Money Problems and how to solve them

There are certain reasons which will run you into money problems. They are

1.You count on your job and you have lost your job.
2.You got health problems or family crisis.
3.You have week assumptions and that you have ability to pay and failed to do so.

If you are working over time and in two jobs,still you are unable to pay money bills of minimum interest and living expenses on time.Then you are in money problems. Bankruptcy is not a solution every time to come out of problems. It works only for the people who has good number of assets,business or real estate.The first step that you need to do is analyze your income form you or your family members and basic bills and expenditures.They may include

1.Mortgage or rent
2.Car loan payment and transportation charges
3.Student loan payments
4.Insurance premiums,tax payments,property tax You shall also count monthly requirements like Food,Gas,Entertainment or recreation, Clothing, Credit card payments.

You can go through your three month average of your needs and average it. That may be the money you need per month.The basic reason for money problems is your expenses crossed your income levels.You have to reduce some of your expenses like spent on entertainment or clothing. You can set up tight budget to control expenditures.

By counting extra money that you have after basic needs you shall pay all basic minimum amount on each bill required to keep the ball rolling.With the remaining money you shall pay as maximum as possible for a single debit until that is cleared.First you shall focus on unsecured debit like credit cards and medical bills.

In the list of unsecured payments you shall start paying the one who has high interest rate.Again in the debits choosing the one who has high interest rate and unsecured that shall be the first preference to pay back. This will increase you moral level and self confidence. Stick to the same chosen payment until the debit is cleared and don't change it.

Contact your lenders in written and explain your problem to them.Your aim is not to gain sympathy,but to get a modified payment plan. You shall get a smaller monthly payment that is convenient to pay as per your budget.Request your lender to report your account as current so that your credit score will not be affect badly.This will increase your interest money but keep your credit report better.

Other option is to change the due date so that you will have some extra time to pay your bill.It is better to contact the creditors as quickly as possible to get the best deal.You shall deal with them before your credit report is effected.You shall not wait until you have missed a month payment and the details are sent to collection agency.

Late Payments:

Late payment is reported by each creditor differently and you shall use this option with care.You shall see that the lender shall not reporting your due to collection agency.This way of submitting your due as not collectible,your credit report will be effected and making it better will take a lot of effort.

If you have brief financial problem and going to be back quickly,you shall choose re-aging your accounts.Here you account is no longer as old and due and it will be treated as current.If the lender convinced they will treat your account as fresh and you need to pay all the money as usually.You need not pay late fee and fine.You can not get it easily and you shall convince them to convert your account as fresh.You may need to offer some money as first installment and for a small period,a bit more than minimum required money.
According to rules you are eligible for re-aging the accounts only when

1.The borrower shall show willingness and ability to pay the debits that he has
2. The account shall exist for at least for nine months.
3.The borrower should make three consecutive monthly payments or total of that shall be paid at once.
4. A loan shall not be rearranged more than once with in twelve years.
Collection agencies work on commission basis and some times they even get half of the collected money from the customer. They need to spend lot of time and call every customer many times to get the settlement.

They are supposed to follow certain rules as per federal law.They are

1. They shall call you only between 8 A.M to 9 P.M.
2.They shall not call you when you are at work as your employer do not like that kind of calls.
3. They can not Harris or abuse you.
4. They shall not lie to you and implement wrong cases on you.
5.They shall not use unfair practices to collect money.
6.They must identity them self first before asking for clearance.
7.Must honor a written request from you to stop further contact.

You need not inform where you work and where you are having bank accounts.They can not ask you to pay the debits after stature limits.To have a solid proof of your account activity you shall get a credit report and you will be having a good proof in your hand about the activity.

You can negotiate with collection agency and if they are not calling you regularly,they are not that much positive about collection of money from you.This is the inherent meaning that you can understand.

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Black Marks in Credit Report and how to correct errors

Black marks in credit report effects you seriously and shall take measures to correct them.Delinquencies are the communication between lender and credit reporting agencies and will inform about your delay of more than thirty days in paying your bills and loan payments.If you have not paid your credit card bill even after one month of your billing date,there a very good probability of passing this information to CRA.If you delay one more month in paying your loan bill monthly payment, the lender will pass the sixty day delay notice to the CRA and this information will be keep passed between them.If you have delayed paying more than 90 days,you will be all most black listed and getting new offer is going to be difficult.

You have to be cautions about delinquencies as they are going to stay back in your credit report for long years and you can not correct it easily.This will happen even if you pay back your dues after notification between lender and credit report agency. Single bad report your delay in payment may not effect your credit report but three or four delays are going to effect your credit report seriously and reduce your credit score.

Collection activities and charge-offs are the written communications between the lender and consumer. They will inform you about the actions they are going to take in written.Collection activity means the lender will pass the responsibility of your payment collection to a in house or outside collection agency. This is going to effect your credit report.

A charge off means lender pass information and conform that the debt can not be collection easily and pass the corresponding amount into uncontrollable asset.They may further proceed legally to collect the money. They consider this money as noncollectable and and call this as charge off. This is going to be very bad for your credit report and you shall not fall into this case.

This collection activities ad charge offs are going to stay in your report for seven years and keep on reflecting your offers, deals and interest rates on loans badly.Once you pay this due credit report show charge off as paid or satisfied. This will reduce its effect a bit and any way it is going to hurt your financial interests.

If you use any credit card to its maximum amount lenders see this negatively. You shall pass this amount into different accounts to correct this problem.The best method is to pay some amounts and reduce this maximum limits. Lenders will not offer good deal if you are having unsecured loans more than 20% of annual income. If you are consistently paying your bills on time your credit score will be automatically improved.

Declaring personal bankruptcy will save you temporarily protect you from financial troubles.But it is the worst thing that could stay in your credit report.It will stay in the credit report for ten years and you are not going to get any further offers from lenders and bankers.It is the worst black mark that stay in the report and this information will be passed life insurance people and potential employer. Getting a new insurance or a new job.The federal court will make you free from your debits partially or completely and you need not pay this debits. They give you a fresh opportunity to start new life. For declaring bankruptcy you need to pay filing and administrative fee and it costs approximately $200. You need to pay your lawyer fee and it is obvious.

Once you file bankruptcy suite,it will inform the same to the lenders and they shall not call and send letters to you to pay the debits and monthly bills. Even you can inform the same to the lenders that you have filed your papers. Here you are going to submit all your properties to the trustee of the court to dispose and pay the debits that you have.The court can dispose your properties like your valuable collection like stamps and coins,antiques,stocks,bonds and other investments.The court can also sell your second car and vacation home to clear your debits.Some of items like your primary home,car and work related tools. Court will discharge your debits generally with in 60 to 75 days after hearing.

You can declare bankruptcy only once in six years and it could be more than once in your life.Once your file paper work,you have to attend the court and this is called first meeting of creditors.

You can ask for help from lender when your Monthly payments on time. Do this in write for to have future reference.

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Fixing errors in credit report with credit reporting agencies

You can dispute the inaccurate information from CRA and ask them to correct the information. For this they shall take only thirty days. After this they shall give you written information about the changes that are made to the report. Inaccurate information shall be either removed or corrected with in the 30 days of dispute filed.
If the investigation has not solved your problem, you can add a brief statement to the report and it shall be added to the report. Out dated information shall not be produced in the report. General old data of more than seven years or bankruptcies information more than ten years shall not be placed in the report.
Who can look at your credit report:
Your credit report is though personal it is not confidential. It can be accessed by different groups of people. Different people can access this report when they have permissible purpose. The set of people who can access your report are
  1. Credit card companies
  2. Landlords
  3. Banks when they want to improve your ATM limits and overdraft protection.
  4. Insurance companies
  5. Employers and potential employers
  6. Government agencies
  7. The company that you hire to protect from identity theft
  8. If you apply for a government license or favor they can access your credit report.
  9. Some one from who you ordered a product.
  10. A state or local child support agency.
  11. Any one else who has written permission to access it.
Most of this cases you have initiated business or applied for a loan with some one and before they proceed they will see your credit report to take decision.If you have applied for a job where you need to handle money in banks or a high security job and you have access to sensitive data. Before they hire they will access your credit report.The potential employer want to conform that you are responsible and not going to surround by temptation. Any way this report is going to be less in detail and it will not be counted as an inquiry.
Even insurance companies check it to see how well you are paying your credit card bills. Basing on that they can analyze your paying habits and think and judge about their premium payments.Any way this will change from place to place.Enquirers from credit card companies, home loan or auto loan are treated as hard enquirers and they lower your credit score. Your new credit report accounts has a weight age of ten percent of credit score.The number of accounts newly opened when compared with the old accounts will effect the credit score.
Number of recently made inquiries will also effect credit report.The time since new accounts opened will effect your report.If you have small number of accounts and there are large number of inquiries it will effect credit score. According reacherch people with eight inquiries has the possible of declaring bankruptcy when compared with other people with no inquiries.
All the home and auto loan inquiries made with in fourteen days are treated as one inquiery only.Any inquiry made prior thirty days of scoring your report are not included in the report.Most of the lenders feel risky to offer the asked loan or favor to you if you are having ten inquiries in your report in the last six months. This happens even if you have good credit score and report.Older inquiry that is more than six months is not a issue.
Soft credit inquiry is not going to effect your report. They are
  1. Your own credit report request.
  2. Credit checks made by some one to give you marketing offers and deals.
  3. Inquiry made by lender with whom you have account.
  4. Inquiry made by possible employer.
  5. Inquiry made by credit counselors and loan brokers.
Reputable lenders or loan brokers will take formal permission from you in written to access report.You shall give permission to lenders separately but not as a group through broker.Some people will say responding to their brochures will give them access to your report and you need to be careful about them. You shall not give social security number until you have decided to take the offer. Tel operators and online websites will be claiming that they will give instant offers and they need your approval. There you have to give permission to access to your credit report. Be careful about it and ask for written documentation and papers for it. Information of your report available for bad people will also leads to identity theft and you shall be careful about it.
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Credit Score and what are the contents of three digit number

What is the credit score report and what do they contain

How to deal with Credit Bureaus for better credit report

You shall earn study income and borrow as small money that is absolutely needed is a good way and foundation for good credit score. Paying bills on time is also a good way of getting a good credit score. If you do this consistently over the time there will be consistency in your credit score.
If you want to buy a new house or refinance your old home you need to take loan and lenders will give it to you only when you have good credit score. Even for buying a car or taking loan for business you need loans from bankers and that will be available only when you maintain good credit history and score.
You need to know your financial status via credit reports from three agencies. You can get one copy of report from each one free once for a year. Checking and taking measures to improve it is necessary to get the required loans from lenders. This will give you information regarding fraud activities if any are there happening on your account.
According to American law of rule you got a legal right to get free copy of your credit report. You can request them directly for your credit report. Their corresponding address is
1.Equifax Credit Information Services Inc.
P.O. Box 740241
Atlanta, GA 30374
1.800.685.1111
www.equifax.com

2.Experian (formerly TRW)
1.888.EXPERIAN (1.888.397.3742)
www.experian.com

3.TransUnion Corp.
760 W. Sproul Rd.
Springfield, PA 19064-0390
1.800.916.8800
www.transunion.com

You can access your report on each corporation internet website or get it mailed to your postal address.The consumer version of credit report contains additional information like the data of people who contacted them for your financial data. It will also have data regarding who accessed your data for promotional offers.If you want credit score simulator, you can get it online from www.myfico.com .
It analyzes your personal credit information. It will tell you what happens to your credit score it you open a new account or pay a bill. Credit reports some time contains errors that have to be corrected to get the loans and approvals needed. This errors exists because credit agencies collect information from different lenders and they are not verified in any way.
The important reasons for getting errors in credit reports are
  1. People apply for credit with different names and correspondingly you will have different credit reports.
  2. The person who input the personal hand typed written information in a wrong way.
  3. Clerical errors while inputting the information.
  4. Wrong social security numbers as the input.
  5. Payments for posted into different accounts accidentally.
The only person who can verify the correctness of your report is and you are supposed to do that. You can dispute the wrong information with the agencies. Inaccurate information shall be corrected with in thirty days of reporting.If the dispute is not solved you can add a brief statement to the credit report. This summery shall be printed in the report issued.
Outdated information shall be removed from data sheet and the limit for general data is seven years. Bankruptcy reports shall be eliminated from report if they are more than ten years.The best way to contact any CRA is sending a telephone message or fax with corrections.Have the original copy for reference and get it filed.Underline the error in your report and send it to the agency. Add dispute form or your personal statement to it.You need to send the document to support your disputed item. If you don’t have document you need to take them from the lender and submit it.
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Credit Score and what are the contents of three digit number

What is the credit score report and what do they contain

Credit Score and what are the contents of three digit number

Ten percent of credit score depends on the type of accounts that individual is having like loan accounts, mortgage accounts and car loans.Ten more percent of credit score allotment will be due to the number of recently opened accounts and how much money that they are contributing for the total amount of credit.The way you payback your loans makes a big value for the credit score and it is up to thirty five percent.

The amount of money that you owe is also a huge contributor and it is going to give thirty percent.The time frame from which you are having credit history give you a weight age of ten more percent. It is called length of credit history.It is over all criteria in general and there may be variations in this with respect to each individual.The credit scoring systems will observe specially about bankruptcy lines, cases and judgments against you and how positive they are.They also look for dues that you have and from how many days that due is existing.

The amount of the due and is that money send for collection by the agencies is also taken into consideration.The number of past dues will be also considered while calculating the credit score.The time gap at which this due or negatives appeared will be also considered to give specific credit score to you.Have you paid to all accounts that you have taken also going to help you to make your credit score better.The most important factor that decides your score is the length of credit history and longer the time frame, better the score is.

To have active credit score you shall have at least one account active for the past six months. This will give enough information for generating score.Your credit score has a serious effect on the possibility of getting a loan or credit from any company. Better the score, higher the probability of getting the approval for the requested loan. It also affects the price that you have to pay for the loan as interest. Better the score you are going to get lower interest rates. Before increasing the credit limit or increasing the interest rate on the existing loan, companies will consider this three digit score. If your magic number is more than 720, you are going to get better deals, offers and lower interest rates.
Even if you are having a bit lower score like 719, the interest that you have is substantially more. It you are scoring at 620,it is very difficult to get the loan and if you get the loan you have to pay dramatically high interest rate when compared with the previous case.

Credit score is a indication of your payment habits in paying the commitments that you have and how reliable you are in fulfilling the deals that you have committed for.Missed payments exist in your reports for seven years.Public report information exists for seven years.Bankruptcies remain in the credit report for ten years.Unpaid tax details will remain in the report for fifteen years.More number of cards with high limits also risks your credit history.