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Archive for August, 2017

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

 

 

 

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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

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