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• Tip #38: Look out for credit repair scams

• There are a number of credit repair and raising credit score scams out there. These scams often promise to help you with bad credit report repair, when in reality the “experts” offering these services will either overcharge you, involve you in illegal activity, or actually put you in a worse financial situation. Look out for these most common scams:

• 1) Credit repair companies that tell you to lie on loan applications or suggest that you develop a second identity. This is illegal and dishonest. If a company suggests that you open accounts in a new name or falsify your information on loan applications, run, don’t walk, away. You can be charged with fraud for doing this – and you will be held responsible for your actions, even if you were acting under the company’s advisement. You certainly don’t want to add legal troubles to your credit woes.

• 2) Credit repair companies that charge you fees or hidden fees for things you could do for free yourself – such as work out a budget. Also be wary of companies that ask for money up front.

• 3) Credit repair companies that promise to pay your creditors from money you pay to them and which they keep in an escrow account. This is a common scam and it presents a huge problem for the debtor.

• Here’s how it works: the debtor gives money to the credit repair company, presumably for paying off debts. The company places the money in an escrow account where it grows. The idea is that the company will eventually pay off your debts when the amount reached in the account matches the debts. The problem is that in the meantime, the credit repair company is removing some money from the account for administrative fees while creditors are becoming more and more anxious, increasing the interest on the debts and even starting legal action against the debtor. This type of “credit help” can actually ruin your credit rating!

• 4) Credit repair companies that pressure you, don’t listen to you, or want you to sign a contract you have not read. Such companies are not to be trusted and should be left well enough alone.

• 5) Companies that offer you fast or instant credit repair – no matter how bad your credit. This is simply a misleading a claim that no company can legitimately deliver on. If you have very bad credit, it may take years to fully repair.

• In many cases, these companies will claim that they can remove your poor credit history from your credit report by disputing it. This is false information. You simply cannot remove true and accurate information from your credit report. It is true that a credit bureau must investigate a claim of inaccurate information within thirty days, but this does not mean that the company will automatically remove the information.

• In fact, if the information is accurate, the data will stand. Credit bureaus are aware of this common credit repair scheme and have become very good at detecting it. Many credit repair companies (and even some individuals) will try to dispute every ding on a credit report, hoping that the backlog of disputes will cause the credit bureau to automatically remove the offending items from the report (the credit bureau is legally required to remove disputed items it has not investigated within 30 days). This technique is a scam and is dishonest since you are not disputing inaccurate information. Refuse to do business with credit help companies that use this practice.

• 6) Companies that don’t tell you your rights or try to take money for things you could do yourself. You can get copies of your own credit reports and have the errors on them fixed for free yourself – a company that does not tell you can do this yourself ifs taking money form you for things you can easily do yourself.

• It is a dishonest practice, and companies who follow such business practices should be avoided at all costs. Also, if a company does not advise you of your credit rights, then that is an indication that they are not really on your side in the first place. Why would you want to do business with a company that does not help you?

• Tip #38: Get a good team on your side to help you with raising your credit score

• How’s your credit score? 0-600 Poor, 601-680 Fair, 700-774 Good, 775+ Excellent. Find out your Score now FREE!

• A good team of professionals can help you raising  your credit score and bad credit report repair. Your most important member of your team is yourself – you are the one with the financial agency and the knowledge to become your own best advocate in credit repair. Besides this, you may want to check with your local library for financial help books. You may also want to include financial experts such as credit counselors or others to help you.

• If you decide to seek a team of experts to help, be sure that you check each person’s credential, standing with the Better Business Bureau, and past clients to make sure that the person or company can really help you. Beyond this, make sure that you sign a contract or agreement with each professional member of your team.

• For An Effective Credit Repair System That Instantly Deletes Inquiries, Charge-Offs, Late Payments And Judgments From Credit Reports Click Here!

• Tip #39: Your bank has good and reliable credit information

• One free and professional source of credit information is your bank. Your banking officer may be able to offer you a great deal of professional, free advice, especially as banks are trying harder and harder to provide good personal services to customers.
• Your bank may also have a number of credit solutions – such as overdraft protection – that can help you keep your credit in good repair. Banks are realizing more and more that many of their clients are dealing with less than ideal credit. Banks are trying to meet the demands of this new group and can actually be a powerful ally for those who are trying to improve their credit.

• General Good Financial Habits Build Good Credit Scores

• Your credit score in some ways is meant to be a snapshot of your overall financial habits – especially your habits surrounding debts and other financial responsibilities. Developing some good financial habits can help your credit score by putting you in a good financial position. Good financial habits will ensure that you don’t get into too much debt and that you are able to meet your financial duties easily. There are a few financial habits that are especially credit friendly:

• Tip #40: Learn to budget

• One of the biggest reasons that people develop poor credit is overspending. In many cases, this overspending is caused by a lack of budget. A budget can tell you how much you should be spending on each item in your life. This allows your financial life to stay nicely organized. Contrary to popular belief, a budget does not have to be constricting or boring or complicated.

• Simply note how much you earn each month, and on a piece of paper, write down how much you really need to spend on savings, rent, utilities, food, personal care, transportation, spending money, entertainment, hobbies, education, and other items.

• Make sure that you account for every expense. Then, simply commit yourself to spending that particular amount on each item on your list. Of course, some expenses on your list will change each month – you may spend more on heating bills in the winter than in the summer, for example – but estimating can help ensure that you can meet all your financial responsibilities.

• Tip #41: Live within your means

• Many people believe that if they only had more money, they would not have to worry about credit. In fact, this is not true. Many people who have money – or at least have all the trappings of money, including cars and nice homes – in fact have terrible credit.

• The secret of this is that it is not your income that decides whether you are a good credit risk or a bad one but rather how you handle money. You could be earning $7 per hour and still paying your bills and meeting your financial responsibilities – in which case you will have terrific credit.

• You could also be earning $300 000 a year and be in terrible debt and financial shape due to unpaid bills and excessive debt. The best way to ensure that you have a good credit rating – no matter what your income – is to spend less than you earn. That means living below your means. If you have a very small income, you may need to live with roommates in order to keep costs down. If you have a medium-sized income, that may mean saving more and entertaining less.

• You may be interested to note that your income is not a factor in determining your credit score. Although your past and current employers are listed on your credit report – and although lenders may be able to guess your financial status from your loan amounts – your income does not count.

• This means that if you won the lottery today or suddenly inherited a large sum, your credit score would not increase. With your credit rating, what matters is how you manage your money, not how much you make.

• Couple of funny pics to make you smile

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