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Most people don’t give much thought to the importance of credit until they need it.  When they go to apply for a credit card they discover that their bad credit keeps them from getting a card, or a card at a decent rate.  Most people want to pay their bills, and remain in good credit standing.  Nobody wants to be seen as a deadbeat to the credit card companies, but because of a couple of tight financial situations in the past they cannot get approval for a credit card.  There is a way around this problem.

There are a few companies out there that understand your situation, and want to help you to obtain a better credit rating.  These companies offer secured credit cards.  A secured credit card is a card that you make a deposit to which determines your credit limit.  You can use your card just like any credit card, but your purchases are limited to your deposited amount, (similar to a debit card).  Before applying for a secured credit card you must make sure that the card reports to the major credit reporting agencies.  If they do not report then that card is nothing better than a glorified debit card.   In extremely simplified terms when a secured card sends reports to the major credit reporting agencies they are showing that you are paying off your debits, and you are less of a credit risk.

Here’s a brief example of how these cards really work.  On the surface it works just like a debit card.  Let’s say you made a $200 deposit to your secured credit card.  You then go to the store and make a $20 purchase.  Your account balance is almost immediately reduced by $20 to $180.  The key to these cards is when the credit card company goes to report your information to the major credit reporting agencies, (the better secured card companies will report monthly).  In simplified terms, the credit card company will tell the reporting agency that you made a $20 purchase on your credit card, and it was paid.  As far as the reporting agency is concerned you are making good on your charges.  This is a sign of a good borrower.  Even if you have had problems with credit in the past the reporting agency is seeing that you are now less of a default risk thus bumping up your credit score.  After time you become more appealing to other credit card companies and you will more readily be accepted for traditional credit cards.

Improving your credit is not a quick and easy task.  There are many other things that factor into your credit score, but this is one action that you can take on your own.  A secured credit card may not fix severely damaged credit, but for many people it’s a step in the right direction.  It will not make your credit score sky rocket into the upper 700’s either.  It will take some time, but it’s better than sitting back, passively hoping that things will get better.

*Before applying for any credit card be sure to read, and understand the ‘terms and conditions’ of the card.

Ask me about credit repair.

Talk to you soon,

Leona.

If you or someone you know is thinking of selling a home, or buying a home or investing in real estate contact me. I love referrals.

Leona@LeonaTurner.com

http://LeonaGreenlowTurner.kw.com

www.facebook.com/BayAreaRealEstateToday

 

 

 

Tips on Credit Repair

Credit repair is the process of getting you back on the good side of your creditors. Without it, you will not be able to borrow any money which is why it is important to know how to do it.

The first step is to know how the bad the situation is and the only way to do that will be to get a copy of your credit report. You can get this for free by getting in touch with one of the three credit agencies namely Equifax, Experian, and Trans Union.

If it just so happens that there is a discrepancy in your credit report to which you know has already been resolved, sending a letter and the supporting documents is all you need to fix it.

But if the credit report is correct, credit repair can only be done by paying it off. It will be a good idea to talk to your creditors and ask if you can strike a deal which will allow you to pay the said amount in staggered terms.

If they agree to this, make sure that this is written on paper so you have something to hold on to if ever they decide to change their minds.

Should you have problems talking to your creditor, don’t give up and instead hire a credit repair company to act as the mediator. Talking to professionals has a lot of benefits and two of them happen to be lower payment and interest terms.

Credit repair takes time and since money is always the issue, be ready to make certain sacrifices and reduce your expenses. If what you are earning is not enough, you may have to sell off some valuables and assets.

People who have outstanding loans must still be able to pay for other things like mortgage and other bills. The scenario itself is like fighting a campaign in many fronts but you have no choice because failure to miss other payments will only make matter worse.

No one said that when you are undergoing credit repair, you cannot use your credit card. In fact, you can still use it just make sure you do not max it like before because your total debt compared to your total credit makes up 30% of your credit score.

Once you are able to improve your credit score, keep up the good work. At the same time, apply for either a department store credit card or a secured credit card.

Filing for bankruptcy is never an option with regards to credit repair. This is because it is like taking a nose dive when your record will be kept on file for 10 years and during this time, interest rates will continue to pile up and the amount of money that you owe only grows.

The credit repair tips mentioned are easy for anyone to follow. Once you start paying off your debt, make sure you are able to do it so you can once again be in the green.

Is credit repair easy? Not really because it really depends how much you owe the creditors. Some individuals owe a thousand or two while for others it is quite bigger and that is really a problem.

So analyze your situation, take the appropriate steps in credit repair and make sure this does not happen again.

Talk to you soon,

Leona.

Call me about credit restoration.

If you or someone you know is thinking of selling a home, or buying a home or investing in real estate contact me. I love referrals.

Leona@LeonaTurner.com

http://LeonaGreenlowTurner.kw.com

www.facebook.com/BayAreaRealEstateToday

Many people have heard of bad credit, but some may not know what it means. For a long time, there was no established method for determining the credit activities of consumers. However, this all changed when a company called the Fair Isaac Corporation designed a credit scoring system that is called the FICO score. Because the three major credit agencies have different information on each consumer, the FICO score calculated by these agencies won’t be exact.

Your FICO score has become the best way to determine if your credit is good or bad. To get your store, information in your credit report is compared to the credit reports of others. Your future credit activities can be determined by this information. When you apply for a loan, lenders will look at the FICO score to determine if they should allow you to borrow money. Having a low score doesn’t automatically mean you won’t be allowed to get a loan.

In the past, having any marks on your credit report would cause lenders not to loan you any money. They had no way of determining which borrowers would pay off their debts. With the advent of the FICO score, more people today who have had problems with their credit in the past are now able to apply for loans. Mathematical models allow lenders to study the behavior of borrowers to decide whom they should lend money to. Banks and credit cards companies have taken advantage of this data by making offers to people who have different credit issues.

Those who have problems with their credit can usually apply for loans, but they can expect to have much higher interest rates. The FICO score ranges from about 300 to 850. The closer you are to 850, the better your score is. Statistics show that the average American has a credit score that is about 677. To qualify for loans that have the best interest rates and features, you will need to have a score that is at least 720. If you want to know your credit score, there are a number of services that will charge you a fee for it.

A number of factors go into calculating your score. The most important factor is your payment history. How you make your payments will determine about 35% of your score, which is almost half. Failing to make payments on time is one of the leading causes of getting bad credit. Your payment history includes payments on credit cards, loans, and other bills. Filing for bankruptcy can greatly lower your score.

The amount of money you owe will determine you score as well. People who have too many loans and credit cards will have a score that is lower. If you have a long credit history that is good, this will increase your score. Lenders are much more likely to give good loans to people who have established credit. It is important to understand the different things that affect your credit score, because this could allow you to maintain a high score.

If your credit score is low, this means that you need to start making payments on time. If you have a large number of loans and credit cards, get rid of some of them. Being responsible with how you manage your credit will allow you to keep a high credit score. Lenders will be much more likely to give you the best rates and features on loans. Even if one lender rejects you, this doesn’t mean that all lenders will reject you. Understanding credit and how to manage it will allow you to remain financially successful.

Talk to you soon,

Leona.

If you or someone you know is thinking of selling a home, or buying a home or investing in real estate contact me. I love referrals.

Leona@LeonaTurner.com

http://LeonaGreenlowTurner.kw.com

www.facebook.com/BayAreaRealEstateToday

In today’s world it is almost a necessity to have a credit card.  If you have bad credit your options can become limited in regards to a credit.  Many of the credit card companies will just deny the application.  So picking the right card to apply for is very important and you might need to take advantage of bad credit credit cards.

The first thing is to consider what your credit rating is.  The reason for this is to many credit card inquiries will decrease your credit score.  You do not want to have to many inquiries so you need to limit the number of applications you submit.  Choose one or two that are more likely to approve you if you have a bad credit rating.  If your credit rating is bad, more than likely your approval odds are very low for a low cost card.  So at this point you would want to research a few bad credit credit cards.  There are several companies that will deal with less than perfect credit and actually help improve your credit rating and establish a good credit history.  There are both secured and unsecured bad credit credit cards available today.

Things to look for when choosing a credit card:

There are a lot of companies out there that make claims that they are helping individuals receive credit cards but in reality they just use the opportunity to take advantage of your already bad situation.  This is the reason you need to compare various card issuers and their offers.  Be sure to read all the fine print for every offer your considering.  This includes information on the fees, participation fees, or any other startup costs plus your credit limit.  These fees can produce a balance on your credit card before you even receive it.  The truth of the matter is that no matter where you secure your credit card there will be extra fees involved if you have a tarnished credit history.  But if you carefully compare your options you can find the offer with the lowest fees and interest rates (APR).

You can also have those fees associated with a secured credit card.  This type of card requires a savings account to be opened and your balance would be what your credit limit is.  If you were to default on the payments you would lose the balance.

Ultimately if you have bad credit it is not impossible to get a credit card, it will be more expensive but it is a way to regain your credit worthiness.  If you are careful you can eventually apply for a regular credit card with competitive rates and credit limits.  It is also wise to try and deal with online companies where their primary business is credit cards.  They a lot of times are the ones with the better rates, lower fees, and a lot of times will not require a savings account.  Your credit limit will be normally in the $250.00-$300.00 range but that is enough to start repairing your credit score.  Used wisely it is more than enough.

Talk to you soon,

Leona.

If you or someone you know is thinking of selling a home, or buying a home or investing in real estate contact me. I love referrals.

Leona@LeonaTurner.com

http://LeonaGreenlowTurner.kw.com

www.facebook.com/BayAreaRealEstateToday

Your credit score is what banks and other establishments use to check whether they should approve your purchase, loan or job application. Naturally, this could mean the difference between an approval or a denial and why your credit repair is important should you be denied.

Credit repair is necessary when your credit score is 600 or below. To give you an idea how this is calculated, everyone starts out with a good score but the moment you are late on a payment or a mortgage, this has an affect on your credit score.

Does this always mean you will not be able to get a loan? In some cases no but you will probably get rates which are much higher compared to someone who has a good credit score. The only way to fix that is by paying off old debts and making sure that it does not happen again.

If you think this can be done overnight, think again because the amount of money you owe might be too big and most people who have had this problem are only able to complete paying it after several months or even years.

Should bankruptcy even be an option? Never because your record will be kept on file for 10 years and you can’t escape it.

You can’t repair your credit similar to your car unless you know what is wrong. To do that, you need to get a copy of your credit report by obtaining this from one of the three credit agencies namely Equifax, Experian, and Trans Union.

When the credit report is in your hands, review what is on it. If you know for a fact that a certain issue has already been resolved, send a letter to that credit agency together with the supporting documents so your credit report can be corrected.

For those who have outstanding balance, the case is different because you need to pay for it before you can get a settlement letter which should also be given to the credit agency for filing.

Until that happens, you have to find some way to pay for it. You can get better terms by getting a debt consolidation package which is designed to buy you some time at lower interest rates.

Surprisingly, credit repair may be as simple as borrowing money since your credit score may not improve unless you apply for a loan. You don’t have to borrow a lot since a small amount like $500 is enough to get the ball rolling. Again, just make sure this is paid in the agreed upon time and in full.

After reading this, you already have a clear picture as to why credit repair is needed. Could it have been avoided? The answer is yes but it is too late to think about that when the important thing to do is focus on the situation.

Credit repair may be simple or complex and if you can’t do it alone don’t be afraid to ask help from a credit counselor. It won’t be long when you will once again be in good standing and you will once again be given a line of credit.

So you don’t need credit repair again, monitor your expenses and do not spend beyond your means.

Talk to you soon,

Leona.

If you or someone you know is thinking of selling a home, or buying a home or investing in real estate contact me. I love referrals.

Leona@LeonaTurner.com

http://LeonaGreenlowTurner.kw.com

www.facebook.com/BayAreaRealEstateToday

 

Credit Journal, Part 8

This is the week I start working on the derogatory parts of my credit, the collections and charge offs. I’m a few days late because work in real estate is picking up.

I ordered my credit reports from all three credit bureaus. I categorized everything into collection agencies, original creditors, medical bills, bad address, inquiries, judgements and liens. I’m sending specific and individual letters to each of the groups to find out how I work with creditors. I should hear back in about 30 days. Fingers-crossed.

Talk to you soon,

Leona.

If you or someone you know is thinking of selling a home, or buying a home or investing in real estate contact me. I love referrals.

Leona@LeonaTurner.com

http://LeonaGreenlowTurner.kw.com

www.facebook.com/BayAreaRealEstateToday

Credit Journal, Part 7

September 2016

I just finished the first week of September and here’s the crash. I have to seriously wonder if I’m addicted to trashing my credit. I applied for the Target Red Card and a Chevron gas card and I crashed and burned. My score is improving and I get the itch to apply for more credit. I violate one of the cardinal rules of maintaining your fico score. Do not apply for too much credit within a two year period.

All credit is not created equal. If you have a 600 score and apply for credit, you may get approved. A different person, with the same credit score, may apply for the same card and get denied. There must be some divine credit law somewhere to determine how two people with an identical score get approved or denied. I’ve heard to people better scores not get approved for credit. Others can be married and both not approved for the same credit account.

Today was a credit crash. Ok. Now, I tie my hands. No more new credit until I reach a 700 fico.

Here are the 6 parts of having great credit (repeated for me, I guess):

  • On time payment history (99%+)
  • Length of time with credit (9+ years)
  • Credit card utilization (< 30%)
  • Derogatory marks (none would be best)
  • Total accounts (21+)
  • Hard Inquiries (< 2) I need to stay away from applying for anymore new credit.

Talk to you soon,

Leona.

If you or someone you know is thinking of selling a home, or buying a home or investing in real estate contact me. I love referrals.

Leona@LeonaTurner.com

http://leonagreenlowturner.kw.com

www.facebook.com/BayAreaRealEstateToday