What is the Easiest Way to Obtain and Fix My Credit Score?
When applying for any type of loan, your credit score plays a large role. Many individuals are disqualified from getting a mortgage because of delinquent payments that they are unaware of. It is wise to get a credit report at least once a year. You are entitled to a free credit report each year. Simply go to www.annualcreditreport.com and fill out the necessary information. Studies have shown that over 75 percent of credit reports contain at least one error. Almost one fourth of all credit reports contain inaccurate information that is serious enough to severely jeopardize your borrowing ability. What is the quickest and easiest way to fix your credit score?
As stated early, you must obtain a credit report first. Make sure to read the fine print as many credit agencies automatically enroll you in one of their premier programs and you do not realize it for several months. You will notice a bill for $15.99 from that particular company if you did not decline the offer from the outset. Many credit companies will not refund this amount either. After you receive your credit report make sure to look at your entire account history. Even if you think you have been deligent about paying off your debts on a monthly basis, you never know what might have been reported.
If you have any accounts that are deliquent or key derogatory, meaning the debt has been assigned to a collection agency or an attorney, you will want to verify the information is accurate. If you feel this information is inaccurate, you need to go to the source rather than the credit company. You do have the ability to go through the credit company and file a dispute but it is much quicker and easier to go directly to the collector of the debt. The easiest way to find contact information for the debt collector is to Google the account name. Any reputable debt collection agency will be brought up by Google. Contact this company immediately and decide to settle your debt or dispute it.
Many people feel if the debt is under $200 it is not worth the trouble to fight the battle to have the debt cleared; it is much easier to just pay it. If you do decide to pay it, it will greatly increase your credit score, sometimes in excess of over 100 points. If the debt is an excessive amount, you may need to contact your attorney to find out what your options are. Having a key doragatory account on your credit report can drop your credit rating by over 100 points! This can mean the difference in a 5.25% mortgage rate and a 8.25% mortgage rate.
With that knowledge, it is extremely wise to check your credit report periodically and make sure that all your deliquent debts have been settled before you decide to apply for a loan. Often times, the lender will see these unpaid accounts on your credit report and deny you with no explanation at all. If you have received credit reports on a consistent basis, you will have leverage when demanding to know a reason why you were denied. So go to www.annualcreditreport.com and get your free credit report today. Try to clear up any of those credit problems you may have before you decide to apply for a loan.
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Debt Analysis – What Americans Need Right Now
Debt analysis is something that most Americans NEED to do but have never even considered it. This country, as a whole, is drowning in debt. The average American household is carrying $8,188 in credit card debt. The consumer debt in America totals $969 billion. If these numbers don’t open your eyes, nothing will.
Debt analysis can be done on a personal level or with a professional. If you are not greatly knowledgable of finance, it is worth the investment to seek professional help for debt analysis. It could save you millions of dollars over a lifetime. Personal debt analysis can be done with a spreadsheet program. There are other money programs available to keep up with your spending, but any spreadsheet program can do the job.
The most important part of debt analysis is to be honest with yourself and anyone else involved. You have no reason to hide financial information if you desire to get out of debt. The more debt you hide, the less likely it is that you will be able to erase that debt. Make sure to come with an actual figure with how far you are in debt.
Write this number down and post it in several places. This will help you in your attempt to reduce your debt. If you constantly see the amount of debt you are in, you are much more likely to think about making a discretionary purchase. Each week, update the number. Hopefully it will decrease which will encourage you even more.
Start your spreadsheet with your current checking account balance in one column and your debt in another column. Make sure to input EVERY SINGLE EXPENSE you have. If you buy a .89 Coca-Cola, make sure to put that in the spreadsheet. The easiest way to keep up with every expense is to write it down. Once again, if you write it down, you are less likely to make many small, discretionery purchases. After each expense, add up the amount you have spent and subtract it from the checking account.
Obviously, you will want the checking account to increase while the column for debt decreases. If you actually input it into a document, you will be much more likely to reduce your amount of debt because you have a visual. Each day you can see where you stand and even make a chart of which direction your debt is going.
Stay tuned to see an in depth explanation of how to entire your spending into a spreadsheet.