October
18
2009
Well help is out there. Some places want to charge you to fix the problem, and this may be good for some, but there are steps you can take to try to fix it yourself. The steps are not difficult, but require persistence, organization, a positive attitude and time, and with these many of your credit issues can be resolved. The self help credit repair process has four steps, identify your credit report problems, acknowledge and dispute negative credit report listings, eliminate negative credit report listings, and exercise good credit habits.
The first step in self help credit repair is to identify your credit problems. You must know what is causing your credit score to be so low this way you can make plans to fix it. Obtaining a copy of your FICO credit score is the best course of action. This credit report will detail not only the credit score that most lenders see, but also will detail, line by line of your credit listings. You can obtain a free credit report at annualcreditreport.com but it will not have your FICO credit score. Knowing your credit score gives you a benchmark on which to know what steps to take next in self help credit repair.
Ok raise your right hand and repeat, I, (say your name) am in one way or another responsible for everything that is on my credit report, either through careless use of credit, good use of credit, or fraudulent or inaccurate activities against me that has not been disputed or removed. The second step is acknowledgment of your credit report. Regardless if its good or bad, right or wrong, what you will see in your score is yours for right now. In self help credit repair, you will dispute the inaccurate listings, try to eliminate the negative ones which are true, and try to repeat the actions which gave you positive listings.
Which leads to the third step, disputing negative credit report listings. As a rule of thumb, dispute everything negative. The burden of proof will then be thrown on the creditor to prove its truth. Credit bureaus don’t want to hear that, but they work against you in every way possible, because the creditors pay them more money. They would rather err on the side of the creditors but sometimes you may catch a break, by a creditor not verifying an old debt within the statutory response time. To make sure your disputes aren’t kicked back by the computer, don’t use a template of r a dispute form. Computers with optical character recognition filter out templates and will reject the credit report disputes before it even reads them in some cases. Try a handwritten style font if you type it or even hand-write it yourself. This way a human can read it and maybe make your self help credit repair disputes more of a success.
Finally, after acknowledging you are responsible for everything that is on there, lets try to create more positive listings on your credit report. Self help credit repair isn’t just fixing your credit report, its improving your future credit as well. Pay down your revolving credit cards, to reduce your overall credit usage, and always pay your bills on time.
October
14
2009
There are certain loan criteria on the basis of which a commercial mortgage broker or pub mortgage banker will approve your loan. For commercial purpose it is important to write a business proposal in order to project your expectations and revenue you plan to earn from this business.
Any plans to carry out basic changes in your business, refurbishments or setting up a new business, you must approach a banker for this. Your other option would be to approach a brewery owner who would offer you funds at competitive rates.
Old existing pub or hotel – needs refurbishment!
A banker or a broker would expect you to project your earnings from the past two years. This offers enough of proof of your earnings and will also determine how risky a candidate you are.
A new business to be set up!
Understand what your needs are? What are your expectations from this business regarding revenue and cash flow?
Write a good business proposal and clearly state out why you want this loan. How do you plan to pay back and how will you spear head this business? How much are you planning to generate out of this. You must put your best foot forward and project a rosy picture of it.
Just in case you have bad credit scores, then you must opt for a non status lending option. This means that your credit rating, pending debts or your financial status will not have any bearing on your loan approval. It can be made that simple so that you are also eligible for it.
October
9
2009
Although bankruptcy is one of the options to get rid of the debts, this is not the piece of advice a professional would give you. On the other hand, a lender would never like to lose his money anyway.
Think from the other side, if you are a lender. Would you like your consumer to file a bankruptcy? No creditor would afford bankruptcy during this financial crisis. This is natural fact, that a person will always fear the bankruptcy of his debtor, so he will always accept his negotiation deal instead of loosing all the money.
You must also use bankruptcy as a threat but never give it a second thought. It will badly affect your credit report and it would also lower you scores. Take it seriously. You might not able to get the chance of getting a loan for next seven or eight years.
Just keep your lender informed that you are thinking to file a case credit card bankruptcy. It would not give the creditor a chance to think again. He would at once agree to have negotiations with you.
Be a smart player of the game, but don’t be extra smart. Take the help of a debt relief network to meet the best settlement company to settle your debt with the creditors. Debt settlement is the golden chance you will be getting. It would be like a bless knocking at your door. This is your chance to get out the whirl of the debt.
Negotiate wisely and patiently with you creditor. Do not take any decision emotionally and hastily to avoid any further issues.
Settlement is your chance. Utilize it properly when you get it. Through settlement you can bring your debt amount down to almost 60%. What else you would like to have from your creditors? Use your understanding and knowledge to solve your problems. At this time you are not in the position to afford any other serious issues.
Although bankruptcy is legal and lets you walk away cleared of all your debt, it is not the best choice. Try to think about you future. Tighten your budget. Keep a firm fist over money if you are going through a financial crisis.
October
7
2009
Cash back credit cards have been around for a long time, going back to the 1980s with the Discover Card. Things have changed since then—with today’s customers picking out the best cash back credit card they think is best. The credit card company will then give their client a cash back rebate of 0.5% to 2% in an annual rebate form, with the money sent to the customer as a check or transferred to their card account.
Getting this offer sounds pretty good, almost too good to be true. Determining which card to pick out should be easy, and can be once all the fine print is read. Credit cards with money back can give their customers an equivalent up to 5% on purchases or a rebate incentive. Others allow the consumer to earn up to 5% money back or up to 20% with online purchases, or up to 3% money back on gas, home improvement and department stores. Meanwhile, another card that receives money back may put it toward a college education. With all of these cash back credit card offers, how does a person pick out the best one? Or does it even matter in the long run?
To choose the correct cash back card offer, make sure it is right for the majority of personal spending habits. Also, find out how to earn the most money back by checking around and researching the companies with such offers. With so much strong competition in the card field, one of the added benefits which make one card more appealing than another is getting money back when making a purchase. This can be divided into money back offers, reward programs and services that are free for a lifetime yet require for the consumer to spend more money in the long run. These cash rebates come from the commission that businesses have to pay to the card company—either in points, a cash amount, or air miles—depending on the card being used.
October
2
2009
Credit companies dispute is the pillar behind every successful credit repair program. If you think simply by disputing negatives with the bureaus is all you need, you might be shocked that is not the case.
If you send a dispute letter to them, within 30 days they communicate back to you. You are happy that that some items you complained about have been corrected. And then you are thinking of sending the next dispute but you realized that they told you to address any other inquiry with the original creditor. And then you realize that the credit bureau dispute produced no result.
Several consumers in search of professional repair services find several companies offering credit bureaus disputes at low cost. But then, what do you do, when the bureaus ask you to direct further inquiries to the original creditor. There are two possibilities.
First, if you aim is to settle credit bureaus disputes alone, you are likely to be disappointed at the end of the day. After the initial dispute, you are likely to get additional result. Or, if the company you choose, offers additional levels of service, you will have to upgrade to a more expensive version of the program in order to get the satisfaction and result you desire. What you should know is that, the dispute only version of the program should not have been accepted.
Remember, I told you credit bureau dispute is the pillar of a credit repair program. Its true and its necessary you start your repair process with bureaus. A solid credit repair program automatically moves from credit bureau disputes to creditors on its own.
Credit repair surely gives excellent result if done properly. Make sure any credit repair company you are taken are competent enough to do the job.
A repair program is need to give a satisfactory result. And a credit repair company be provided with every information that might need. The main reason people come to us is simply because the aspirations cannot be separated from their financial life.
A complete dispute process of the credit bureaus, creditors and collection agencies are necessary for a successful repair.
September
19
2009
During these hard times, sometimes our only option is loans. Good thing there are different kinds of loans for our different needs. One of them is the commercial bridge loans. Not many people can afford to buy real estate especially when you need the money fast or when you need to get some renovations done on your property.
One of the worst typhoons hit the country late last year. It was an eye opener for all of us as there were a lot of homeowners whose homes were flooded and destroyed. Everybody was devastated especially the ones who lost their homes and property. They needed funds to get repairs done fast after the storm. There were some who got commercial bridge loans. Some restored their homes and sold it after it has been fully restored.
Commercial bridge loans are fast solutions when it comes to money problems. It usually has a term of one year although it can be extended to one year with interest. If you are interested in this type of loan, you can contact your bank for options and for the requirements. Most business owners already know this because of the low rates and the fixed rate financing plus the fact that it has the most flexible terms. Of course, one should not discount the fact that it is the most reliable and dependable form of financing that exists today. There is a lot of information available online if you want to know more without being pressured of getting one.
September
17
2009
Not all interest free balance transfer provides the solution for credit card users who have a huge debt transfers. It is wise for the credit card users to consider some simple aspects before making the decision to transfer their balance to another company.
1. What is the “grace period” offered by the other company?
Grace period can be defined as the period in which the company allows the 0% interest rate to remain. This usually ranges from six months to one year. If you have a large amount of debt in your hands, it is better to choose a long term but low interest plan, compared to the 0% interest plan which has a shorter duration. However, if you feel that you can clear your remaining debts within the period, by all means go for it.
2. What is the balance transfer fee?
Most credit card charge a balance transfer fee. This is the percentage of the amount of debt you need to switch to the card. The fee usually ranges from 2% to 3 % of the balance transferred which is a serious consideration before agreeing to sign up to the plan. For example if you are paying an interest rate at 16%, then the balance transfer fee is a small amount compared to the interest rate you are currently paying.
3. Are there any hidden costs to this transfer?
Most credit card users don’t realize that some banks contain hidden charges. There is a fine print attached with the hidden charges. Some banks actually charge the transfer fee based on the percentage of balance transferred. If the balances that you have transferred are thousands of ringgit, you may end up paying a few hundred ringgits.
4. Is there a high annual fee or joining fee?
Credit card companies are already earning a profit from your transactions. So it is wise for the credit users to not let them have the upper hand in your transfers. Therefore choose a company which has a reasonable annual or joining fee.
September
16
2009
Instant credit repair is impossible. That’s the simple message spread by most credit experts out there. Building credit takes time, dedication and careful financial planning. The same formula holds true for credit repair. Forget about the magic wand, the fairy dust, the overnight solutions…miracles simply don’t happen in the FICO-land.
Magic wands surely don’t work with credit bureaus and collection agencies, but credit knowledge does and this is the key to a fast credit repair.
Here are 3 major mistakes that prevent people from raising their credit fast:
1 Thinking inside the box.
Most people do a stellar job thinking inside the box: “I’m deep in debt. Debt is a problem. Therefore I should plan my budget, curb my spendings, save every penny and pay off my debt in full”. The promise of a debt free life and a stellar credit score is dangling somewhere at the end of the tunnel. What most people don’t know is that paying off your debt in full can actually lower your credit score. For example, paying off a collection account that is more than 2 years old will upgrade the account status to “current” and will have more negative impact on your overall FICO score. Paying off your debt in full is also not necessary. Most collection agencies pay literally pennies for every dollar that you owe. In other words, they still make a handsome profit out of you even if you settle for 20 % or less of the amount that you actually owe. The key to fast credit success is not financial discipline and elbow grease, but credit knowledge and thinking outside the box. Which bring us to mistake number 2…
2 Instant credit repair is impossible without credit knowledge.
Do you know how to read your credit report? Do you know how your FICO score is calculated? Do you know which are the two most important factors in the FICO formula? Why different credit bureaus might have a different credit score for you? Do you know your legal rights under FCRA and FDCPA? How to use these rights and exert leverage on credit bureaus, collection agencies and original creditors?How to get creditors to “delete” negative items from your report? How to settle for the minimum amount possible with collection agencies? How to dispute outdated, inaccurate, questionable, ambiguous and unverifiable info on your account? How to prolong the length of your credit history using help from friends and family? There are many invaluable “how to” lessons that can open your eyes to the reality of the credit system. Fast credit repair IS possible, but you have to learn how to play the game first.
3 Quitters never win.
The maxim holds true for pretty much any area in life. Credit repair is no exception. Call the collection agency many times until they agree on your settlement offer. If the customer service representatives are not cooperating, ask to speak to a supervisor. Send a sob story letter to your creditor explaining the circumstances surrounding your one time late payment and ask them to remove it from your credit report. Dispute negative accounts and ask for validation of debt on various levels-credit bureaus, collection agencies and original creditors. The path to credit repair is not always smooth. Setbacks and failures are a standard part of the process. If you fail-get up,dust off and keep on going. Simple as that….
Instant credit repair IS possible, but it requires credit knowledge and a dose of perseverance. Once you start thinking outside the credit box, you’ll be surprised to find how easy credit repair actually is.
September
9
2009
If you are considering filing bankruptcy to clear yourself out of debt, it is better to do a rethink. You might think that going for bankruptcy will put an end to all your monetary problems. But, in reality, the picture is quite different. It is not that simple. Bankruptcy comes with a number of trappings. They are unavoidable ones and instead of solving your crisis, it can aggravate it to a large extent. Therefore, you should never think of declaring bankruptcy and take recourse of it only if all other options fail.
If you have to clear up all your dues, debt settlement is a much better option than bankruptcy. This is because settlement programs offer a number of benefits that can hardly be found in the case of bankruptcy. The first advantage that conciliation programs give is that they help to reduce up to 60% of the total debt balance permanently. You might argue that bankruptcy also does the same thing but there are a number of complications involved in the process. You never know when some new problem might crop up in the future if you had filed for bankruptcy in the past. But the guarantee that you will get rid of the problem of dues permanently can only be given by a settlement program.
If you declare yourself bankrupt, you have the problem of dealing with a low credit score. It is true that your credit report also gets affected if you go for consolidation programs. But there is a huge difference between the two. The duration or the period for which bankruptcy stays in your credit report is much longer than that of a settlement program. While it is ten years for the former, it is much less in case of the latter. In settlement programs, you can gradually start the process of building up your credit scores once again. This facility is not available in the case of bankruptcy.
Settlement companies provide more security to open assets. The same cannot be said about bankruptcy where you always have to live with the fear of losing some of your assets. Therefore, it is much more advantageous to opt for a settlement company than declaring bankruptcy.
September
7
2009
If you work then you have a legal responsibility to pay income taxes on a yearly basis. It is advisable for you to file and pay your taxes when they come due. If you are unable to do this then you will likely be assessed an income tax penalty. You will receive a statement or notice from the IRS informing you of the IRS income tax penalties and interest associated. If you have questions concerning your notice then it would be good for you to seek the services of a qualified tax attorney.
Understanding Income Tax Penalties
The penalty will not only include the current amount owed, it will also include interest applied to the amount as well. If you can’t pay by the due date then expect an income tax penalty to be filed against you. Even if you or your tax attorney has filed for an extension, you will still be penalized with interest charges on your balance. The amount of interest is determined by the amount you owe, the federal short term rate and an additional penalty of three percent.
Fines, Penalties, and Interest
You will also be given additional IRS penalties and interest for late, negligent or failure to file tax returns. These are also subjected to an income tax penalty with interest. The interest rate will accrue from the date of your return and will compound rather quickly. When you are late in filing your tax return and in making any payments, you will be charged an interest rate of 0.5% on a monthly basis. The amount maximum is 25% of the balance owed and is applicable to all money that is owed.
Your tax attorney will explain that you are also liable for an income tax penalty if you file a late return. Again, the penalty rate is 5% of the outstanding balance and is charged on a monthly basis. Unless you can prove that you have exigent circumstances and are not able to pay the amount you owe. In that case, you can possibly have your tax debt forgiven or reduced. If you give the information to your tax attorney, they can present this evidence to the IRS and negotiate the matter for you personally.
Did you overpay or underpay?
There is also an IRS underpayment penalty for underpaying your income taxes. The income tax penalty for this type of situation is called a failure-to-pay penalty. It applies as a penalty from the date that the balance was underpaid and like the other fines it accrues and builds on a monthly basis. Each IRS payment is subject to different penalties, so you may still be responsible for penalties on an earlier payment as well. Even if you believe you paid the amount. Or even if you have a refund coming, you may still incur a penalty. Your tax attorney will assist you and figure out any amount that is due and what you are responsible for.
You are important to us
If you do not have enough money to pay for the penalty, then you can ask your tax attorney what your options may be. One option would be for your tax attorney to file what’s called a waiver. A waiver may be granted to you on the grounds of financial hardship, or some other unfortunate situation you may have incurred. If you cannot pay the income tax penalty, then your tax attorney can help you determine which route would be best for you. In the case of an elderly person aged 62 or older, they are eligible for a waiver based upon a disability or any other reasonable cause. Your tax attorney is there to hold your hand and walk you through all of your options, so rest assured your best interests are being looked after.