Do you ever wonder why people get stuck paying installments every month on credit cards on to find out that they have barely chipped the debt after a year. The answer is that most credit cards out there are set up for the consumer to always be in debt. The more debt you owe the more the credit card company owns you.
When you are looking to get a credit card, the key is to shop for it and don’t let it shop for you. Sounds foolish but if you think about it, how many times have you received brochures in the mail for a new credit card and since it so convenient you fill out the form and mail it out? It’s so easy these days that you can fill out a credit card form and send it out literally in 2 minutes. What I would suggest is that rather than go for the first offer thrown to you, collect all the brochures then make time to sort them out and study them. Trust me this will pay off in the future.
The most important things to look for in a credit card brochure is APR(annual percentage rate), annual fee and grace period. You should then check things like late payment penalties and charges, over limit fees etc.
ANNUAL FEE A flat, yearly charge.
APR A measure of the cost of the finance charge which the company charges on your balance yearly.
GRACE PERIOD A time period in which if your complete balance is paid off then you pay no finance charge. This is usually 25 days, but most people carry a balance to the next period so they end up paying the finance charge.
It is also important to deduce the finance charges which you are paying for your credit card. The finance charge is the amount you pay to use the credit offered to you, therefore it is based on the amount you use. Most credit cards companies use the average daily balance method to calculate the finance charges on your credit card. The issuer calculates the balance by taking the balance on your account each day during the billing cycle and averaging it. The issuer then uses this number to deduce a charge.
Below is an example of a possible saving scheme on can use to saving on credit card charges.
CREDIT CARD SCENERIOS:
Terms VISA 1 VISA 2
Average monthly balance $2,500 $2,500
APR x .18 x .14
Annual fee + $ 20 + $ 0
Finance charges
annually $450 $350
Total cost $470 $350
As you can see if you carry a balance averaging $2,500 through the year you will end up paying either $470 or $350 in finance charges alone. Imagine if you were only paying the bare minimum which is $20 a month you would not even put a dent In your debt.
There are loopholes around all these charges which can get you paying nothing at all to creditors. One way to do it is to transfer all your balances to a card that offers introductory 0% APR. Most credit card companies use this tactic of offering 0% Introductory APR to lure new customers but beware because the APR usually shoots up to about 20% after 6months. As long as you keep transferring your balance you will never pay APR charges. Some people who already have great APR’s already of about 11% usually don’t realize that once you have a late payment, even 1 day late, the creditor automatically puts your account on the highest APR possible and usually is about 30%.
Shop wisely and get the best deal for you. Learn more about Credit and Credit repair at www.1800aaacredit.com .
Friday, January 5, 2007
STEP BY STEP CREDIT REPAIR EXPLAINED IN 2 MINUTES
Credit repair takes time and patience but with the right information you can be well on your way to AAA credit and a new life. Although the process itself is long it can be explained in 1 page.
First you have to learn how to analyze all the data presented on your credit report then become a master at disputing these claims. With the credit bureau you will have tofind anything that is incomplete, inaccurate or just wrong. If anything has been recorded wrongly you have the right to dispute it even if you do posses the debt. The bureau then has 30 days by law to correct any wrong items or delete entirely from your report. It might take them up to 6weeks to send you a new report and you should check if the disputed items have been removed or updated. If you have not received a reply within 6 weeks send a follow up letter with all the older correspondences and remind the credit bureau about the 30 day law.
There are ways to get around the technicalities of the dispute. Always make sure that you do not dispute more than 3 items at one time. Once those 3 items have been updated or removed entirely, then you move on to the next 3. Understand also that sometimes when you dispute, the negative entry does not just automatically come off your credit report. You have to be very persistent and keep on writing to the credit bureau till they eventually come off. Understand that credit repair is not a sprint but a marathon.
Areas to be disputed include “Charge offs”, “Paid as Agreed”, “Tax Liens”, “Late Payments”, “and Bankruptcy”. These constitute the majority of negative items that occur on a credit report. On each and ever one you have to quote the “account name” and “account number”, then write detailed letters to each of the three credit bureau stating that all accounts have either been paid in full or do not belong to you. Credit bureaus usually perform an investigation into the debt by contacting the creditor. What you should know is that many creditors either don’t have the time or don’t have any documents to prove the debt. A lot of times if a negative item is more than 3 years old, many creditors will not respond to the credit bureau inquiries because of lack of records. This means that the negative entry must be deleted from your credit by law.
Steps to Dispute
1)Obtain your credit report
2)Decide which items you want to dispute.
3)Write letters.(The acceptable format can be found at ASANIWELLS WEBSITE, see link below)
4)Always hand write your letters.
5)Keep copies of all correspondence.
6)Keep separate file copies on each credit bureau.
7)Keep on writing and following up as they reply.
Learn more about credit repair and obtain official letters at www.1800aaacredit.com
First you have to learn how to analyze all the data presented on your credit report then become a master at disputing these claims. With the credit bureau you will have tofind anything that is incomplete, inaccurate or just wrong. If anything has been recorded wrongly you have the right to dispute it even if you do posses the debt. The bureau then has 30 days by law to correct any wrong items or delete entirely from your report. It might take them up to 6weeks to send you a new report and you should check if the disputed items have been removed or updated. If you have not received a reply within 6 weeks send a follow up letter with all the older correspondences and remind the credit bureau about the 30 day law.
There are ways to get around the technicalities of the dispute. Always make sure that you do not dispute more than 3 items at one time. Once those 3 items have been updated or removed entirely, then you move on to the next 3. Understand also that sometimes when you dispute, the negative entry does not just automatically come off your credit report. You have to be very persistent and keep on writing to the credit bureau till they eventually come off. Understand that credit repair is not a sprint but a marathon.
Areas to be disputed include “Charge offs”, “Paid as Agreed”, “Tax Liens”, “Late Payments”, “and Bankruptcy”. These constitute the majority of negative items that occur on a credit report. On each and ever one you have to quote the “account name” and “account number”, then write detailed letters to each of the three credit bureau stating that all accounts have either been paid in full or do not belong to you. Credit bureaus usually perform an investigation into the debt by contacting the creditor. What you should know is that many creditors either don’t have the time or don’t have any documents to prove the debt. A lot of times if a negative item is more than 3 years old, many creditors will not respond to the credit bureau inquiries because of lack of records. This means that the negative entry must be deleted from your credit by law.
Steps to Dispute
1)Obtain your credit report
2)Decide which items you want to dispute.
3)Write letters.(The acceptable format can be found at ASANIWELLS WEBSITE, see link below)
4)Always hand write your letters.
5)Keep copies of all correspondence.
6)Keep separate file copies on each credit bureau.
7)Keep on writing and following up as they reply.
Learn more about credit repair and obtain official letters at www.1800aaacredit.com
Thursday, December 21, 2006
PLAY CAT AND MOUSE WITH CREDITORS
Most people do not know about the Wage Earner Plan. This federal law was passed in 1938 and it is administered by the same court branch that deals with bankruptcy claims.
Truth is that bankruptcy although tempting should be your last resort to getting out of debt. Filing bankruptcy may clean your credit immediately but the damage stays on your credit file for 10 solid years before it is removed and during this time it will be quite impossible to receive credit for anything because most creditors will not be willing to deal with you. To utilize the Wage Earner Law requires one thing, that you be a wage earner. That’s it. This is unlike bankruptcy because it does not wipe your credit.
The wage earner law only requires that when you file and are called to court, your creditors must appear and prove in a court of law that you owe them money. Most creditors do not appear because they do not have the time to follow up on your debt in person. On average about 40-45% of creditors actually appear and when they do appear and the court rules against you, then you can set up a real payment plan over 2-3 years to pay back the debt. Setting up this payment plan can also help your credit because you have made an attempt to pay back the creditor directly and not deal with a collection agency. Most of the time creditors do not appear in which case you can wipe that debt from your record as soon as you walk out of the court.
Upon filing the Wage Earner Plan you legally stop any collection agency, lawsuits negative judgment etc against you. When you go to court and the judge rules against the creditor for using deceptive tactics to solicit your business, your debt will be wiped out immediately under the Uniform Commercial Code. Most of these guerilla tactics only work if you know the law and can use it against the creditors. Information is power. Learn more about how to clean your credit at http://www.1800aaacredit.com/ .
Truth is that bankruptcy although tempting should be your last resort to getting out of debt. Filing bankruptcy may clean your credit immediately but the damage stays on your credit file for 10 solid years before it is removed and during this time it will be quite impossible to receive credit for anything because most creditors will not be willing to deal with you. To utilize the Wage Earner Law requires one thing, that you be a wage earner. That’s it. This is unlike bankruptcy because it does not wipe your credit.
The wage earner law only requires that when you file and are called to court, your creditors must appear and prove in a court of law that you owe them money. Most creditors do not appear because they do not have the time to follow up on your debt in person. On average about 40-45% of creditors actually appear and when they do appear and the court rules against you, then you can set up a real payment plan over 2-3 years to pay back the debt. Setting up this payment plan can also help your credit because you have made an attempt to pay back the creditor directly and not deal with a collection agency. Most of the time creditors do not appear in which case you can wipe that debt from your record as soon as you walk out of the court.
Upon filing the Wage Earner Plan you legally stop any collection agency, lawsuits negative judgment etc against you. When you go to court and the judge rules against the creditor for using deceptive tactics to solicit your business, your debt will be wiped out immediately under the Uniform Commercial Code. Most of these guerilla tactics only work if you know the law and can use it against the creditors. Information is power. Learn more about how to clean your credit at http://www.1800aaacredit.com/ .
HOW TO OBTAIN FREE MONEY FROM THE GOVERNMENT
Free money is given away everyday to anyone thinking about going into business for themselves or trying to expand an already existing business. The Federal Government is responsible and runs grants programs for anyone willing to get it.
The United States government each year provides about $30 billion in free grants and low interest rate loans, $500 billion in procurement contracts and over $30 billion in consulting and research grants. For example take the concern of the world today which is the environment and ecologically friendly products. If you write up a good business plan and approach the government for a grant, you are likely to receive a nice lump sum grant to begin your business all of which does not have to be paid back. Many people do not go this route because they either don’t know about the programs or they do not want to deal with all the “red tape” and bureaucracy that goes with these applications. But if you really think about it, you really have nothing to loose.
There are millions of dollars available from the Federal and the state government. A list of a few programs and how to contact them are as follows, what you should know is that there is available literature over 300 pages long that fully details where and when anyone can receive a grant and the process to go about it.
1)MONEY FOR WOMEN’S ENTERPRISES: Upward of $300,000 grants awarded to business women every year. Contact the Office of Women's Business Ownership, U.S. Small Business Administration, 409 Third Street, SW, Washington, DC 20416.
2)MONEY FOR INVESTORS IN RENTAL PROPERTY: Contact the Chief, Program Support Branch, Management Operations Division, Office of Multi-Family Housing Management, Department of Housing and Development, Washington, DC 20420.
3)MONEY FOR BUSINESSES IN POOR ECONOMIC AREAS: Contact the Economic Adjustment Division, Director, Economic Development Administration, Herbert Hoover Bldg., Rm. H7217, Washington, DC 20230.
4)MONEY FOR MINORITY BUSINESS DEVELOPMENT: Contact the Minority Business Development Agency, Department of Commerce, Washington, DC 20230.
5)MONEY FOR PROPERTY INVESTORS WHO RENT TO ELDERLY OR HANDICAPPED PEOPLE: Contact the Director, Office of Multi-Family Housing Management, Dept. of Housing and Urban Development, Washington, DC 20410
These are just a few of thousands, if you are really serious about any business and you want to receive a grant to help you begin all you have to do is write a very detailed business proposal and find the right information you need, then write them a certified letter, you will get a reply within a few weeks telling you what you need to do. The most important thing is that you should never take no for an answer. If you no one is willing to help you contact your congressman and bother the office until someone pays attention. To learn more about over government programs and how to make initial contact with them log on to http://www.1800aaacredit.com/ .
The United States government each year provides about $30 billion in free grants and low interest rate loans, $500 billion in procurement contracts and over $30 billion in consulting and research grants. For example take the concern of the world today which is the environment and ecologically friendly products. If you write up a good business plan and approach the government for a grant, you are likely to receive a nice lump sum grant to begin your business all of which does not have to be paid back. Many people do not go this route because they either don’t know about the programs or they do not want to deal with all the “red tape” and bureaucracy that goes with these applications. But if you really think about it, you really have nothing to loose.
There are millions of dollars available from the Federal and the state government. A list of a few programs and how to contact them are as follows, what you should know is that there is available literature over 300 pages long that fully details where and when anyone can receive a grant and the process to go about it.
1)MONEY FOR WOMEN’S ENTERPRISES: Upward of $300,000 grants awarded to business women every year. Contact the Office of Women's Business Ownership, U.S. Small Business Administration, 409 Third Street, SW, Washington, DC 20416.
2)MONEY FOR INVESTORS IN RENTAL PROPERTY: Contact the Chief, Program Support Branch, Management Operations Division, Office of Multi-Family Housing Management, Department of Housing and Development, Washington, DC 20420.
3)MONEY FOR BUSINESSES IN POOR ECONOMIC AREAS: Contact the Economic Adjustment Division, Director, Economic Development Administration, Herbert Hoover Bldg., Rm. H7217, Washington, DC 20230.
4)MONEY FOR MINORITY BUSINESS DEVELOPMENT: Contact the Minority Business Development Agency, Department of Commerce, Washington, DC 20230.
5)MONEY FOR PROPERTY INVESTORS WHO RENT TO ELDERLY OR HANDICAPPED PEOPLE: Contact the Director, Office of Multi-Family Housing Management, Dept. of Housing and Urban Development, Washington, DC 20410
These are just a few of thousands, if you are really serious about any business and you want to receive a grant to help you begin all you have to do is write a very detailed business proposal and find the right information you need, then write them a certified letter, you will get a reply within a few weeks telling you what you need to do. The most important thing is that you should never take no for an answer. If you no one is willing to help you contact your congressman and bother the office until someone pays attention. To learn more about over government programs and how to make initial contact with them log on to http://www.1800aaacredit.com/ .
HOW TO OBTAIN A1 CREDIT USING BANK LOANS
Building credit is actually easier than you might think. It takes a little but of knowledge and the right information and you are on your way to build or acquire credit.
Bank institutions always cater to people who have very good credit and they reserve their loans for these people because they are confident that the client will pay back the loan at the specified interest rate. But if you have bad or no credit it can be difficult to get any of these loans for either a home or a car and even if you do get a loan you will be at a ballooned interest rate, sometimes paying almost twice the rate of someone who has good credit. So what the solution to this? What you should know is that to begin to clean your credit you need to start adding positives to your file, and one of the most prestigious positive lines you can get is a bank loan, even better you can have three at the same time.
To begin you will need about $1000, note that this money is not spent it will be used as collateral to acquire your bank loan. Next you need to find three top banks, consider using Bank of America, Chase bank and Wells Fargo. Once you locate the banks you have know laid the ground work. For the purpose of this article we will label the banks as A,B,C.
Go to Bank A with your $1000 and open a savings account, there should be no problem doing this because most banks will open an account for you without any credit check. Once you have received your bank account go home and wait 3 days. Return to the same bank and tell your bank officer that you want to apply for a loan using your savings account as security. Most of the time they will issue you this loan with no questions asked but be prepared to answer any questions if they might come, for example you might be asked what the purpose of the money is. You might also be subject to a credit check but you should be given the loan because your savings account will act as security. Make sure you tell your banker that you want the loan amotized for 1 year installment payments. Also your $1000 will be frozen for the loan and as you pay it back monthly the exact amount will be freed up for you.
Once you have received the loan go to Bank B open a new account depositing the loan amount. Once again you will go through the above process again, and do the same for Bank C. Once you are done, you now have 3 top bank loans which you are making payments on every month, and all this will cost you is the price of interest rates. For example
EXAMPLE
Bank Savings Balance Loan Amount Payment Amount Total Interest Paid
Bank "A" $1,000.00 $1,000.00 $29.52
Bank "B" $1,000.00 $1,000.00 $29.71 $29.71
Bank "C" $1,000.00 $1,000.00 $62.74 $29.91
The last loan you take from Bank C you will then use to service the monthly payments and as you make payments your money gets unfrozen. After you payments are finished within a year you would have probably spent less than $100 in interest payments and you get your $1000 back, but more importantly you have now lodged three top bank loans which are paid in full into your credit file. Congratulations. Learn more about credit and how to clean or build your credit at http://www.1800aaacredit.com/
Bank institutions always cater to people who have very good credit and they reserve their loans for these people because they are confident that the client will pay back the loan at the specified interest rate. But if you have bad or no credit it can be difficult to get any of these loans for either a home or a car and even if you do get a loan you will be at a ballooned interest rate, sometimes paying almost twice the rate of someone who has good credit. So what the solution to this? What you should know is that to begin to clean your credit you need to start adding positives to your file, and one of the most prestigious positive lines you can get is a bank loan, even better you can have three at the same time.
To begin you will need about $1000, note that this money is not spent it will be used as collateral to acquire your bank loan. Next you need to find three top banks, consider using Bank of America, Chase bank and Wells Fargo. Once you locate the banks you have know laid the ground work. For the purpose of this article we will label the banks as A,B,C.
Go to Bank A with your $1000 and open a savings account, there should be no problem doing this because most banks will open an account for you without any credit check. Once you have received your bank account go home and wait 3 days. Return to the same bank and tell your bank officer that you want to apply for a loan using your savings account as security. Most of the time they will issue you this loan with no questions asked but be prepared to answer any questions if they might come, for example you might be asked what the purpose of the money is. You might also be subject to a credit check but you should be given the loan because your savings account will act as security. Make sure you tell your banker that you want the loan amotized for 1 year installment payments. Also your $1000 will be frozen for the loan and as you pay it back monthly the exact amount will be freed up for you.
Once you have received the loan go to Bank B open a new account depositing the loan amount. Once again you will go through the above process again, and do the same for Bank C. Once you are done, you now have 3 top bank loans which you are making payments on every month, and all this will cost you is the price of interest rates. For example
EXAMPLE
Bank Savings Balance Loan Amount Payment Amount Total Interest Paid
Bank "A" $1,000.00 $1,000.00 $29.52
Bank "B" $1,000.00 $1,000.00 $29.71 $29.71
Bank "C" $1,000.00 $1,000.00 $62.74 $29.91
The last loan you take from Bank C you will then use to service the monthly payments and as you make payments your money gets unfrozen. After you payments are finished within a year you would have probably spent less than $100 in interest payments and you get your $1000 back, but more importantly you have now lodged three top bank loans which are paid in full into your credit file. Congratulations. Learn more about credit and how to clean or build your credit at http://www.1800aaacredit.com/
WHO IS THE CREDIT BUREAU
Many people who don’t know anything about credit have the feeling that the credit bureau is a government agency that works for Uncle Sam to ruin our lives but the real truth is that government agencies are just private companies that that have monopolized the credit industry. The industry is therefore run by three firms: Transunion, Esperian and Equifax. These three giants run the industry but there are more than 2000 smaller credit bureaus. Truth is that these companies are all private companies and are in the business of making money. Hell they are even listed in the New York Stock Exchange and for the price of a share you can own the company. Nice thought considering these companies literally own most of the individuals in the U.S who happen to have bad credit.
How do credit bureaus get their information? Various companies subscribe to the credit bureaus services and therefore send credit history of individuals to the credit bureau. Updates are also sent to the credit bureau by the creditor periodically. Creditors usually report at different times to different credit bureaus so therefore none matching dates and amounts can be shown on each credit report. There are so many instances were these reports are terribly incorrect. The companies the send reports to credit bureaus are namely banks, department stores, mortgage companies, credit card companies etc.
Credit bureaus also get their information from public record from courthouses including bankruptcies, default payments, tax liens etc. Many times the credit bureau adds these records to its files but fail to correct the information if the courthouse updates or clears the records. Here are the 3 major credit bureaus and how to contact them. Visit www.1800aaacredit.com for more information.
How do credit bureaus get their information? Various companies subscribe to the credit bureaus services and therefore send credit history of individuals to the credit bureau. Updates are also sent to the credit bureau by the creditor periodically. Creditors usually report at different times to different credit bureaus so therefore none matching dates and amounts can be shown on each credit report. There are so many instances were these reports are terribly incorrect. The companies the send reports to credit bureaus are namely banks, department stores, mortgage companies, credit card companies etc.
Credit bureaus also get their information from public record from courthouses including bankruptcies, default payments, tax liens etc. Many times the credit bureau adds these records to its files but fail to correct the information if the courthouse updates or clears the records. Here are the 3 major credit bureaus and how to contact them. Visit www.1800aaacredit.com for more information.
Friday, December 8, 2006
10 Q AND A’s ABOUT CREDIT AND CREDIT BUREAUS
1) Consumers cannot repair credit score by themselves. This is actually not true. All the information that you need to clean your credit like the pros is easily accessible at http://www.1800aaacredit.com/. And you do not have to pay thousands to achieve a good credit score.
2) If you get a bad item removed from your credit, it can easily be put back on. The truth about this misconception is that if you follow the rules of the Fair Credit Reporting Act and dispute erroneous items on your credit, it cannot be put back on your credit.
3) Paying off old debt or charge offs according to credit bureaus removes it from your credit. Paying off old debt settles the creditor but does not clear your credit report of the bad item. But it is possible with a little information, to wipe any charge-off from your credit.
4) Credit Bureaus are a government agency. Many people have the perception that this is the case, but actually all three credit bureaus are private companies. This makes them liable for damages therefore if you follow them with the law, rather than risk a law suit they will most likely settle and clean your credit.
5) Credit Bureaus are required to remove any erroneous items from your credit after 7 years. This is true but what people don’t realize that the 7 years begins from your last delinquency which therefore can extend this time even past 10 years. And that is a long time to be without good credit.
6) Information on your credit cannot be changed by disputing. The opposite is actually true. Any dispute presented to the credit bureau has to be verified and confirmed by the bureau within 30 days which after they have to remove the item from your report by law. This is quoted under the Fair Credit Reporting Act.
7) Inquiries into your credit can damage your credit. This is unfortunately true, if you have a couple of inquiries then it is not too bad, but anything more and creditors will see you as desperately seeking credit from anyone who is giving it.
Learn how to clean your credit at http://www.1800aaacredit.com/ .
2) If you get a bad item removed from your credit, it can easily be put back on. The truth about this misconception is that if you follow the rules of the Fair Credit Reporting Act and dispute erroneous items on your credit, it cannot be put back on your credit.
3) Paying off old debt or charge offs according to credit bureaus removes it from your credit. Paying off old debt settles the creditor but does not clear your credit report of the bad item. But it is possible with a little information, to wipe any charge-off from your credit.
4) Credit Bureaus are a government agency. Many people have the perception that this is the case, but actually all three credit bureaus are private companies. This makes them liable for damages therefore if you follow them with the law, rather than risk a law suit they will most likely settle and clean your credit.
5) Credit Bureaus are required to remove any erroneous items from your credit after 7 years. This is true but what people don’t realize that the 7 years begins from your last delinquency which therefore can extend this time even past 10 years. And that is a long time to be without good credit.
6) Information on your credit cannot be changed by disputing. The opposite is actually true. Any dispute presented to the credit bureau has to be verified and confirmed by the bureau within 30 days which after they have to remove the item from your report by law. This is quoted under the Fair Credit Reporting Act.
7) Inquiries into your credit can damage your credit. This is unfortunately true, if you have a couple of inquiries then it is not too bad, but anything more and creditors will see you as desperately seeking credit from anyone who is giving it.
Learn how to clean your credit at http://www.1800aaacredit.com/ .
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