Credit

In our previous illustration we discussed a few alternatives that you can utilize in order to rebuild your credit by purchasing a prepaid debit card. We have provided a few prepaid debit card solutions that you can begin utilizing immediately.

 

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Credit

In our previous illustration we discussed obtaining a secured credit card as an alternative to an unsecured credit card. There are additional alternatives you can utilize in order to rebuild and re-establish your credit.

A prepaid credit card is another alternative that will help you rebuild your credit and it is a great way to manage your financial obligations.

 

Prepaid Credit Card a prepaid card may be just the ticket, since there’s generally no credit check to qualify. Since you can’t spend beyond the loaded value. A prepaid card does not impact one’s credit score but will help one manage one’s finances and credit expenses to help rebuild and maintain  one’s credit.

 

1. Most allow you to withdraw cash from an ATM with a pre-selected PIN number for that purpose.

2. One has four options to add monies to one’s card: transfer money from a bank account or financial institution; have your employer direct-deposit your paycheck onto your card; transfer money from a PayPal account; or reload in a retail store.

3. Monitor the fees associated with one’s prepaid debit cards. You can be hit with fees when you purchase the card (it’s billed as a one-time “setup fee”), add more cash to your balance (with a MoneyPak, for instance), withdraw money from an ATM or even check your balance online.

Credit

In our previous illustration we discussed additional ways to improve your credit score. It is important to keep all correspondence between you, your creditor and the credit agency. It may be difficult during this process to obtain credit until your credit score increases however, obtaining a secured credit card can also help you rebuild your credit until you have earned a higher credit rating.

 

Secured Credit Card with a less than perfect credit score, there are fewer card options out there. If you have had trouble getting approved for an unsecured credit card, a secured credit card is another alternative. Secured credit cards help manage  one’s credit and spending limits, but require a cash collateral deposit which becomes the credit line for your account.

Secured credit cards are paid monthly and they are reported to the major consumer reporting agencies.

Credit

In our previous illustration we discussed ways to improve your credit score by identifying discrepancies on your credit report.

 

1. If you have had credit problems in the past, you can work to repair your credit on your own or by using a credit counseling agency. It is important to obtain fees schedules, monthly payments and also discuss any additional fees before you sign any agreements. Beware of companies that ask for payment prior to services being rendered.

2. If you find errors on your credit report, you should correct them as soon as possible to prevent any negative impact on your credit score.

3. Provide all the necessary details in writing to explain the error. It normally takes 30 days to investigate errors and inaccuracies on one’s credit report. You can submit any corrections needed to the credit agencies in writing but please ensure you retain a copy for your records.

4. Consider fees, interest rates, and whether you can afford the monthly payments before you obtain new credit.

Credit

In our previous illustration we discussed credit management and ordering one’s credit report. Once you has reviewed your credit report in it’s entirety, it is important to mark off  any inaccuracies and areas of improvement in order to begin rebuilding one’s credit.

 

1. Improve your payment history by paying all your bills consistently and on time.

2. Get current on delinquent accounts to reduce your outstanding debt and to avoid having delinquencies reported.

3. Build on your credit history because the longer you’ve had credit, the better the score.

4. Don’t open accounts you don’t need, as inquiries made on your credit report will lower your score.

5. Try to keep balances low. A large number of revolving credit accounts with open balances, can result in a lower score. Try to have a more diverse credit profile which consists of installment accounts, revolving credit balances and mortgage.

Credit

In our previous illustration we discussed credit management and the importance of ordering your credit report in order to review and identify areas of improvement. Please allow five to seven business days for shipment. If you have not received a copy of your credit report within that time frame, it is important to follow-up with the credit agency. Before we discuss ways to improve and rebuild your credit, we need to understand how credit agencies determine credit scores.

How is credit determined?

 

1. Credit scoring was developed in 1958 by Fair Isaac Corporation to help predict whether a borrower will repay their loan on time.

2. The resulting score is commonly called a FICO score, after Fair Isaac.

3. When a credit bureau calculates your score, they do not take race, religion, age, sex or marital status into account.

4. Neither does your income, occupation or employment history figure into the score, nor if you’ve been turned down for credit.

Credit

In our previous illustration we discussed credit scores and credit monitoring services that will help you maintain your credit. It is important to remember that it does not matter where you begin, regardless of outside circumstances, trials and or obstacles you can increase your credit step-by-step through faith.

We now understand why credit is important and how other companies use credit to assess character.  We will now review what elements are listed on one’s credit report.

 

1.The total number of credit accounts you have open, including mortgages, credit cards, automobile loans and other accounts.

2. The amount you owe on each account, and the monthly payments you must make on each of the accounts that are properly paid.

3. Delinquent accounts (for which payments are past due, may negatively impact your credit score).

4. Derogatory accounts (those which negatively impact your credit score and accounts that have been closed).