later. As long as you do not abuse this and waste money on needless things or material items, you will be okay in the long run. It is all about being sensible.

As you may know, one of the major perks of college student credit cards is the low interest rates they generally have. It does not matter if it is a Discover, MasterCard, or Visa, college student credit cards often have low APRs so that students can handle the monthly percentage rates. However, the available credit amounts on credit cards are typically low for college students. You may want to find additional information on credit cards for college students by browsing through websites like CitiCards.com, Discovercard.com, and CapitalOne.com. This is a great way to find the right college student credit cards to meet your needs.

How To Get A Car Loan For People With Bad Credit

If you’ve got bad credit, you probably know it! Now your car has gone south and you’re looking to get a car loan for people with bad credit. Geez. From bad to worse, you might well think. No, don’t throw in the towel yet. Getting a car loan, even with bad credit, is a doable project. You just need to know the rules of this particular financial road.

The saving grace in this scenario, is that even the banks recognize that a car is essential to just about everyone. That being the case, they also know that the last thing you want to lose is your car. This means that you might be late on your payments for anything else, but not that essential vehicle. Whether you want to finance a new or used car, they’ll adjust their sights accordingly. Does your income to debt ratio support the proposed payment on this car loan? If so, you’ve passed test number one. Now, how much money are you bringing to the table? This means the down payment. The larger the down payment, the better  is your chance of obtaining that car loan for people with bad credit. If you’re willing to part with a sizable amount of cash to buy the car, you’re going to make that payment on the car loan before anything else. Who wants to lay out $1000 of their own money, only to have the car repossessed when payments aren’t made on time? It becomes a lose-lose proposition. You lose your cash and your credit rating goes down.

Do you have direct deposit in place for transferring your paycheck to your bank account? Do you have a savings account? Do you belong to a credit union? If you can say yes to any of these, your chance for the car loan for people with bad credit increases exponentially with each ‘yes’ answer.

Even cold-hearted bankers know that there are any number of legitimate reasons you might end up with bad credit. The lender will look over your credit report and it will be apparent, with even a cursory perusal, that the loss of a job or a monster medical bill is all it takes to explain your current bad credit score. The question becomes, given your credit and employment history, and where the credit blips occurred, are you a credit worthy risk? Given that you’re putting a substantial sum down on the proposed car and demonstrate fiscal responsibility with a savings account, direct deposit and/or credit union membership, you start to look better and better as a credit risk.

No, a car loan for people with bad credit isn’t impossible. You just need to understand the rules of this road. Good luck!

Buying A Car With Bad Credit – How To Get A Good Deal

In today’s dismal economic woes, buying a car with bad credit may seem to be, at best, a bad deal for you, the consumer. However, as they say, when you’ve got lemons, make lemonade. Today, there are probably as many people with bad credit as there are those with good credit. So it’s time to assess your advantages and make them work for you. You can’t disregard the disadvantages of a bad credit rating, but at the same time, you can make the most of what you have in your favor. Your length of employment at your current job can be a definite plus. In the same vein, if you’ve banked with the same bank for some years, and have a pretty clean record in terms of overdrafts, have direct deposit and a savings account with regular deposits, these points all work in your favor. If you belong to a credit union, this is another plus.

When buying a car with bad credit standing between you and a lender, remember that they’re in the business of lending money for a profit. Some things never change. The blunt truth is they’re in business to make money. If a lender has sufficient data to deem you a reasonable risk, you can most likely get a loan. Consider too, that, when buying a car with bad credit, the vehicle title remains in their name until the loan is repaid. In other words, the car serves as collateral. Should you default, they can repossess the car and auction it off for the balance of the loan. This is their last road of resort, but in the end, they recover their money.

This means that you should talk to lenders with whom you already have an existing relationship first. They are most likely to give you an auto loan at the best rate. If you can arrange a commitment for an auto loan, this opens the door to the widest venue of buying options. You can buy from a private party, a used car dealer or a manufacturer’s dealership for a new or used car.

When buying a car, with bad credit as the down side, you want to make your prospect as a loan candidate as attractive as possible to a lender. One way to accomplish this is to put down a large down payment. The lender then knows that you have a vested interest in keeping your car and making good on the remaining balance of the loan. If you have a second car to solve transportation problems in the short term, sell your current car on the private market and use the sales amount to fund your down payment. You’ll be money ahead on interest and a shorter, smaller loan payment.

Be aware that banks won’t loan on a car that’s more than 9 years old. The auto financing companies that used car lots work with will, but you’ll pay a heavy price on the financing. This route is not generally a smart deal.

In summary, buying a car with bad credit isn’t really all that difficult. What’s difficult is finessing your strategy to benefit you. Now you know the ropes!

Finding The Best Debt Consolidation Company

For many Americans, it is a serious challenge getting debt under control. It tends to all begin with a simple credit card application. After that, all sorts of things can happen that cause you to go downhill. You see a new MPs player you have to have, and then it is a couch for your apartment, followed by a new laptop, and the list goes on and on. You naturally pay your minimum payment each and every month. However, this does not really encourage your balance to drop. Especially not with the terrible APR you have on the credit card. This is the very reason many people are seeking out the best debt consolidation company.

Think before you purchase. This may very well be the key to staying out of debt. However, this does not exactly help the majority of us who are in serious debt. Once you realize you are 10, 20 of 30,000 dollars in the whole to one or several organizations, it is definitely time to have a reality check. More specifically, it is time to acquire the assistance of the best debt consolidation company you can find. This is definitely well worth your time and effort. You see, once you get the wheels in motion, you can really begin getting out of debt, and on with your life. Just imagine how much less stress you will have to grapple with daily.

One way to get started dealing with your debt is by looking into organizations such as CareOneCredit.com, ConsumerCredit.com, and InCharge.org. You may additionally want to check out debtconsolidationcare.com for answers. These are helpful sites that can really assist you with finding the best debt consolidation company to help you personally with your debt. Since not everyone is the same, and different people owe different sums of money, it is important to check out a number of debt consolidation organizations in the beginning. It is wise to make a list of questions that you need to ask them regarding what you owe, and how long it may take to pay off.

A lot of dealing with debt is getting control over monthly bills. often when people find themselves drowning in debt, it is typically due to the monthly sums they have to fork out to various companies. However, if you speak with the best debt consolidation company to suit your needs, they can aid you with consolidating all of your debt into one reasonable monthly payment. This way you will only have to deal with one bill each month, as opposed to several. Furthermore, you can commonly get a lower interest rate, which means you will be losing a great deal less cash every month to interest alone. Do not wait to find the best debt consolidation company to get your debt in order.

Beware Of Bad Credit Instant Approval Credit Cards

If your credit rating has been impacted by the economic slump, you’ve probably seen your mailbox getting stuffed with those offers for ‘bad credit instant approval credit cards‘ almost every day. You’re certainly not alone – tens of millions of Americans have fallen victim to the vagaries of this declining economy, resulting in a once good or decent credit rating dwindling down to a poor rating. There are a myriad of reasons; perhaps you’ve been laid off, had a reduction in work hours or pay, experienced costly health problems or simply can’t keep up with spiraling food costs. Just a few missed payments can send your credit rating way south in a hurry. You may think, “Desperate times call for desperate measures”, which makes you easy prey for those cleverly written ‘offers’ for bad credit instant approval credit cards. Along with the ‘advance payday’ loans, these types of offers should go straight from your mailbox into the round file. Here’s why.

Think about how, several years ago, the banking industry lured millions upon millions of Americans into mortgage loans they really couldn’t afford, encouraged by brokers and lenders to ‘fudge’ on the data on their loan applications, either inflating their real income, or convincing them to accept some of the more creative financing packages, such as the ARMs. Today, we see the disastrous results: foreclosures on these loans are at a record high. This is quite similar in nature to those solicitations for bad credit, instant approval’ credit cards you now find burgeoning in your mailbox. Let’s take a closer look at this latest banker’s ploy.

The friendly, clever copy of the cover letter is designed to make you believe that taking them up on this offer may help you out of a tight spot. Nothing could be further from the truth. When you examine the fine print, you’ll see that the APR is outrageous. Should you miss a payment, even by a day, that already hefty APR automatically goes up and you’ll be assessed a substantial fine – think $75 or more! There have been many documented cases of lenders, receiving a timely payment and then deferring processing the payment for a day or two, just so they can raise your APR and assess you that substantial fine. Keep in mind that only one incident like this can then eat up the rest of your credit line!

Probably the key phrase in these so-called offers for bad credit, instant approval credit cards is ‘instant approval’. You already know you’ve got bad credit and are desperately looking for an immediate solution. Legitimate ‘instant approval’ credit card offers are approved only for those with an authentically near-pristine credit record.

If you’ve got bad credit, you need to work your way out of it the ‘old fashioned’  way. Sharpen your pencil and give your budget a good amount of scrutiny. Cut all unnecessary spending. If you have one or more small debts, squeeze your budget and pay them off, one by one. Try to make at least the minimum payment on existing credit cards. Consult with a non-profit debt consolidation organization to see if you can’t consolidate your current debt and reduce your total monthly payments. The moral to this story? Avoid those bad credit instant approval credit cards like the plague! Good luck!