Working to rebuild your credit score is helped immensely when you know some of the deeper details and factors that go into determining that score. You’re probably aware of the broad reasons for your score, but these further points may surprise you and help you get the great credit score you need much sooner. We also have some additional tips to help keep your accounts in good shape.

The first point is referred to as Golden Accounts. These are accounts which have remained open without incident for many years. This one will not help you fix your credit score immediately, but it may be an extra motivation or incentive to keep any existing accounts you have in good standing, and at the very least to keep them open. Even if you come across a credit card with lower interest for example, you should not close any of these accounts. Continue to use just enough to keep them open and they’ll in turn make your credit score Golden. It should be mentioned that in general you don’t want to have too many credit accounts, as this does damage your score, but in the case of Golden Accounts, they are absolutely worth keeping open at all costs.

Next is the fact that not all lenders are created equal, both in their terms and quality service, as well as in the value they add to your credit score. Generally the longer a company has been in business and the more prestigious they are, the more of an impact they’ll have on your credit score. Banks and major credit card companies reward the highest scores, while payday loan companies or small internet credit card companies are on the lower end. Be aware that this works both ways, your score will also be further impacted by defaulting on a loan from a higher valued company than it would through a lower valued one.

As mentioned above, avoid opening too many accounts, especially within a short period of time. What many see as possibly being a quick cure to their credit woes by creating multiple accounts and keeping them in good standing is actually the opposite. The increased risk factor you present with multiple lines of credit will harm your credit score more than help it. The greater your combined credit balance is, the greater the risk you are for a new line of credit, regardless of your payment history or the actual balance available at present on the accounts.

Try to keep a reserve for your accounts just in case something happens and you wouldn’t otherwise be able to make your monthly payments. Even saving away just a little bit of money could help you from going through a long journey of repairing the damage that missed payment would cause to your credit score. The last thing you should do is open up another line of credit to help cover the payment, for the reasons mentioned above.

Utilizing these tips and advice should make your journey towards achieving a better credit score a much easier task. Close out any excess accounts while keeping only the oldest ones, deal with more prestigious loan companies, and keep making those payments and your credit score should be in much better shape in no time.

Tags: credit report, credit check, credit score

Consumers use the Federal Trade Commission as a sounding board for their complaints. A few years ago, many consumers saw an advertisement for a free credit report and then got stuck paying a monthly fee for a service, and the FTC received a high number of complaints. As a result, the Fair Credit Reporting Act was changed so that consumers can receive a free credit report from TransUnion, Experian, and Eqiufax each, the three national consumer reporting agencies, annually.

There are many websites that advertise free credit reports if you agree to test out their services. The only place online where you can find a truly free credit report is the American government’s website, www.annualcreditreport.com. You can apply for you free credit report online, by phone, or by mail.

Not everyone takes advantage of the free credit reports that are available to them. Some people don’t want to take the time while others may not even know about the service. The only hitch to these free reports is that you have to take the time to request them.

In order to stay on top of your credit, you should get a credit report once every four months. This schedule works out well with the arrangement that has been established by the US government. Since each of the three national credit reporting agency is required by federal law to give consumers a free credit report once a year, you can request one from each agency every four months and thus maintain a watchful eye on your credit without having to pay anything.

Keep in mind, however, that these credit report agencies are not going to send you a free credit report without at least trying to get you to spend some money on other services that they offer to consumers. They will offer you such non-essential services as monthly credit monitoring and a credit score.

Knowing your credit score is not necessary if all you want to do is check on your credit history. It is good to know, however, if you are interested in applying for a loan sometime soon. If your credit score shows up low for some reason, you will be able to prepare an explanation to the loan officer that you will speak to regarding why your credit score was low and what you have done to change your financial situation.

If you are worried about identity theft or have a spouse (or ex-spouse) that is wreaking havoc with your credit history, then it might be a good move to spend a little on the credit watch that is available.

Remember that you can indeed receive a no strings attached, absolutely free credit report online at www.annualcreditreport.com.

Tags: credit card debt, home equity credit, credit

Most people who are currently dealing with some type of financial difficulty find themselves in that situation at least partly due to an extremely large amount of credit card debt. Even though you can get out of credit card debt by taking the proper steps, many people are simply so overwhelmed by their debt that, instead of dealing with things sensibly, they panic.

Credit card debt usually starts out rather innocently. The majority of people never plan on charging so many purchases, but things start to add up. Before they even realize it, people have charged a few hundred dollars a few too many times and they don’t know what to do about it.

Understanding how to get out of credit card debt is first done by taking a look at where one really stands with their situation. A lot of people end up losing sight of what they really owe because they end up ignoring the problem until it grows so out of control that they are forced to find a way to get out of credit card debt.

Credit card debt can be scary and potentially devastating, but it does not have to be. As with most problems, there is a definite solution to credit card debt, though the specific solution depends on each person’s particular situation and financial circumstances.

Options Available to You

If you need to eliminate debt, there are many options available. Before you turn to a third party for assistance, do your best to get rid of your debt yourself.

You must start with a list of everything you owe with what the monthly payments are and what the total balance is that you owe. Start by calling each creditor you owe to discuss your desire to clear them up and that you need help in order to get out of credit card debt.

A lot, but not all, credit card companies are willing to help you by lowering or completely removing your interest rate for a certain period of time as this will allow more of your monthly payment to go towards your balance and in turns, helps to pay down your debt.

Tags: credit check, home equity credit, business credit

Looking for a loan to consolidate your credit cards and other debt? A debt consolidation lender is a good way to go. If your credit score is not great, one of these lenders may be easier to deal with than a traditional bank.

With a wide range of interest rates and various services to choose from, finding the right lender can be a challenge.

Expect a lengthy application form. Along with detailing your current financial state of affairs including outstanding debts, income and assets, an interviewed about your living and spending habits may be forthcoming to help them understand your circumstances and how the debt accumulated.

Lenders vary greatly and repayment issues are a major concern. These factors will have a significant effect on the total amount to repay. Here are some important factors to consider:

1. Interest rate 2. Monthly payment 3. Length of the loan 4. Lender’s commission; aka, ‘points’

Terms that look favorable in one area may cost you dearly in another.

For example; A low interest rate may look tempting but if a large commission/points is charged, the resulting payment may exceed your expectations. 1 point = 1% of the total loan.

When researching debt consolidation lenders, the internet is an invaluable resource. It makes it fast and easy to compare terms from one lender to another, without even leaving your home.

Although many lenders conduct their business online, call customer service and speak with a representative in person before making a final decision. Can they answer your questions effectively? Can they be reached quickly and at the hours you may need them? Are you comfortable with them?

You will probably have to deal with them for several years, so you want to be sure you’re making the right choice before you sign on the dotted line.

Tags: credit counseling, credit score, home equity credit

Parenthood can throw a real wrench into a couple’s ability to maintain their existing employment. Ideally one parent could leave work and stay home full time, but this may not be possible for financial reasons. While it can be argued that the cost of child care would all but negate that second income, it could still be possible for the couple to work on alternating shifts that make child care unnecessary. Whichever way you choose to go, you’ll be sacrificing in one way or the other.

If your plan is to work alternating shifts, you run the risk of seeing very little of each other, save for weekends. This can be hard for a new couple and a new family. Not getting to share in the joy of child rearing together could cause a good deal of emotional pain. One work-around to this is if one partner is sleeping while the other works. This is a great alternative, but unless one of the parties can get work during a midnight shift it probably isn’t feasible for one or both partners to have to sleep either during the day or afternoon.

If you’re planning to forgo the second income, you’ll likely have to take drastic measures to cut out some of your excess spending. Remember that you’re not only losing that income, but you’re also going to have additional expenses coming in from the baby. It’s the financial equivalent of a left cross followed by a right haymaker. This is often exacerbated by the fact that many new parents underestimate the additional costs that a baby will bring. Diapers and formula and by no means cheap, and you also have clothing, health care and other expenses to take into account.

It’s unlikely that your sole income will be enough to cover this without cutting back in other areas, so let’s look at a few of the areas where you make some headway on that lost revenue:

Commuting: You’ll very likely need to leave that car at home, or in the case of two vehicles, get rid of one of them for financial reasons, so this will be the perfect opportunity to start taking public transportation to work, carpooling or biking. Of course if you get an allowance from your place of employment that covers any transportation expenses, this will not be necessary, though cutting out a second vehicle would still be a good idea.

Food: Here’s another major one, and one that may also be helped inadvertently by a partner staying at home. Instead of both family members eating out at work, buying coffees on the way to work in the morning etc, you’ll only have one doing so. If you can cut that down to none, even better. You’re also less likely to go dining out with your new child in tow, so that should cut out on those expensive evenings out. Just don’t replace the dining out with ordering in, as tempting as it may be. Try to alternate the nights to each partner cooks dinner to compensate for the higher amount of home cooked meals being prepared.

Home-based income: There are certainly many opportunities nowadays for people to work at home, so this may be a viable option for the stay-at-home partner. Depending on their past work experience, they may be able to find similar work online or look into getting the skills necessary to do that or other work online. They may also consider looking after additional children in their home which can also be a lucrative proposition.

Whatever your choice, some difficult financial and consolidationdecisions will need to be made. The sacrifices will be well worth it in the long run though as you have the thrill of seeing your child grow and mature.

Tags: credit counseling, bad credit loan, credit report