Posts Tagged ‘visa’

7 Steps For Rebuilding Credit

When many people think about credit repair, they think about “ removing negative“ from their credit report. Unfortunately, they stop there. What those people are missing is that there is more to improving your credit score than just removing negative items.

A portion of your score consists of credit utilization, for instance. So while removing negative accounts is great, you’ll be even better off if you can start building positive payment history too.

While many people focus completely on the “historical”aspect of credit repair (i.e. fixing things that have already gone wrong), a much better approach is to not only try to fix things from the past but also work on the future by attempting to rebuild credit.
And how exactly is that done?

Let’s say that you have some late payments, collections, charge-offs, and other negative items on your credit reports. It’s great that you’re attempting to clean up your credit by tackling those things, but there is a lot more that you can do that will help your credit score.
You might do something like…

1. Get a $5,000 or $10,000 line of credit added to your credit report using a merchandise card that reports to at least one major credit bureau. This will raise your high credit limit substantially and may help open the door for pre-approved credit offers.

2. Get a couple more credit cards, such as a sub-prime (high fee) Visa or MasterCard or a secured credit card. Whether you use one type of card or both, make sure that they report to the credit bureaus (as they are useless for rebuilding credit if they do not.)

3. Make regular purchases using your Visa/Master cards and run up manageable balances. Pay them off over the course of 10 months or so, and then do it again. This way you will build positive payment history. Do the same thing with the merchandise card to add to the positive payment history you are building.

4. Be sure to NEVER miss a payment or be late. If you do, you’re working against your goal of rebuilding credit. You must pay on time every time, period.

5. Make sure you are “OPTED IN” to marketing offers based on your credit and relationships with your creditors. This will help insure that you start receiving pre-approved offers as quickly as possible.

6. If you have any existing credit cards that are maxed out or have very high balances, consider moving the balances around or paying off some of the balance so that the usage isn’t so high (though the merchandise card account should help with this).

7. After you have started receiving credit card offers in the mail, pick a good one and apply.
You can also try starting with a department store card as sometimes these cards will be easier to get approved for.

The whole point of this process of “rebuilding” credit is to build up payment history and add new positive accounts to your credit report so that your credit will look better to lenders offering loans and credit cards with better terms. Most people will find that their credit score goes up as a result of their efforts, and in anywhere from 3 months to a year they will be getting all kinds of offers in the mail for better credit cards with lower fees and higher credit limits.

Chip Cards- What Are They? And Why Are We Using Them?

You may have noticed over the last few months a transition of your credit and or debit cards. Recently new regulation was passed that required card issuers and financial institutions to issue EMV chip cards. EMV stands for Europay, Mastercard, and Visa. This method of payment became the world standard almost ten years ago now and the United States is just catching up now.

Still you might be asking what is EMV, what are the benefits, and why the switch? Well EMV is really a system that was created by three different credit issuers. Instead of using the prehistoric swipe and sign method EMV incorporates a high-security technology that reads a microchip embedded in your card. It will then need a pin and/or signature to complete the purchase or transaction. So I mentioned higher security. I also mentioned that EMV chip cards have pretty much been the world standard for almost a decade. So it should come as no surprise that almost 50% of all credit card fraud in the world occurs in the United States. Seems we were a little late getting to the game.

What is going to happen now? If you haven’t gotten a new chip card in the mail yet you probably will soon. And you should start to follow the chip card method of payment. Not only is it near impossible for your information to be harvested thus providing identity and credit score protection but it also helps to build a more secure network of payment methods and services. While many different vendors and card issuers have already made the switch to the new EMV system there are still some to complete the change. Before late 2016 or early 2017 all vendors must switch to this new system. The new regulation in place puts the responsibility of loss on the party with the least up to date technology. This is important if you are taking credit cards in your business or would like to inquire your bank or card issuers for a new chip card. Most banks and credit issuers will provide you with a new chip card, at no cost to you, to replace your old card. This is important to do now so you have the most up to date credit card security out there.

Utilizing credit to your advantage can be complex but it really doesn’t have to be. While these new chip cards and the EMV system does not directly change your credit score it can prevent against possible fraud which effects so many every single year. The more power and knowledge you unlock now can help build credit for the future. Understanding credit and how credit works is extremely important. To discover more about utilizing your credit to its fullest potential click the link below and discover the Credit Repair Intelligence System.

The WSJ recently interviewed Carolyn Balfany, Mastercards EMV Expert, to find out more about how the new system will work and what it means for the consumers and the vendors. To read the article you can click here: http://blogs.wsj.com/corporate-intelligence/2014/02/06/october-2015-the-end-of-the-swipe-and-sign-credit-card/ Its a great read if you want to learn some more about the EMV system and chip cards.

As always if you have questions we are here to help. If you are already a member of our Members-Only Forum that is the best place to post or ask your questions. If you need some more information please feel free to contact us at support@creditrepairpublishing.com.