Archive for January 2016
Credit Building, Credit Repair, Credit Counseling and Debt Reduction/Negotiation – What’s The Difference? And What Do YOU Need to Know?
In most instances, rebuilding your credit, paying down your debt and regaining your financial freedom starts with “credit repair.”
Credit Repair should not, however, be confused with other credit services such as debt consolidation, credit counseling, or debt negotiation.
Credit repair is a process that you can do on your own, or, with the help of experts. If you don’t know where to start in the DIY world of understanding and building or rebuilding credit then visit creditrepairpublishing.com for effective tools and access to a community.
But, there are also companies that specialize in helping consumers dispute and delete inaccurate, unverifiable, and untimely items on their credit report that are being illegally reported. These companies very widely in quality. But if you need this type of help, you can call us for an appropriate referral.
You should also know, that at CR Publishing we believe that Credit Repair is also about helping you to understand your credit and showing you how to build positive credit so that you can have the positive credit profile and score you deserve.
And a better credit profile (FICO Score) means better pricing on everything from credit cards and credit lines to insurance and mortgages.
But what about these other things?
Debt consolidation is the process of combining all outstanding debts in one loan account. The purpose of debt consolidation is usually to lower monthly repayments or lower interest rates on a loan. It can be beneficial but be careful!
Debt reduction is, on the other hand, a process of carefully understanding debt and creating the best system to reduce your debt and then to build better credit and wealth. It is the foundation of being debit free. At CR Publishing we now all have a powerful resource The Debt Free Bible for those who are looking to reduce Debt and to become Debt FREE. Click here for access to this resource.
Credit Counseling is advice given by counselors to people about how to use credit responsibly and how to get out of serious debt. When a person participates in credit counseling their creditors may note it in their credit reports.
The fact that they have resorted to a credit counseling program is a huge red flag for prospective credit grantors. Remember, paying off debts is a step in the right direction, but it does not necessarily restore or build your credit. credit.
Debt negotiation is when a 3rd party negotiates with creditors and establishes a payment plan on behalf of the debtor. Before starting debt or credit counseling, or debt negotiation consider the Credit Repair Intelligence System, The Debt Free Bible, or our amazing offer when you get both.
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Yes….and in some cases as much as 50 Points And Almost Instantly…But You Might Need To Do A Few Things First
There are many real and mythical credit score “boosting techniques” that are taught and/or tatted. But, according to Rob Ellerman, President of Dispute Suite, Inc. this is the only one verified to work–Raising the credit limit.
Why and how does raising your credit card credit limit work and what are the pros and cons, the benefits and the dangers?
It works because the utilization ratio (the amount of credit you have versus how much you use) accounts for 30% of the overall credit score.
And, if you even moderately bad credit raising your credit limit is often quite easy.
In fact, most people don’t realize that they can get their credit limit increased just by asking their credit card companies. Just call up the 800 number on the back of one your credit cards (be sure to compare the features to determine which card is best for this purpose).
Once connected just tell them that you are “considering transferring their balance from this credit card to another card with a higher limit, unless they were able to raise the credit limit.”
This works quite often if you, as the consumer, have an established relationship with the credit card company. It’s often even more successful if the “utilization of the current card” is low, because the existing credit card company will view the client as a lower risk.
This tactic has consistently proven to raise credit scores almost instantaneously by lowering the utilization ratios.
So the up side is a better credit rating quickly. The downside? Well, you must not start to use the newer limit. If you do, then obviously, your payments will go up, but unless the card is paid in full each month or you keep that new credit amount open your could actually reduce your score and the cost of your credit can go up.
Discipline is key here.