In almost all cases, high risk loans translate into a higher interest rate because of the uncertain nature of the loan. High risk loan lenders understand how people can get behind and get into trouble, and most are more than willing to give you a second chance. However, because your credit may be severely damaged (see credit repair), they do need to protect themselves in case you default.

Lenders granting high risk loan

Our high risk loan lenders are pre-screened as reputable organizations willing to give you a second chance at a fair rate. While the interest rate on the high risk loan will be determined by the lenders after reviewing the severity of credit problems, collateral, down payments, and the degree of credit risk, you can be assured of finding a program to meet your situation.

To attempt credit repair with high risk loans you first need to have a plan. In most cases, the funds of high risk loan are used to pay off remaining debts so that you only have one monthly payment. In other cases, high risk loans are used to purposely build credit through on time payments and an early pay off. Regardless of your situation, a high risk loan can give you a chance to obtain benefits only available to those with good credit.

High Risk Loans Eligibility

Quite obviously, if your loan applications are being repeatedly turned down then there is certainly something wrong with your credit score. Those who are most eligible for high risk loans include people with a tainted financial report, a bankruptcy filing, or a string of late payments and charged off accounts.

Whether your credit is poor or absolutely downright awful, certain high risk loan lenders will provide all kinds of different high risk loan programs. While the interest is higher, such high risk loans can provide a great start for borrowers with little or no credit, as well as those trying to re-establish their credit history.

You?ll want to check with the high risk loan lender to see if there are any limitations as to what the money can be used for. Whether you want to pay off other debts, make home improvements, avoid foreclosure, or pay for unexpected expenses, a high risk loan may be the answer you seek. .

Shop money first — Many people make the mistake of shopping for a car, then worrying about how to pay for it. Instead, check into your financing options before you get near a dealership. You have many options — from credit unions to banks to the captive financing arms (GMAC, Ford Credit, etc.) of the automakers themselves. Offers can vary considerably; as with a real estate loan, even a seemingly small difference in the interest rate being offered can cost (or save) you a lot of money over the life of a new car loan. And just as you’d haggle with the salesman over the price of the car itself, you can and should try to negotiate the best deal possible on your financing. Make them earn your business; don’t just give it to them on a silver platter. If GMAC is offering 1.9 percent financing, you may have to forego an additional rebate to get it. Get the specifics and ask your bank/credit union if they can do better.

Know the true cost of what you’re buying (and what you can afford) — There is more to the cost of a new car than the price you pay for the car itself. Things like insurance, property taxes (where applicable), annual fuel costs and so on should always be factored into your purchasing decision — before you commit to buying anything. Insurance payments on a high-performance sports car may be more than you expected. People sometimes get into trouble by focusing on the car payment alone — forgetting about the peripheral costs that come with the purchase of any new car or truck. If you buy “on the edge” — with little cushion left for these unanticipated expenses — you might end up getting a visit from the repo man.

Know your quarry — Before you get near a dealer’s lot, you should have spent some time online getting to know as much about the vehicle you’re thinking of buying as possible. What are the standard and optional engines? Available equipment? The trim levels? What’s the dealer invoice price for the vehicle — and the various options? (Many people forget there’s a big difference between the MSRP “sticker price” and actual dealer cost for individual options as well as for the car itself.)

The more informed you are, the less likely it is you’ll end up with buyer’s remorse — or a bad deal. AOL Autos is one of several excellent resources for this research. Trade publications such as Automotive News and Consumer Reports are also a great resource for in-depth info about any new car on the road. It’s a good idea to read as many new car evaluations of the model you’re considering as possible. These expert reviews may enlighten you about good (and bad) points you might otherwise be unaware of until after you’ve already bought the car.

Check into the available deals — Year-end closeouts, cash back, special financing, etc. Each automaker publishes their current offers on their official web page (for example, General Motors’ web site is www.gm.com). AOL Autos brings all these offers to you alongside other vehicle details to assist you in your shopping. These offers are constantly changing, vary from region to region — and model to model — so it’s important to get the latest, most up-to-date info. Compare what’s being offered by one automaker against the deals (or lack thereof) being offered by a competitor. A little digging could save you thousands before you even get to the dealer’s lot. Also pay attention to the market. Slow-selling models (or final year models of vehicles about to be replaced or updated) are typically the ones dealers are most anxious to get rid of — which means you can usually negotiate a great deal for yourself. On the flip side, avoid shopping for the latest, most trendy and popular models until the buzz has died down a little — unless you don’t mind paying every penny of full MSRP sticker, plus a little extra.

Never focus on the monthly payment — “How much can you afford per month?” is a deceptive shuck and jive used by some car salesmen to get you to stop thinking about the total price of the car by focusing your attention on what appear to be “low” monthly payments. But ultimately, the only figure that matters is the bottom line cost of the car itself. Haggle over that figure — and the monthly payments will take care of themselves.

Worry about your trade-in later — You’re buying a new car; haggling over your trade can be distracting. With the focus on how much you’ll be getting for your old car, it’s easy to lose sight of how much you’re paying for the new one. Haggling over one car is confusing enough; adding another to the mix is never a good idea. Estimate the value of your trade-in online using a service such as KBB brought to you by AOL Autos. This will give you a ballpark number to free your mind while you shop for a new car. The best thing to do is negotiate your best deal on the new car — and once that’s done, bring up the matter of your trade-in.

Always take an extended test drive — Buying a new car or truck without spending at least a few hours behind the wheel is a lot like getting married after that first date. Things you didn’t notice at first may soon come back to haunt you — for example, seats that give you a back ache; or an under-powered engine. Or terrible blind spots. These are things you’ll notice during an extended test drive — and it’s why you should never buy any new car without having spent a t least a couple of hours behind the wheel in a variety of driving environments, such as stop-and-go traffic and highway driving. If the car will be used by family members, they should come along for the ride, too. If everyone’s not happy with the car, odds are you won’t be happy with the car. Most dealers will be happy to let a serious buyer take a test drive. If the dealer won’t allow it, you should think hard and long before buying the car — from that dealer, anyhow.

With a secured car loan, the borrower can buy a new car or even a used car of his choice. The money is obtained by him very easily to buy the car. The borrower can make a decision as to what car he wants to buy, and if it is a used car then it should not be more than 5-7 years old. The car may be useful for any purpose, personal or commercial.

For taking up the loan amount, the borrower is required to pledge the car that is being bought as collateral with the lender. At the time of purchase, the title of the car is made in the name of the lender. When the borrower repays the full amount to the lender, then the title of the car is transferred to the borrower’s name.

Before taking up this loan, the borrower needs to decide the car and his next step should be to look for a suitable car dealer. After deciding on one who is giving the borrower a good deal, the borrower should then apply for the loan. This application can be made through the online mode if the borrower does not want to take any hassle and wants to speed up the process of approval. The money is transferred to his account and he can easily pay the price of the car to the dealer. This loan is also available to the borrowers with a bad credit history.

Borrowers can now easily borrow money for their car purchase through a secured car loan. Possessing a car has not remained very difficult now.

An auto loan is a good way for individuals with bad credit to make a fresh start and re-establish a positive credit history. A range of factors contributes to a low credit score. Yet, you have the ability to change your current credit standing. For some, improving credit may be simple. Their situation may simply require paying past due bills and settling collection accounts. On the other hand, if a bankruptcy or repossession damaged your credit score, consider obtaining an automobile loan to improve rating.

Get Pre-Approved for an Auto Loan

Prior to beginning your search for a new or used vehicle, it may help if you get pre-approved for an auto loan. Accepting dealership financing with bad credit may not be the wisest choice. Most dealerships offer financing to individuals with poor credit. However, dealerships do not specialize in bad credit loans, thus they will not offer the best rate.

To assure getting a fair interest rate, secure your own private financing before negotiating with a dealership. Getting pre-approved for an auto loan is easy. Simply complete an online auto loan application. The lender will review your

complete a formal application to get pre-approved.

Apply for Auto Loan with a Sizeable Down Payment

Even though it is feasible to get an auto loan with bad credit, you are not promised the best auto loan rate. To raise the likelihood of attaining a slightly lower rate, apply for an auto loan with a down payment. Typical down payments are about 10% of purchase price.

The first thing you will need is a budget. Don’t buy more car than you can afford. You will need to decide whether a used car or new car is better for you. You will also need to choose between buying a car and leasing one.

When looking for auto loans, you should know your credit score before you start shopping for a car and for auto loans. The more knowledge you have about your credit situation, the less likely you will have a finance officer stick you into a worse auto loan than you deserve.

Auto loans are offered by different sources, such as banks, credit unions, and the dealers’ own finance arms. Make sure to shop around, to get the lowest interest rate and a payment you can afford.

Q: Is it possible to get an auto loan even though I filed for bankruptcy?

A: Yes, it is possible to get an auto loan with a bankruptcy still showing on your credit report. As long as a bankruptcy has been discharged and your credit is ok since the bankruptcy, you should have no problem getting auto loans.

Q: Will I be limited to older model vehicles just because my credit is bad?

A: Certainly not! You will be suprised at the choices you will have, including late model, dependable cars, trucks, vans, and SUVs.

Q: Can I buy a car from an individual and get the loan from you?

A: At this time, we are not able to offer this service. You can choose a vehicle from one of our nationwide dealers.

Q: How much money will I need for a down payment?

A: Because everyone’s situation is different, and there are many things that factor into figuring a down payment amount, it is impossible for us to give you a definite amount. If you think coming up with a down payment will be difficult for you, ask about the down payment options that are available to you.

Q: I have no credit and would like to buy my first vehicle; can you help me?

A: Of course! We welcome first time buyers,and will ensure that you drive away in a nice, affordable vehicle.

Q: I would rather apply over the phone, can I do this?

A: We do not accept phone applications because of safety concerns. Applying on our secure server is a much safer way to apply.

Q: Can I get a bad credit auto loan with 0% interest?

A: To be honest, probably not. 0% interest rates are often reserved for people who have excellent credit. If you are a first time buyer, or a buyer who may have credit problems, the interest rates you get vary from state to state and fluctuate daily. If you start out paying a higher interest rate, you can always refinance your auto loan in a year or so, as long as you have shown that you are creditworthy.

Q: Is you dealer network limited to any one state or are you a nationwide company?

A: We serve all 50 states and Washington D.C.

Experian is a global credit information group, with operations in over 30 countries around the world. The company’s largest operation, Experian North America, is a consumer credit reporting agency, considered one of the big three US credit agencies along with Equifax and TransUnion. As well as the US, Experian has operations in most European countries, Argentina, Brazil, Chile, South Africa, China, Japan and Australia.

Experian’s principal lines of business are Credit Services, Marketing Solutions, Decision Analytics and Interactive Services. It collects information on consumers, businesses, motor vehicles and insurance, along with lifestyle data from a range of on- and offline surveys. Access to the much of the information Experian holds is subject to regulatory control, depending on the regulations in each country it operates.

Experian employs approximately 13,500 people in 36 countries and as of 2007 had clients in more than 60 countries. Its corporate headquarters is in Dublin, Ireland with operational headquarters in Nottingham, England and Costa Mesa, California, USA. According to its corporate site, Experian’s annual sales exceed $3.4 billion USD (£1.8 billion) and it has net assets of $2.107 billion.

Experian was demerged from the British company GUS plc in October 2006. The new company, Experian Group Ltd, is listed on the London Stock Exchange under the abbreviation EXPN The company is part of the FTSE 100 Index.

Experian acquired its US credit reporting business from TRW in 1995, and its databases contain credit information on 215 million consumers in the United States. In addition to providing credit reports, Experian maintains a database of over 450 million vehicles containing title and registration data from North American governments and provides address information for more than 20 billion promotional mail pieces to more than 100 million households every year.

Like the other major credit reporting bureaus, Experian is chiefly regulated in the United States by the Fair Credit Reporting Act (FCRA). The Fair and Accurate Credit Transactions Act, signed into law in 2003, amended the FCRA to require the credit reporting companies to provide consumers with one free copy of their credit report per 12 month period. Like its main competitors, TransUnion and Equifax, Experian markets credit reports directly to consumers. Experian heavily markets its for-profit credit reporting service, FreeCreditReport.com, and all three agencies have been criticized and even sued for selling credit reports that can be obtained at no cost.

Experian handles its credit disputes in its National Consumer Assistance Center (NCAC) in Allen, Texas. It is frequently sued for violating the Federal Fair Credit Reporting Act (FCRA) and uses the large national law firm of Jones Day to defend these lawsuits. Experian’s litigation and settlement decisions are made by its in-house attorneys based in California. You may contact the NCAC once you have a copy of your personal credit report by calling the number that is located on the personal credit report itself. Experian announced that it would be opening a second NCAC in Santiago, Chile during the summer of 2007. Many divisions of the Allen NCAC will be relocated to the Chile location.

Experian provides regional data at nationalscoreindex.com which shows average credit scores by region and zipcode as well as various other measures of household debt. The site does not indicate if it uses a FICO based credit score, the new VantageScore, or some other scoring model.

Credit bureaus collect and collate personal financial data on individuals and businesses, from data furnishers with which the bureaus have a relationship. Data furnishers are businesses, utilities, debt collection agencies, public institutions and the courts (i.e. public records) that a consumer or business has had a relationship or experience with. Data furnishers report the experience with the consumer or business to the credit bureau.

A major credit card company, wants to promote a new credit card. They contact the credit bureaus and deliver a profile of the kind of person they think will be interested in the new card. The profile might include things like personal income, region or state the person lives in, number of credit cards, credit score, etc. The credit bureau then searches through their records looking for anyone that matches that profile. If you fit the profile, an offer is mailed to you or someone calls you on the phone at dinner time. It’s one of the ways the credit bureaus make money.

A good credit rating is very important. Businesses and financial institutions inspect your credit history when they evaluate your applications for credit, insurance, employment, and even leases. Based on your credit payment history, companies can choose to grant or deny you credit provided you receive fair and equal treatment. ]]> http://pierremoneymartblogs.com/index.php/2009/05/06/credit-bureau-3/feed/ 0 http://pierremoneymartblogs.com/index.php/2009/05/04/ways-to-qualify-for-an-auto-loan/ http://pierremoneymartblogs.com/index.php/2009/05/04/ways-to-qualify-for-an-auto-loan/#comments Tue, 05 May 2009 00:49:21 +0000 Kyle Sorenson http://pierremoneymartblogs.com/?p=800 Most people need to take out an auto loan when they want to purchase a new or used car. But qualifying for an auto loan is not always easy. Credit mistakes, late bill payments, and low income levels can sometimes ruin a person’s chances for a loan. When this happens, people often ask why they were denied and want to know how to qualify for a loan through another lender. But there are ways that you can qualify for an auto loan even if your credit is not the greatest.

One of the best ways to qualify for a loan is to plan in advance. Stop making purchases with credit cards and pay off remaining balances before applying for a loan. This will help boost your credit rating and show lenders that you are responsible with your money. Making purchases on your credit cards before the loan has been processed may hurt your chances of receiving the loan. Try to hold off using credit cards until after you bring the car home. Even if you have missed a payment or two in the past, if you have consistently paid your bills for the past year or so, you should qualify for a car loan.

The type of car you want to buy will matter to lenders. Try to find cars that are within your price range. When budgeting for your new car, include monthly insurance payments. This will give you a good idea of how much you can spend without using up all of your available income. Many lenders will not grant loans to those who will use 60% or more of their monthly income on the car loan, living expenses, and other bills. Be sure to stay within your range and try to save a little extra money to use as a down payment. When lenders see that you are willing to put up your own money, they will feel more at ease about granting you a loan.

After you have found a car within your price range, and saved up money to use as a down payment, you will be ready to find a lender. There are many options for you to choose from including banks, credit unions, auto finance departments, and online lenders. You should start with your local bank because they will already know about your financial situation and more apt to working with customers that bank with them. Banks usually offer the lowest interest rates as well. If you belong to a credit union, then you should apply for a loan through them as credit unions can also offer low interest rates.

If you have already tried a bank, but have had little success, you can try the finance department at the dealership where you want to buy the car. They usually work with many lending institutions and will be able to match you with a lender that will grant you a loan. Keep in mind that you may have to pay a higher interest rate when going through the finance department, but it may be worth it depending on how much you need a car.

If you do not want to use the finance department at the dealership, shop around online. You will be surprised to learn that there are many lenders online that want your business. They are competing with other online lenders and traditional lenders as well. This means that they will be able to offer you a better deal even if your credit isn’t that good. Make sure that you research the lender before you contact them to find out if they are legitimate or not. You should also read all contracts before signing them in case there are hidden fees you were not told about.

Depending on your credit history, the interest rate you will be offered may be higher than you expected. If you can put down a larger down payment or pay off the car sooner than your original loan terms, this rate will go down. You should weigh all of your options when it comes to loan terms. If you cannot pay off the car in two or three years, do not risk it. Take out a loan for five or seven years instead. This will cost you more in interest, but at least you will be able to make payments each month.

Qualifying for an auto loan may require you to research your options and apply for several loans before being accepted. Planning ahead of time by getting your finances in order and finding a car that is in your price range will increase your chances. If you are buying a car for the first time and have little or no credit, you may also run into problems along the way. Being patient and trying different lenders will pay off in the end.

In a recent application for a U.S. Department of Energy (DOE) grant, two NU operating companies, The Connecticut Light & Power Company (CL&P) and Western Massachusetts Electric Company (WMECO), are proposing to build a network of 575 charging stations over the next two years. The plan calls for a geographically diverse combination of home-based, workplace and publicly-accessible sites in the utilities’ existing service territories. The companies are collaborating with New England-based Environment Northeast, the Greater New Haven Clean Cities Coalition, and the Town of West Hartford, Conn., on key aspects of the project including location selection and results monitoring.

“We see extraordinary potential in electric transportation as one of the tools to help meet the environmental and energy policy objectives of our regional and national leaders,” said James B. Robb, NU senior vice president of enterprise planning and development. “As the next generation of vehicles gets introduced, likely late in 2010, we want to be sure that New England is among the first markets. The development of a charging infrastructure is important, both to support the adoption of these exciting new vehicles and to allow us to assess the impact on our electric distribution system.”

“For sustainable technologies such as alternative fuel vehicles to really take hold and deliver significant benefits, a collaborative effort between policy makers, businesses and other stakeholders is required,” said State Representative Vickie Nardello, House chair for the Connecticut General Assembly’s Energy & Technology Committee. “NU’s program is a necessary catalyst and part of the forward-thinking solutions we must embrace for a viable and sustainable future.”

“Plug-in hybrids and other electric vehicles are going to be important components of our green energy future, but they won’t work without a network of charging stations. I applaud Northeast Utilities for looking into the future and making this initial proposal to meet that need in their service territories,” said Philip Giudice, Commissioner of the Massachusetts Department of Energy Resources.

NU has been working with the Electric Power and Research Institute (EPRI) in a collaborative effort to understand the utility impacts of plug-in electric vehicles. As part of NU’s strategies for carbon reduction and sustainability, the company has several other forward-looking initiatives under way. In particular, the EV charging network complements the Smart Grid pilots at CL&P and WMECO, and is consistent with the planned expansion of company energy efficiency programs. “In addition, our transmission development program, which will facilitate the integration of low-carbon energy into the New England power supply, provides even more leverage to the environmental benefits of electric vehicles,” noted Robb.

The DOE’s decision is expected in June 2009. NU’s application requested federal funding of $693,750 which is fifty percent of the project’s total estimated cost of $1,387,500. “This is an initial proposal and we will be developing more specifics of the program over the summer, including substantial outreach to various stakeholders to help us maximize the impact of the grant,” Robb said. “We are also examining opportunities to participate with other stakeholders in additional federal grant opportunities to advance the electrification of transportation.”

Loan term may be less than that of a new car. The standard duration for financing a new car can be up to seventy-two months. In the case of private auto loans, it may not be possible to finance a vehicle for the same duration. Usually lenders are ready to finance private auto loans for at most forty-eight months, though there may be exceptions when they have been known to finance for periods longer than that. However, it is important that auto loans finance is done for as short a period of time as you can possibly afford. This is to ensure that you don’t end up in a situation where you owe more on the car than its value (upside down car loan) and to minimize the amount of interest you are required to pay.

With many lenders a down payment may not be required for person-to-person auto loans. Despite not being required, it is better to put money down. Doing this will reduce your chances of being upside down in your car loan in the future. Taxes, title and registration have to be paid separately when you purchase a new car from a dealership. The dealer normally combines taxes, title and registration fees into the loan amount. For private auto loans, the lender will not allow you to finance the fees and will require you to pay for them out of your pocket.

On purchasing a new vehicle, the title is put in your name almost immediately. When it comes to person-to-person or private auto loans, it could take longer. The owner of the car you are buying from may still owe money on the car and it could take a week or longer for completing the payoff process. His lender needs to receive the payoff amount before he transfers the title to the car owner and then it can be turned over to you. The duration of this process is mainly based on the location of the lender. In case of the local bank, this process should not take more than a few days. However if the lender happens to be in another state, it could take much longer for the transfer to be done.

To briefly sum it up, private auto loans make a good option if you are a creditworthy borrower. However id your credit happens to be less than perfect, it may be better to turn to your local dealership as the best source for an auto loan.

Once you know your score, follow these easy tips to improve your rating:

1. Pay your bills on time consistently. Late and missed payments, especially accounts that have been sent to collections, have major impacts on your score.
2. Keep balances low on all of your credit cards. Maxing out your credit cards will lower your score, possibly by as much as 70 points.
3. Avoid opening or closing a lot of new credit cards at once. It may seem like a quick fix, however a significant amount of new credit will harm your score, and closed accounts can still have an impact.
4. Use the credit you have wisely. Manage your current accounts, by making payments on time and being aware of balances and limits, to prove to lenders you are responsible with your credit.
5. Moving debt around (e.g. consolidating the debt on your cards) without paying any of it off can lower your score. Keep your debt where it is and focus on paying it off.
6. Check your credit report often to spot errors quickly and track progress.
7. Avoid credit repair agencies that promise an instant fix. Rebuilding your credit takes time, and any agency that guarantees instant credit repair is only looking to exploit people in need.

With millions of people experiencing financial problems it is absolutely necessary for everyone to know and understand their rights as a consumer.

Federal law requires that you receive fair and equal treatment from businesses issuing credit. This law applies when they evaluate your applications for credit, insurance, employment, and even leases.

The one area where I receive the most complaints are from individuals that are being harassed by debt collectors. These complaints range from debt collectors contacting their work and family members to being called names. All of these are a direct violation of the Fair Debt Collection Practices Act (FDCPA). This article spells out exactly what your rights are as a consumer.

I have copied some areas of this article directly from the Federal Trade Commission’s web site to ensure that the information is explained exactly as the law applies. These areas are identified.

The FDCPA lists the following guidelines that must be followed by all debt collectors:

(Copied from the Federal Trade Commission web site)

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~~Debt collectors may contact you only between 8 a.m. and 9 p.m.

~~Debt collectors may not contact you at work if they know your employer disapproves.

~~Debt collectors may not harass, oppress, or abuse you.

~~Debt collectors may not lie when collecting debts, such as falsely implying that you have committed a crime.

~~Debt collectors must identify themselves to you on the phone.

~~Debt collectors must stop contacting you if you ask them to in writing.

It also prohibits debt collectors from engaging in unfair, deceptive, or abusive practices while collecting these debts.

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It is very important to keep a record of any contact you make with your creditors especially when there is a dispute or misunderstanding regarding your account. You should list the name and address of the company, date and time of the call, the name of the person you spoke with and the content of the call.

Another important aspect of your consumer rights is Credit Reporting. Derogatory information in your Credit Report can have serious consequences. It is ultimately your responsibility to ensure that the information in your credit report is accurate and up to date.

There are numerous companies that offer “Free Credit Reports”, however, you are obligated to sign up for their “Debt Monitoring Service” which usually costs about $80. You will receive a free credit report and if you cancel your monitoring service within 30 days it will cost you nothing. Your best bet is to order your credit report directly from a Credit Reporting Agency. It will only cost you about $9. Below is a list of the three main companies:

Equifax

PO Box 740241

Atlanta , GA 03074-0241

(800) 685-1111

Experian

PO Box 2104

Allen , TX 75013-2104

(888) EXPERIAN (888-397-3742)

Trans Union

PO Box 1000

Chester , PA 19022

(800) 916-8800

I would advise you to visit the below link to find out exactly how to obtain your credit report:

http://www.pueblo.gsa.gov/cic_text/money/fair-credit/fair-crd.htm

Having knowledge of your rights under the Fair Credit Reporting Act (FCRA)can save you a lot of time and trouble when you apply for credit. The following explains these rights.

(Copied from the Federal Trade Commission web site)

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Your Credit Report

Your credit payment history is recorded in a file or report. These files or reports are maintained and sold by “consumer reporting agencies” (CRAs). One type of CRA is commonly known as a credit bureau. You have a credit record on file at a credit bureau if you have ever applied for a credit or charge account, a personal loan, insurance, or a job. Your credit record contains information about your income, debts, and credit payment history. It also indicates whether you have been sued, arrested, or have filed for bankruptcy.

The Fair Credit Reporting Act (FCRA) is designed to help ensure that CRAs furnish correct and complete information to businesses to use when evaluating your application.

Your rights under the Fair Credit Reporting Act:

~~You have the right to receive a copy of your credit report. The copy of your report must contain all of the information in your file at the time of your request.

~~You have the right to know the name of anyone who received your credit report in the last ~~year for most purposes or in the last two years for employment purposes.

~~Any company that denies your application must supply the name and address of the CRA they contacted, provided the denial was based on information given by the CRA.

~~You have the right to a free copy of your credit report when your application is denied because of information supplied by the CRA. Your request must be made within 60 days of receiving your denial notice.

~~If you contest the completeness or accuracy of information in your report, you should file a dispute with the CRA and with the company that furnished the information to the CRA. Both the CRA and the furnisher of information are legally obligated to reinvestigate your dispute.

~~You have a right to add a summary explanation to your credit report if your dispute is not resolved to your satisfaction.

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If you believe that your rights have been violated under one of these laws you can file a complaint with the Federal Trade Commission online at:

While these laws won’t eliminate your obligation to pay your just debts they can prevent debt collectors and others from taking advantage of you.

• A debtor or a guarantor can petition for debt adjustment from the District Court in whose jurisdiction he or she resides.
• The petitioner for debt adjustment should first contact a municipal Money and Debt Advisor.
• The District Court may set a payment schedule for the debtor, laying down how he or she is to service the debts during the following years.
• The duration of the payment schedule is normally five years; during this period the debtor must assign all possible non-essential funds for servicing the debts.
• Once the debtor has serviced the debts to the extent prescribed in the payment schedule, he or she is released from liability regarding the remainder of the debts.
• The payment schedule may be altered upon petition, if the circumstances of the debtor undergo essential changes while the schedule is in effect. If the income of the debtor increases or his or her payment capability is otherwise improved, he or she must increase the amount by which the debts are serviced, as prescribed in the payment schedule.
• If the debtor fails to follow the payment schedule, it may be declared lapsed.

But before you go off on a shopping spree, you should be aware that your “convenience check” is nothing more than a cash advance on your credit card. Cash advances on credit cards carry many extra fees, often overlooked or misunderstood by consumers.

Here’s a quick look at the types of fees most card issuers charge for a cash advance:

1) Upfront fee of 2-4% of the amount advanced. On a $1,000 cash advance your fee will range from $20-$40 in addition to the interest charges.

2) Higher interest rate than on purchases. Many credit card companies charge 18% or more on cash advances. In addition, most companies apply only a small percentage of your monthly minimum payment toward the cash advance.

Some require that you pay down the balance on your purchases first before applying payments to the higher-interest advance. In other words, you’ll be paying fees and interest on your cash advance for a long time, especially if you only pay the minimum payment.

3) Cash advances normally carry no grace period. This means interest charges accrue as soon as you withdraw money or cash the convenience check.

By law your credit card company must disclose any fees associated with a cash advance. The easiest way to find out what fees are charged is to carefully read your credit card statement or to call your credit issuer’s toll-free customer service number and ask questions.

Credit card companies charge these fees for two main reasons. One, to cover the costs to process this transaction which are often higher than a regular credit card purchase. And secondly because of the percentage of defaults among credit advance users. These costs are then passed along to you the consumer in the fees and interest rates associated with a cash advance.

The next time you are tempted to cash that convenience check or withdraw money from an ATM using your credit card, be sure you understand the fees and long term effects of using a credit card cash advance.

Your credit report contains important information about you. It generally includes facts about your identity, where you work, live, your bill-paying habits, and public record information. Credit grantors use credit reports to determine whether or not you will be extended credit. Identity information includes your name, address, marital status, Social Security number, date of birth, number of dependents, and previous addresses. Employment data includes your present position, length of employment, income, and previous jobs. Factual information about your credit history consists of your credit experiences with specific credit granters. Public record information includes civil suits and judgments, bankruptcy records or other legal proceedings recorded by a court. A credit report does not contain information on arrest records, specific purchases, or medical records.

Companies called credit reporting agencies or credit bureaus compile and sell your credit report to businesses, which use it to evaluate your applications for credit, insurance, employment, and other purposes allowed by federal law. Therefore, it is important that your credit report contain complete and accurate information. It is advisable that you review your credit report every three or four years to check for inaccuracies or omissions. You also may want to check your report sooner if you are considering a major purchase, such as buying a home.

HOW CAN I OBTAIN A CREDIT REPORT?

If you have been denied credit, insurance, or employment because of information that was supplied by a credit reporting agency, the Fair Credit Reporting Act requires the report recipient to give you the name and address of the credit reporting agency that supplied the information within 30 day s after the credit was denied. If you contact that agency within 60 days of receiving the denial notice, you can receive a free copy of your credit report. If you simply want a copy of your report, call the credit reporting agencies listed in the Yellow Pages under “credit” or “credit rating and reporting.” Call each credit report agency listed since more than one agency may have a file on you, some with different information. You may have to pay a reasonable charge for each report.

What is a student credit card?

Student credit cards are cards geared specifically toward students to help them establish credit. Credit card issuers know students generally have no credit history and little to no income, so your credit limit will start out somewhere around $300-$1000.

What are the advantages of a business credit card?

A business credit card enables you to separate business expenses from personal expenses.
Businesses with good business credit are eligible for larger loans and lines of credit at lower rates of interest. Each employee receives their own business credit card to use when making business purchases. You can monitor purchases online or using your paper statements. Many business credit cards now offer reward programs, which means you can earn free airline tickets, hotel stays, and other great rewards for all your purchases and for all your employee’s business purchases on your business credit card.

Many business credit cards now offer reward programs, which means you can earn free airline tickets, hotel stays, and other great rewards for all your purchases and for all your employee’s business purchases on your business credit card!

Credit card has been lost/stolen. What do I do?

Contact the financial institutions that issued your credit card and inform them that your card has been lost or stolen. The bank will close the credit card account, thus preventing any transactions from being charged to the account. Upon your request they will then issue you another credit card with a new account number.

What is a Credit Score?

A credit score is a numeric representation of your creditworthiness. Numerical weights are placed on different aspects of your credit report, and a mathematical formula is used to arrive at a final score. Credit scores are one of the primary tools a creditor uses when determining whether to lend money to you and at what interest rate.

Consumers everywhere are routinely accessing their credit reports as part of their overall financial management. Some keep track of open lines of credit, credit limits, and rates, while others review credit reports to safeguard against identity fraud. In any case, the growing demand for credit reports has resulted in more report options for you.

Some of the credit score options provided by the service companies are:

• Single Credit Report :consumers can request one free credit report from each of the three credit reporting agencies every 12 months. Each agency could have different information, so you may want to stagger your requests from each agency during a 12-month period.
• 3-in-1 Credit Report : A single report showing side-by-side information from all three credit bureaus.
• Report, Score, and Debt Analysis: A single report, credit score and debt analysis.
• ID Fraud Watch: Immediate notification of report changes, weekly e-mail fraud alerts, quarterly access to credit report, and ID theft insurance. Also includes your credit score and debt analysis.

What are high risk loans? Credit repair with high risk loans can certainly be achieved if done properly. A high risk loan is when the lender faces the significant risk that the money won?t be paid back. Typically, if the borrower has a horrendous credit or heavy debt load, any loan granted would be considered high risk.

In almost all cases, high risk loans translate into a higher interest rate because of the uncertain nature of the loan. High risk loan lenders understand how people can get behind and get into trouble, and most are more than willing to give you a second chance. However, because your credit may be severely damaged (see credit repair), they do need to protect themselves in case you default.

Lenders granting high risk loan

Our high risk loan lenders are pre-screened as reputable organizations willing to give you a second chance at a fair rate. While the interest rate on the high risk loan will be determined by the lenders after reviewing the severity of credit problems, collateral, down payments, and the degree of credit risk, you can be assured of finding a program to meet your situation.

To attempt credit repair with high risk loans you first need to have a plan. In most cases, the funds of high risk loan are used to pay off remaining debts so that you only have one monthly payment. In other cases, high risk loans are used to purposely build credit through on time payments and an early pay off. Regardless of your situation, a high risk loan can give you a chance to obtain benefits only available to those with good credit.

High Risk Loans Eligibility

Quite obviously, if your loan applications are being repeatedly turned down then there is certainly something wrong with your credit score. Those who are most eligible for high risk loans include people with a tainted financial report, a bankruptcy filing, or a string of late payments and charged off accounts.

Whether your credit is poor or absolutely downright awful, certain high risk loan lenders will provide all kinds of different high risk loan programs. While the interest is higher, such high risk loans can provide a great start for borrowers with little or no credit, as well as those trying to re-establish their credit history.

You?ll want to check with the high risk loan lender to see if there are any limitations as to what the money can be used for. Whether you want to pay off other debts, make home improvements, avoid foreclosure, or pay for unexpected expenses, a high risk loan may be the answer you seek. .

Credit union members are owners and decision-makers that have a say in their financial institution’s actions. They elect a board of directors to provide leadership and ensure that members’ views are represented.

Being an owner also means sharing in the credit union’s success. Many credit unions distribute patronage dividends to members in accordance with prudent business practices.

Democratic member control is one of seven international co-operative principles which guide credit unions as we put our values into practice. The other principles are member economic participation. autonomy and independence; education, training and information. co-operation among co-operatives, and concern for community.

Credit unions belong to a large co-operative network, provincially, nationally and internationally. Although decisions are made locally, this network enables credit unions to provide members with a full range of financial products and services.

Credit unions belong to a large co-operative network, provincially, nationally and internationally. Although decisions are made locally, this network enables credit unions to provide members with a full range of financial products and services.

Credit unions belong to a large co-operative network, provincially, nationally and internationally. Although decisions are made locally, this network enables credit unions to provide members with a full range of financial products and services.
The full guarantee is made possible through a comprehensive deposit protection regime that is focused on prevention.

Regulatory requirements are put into place by Credit Union Deposit Guarantee Corporation to ensure that credit unions are operating in accordance with Standards of Sound Business Practice and to ensure that there is always an adequate level of capital held at the credit union level to effectively manage business risks.

Through ongoing monitoring of credit union performance the in-system regulator is able to identify potential risks early and clearly communicate any preventive action necessary in a credit union to protect deposits.

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY. THIS IS IN NO WAY GIVING ANY LEGAL ADVICE OR REPRESENTATION. THE INFORMATION CONTAINED HEREIN WAS COMPILED FROM VARIOUS ARTICLES. FOR ANY LEGAL ADVICE OR REPRESENTATION SEEK YOUR OWN LEGAL COUNSEL.

Auto Loan Options For Bad Credit Borrowers

More and more bad credit auto loan ads these days bombard debtors and other bad credit borrowers with the concept that they can buy a car or truck no matter what their credit may look like. Although most of these ads are based on truths, in this article I will carefully review some of the bad credit auto loan pit falls to be aware of, and help debtors to understand how some of these systems work.

The direct finance business works as a good credit auto loan would from your local bank, except borrowers with bad credit will be expected to bring in a larger down payment and pay a higher interest rate. Most local lenders, of course, will not make these loans at all to borrowers with bad credit. Depending on the severity of one’s bad credit, down payments for these loans can range from 20% to 50% and depending on the credit and legal limits of the state one lives in, interest rates can range from 12% to 26%. I have even seen in a few states extreme cases where borrowers already owning cars use their vehicles as collateral for very short-term loans. The effective interest rate can be as much as 144% per year. These loans, sometimes called title loans, offer a short-term loan at 12% per month, so when the loan can not be paid off another loan at 12% must be taken. Such lending is illegal in most states and even where allowed I can think of almost no situation where taking out such a loan would represent a prudent financial decision. In most cases debtors with bad credit should expect to pay in the 12% to 18% interest range. Amortization (the time needed to pay the loan in full if all regular payments are made) choices offered may only range from 2 to 4 years opposed to good credit borrowers whose auto loans may extend for as long as 5 to 7 years. Certain amortization schedules and higher interest rates combine for payments that can be considerably higher than for those with excellent credit. The good news is that if these loans are paid on time they can also serve as tools for rebuilding credit. Dealers who advertise their willingness to work with bad credit auto purchases often ultimately finance the transaction with one of the direct lenders as described above. Dealer’s who finance these loans internally sometimes combine of these things where they secure an external financing source by guaranteeing apart of the loan or allowing a part of the loan to remain un-funded until certain loan payments are made.

The greatest abuses in bad credit auto lending come from dealers who artificially inflate the prices of their cars and or the interest rates charged for the financing. A common tactic is for a dealer “specializing in bad credit purchasers” to price a car normally sold for $3,000 at $6,000, take $1,500 down and finance the balance at 24 to 26%. The reality would be that the borrower not only obligates themselves to a contract at a very, very high interest rate but that the under lying debt and price for the car bear no realistic relationship to the value of the vehicle. This leaves the borrower in a position that ultimately they will default on the loan further ruining their credit. Otherwise they will complete the contract by which time they may have paid double or triple what they would have for the same car if they had purchased it from a legitimate dealer at a legitimate price. The watch word here is “caveat emptor,” let the buyer beware, some dealers advertising they work with poor credit purchasers may be honest and forthright dealers. The best consumer protection is knowledge. Research the true value of the cars you are purchasing and try to pay only the wholesale cost plus a $200 to $500 profit for the dealer. In only the rarest of instances should you pay more than the retail price of the car.

Sometimes purchasing and financing a car through a dealer works to the buyers’ advantage. A company dealing in the finance operation only must make all of their money from the financing where the dealer also makes part of their money from the sale of the vehicle. In some incidences the incentive to sell the vehicle for the dealer and can mean financing concessions or less constringent guidelines. Surprisingly, this emerges frequently as a situation when purchasing a brand new vehicle. With a sizable down payment it may actually be easier for borrowers with bad credit to obtain financing for a new vehicle financed by the car manufacturers own funding arms because of the company’s incentive to sell their new cars. Purchasers of new vehicles can also be aided by the fact that interest rates are lowered in these transactions. Newer cars generally merit lower interest rates than older cars and amortization for new cars are longer too. The result maybe that the payment for purchasing a new car may be the same or lower than payments may be purchasing a used car.

With the popularity of the Internet and the mass marketing capabilities of television, two new types of marketing have emerged for someone with bad credit to obtain an auto loan. The most prevalent advertising of this type on the Internet is a dealer network system. A potential customer can click on a site advertising that they can purchase a car regardless of their credit. The site requests certain information about the borrower. This information is then passed along to a dealer capable of working with purchasers who have a problem in their credit history. How well these systems works will depend on the dealer used. It can be possible that the same referral network can have good and bad dealers. From the consumer point of view, since no fees are involved, the only caution is to understand the type of site you are working with and what they’re doing with your information.

Application services, predominately found on the Internet, involve automatic multiple submission of financial information to potential lenders. In this case, the potential borrower fills out some in depth financial information. The coordinator of the network then forwards the information to lending sources that may be willing to make the loan. When all works correctly, the borrower hears from four lenders who then fight for the loan by competing against each other to offer the best rates and amortization. For bad credit auto loan candidates it may be more a case of one or two lenders coming forward without much fighting, but where not many sources exist this can be a great time saver.

In most of these cases, either the car dealers or lenders may contact the borrowers directly. If you don’t have a car in mind already the dealer networks may be quite helpful in directing you to someone who has an inventory of vehicles and the experience and capability of securing a loan on the vehicle you wish to purchase. If you already have a vehicle in mind and are having trouble finding a financing source the multiple submission networks may be helpful.

Even with all of these opportunities which will allow “almost” anyone to obtain vehicle financing some borrowers will fall into the category that can not. People with no down payment whatsoever and bad credit may find it very difficult getting car financing. Debtors in the middle of bankruptcy proceedings may find that financing is not available until their bankruptcy case has concluded. Others may be pleasantly surprised to find financing only to realize payments on these loans beyond their means.

Don’t be discouraged if your first few attempts at financing fail or if you have to settle for your second or third choices of vehicles. With perseverance, and if needed a little polishing up of your tarnished credit, you should be able to obtain safe and reliable transportation despite a previous bout of bad credit or bankruptcy.

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY. THIS IS IN NO WAY GIVING ANY LEGAL ADVICE OR REPRESENTATION. THE INFORMATION CONTAINED HEREIN WAS COMPILED FROM VARIOUS ARTICLES. FOR ANY LEGAL ADVICE OR REPRESENTATION SEEK YOUR OWN LEGAL COUNSEL.

1. Determine your financial situation
This is the first and most important step in the car buying process. You must know how much you can spend before you can determine what you can afford. You don’t want to get stuck making a bloated car payment that will leave you eating bologna sandwiches for three years.

First of all, you need to have a monthly budget. This is very easy to calculate. Add up all of your fixed monthly expenses, such as your rent/mortgage, phone bill, etc. Subtract that from your net income. Then subtract your estimated extraneous expenses, such as food, gas, entertainment, whatever. The result should be an amount of money you have to play with.

From that, you need to remember that buying a car involves more than a down payment and monthly payments. In your budget you will need to include licensing, registration and other hidden costs, as well as monthly insurance costs, gas and maintenance.

Once you have all of this worked out, you should have a ballpark figure of the budgeted amount you can use for car payments. A good rule of thumb is roughly 20 percent of your net income can be used for a car payment. Once you determine that figure, stay with it.

2. Decide which car you want
Now that you have settled on a monthly allotment, now you can look at which vehicles fit into your price range.

This is really about personal choice, but a good criteria to go buy is to look at what your needs are. Do you have a family? There are plenty of affordable, safe and reliable minivans and station wagons on the market. Single and commute, or do a lot of city driving? The compact segment has a wide range of models to choose from that boast handling and superior gas mileage. Do you use your vehicle for work-related tasks, such as hauling, delivery, etc? Check out the many light and heavy-duty pickup trucks and vans. Midlife crisis? There are several convertibles and sports cars that will make you feel young again.

Also consider your wants. Compact cars get really good gas mileage and are a great if you want to save money on the increasing gas prices. Plan on taking road trips? Consider something that gets good mileage and has cargo space and lots of cup holders. Plan on going off-roading? The SUV is your best bet. Some even come with a first-aid kit!

Once you’ve narrowed your choices down to a couple, it’s time to do some car research.

3. Do your homework
All right, Columbo. Here’s where you will need to spend some time sorting through some details, but it will be worth the effort in the end. After all, the more you know about what you’re buying, about whom you’re buying from, and about the buying process itself, the more money you will end up saving.

There are plenty of places for you to do your car research. Check out the Internet and newspapers, contact car dealerships, credit unions and local banks to see what kind of deal you can get. Knowing what a car dealer’s competition is offering can only help you out in the negotiating process.

Look at interest rates. You’ll want to get the lowest possible interest rate, as it will help you pay less in the long run. Many car buyers focus on getting the lowest possible down payment. If a car dealer gives you a low down payment, the money you are saving has to be made back. Car dealers will find ways to lower your down payment, and as a result will find ways to compensate for their generosity. By deferring the down payment “savings,” with interest, you’ll end up paying more in the long run.

Also be aware of factory-to-dealer incentives. The secret is that the manufacturer refunds a certain percentage of the car’s price to the dealer. So even if the car dealer sells you a car at the invoice price, he or she will still make money from the deal. Find out about a manufacturer’s incentive percentage, as they are public information.

You should also look out for rebates. When incentives are offered, this often means the manufacturer wants to either get rid of slow-selling cars or reduce the inventory. Therefore, they may also offer the buyer a cash rebate and a low financing rate, or an option of one of the two.

4. Go to the car dealerships
Now that you have an understanding of what kind of rate you will be offered, you now want to go out to the car dealerships. You already have an idea of what kind of car you want, how much you can spend and what kind of perks you can get. Also you have an idea as to what different car dealerships are offering. This is quite a bit of information for you to carry with you into the negotiating process. But again, the more you know, the better off you’ll be. But remember: Car dealers are professional negotiators and do it everyday. You are a novice and will be treated as such. The car dealers aren’t going to be easy on you, nor are they going to point out all the ways you can save money. It’s up to you to find all of those.

Also remember that you are in control at all times. You have the right and ability to stand up and walk out of the office at any point and the dealer will lose the sale. Don’t let a car dealer intimidate you. Be relaxed and comfortable you know all the information and that you hold all the cards.

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY. THIS IS IN NO WAY GIVING ANY LEGAL ADVICE OR REPRESENTATION. THE INFORMATION CONTAINED HEREIN WAS COMPILED FROM VARIOUS ARTICLES. FOR ANY LEGAL ADVICE OR REPRESENTATION SEEK YOUR OWN LEGAL COUNSEL.

The Treasury also announced a one-billion-dollar loan to General Motors so GM can buy additional equity in GMAC, which the Treasury could take on demand.

GMAC’s niche for many years was financing the GM buyers market by being the only company in which GM could use for their financing incentives.  Removing this limitation was part of the agreement GM had with the government in order to receive aid but in the end GMAC may be coming out ahead.

GMAC, which provides GM dealer and customer financing along home loans, disclosed the terms of the agreement in a regulatory filing Friday. The lender said the government will get 5 million preferred shares of GMAC paying 8 percent interest in exchange for its $5 billion capital injection to help GMAC avoid bankruptcy.

This money had an immediate impact to local dealers who are now able to offer zero percent financing and low-interest rate auto loans to customers.  Taking it one step further GMAC has lowered their minimum credit from 700 to 621 fico opening the door for even more car buyers.  This is a direct impact of the federal aid.

“We’re very excited to offer this reduced rate financing through GMAC to encourage our customers to get back into the game,” said Mark LaNeve, vice president at GM North America.

GM said loans through GMAC at zero percent would be offered for up to 60 months for many vehicles, with other loans ranging from 0.9 percent to 5.9 percent.

Source: Associated Press and Google News

[Feb 7, 2009.]

The federal auto loan program to modernize the auto industry isn’t moving as fast as carmakers and some in Congress would like.

There was a real to help the automakers and their suppliers revamp old factories and increase production of fuel friendly vehicles but the money turned out to be more important for other uses than originally thought as the economy and the auto industry struggle.

The money has yet to be sent out and there is no set timeframe to finish the review of the submissions for the federal funds.  The delay highlights some of the difficulties in pushing money out the door as Congress debates the best way to stimulate the economy.

As of Jan. 23, the department had received and reviewed 75 applications for the federal car loans. In that batch, 26 moved on to the next round, which assesses the technical eligibility of the project and financial viability of the company applying.

Those that were rejected were notified why they did not meet the criteria and may supplement their applications by March 31.

Ford, which is seeking $5 billion in direct loans by 2011, made it through the first review.

The next step could be trickier. The government must determine whether applicants have the ability to repay this loan, at a time when auto sales across the industry have fallen to their lowest levels in decades.

The aid for developing more fuel-efficient cars is being taken up separately from the requests for TARP money but both will be a part of the repayment formula.

Energy Department spokesman Dan Leistikow said in a statement that the secretary agrees that “the loans need to be issued as quickly as possible to help our automakers retool, create jobs, and produce the next generation of fuel-efficient vehicles.”

Article Source: Washington Post . com

1. Should I lower my tires’ pressure to get better traction in the snow or ff-road?
   You should always keep your tire pressure at the psi level recommended for your vehicle by the vehicle manufacturer. Lowering your recommended tire pressure by even a few psi may results in a smoother ride, but it can lead to tire failure. Note: some vehicle manufacturers may provide a lower recommended tire pressure for lower vehicle loading conditions, e.g., if there are only 1-3 occupants in the vehicle. This should not be construed as recommending a lower pressure for use in snow or off-road.
2. When I get replacement tires, do I still follow the pressure and loading guidance on the vehicle’s tire information label?
   Yes. No matter which manufacturer makes your replacement tires, you should always follow the tire pressure and loading guidelines of your vehicle manufacturer. You’ll find these numbers on the tire information label on your vehicle or within the pages of your vehicle owner’s manual.

If you pay your credit cards off each month or don’t mind paying the interest they charge, by all means use them.  However, entirely too many households are experiencing serious problems paying their bills because of their credit card debt.

Why do most people have credit cards?  I believe that it provides a buffer just in case something comes up that they don’t have the cash to cover.  At least that’s the original thinking.

In reality, once you have a credit card it is much easier to use than it is turning loose of your cash, even if you have the cash to pay for it.  Also, we buy a lot of stuff with credit cards that we wouldn’t normally buy if we had to use real money.

I have nothing against credit cards.  They are handy and can provide some very valuable rewards like frequent flyer miles.  However, in many cases the rewards are over shadowed by the interest charged.

I like cash much better.  You don’t have to sign anything and when you pay for something that’s all it will cost you.  No interest, no bills, no late fees and no penalties.

There are no special secrets to saving money to use for the things you need, however, there are a few tricks that many use.

Two of the best known, but underestimated, is saving your change or the dollar bill savings plan.  Most people don’t believe that these will provide enough money to do any good.

When my wife and I first started saving our change we were surprised that we could save about $75 a month just by emptying our pockets and purse at the end of the day. Believe me, at the time, I wasn’t making much money and $75 seemed like a lot especially because we didn’t miss it at all.

The dollar bills savings plan is just as simple.  You never spend a dollar bill.  If you buy something you simply use a larger bill.  At the end of the day take all of your dollar bills and put them in a jar or box. It adds up quick.

There are a lot of ways to save money to avoid the need to use your credit cards but the key is to make it as simple as possible.  Another important element is to think of that money as your “Crisis Fund” and not to be used to pay for your pizza on Saturday night.

The answer to the question posed in the title of this article is “Yes, you can do without your credit cards.”

You need to remember, when you use your credit cards you are using your future income not only to pay for the items you buy but also the interest and other charges. Since these charges can add up quickly you need to think long and hard before you buy anything with a credit card.

The person I got on the phone I asked a certain question, “Hello, I just wanted to ask you about the commercial which states no money down for any auto loan regardless of credit problems.”

The response I got started out with a “yes” and within about 10 minutes they asked me for my social security number for a credit check and how much money I would be putting down. You can imagine my surprise. I reiterated the commercial and specific quotes from the advertisement and again they insisted that they had to run a credit check. This was only the first subject I tackled.

“Why would you need to run a credit check if all credit issues do not matter to the eligibility of the loan?” Unfortunately no one could answer this after being transferred to several people.

I was then asked how much I was willing to put down on the auto loan. I did first explain that I was not interested in buying a car, I was merely interested for future reference if there was any truth in the auto sale pitch. They said they could not help me without some percentage on the table as a down payment on the loan.

You need to be aware of the aggressive auto sale atrocities that are out there. As they are only meant to lure you in. It has been 4 weeks since I told them that I would not be needing a loan and that the basis of my call was merely for informational purposes. There is not a day that passes that I do not get a phone call from the company still asking me to reconsider and purchase one of their loans.

More often than not auto loans are a money trap waiting to capture yet another unsuspecting consumer. Their promises are vast and without return. Do not fall for advertising pitches unless you are absolutely sure prior to signing the dotted line whether they intend to fulfill their promises or not. Too often once you have signed there is no way out of a binding agreement where the loan company can take you for thousand more than what was originally agreed upon.

The particularly bad news for DiGiovanni was that GM’s finance arm, GMAC (51 percent of which is actually owned by Chrysler parent Cerberus), was one of the lenders that was most crippled. GMAC had already largely exited lease underwriting and begun restricting loans to only the most credit-worthy customers (with FICO scores of 700 or better) – shutting out more than half of all applicants.

GMAC’s woes have dragged down GM sales recently, but for decades it was a powerful engine of the automaker’s success. When GMAC was founded in 1919, its original mission was not to finance retail new-car sales. It was to lend money to dealers so they could purchase cars from GM’s factories during slow-selling winter months (those being the days before closed cars were commonplace), which allowed them to build up inventory for the warm-weather selling season. This kept GM’s factories humming on a more efficient, year-round cycle.

Soon, though, GMAC expanded its purview to include financing new-car purchases for consumers. But in those early days (the Roaring Twenties), customers first had to be convinced that borrowing for a new car – or buying it “on time,” to use the vernacular of the day – was a good idea.

Odd as it sounds today, back then thrift was seen as a virtue, and debt was something to be avoided. Carmakers, joined by other consumer-goods manufacturers (furniture, sewing machines, pianos), sold the notion of installment plans as wise, convenient, and modern. Once consumer perception began to change, it opened the floodgates to increased sales. Determining how much car one could buy was no longer a question of how much cash you had on hand, but how much you could afford per month.

Before then, the average American family would have to save for five years to purchase a new car, which is why Ford’s ultra-low-priced Model T was such a huge success. Henry Ford, though, disapproved of installment purchasing (although his dealers were happy to arrange financing for customers), and instead Ford in 1923 launched the Ford Weekly Purchasing Plan. But this was essentially just a savings account, in which customers could deposit as little as $5 a week in an attempt to save up for the purchase of a new Ford. The Plan flopped, and Ford wouldn’t launch its own captive finance arm until 1959. Chrysler followed in the 1960s. Meanwhile, by 1925 GMAC was writing almost half of all auto loans, and it helped General Motors power past Ford in sales and gain its dominant position in the automotive marketplace.

Today, just over half of all new vehicles are financed and a further 20 percent are leased; only 27 percent are bought outright with cash. It’s no wonder that a disruption in the credit market can so devastate auto sales. In America, saving for a big-ticket purchase is an idea as old-fashioned as cranking up a Victrola to hear some music. Credit isn’t just the lifeblood of the auto business, it’s the lifeblood of the entire economy.

Under the plan, roughly similar to the bailout package that failed in Congress last week, General Motors and Chrysler will have immediate access to $13.4 billion of the funds, drawn from the $700 billion Troubled Asset Relief Program (TARP). Another $4 billion would likely be available in February.

Citing extraordinary times, Bush said he put aside his initial inclination to let the companies fail, “as punishment for their own bad business decisions.” But, he noted, the country is in the midst of a financial crisis and a recession and “allowing the U.S. auto industry to collapse is not a responsible action.”

The plan allows GM and Chrysler breathing room to avoid bankruptcy while restructuring their organizations.

The long-awaited financial lifeline comes with strict conditions. The automakers must prove they are viable by March 31 or the money could be recalled for immediate repayment to the Treasury.

In his early Friday morning televised speech, the President said to work, the plan requires concessions from all parties — automakers, creditors, shareholders, the union, dealers, and suppliers.

Under the plan, the automakers must to reach an agreement with the United Auto Workers union to bring wages and benefits in line with those of employees of foreign-based automakers working in the U.S.

Executive compensation and other perks would be limited. The manufacturers would have to provide warrants for non-voting stocks and allow government oversight that could veto any transaction over $100 million. The rescue plan also requires the OEMs to adhere to fuel-efficiency and emission standards.

In a statement released short after the President’s announcement, Chrysler Chairman and CEO Bob Nardelli thanked the Administration and Treasury “for their confidence” in the company.

“A letter of intent was signed which outlines the specific requirements that must be achieved,” said Nardelli. “These requirements will require consideration from all constituents, requiring commitment first in principal, leading to implementation this coming year. Chrysler is committed to meeting these requirements.”

GM also released a statement of thanks, in addition noting, “This action helps to preserve many jobs, and supports the continued operation of GM and the many suppliers, dealers and small businesses across the country that depend on us.”

The statement further said the plan will allow GM to “accelerate the completion of our aggressive restructuring plan for long-term, sustainable success. It will lead to a leaner, stronger General Motors.” The company said it intends “to continue to be transparent as we execute our plan, and we will provide regular updates on our progress. We again thank the Administration for this important support of our industry at this challenging time, and we look forward to proving what American ingenuity can achieve.”

An unexpected car bill, medical expenses, or other types of expenses may arise suddenly before you get your next pay cheque. In such situations payday loans can come to your rescue and you can overcome the situation with the quick cash you arrange as loan from a lender. Thus such types of short term loans are ideal for emergency money need.

Who can get payday loans? Yes, to qualify as a payday loan borrower you must be employed on a regular basis and you must have a current valid bank account. When you apply for a payday loan you must furnish details of your bank account and your employment whereabout. Its easy to apply for and even easy to get soon too. You apply for a payday loan and once the loan gets sanctioned from the lender you will receive the money transferred to your account within 24 hours. You can even make applications for payday loans during weekends too. There is no need to worry about that. If you take the help of a loan source it becomes more easy for you to get a payday loan.

The repayments mode is also quite comfortable for payday loans. According to agreement the cash you borrowed will be deducted from your account or credit card. Off course you will be informed with a notification about withdrawal of such amount from your account. But in case you want to postpone the due date for certain circumstances you can freely talk to your loan lender about it. AN interest will be charged every time reschedule your repayment date.

Usually payday loans have a time period of 7 to 31days for repayment. You can get a payday loans to a maximum of £1,500. It may vary from lender to lender. Some lenders may be willing to give you more if you really get a fat cheque as your salary. These loans are subjected to many factors like your employment, previous financial commitments, debit cart, bank account and amount of salary you draw.

The lenders and banks are also offering flexible education loans for students across the country. They come up with innovative offers which won’t put strains on income of the family and the repayment mode is very flexible. Students who get education loans are free to invest the amount to their books, tuition fees, computers, accommodation and other miscellaneous expenses of education. If you seek education loan you will find thousands of lenders. But to be secured enough to get a fair deal you can take the help of loan sources who are always willing to help parents and students who are looking for education loans.

The best part of education loans is that they have lower interest rates and the repayment modes are flexible so that the borrower never gets any harassment from creditors. Most people prefer to look for scholarships for higher studies. But to get scholarships its not so easy because there are few options and may contenders. So if your sibling by any chance misses scholarship it by no means mean that he or she is incapable for higher studies.

The rising expenses of education has somewhat made it compulsory to look for educational loans. If you contact a good loan source they can help you get in touch with a reliable source with good interest rates for education loan. Even if you are presently pursuing higher education and suddenly feel the need for an education loan you can apply for it. Look for better deals and compare interest rates modes of repayment and other factors while you seek educational loan. Mostly the amount forwarded is paid back when the person for whom the loan is sanctioned starts earning. So there is no pressure on parents for such loans. The amount of education loans depend on your requirement and tuition fee of the institution you are enrolled to.

Pierre Finance – The financial Hub!

At Pierre Finance, you get access to an assortment of commercial loans. If you are in need of commercial loan for any business purpose, we shall be proactive in providing you the same with least paper work unlike other lenders. The amount of loan for this purpose can range up to £50,000 to £50,000,000. We have satisfied most of companies in UK and have assisted them to preserve their working capital. The loan that we give can be brought into play for re financing a property or purchasing a new one.

Commercial Loans and Loan Schemes

If you are a capitalist and want to expand your business, you might require supplementary land, needful apparatus, capital and lots more. Pierre Finance can provide you loan for obtaining all sorts of property that may include retail centers, warehouses, hotels and office buildings to name a few. Not only this, we will provide you simple repayment options so that it becomes easy for you to repay back. Such commercial finance shall facilitate you to repay the loan on either monthly or quarterly basis. There are various types of commercial loans that we offer.

Few products from The Pierre Financial Hub include:

* Secured Commercial Loans : If you want to buy a property and have been searching for the best finance option, we can lend a hand to you with secured commercial loan that is very flexible and will suit every kind of budget. You can borrow up to 75% of the purchase rate and can repay it either on monthly basis or on quarterly basis.

* Unsecured Commercial Loans: You can also acquire unsecured commercial loans for personal usage.

* Commercial Seasonal Loans : If you need a loan to fulfill the seasonal cost due to the increasing demand in the market, we can provide you commercial seasonal loan at lower interest rates.

* Real Estate Commercial Loans : If you need a loan for construction of a building or any apartment or office, we will lend you a hand, by providing Real Estate Commercial Loans at lesser interest rates.

Online Assistance

You can acquire commercial loans for any reason and can also calculate your monthly payments for the same with the help of loan calculator. Applying online will offer you effortlessness while getting the loan approved quickly.

So, what are your plans for this Christmas? How are you going to fund your expenses on this Christmas. If you are in any kind of trouble then Christmas loans are here to help you out. These loans are specially designed for people who need to fulfill their loved ones’ desires and demands but do not have the capability to do so.

Christmas loans are flexible ones. This means that you can spend the money from these loans as per your wishes and needs. You do not need to give the details of the expenses to anyone. But you should keep in mind that only you have to repay these Christmas loans. Therefore it is better to have an exact figure to apply for. Calculate your expenses and apply for the loan. This will ensure that you do not spend more than your needs.

The best part of Christmas loans is that they are available at affordable interest rates. You do not have to pay much to get the benefits of these loans. Moreover, you can get these loans even if you have a bad credit history. Earlier it was thought that people with a good credit history are given more credence where these Christmas loans are concerned. But today it is not the case. The loan providers do not consider your credit history.

Before you apply for any of the available Christmas loans, you should take into consideration more than one lender. Apply to various lenders and they will get back to you with their loan quotes. This way you can choose the best deal for yourself. Also, you should calculate the APR for your loan amount. This will give you a rough estimate about the monthly repayment that you are supposed to give to repay the loan within the scheduled time.

Now, if you are thinking how to apply for the Christmas loan then it is not a tough job at all. All you have to do is fill up an online application and the rest will be taken care by the loan providers. The financial experts can also help you talk out a plan to repay the Christmas loans. Apply for these loans and enjoy this Christmas with a blast!

First, I looked into various car buying tips related to auto loans because everyone always says that “knowing is half the battle.” One of the best tips I discovered was that you should really know your credit score and what your score means because it is a very important part of the process of buying a car. Knowing how your credit score effects you will, in turn, help you to negotiate lower interest rates than your lender may be offering on your auto loan. There are many different websites online that provide credit reports and scores, some are even free!

Secondly, I asked myself “how much can I afford?” I was not sure how to answer this as there were so many variables to consider. A good formula that was presented to me was to look at your gross monthly income and divide it in half and then subtract all of your monthly bills out of that amount. For example, your rent, credit card payments, loans, power bill, etc. Then, take the balance that is left over and multiply it by 40%, and that should be what you can afford as a monthly car payment.

Next on the list was getting pre-approved for my auto loan! Now that I knew how much I could afford to spend on my new car, I started on the auto loan process before even going to the auto dealer. I found an online lender that I was very comfortable with and applied for my auto loan online. There were several large online lending services to help me find the best loan to fit my needs. Having my pre-approved auto loan really helped me from overspending and it really forced the dealer to work within my budget to give me the best deal.

Then it was on to finding the right dealer. You want to have a good experience that the car dealership when picking out your car and on your test drive. I did a search on the dealerships in my area and looked into how they were rated in their standards of customer service and satisfaction. When I personally select a dealership, I try to select one that will also be able to provide all my car service needs after I purchase my new car.

I found it to be important to do a ton of research prior to negotiating a fair price for my new vehicle. Even though I had already worked out the details of my auto loan, I wanted to also be sure that I was purchasing my new car for an equally good deal. I researched the value of my trade-in, in addition to the exact price of the car that I wanted to purchase with all of the extra bells and whistles. I basically told the salesman, “this is what I want for my trade in, this is what I am going to pay for my new car, and here is the information from my pre-approved auto loan.” They came back and said, “Congratulations! You are a new car owner and it will be ready to be picked up in a few hours.” It was so simple and hassle-free that I will always go this route for now on. By having a pre-approved auto loan, I was able to shop with confidence and power while getting the exact car that I wanted.

Most of the times people experience the disapproval of a loan as they have a bad history of credit scores. It has a solution now with most of the financial companies providing personal loans that are unsecured to people with bad credits. Individuals with high risk and a bad credit or no credit can get a loan with ease, even if they have a record of bankruptcy, repossessions or even foreclosures. It is important to get educated about the personal loans before applying for any because it may have a very high rate of interest or other such tribulations that will make you unable to repay the loan afterwards. So calculate the loan payments on a monthly basis and find out about the interest cost and the fluctuating principle amount. It will come over a certain period loan terms.

Characteristics of a poor credit loan

Companies provide a no credits loan for any circumstance regardless of the situation. The borrowing amount of an unsecured loan ranges from a hundred to fifteen thousand dollars. It is a good platform to build your credit today. It is a very good option for students trying to establish a credit score.

The unsecured loan has very minimum criterions for loan consideration. If you are having a co signer, then the loan will be easily approved. The market for small personal loans is quite high these days. These loans does not require any faxing instead it has a variety of payday loans without any faxes which will curb your financial needs without dealing with any faxes.

Auto loan for poor credits

A person can get an approval for a car loan even with a poor credit. If you have a vehicle that was repossessed or if you have tasted bankruptcy, still you can have a commercial finance for a brand new car that is used or new.

Consolidation Loan

A consolidation is a loan deal that will help in providing a relief from the debts from previous loan deals. The consolidation loan is of unsecured nature which is a great substitute for having a bankruptcy filing which will help in managing the debts and help in rebuilding your credit scores.

The interest rates of an unsecured loan are very high. A bad creditor will have to pay extra than the initial amount. The lender will not have any assurance based on the repayment and so in order to have an assurance; he will stake the interest rates. A lender may use legal help for claiming his money back. Unsecured loans are unique which will fulfill different needs based on the borrower. The main factors that determine the amount of loan is the amount of loan, incomes, financial situation and the credit scores. Some loans come with free quotes that are available online. Quotes give a good idea about the pay of the loan. Internet avails many loan deals. The best thing about online deals is that it saves quite a lot of time.

Don’t worry! With Pierre Money Mart this isn’t a problem. We can supply affordable car finance regardless of past bad credit history. Whether you’ve had CCJ’s, mortgage arrears, council tax arrears, other payment defaults, if you’re self-employed or even if you have NO credit history at all, we do not consider these valid reasons for you to be refused car finance.

Credit to suit you

There could be numerous reasons why you may have been previously refused car finance so we search for the best deal to suit your specific circumstances. In fact, we are able to arrange loans for over 90% of customers who have been refused credit elsewhere. We even offer advice on how to repair your credit rating so you will not be turned down in the future. Our experienced finance advisors will help you locate your desired vehicle which can be delivered to your doorstep should you wish. To help protect yourself we also offer optional payment protection and GAP insurance. For explanations on these products please click on the links below.

Negotiate the car’s price before you talk about the terms of a loan, so the dealer can’t hike the car’s price to give you a lower-rate loan. Even if you get low dealer financing rates of 2% to 5%, there’s a catch: these loans are usually short term. Since many must be repaid in 24 months, monthly payments can be steep.

Auto Loans at Pierre Money Mart Resources

A $15,000 loan at 8% for five years, for example, will cost $3,240 in interest. You would save $672 if you paid an extra $62 a month for the same size loan over four years. The total interest cost would drop to $2,568.

TIP #1 Order a copy of your credit report at least once a year from each of the three credit reporting companies to stay on top of changes to your credit profile and to check for identity theft.

TIP #2 Search for a Credit Card to help you build a credit rating

Since your credit score will affect whether you can get loans and the rates you’ll pay on your loans, dictate your insurance rates and sometimes your eligibility to rent an apartment it is good to keep your credit report record polished and clean. Here are a few tips for a clean credit report:

* Pay your bills on time. Yes that means credit cards, mortgage loans or rent payments. Late payments make a huge impact on your credit history just behind bankruptcy or tax liens.
Establish credit early in life. Preferably while in college or high school start applying for credit cards but keep them locked up so you will not be tempted to use them. Make sure they are clean and active contributing to giving your credit score a boost.
Leave your credit card at home when you go to the mall just use it for necessary expenses and pay it as soon as you receive the bill.
* Set up automatic monthly payments for gas, water, and electric utilities and telephone services on a credit card account or bank account so you will not accidentily miss payments.
* Budget your bills and creditors. Not a hard task to do once you get used to doing it. Start out with a financial software program or some easy excel spreadsheet. If you are not computer literate then jot down on paper every time you spend money on your credit cards, how much per month you will send off to lenders, and calculate your income minus expenses. It does not take an accounting major to do this.
* Watch your credit card expenses closely and do not max out available credit on credit card accounts. Lenders will turn their noses up at someone that has trouble managing their finances. So we always advise you to keep your credit cards to a minimum of one or two. Maintain a small number of credit cards and close unused accounts. Creditors look at your potential for going on a spending spree and falling too deeply into debt. The more credit cards you have the larger your debt potential.
* Contact your card issuer immediately if you are unable to pay your bills on time, or if you have found an error in a bill – make sure all statements are in writing. Also contact them if you have a late fee that you feel you were just a few days late or so, they will normally take it off out of goodwill to keep you as a customer. Keep in contact with them regularly.
* Don’t apply for too much credit in the same time period. Applying for too many loans or credit cards at the same time can hurt your credit score. Each request for your credit history other than your own request reduces your FICO / Beacon score. That is why we recommend one search partner to find you the lowest rates for mortgages or credit cards. Other than that you don’t need to keep applying unless you wait a few months after you have given one lender or bank your SSN number. Creditors may assume that you are either applying for too much credit because of financial difficulties or taking on more debt than you cannot repay
* Be consistent when filling out credit apps to ensure that everything is recorded in a single file, as opposed to multiple files or someone else’s file. Watch out for inconsistencies in use of “Sr.” and “Jr.”
* Check your credit reports for errors or inaccuracies. Get a free credit report!
* Stay on top of any legal matters involving your credit. If a business threatens and sends you a letter for a past due hospital bill but you are waiting on the insurance company to pay for it then make sure they do not report that late bill to your credit history and reduce your score. Contact a firm such as Lexingon Law if you have any problems with this.

According to a Public Interest Research Group survey, 79% of credit reports featured errors which is nearly four in five, suggesting that the odds are strong that your credit report isn’t as clean as it should be. Even worse they found that 25% had serious errors which is bad enough to lead lenders to refuse you credit or employers to refuse you a place to work when you need it most, including buying a house or car. A bad credit score can even be the cause of some people not being able to open a bank account.

Watch for Scams.

There are many online credit scams that claim to give you a free credit report. Be sure and read the fine print and make sure it is not just for some special niche. We at Banklady have picked a known company to provide our credit reports and they offer free trials or paid credit reports, depending on what level you want the “Free” credit report is a credit report that is for thirty days free then they charge you if you wish to continue the credit card billing. There are also credit report companies, Clear Credit for example, that give you a free credit report only if you sign up for their credit repair service which bills you for each error found on your report. We recommend our credit report or one that you have to actually pay for and find out about your credit. Your credit is something that you cannot take forgranted so make sure you get the best report from the big three. By law the big three are supposed to grant you a free credit report each year but its more hassle to write in to each agency when all you have to do is sign into a credit report website and have it all done online. If you are applying for a loan, your lender normally gets a credit report for you so you can check lenders and save money on a credit report this way as well.

Watch for Identity Theft.

With the growing and record-breaking news of identity theft on the rise, and more and more information on the internet we certainly recommend ordering a credit report at least every six-months or a year. If your wallet has been stolen, or if you think you left your credit card receipts at a gas station; there are many ways people scam the system.

Always Double Check Receipts – No matter how small they are! You do not want to get ripped off.

Make sure you keep every receipt and double check your credit card statements, do this to even avoid businesses or restaurants taking advantage of you. One visitor said “my waiter ripped me off and wrote a tip for ten dollars on a $23.19 tab.” This was not authorized and because she kept her receipt she immediately called the credit card company and got the charges reversed.

Use a trusted company when obtaining credit reports online

We use one of the Worlds largest banks or credit reporting agencies to insure we get credit monitoring and credit reporting without having to worry about the information going out to the wrong person resulting in ID Theft. Through our partner of Citibank we offer a free credit report online for 30 days and if you forget to cancel it is only $12.95 a month which is cheap compared to most offers you see for credit monitoring. It is a small amout to pay to prevent theft of your identity or possible bad marks on your credit rating.

We provide you a comprehensive and complete solution to you for buying a car with bad credit. We practically hand hold you in getting a bad credit used car loan. By helping you get a pre approved auto loan, we empower you with the right tools to get a good bargain from the car dealers. Our site is fast and secure, so your information very safe with us.

Does a bad credit auto loan improve my credit rating?

Of course, it does. Your credit rating may have been ruptured due to delayed or faltered repayment of your loan. With bad credit auto loan or bad credit used car loan, if you start making timely repayment, your credit score will eventually get repaired. For those who do not have a credit history at all, this is also a good way to build one.

Can I get low interest rate, even with bad credit?

Yes, we have low interest car loans, specifically designed for people with bad credit history. We offer both secured and unsecured auto loans at low interest rates. According to your own convenience and payment capabilities, you can choose the one that fits you best.

What does the application process involve?

The application for your bad credit used car loan is an online form. It only takes a few minutes to fill the form. If everything is in order, the approval of loan takes only a while and the loan gets transferred to your account in no time

Getting approved for an auto loan is easy. However, getting approved for a low-lying rate is a bit more challenging. Still, there are ways to secure a low auto loan rate. The lowest possible rate is important because it could potentially lower monthly payments, and makes a particular vehicle more affordable. Here are three tips for improving your chances of getting a low rate auto loan.

Never Accept the First Auto Loan Offer

If eager to purchase a new vehicle, it is easy to get caught-up in the excitement and fail to compare other offers. Dealerships have one goal in mind – making a profit. Therefore, even the nicest salesperson can use tactics that development in the buyer paying more money for their car.

Therefore, it is important to obtain quotes from several don the assumption thatferent lenders. If possible, work with an auto loan broker. This is the easiest way to acquire multiple quotes without contacting numerous loan companies. Once you’ve obtained the quotes, compare the offers, and pick the one with the lowest rate.

Improve Credit Rating

Tip! Sometimes if you can find a good co-signer to help with a deficient fame auto loan, this might be your ticket into that new car. The co-signer has to have great credit because they are in authority for making the loan payments if you don’t.

If you have a low credit score, maybe now is not the right time to finance a new vehicle. Auto loan rates are based on previous credit history. Therefore, applicants with a history of paying bills late will derive a higher rate.

With a little effort and discipline, it is possible to improve your credit score within six months. To begin, start paying bills on time. Secondly, never skip a payment. If excessive liability is keeping your score low, attempt to eliminate or reduce credit card debts.

Furthermore, limit credit inquiries, and keep a close eye on your credit report. thanks to of the prevalence of identity theft, all consumers should monitor their reports. One incident of stolen identity can make it difficult to obtain a car or home loan. For more data and a list of suggested credit repair services see www.abcloanguide.com

Seek a Co-signer for Car Loan

Taking advantage of someone else’s good credit is a great way to obtain a low rate auto loan. Still, using a co-signer is risky. Co-signers agree to become responsible for the loan if the primary borrower refuses to pay. While beneficial to a person with bad credit, co-signers should proceed with caution.

See our list of recommended providers to obtain the Best Car Loan Interest Rate as well as a Free Credit Report Online.

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Avoid credit hassles at the dealership and get your loan approved from the convenience of your home before auto shopping. You will be working directly with a auto loan representative that has the authority and vehicle financing expertise to get you approved fast. They have access to our nationwide network of premier auto lenders, bad credit auto loans and lenders, bank auto financing, credit union financing and manufacturer financing specials on car loans and car leases.

Call today or click here to get your online car loan application started.

Does Credit Monitoring Monitor my Credit with all Three Bureaus?The specific credit monitoring service you use will determine which credit bureau is referenced in monitoring your credit. Each credit monitoring service uses only one of the three bureaus to monitor your credit; however, since the activity you’re looking out for affects your credit across the board, it won’t matter which bureau your credit monitoring service uses. They’ll still be able to identify unexpected changes or discrepancies in your credit report.

How do I get a Hold of My Credit Report? There are three major credit bureaus that offer credit reports:
Equifax
1-800-685-1111
www.equifax.com
Experian
1-888-397-3742
www.experian.com
Trans Union
1-800-916-8800
www.transunion.com

To get a hold of your credit report, contact one of these three bureaus. Each bureau interprets your credit information differently, so you might want to get a report from all three.

Can I get a Copy of My Credit Report at Any Time? By law, you’re entitled to one free credit report annually from the credit bureaus. This can be accessed at: www.annualcreditreport.com – You can also request a free copy of your credit report if you were denied credit; however, you can only request a copy from the specific credit bureau that supplied the credit report to the creditor who denied you.

What Information do Credit Bureaus Collect about Me? Credit bureaus collect your identification information, employment history, credit inquiries, and any additional public records and data.

Will Requesting a Credit Report Affect My Credit?No. Requesting a credit report will NOT affect your credit. You have the right to look at your credit report without it affecting your credit or score. When you request your credit report it’s called a “consumer pull” and has no affect on your credit. The only time when requesting a credit report can affect your credit is when you ask a possible creditor to inquire about your credit. This is because it implies that you’re possibly opening a new line of credit.

Should I Consolidate my Credit Card Debt?If you have multiple credit cards, each with their own increasing debt, credit card debt consolidation might be just the thing you need. Consolidating your credit debt will allow you to make just one payment to a consolidator, instead of numerous smaller payments to multiple credit card companies. Frequently, you can also obtain a lower monthly payment.

Can I Get Arrested for Not Paying my Debt?As long as fraud and theft are not involved, you can not be arrested and jailed for failing to pay your debt. However, creditors can go after you monetarily to reclaim the amount owed to them.

Do Joint Credit Cards Help Build Good Credit?Joint credit cards can work both ways. Since the credit card account is placed on both holders’ credit accounts, the activity on the card as a whole affects both parties equally. So, if the card is maintained properly, it can help improve credit. However, if one of the card holders abuses the card and ranks up thousands of dollars in debt, it can adversely affect the other holder’s credit rating.
Need to tune-up your credit? Check out our do-it yourself Credit Repair Manual here!

If you dispute information on a credit report that you believe to be incorrect, the creditor may disagree. If this happens, the information will remain in your credit history. But your efforts don’t have to stop there. If you still think the information is wrong, continue to pursue the issue with the creditor. In addition, you should compose a statement of 100 words or less explaining your dispute and send it to all three credit bureaus. The statement will become part of your credit record and will appear on your credit report for as long as the disputed item. You may also use the 100 word statement to explain why you haven’t paid an undisputed bill, as long as the reason is true. For example, a divorce, illness, or death in the family may have caused a delay or a break in your scheduled payments.
Take a step in the right direction

Seven to ten years is a long time to live with black marks on your credit. The good news is that there are steps you can take NOW that will help you to re-establish your reputation as a responsible credit user.
Need to tune-up your credit? Check out our do-it yourself Credit Repair Manual here!

Here you’ll find identifying information like your:

* name
* current address
* social security number
* date of birth
* spouse’s name (if applicable)

Easy, right? But don’t just skim over this section. Read all the entries to make sure everything is correct. One bad piece of information and the credit history listed on your report could be wrong.
Credit History Section

This is the meat of the report. It contains a list of your open and paid credit accounts and indicates any late payments reported by your creditors. Although it may seem a little tedious, it’s essential that you read through this section very thoroughly. If you find any information that is incorrect or accounts that don’t belong to you, you’ll need to submit a dispute letter to the credit-reporting agency.

The basic format for the credit history section (see sample) is as follows:

* Company Name – identifies the company that is reporting the information.

* Account Number – lists your account number with the company.

* Whose Account – Indicates who is responsible for the account and the type of participation you have with the account. Abbreviations may vary depending on the reporting agency but here are some of the most common:

o I – Individual
o U – Undesignated
o J – Joint
o A – Authorized User
o M – Maker
o T – Terminated
o C – Co-maker/Co-signer
o S – Shared

* Date Opened – This is the month and year you opened the account with the credit grantor.

* Months Reviewed – Lists the number of months the account history has been reported.

* Last Activity – Indicates the date of the last activity on the account. This may be the date of your last payment or last charge.

* High Credit – Represents the highest amount charged or the credit limit. If the account is an installment loan, the original loan amount will be listed.

* Terms – For installment loans, the number of installments may be listed or the amount of the monthly payments. For revolving accounts, this column is often left blank.

* Balance – Indicates the amount owed on the account at the time it was reported.

* Past Due – This column lists any amount past due at the time the information was reported.

* Status – A combination of letters and numbers are used to indicate the type of account of the timeliness of payment.

Abbreviations for the type of account are as follows:

o O – Open
o R – Revolving
o I – Installment
o Abbreviations for Timeliness of Payment varies among agencies. Numbers are used to represent how current you are in your payments. Current or paid as agreed is usually represented by 0 or 1. Larger numbers (up to 9) indicate that an account is past due.
* Date Reported – Indicates the last time information on this account was updated by your creditor.

Collection Accounts Section

If you’ve had any accounts referred to collection agencies in the last seven years, this is where they will be reported. The name of the collection agency will be listed along with the amount you owe and, in some cases, their contact information. If a collection is listed on your report that doesn’t look familiar to you, contact the credit bureau and submit a dispute letter.

For your own piece of mind, you may also want to contact the collection agency to determine the nature of the account. Here’s why.

* You may find out that the collection account is NOT yours. Perhaps it belongs to someone whose name or social security number is very similar to yours. If this is the case, ask the collection agency to acknowledge this fact in writing. They should send a copy of the letter to you AND the credit reporting agency so that the mistaken information can be cleared from your report.

* You may find out that the collection account IS yours. If so, it is in your best interest to determine the accuracy of the amount of the collection account and make arrangements to satisfy your obligation as quickly as possible. Once the collection account has been paid, you should request a letter from the collection agency to this effect. Again, make sure the credit reporting agency gets a copy of the letter so that they can list the account as paid.

Courthouse Records Section

This section may also be referred to as Public Records. Here you’ll find a listing of public record items (obtained from local, state and federal courts) that reflect your history of meeting financial obligations. These include:

* Bankruptcy records
* Tax liens
* Judgments
* Collection accounts
* Overdue child support (in some states)

Look closely at all the information listed here. If anything is mistaken, contact the credit bureau and submit a dispute letter.
Additional Information

This section consists primarily of former addresses and past employers as reported by your creditors.
Inquiry Section

Contains a list of the businesses that have received your credit report in the last 24 months. If you find the names of businesses that sound unfamiliar, you should find out who they are and why they’re looking at your credit! The credit-reporting agency may be able to help you with contact information. Remember, only companies that have received your written authorization should be able to check your credit history.
Time information is retained

The length of time that information remains in your file varies.

* Credit and collection accounts will be reported for 7 years from the date of the last activity with the original creditor.
* If you’ve filed a Chapter 7 or Chapter 11 bankruptcy, this information will be reported for 10 years from the date filed.
* All other courthouse records will be reported for 7 years from date filed.

Need to tune-up your credit? Check out our do-it yourself Credit Repair Manual here!

Below are some frequently asked credit questions and answers that will help you make smarter decisions about your credit.

How will Credit Counseling Affect my Credit Rating? The existing condition of your credit report will influence how credit counseling will affect your credit; however, there is no hard and fast rule regarding credit counseling and your credit. Most creditors will report your usage of a credit counselor while other may not; and there’s no predicting how future creditors will interpret it. Many lenders perceive credit counseling as a consumer “work-out” program. Credit counseling will NOT impact your FICO score.

Is Credit Repair Illegal? Credit repair is LEGAL. You may have heard some mention that credit repair is actually illegal; but the fact of the matter is there is nothing illegal about credit repair and disputing inaccurate information about your credit file. The Fair Credit Reporting Act (FCRA) actually encourages people to dispute inaccurate information.

What can be taken off my credit report?Any inaccurate, unverifiable accounts such as inquiries, old addresses, additional names on the report (you must have at least one name on your report), unpaid collections, charge-offs, repossessions, bankruptcies, medical bills, credit card debt, and divorce debts.

What can’t be taken off my credit report? There are certain things that just can’t be removed from you’re your credit report. Those things are federal and state tax liens, child support, new student loans, and any bankruptcies reported by the bankruptcy court.

What is a Good Score?The higher your credit score, the better; however, there is no real industry standard. Credit scores range from 350-850. Each creditor/lender judges your credit score differently and takes other factors into consideration when determining your eligibility and/or risk. Typically, anything above 690 is considered a great score. Below a 620 is frequently referred to as “sub-prime.”

How often do Credit Scores Change? Your credit score is fluid; it changes as your credit information changes. Anytime new information is added to your credit report, your credit score can change. The credit reporting agencies (Transunion, Equifax, Experian) usually update their credit data every 90 days.

I have a Number of Credit Cards. Will that Affect my Credit Score? Your overall credit history will determine how your credit is affected by having numerous credit cards. However, having an overabundance of credit cards with high balances or credit availability can negatively impact risk scores if your credit history is questionable.

How do you begin to establish credit? Consumers desirous of establishing a good credit record should start off by applying for a credit card. The companies that monitor credit history compile information based on your payments and responsible consumers build up a good credit report by promptly paying off what they owe. A second consideration, especially if the consumer did not qualify for a conventional credit card, is to apply for secured credit. This method lessens the lender’s risk by having access to some kind of guaranty from the borrower in case of default. An alternative way is to have a person with a proven history of good credit co-sign a loan. These co-signers are a form of guarantee diminishing the lender’s risk of non-payment.

Is There a Rule of Thumb Regarding the Number of Credit Cards to Have?In general, it’s better to have a few credit cards with high credit limits than a large number of cards with limited credit limits. Having credit cards with high credit limits demonstrates that you are responsible enough to carry a high credit limit on multiple cards.

Is it a Good Idea to Transfer my High Credit Card Balance to a New Card with a Rock-bottom Rate?If you want to transfer your credit card debt to a different card, you need to make sure that there are no catches with the introductory rate of the new card. For example, sometimes the low introductory interest rate on a card is only for a very limited time and then it skyrockets to an exuberant amount. You also need to ask if there are annual fees, late charges, or any other stipulations that might make transferring your credit card debt to a new card counter-productive.

Need to tune-up your credit? Check out our do-it yourself Credit Repair Manual here!

Repay Debts & Manage Money

If your credit problems stem from too much debt, it’s time to create a debt repayment plan. The only way you can avoid a repeat performance of past financial problems is to change the way you handle your money. Start by analyzing your spending habits, creating financial goals, and setting spending priorities.

Buying on credit makes it easy for you to lose track of how much you’re spending each month. To reduce your spending, try paying for everything with cash. When you pay with cash or even a check, you are forced to limit your spending to the amount of funds you have in your checking account.

Apply for Secured Credit

If you have declared bankruptcy or have had your credit cards revoked, you’ll need to find a way to prove that you can handle credit responsibly. One way to do this is to apply for a secured credit card. A secured credit card requires a specified dollar amount to be deposited with the card issuer. These funds are then put on hold and a credit card is issued with a line of credit equal to the amount you have on deposit. If you make payments as agreed for approximately one year, the creditor may then release the funds held as security and issue an unsecured card. Be sure to look for hidden fees and charges. Take time to shop around for the best interest rates and lowest annual fees.

Apply for Unsecured Credit

A local department store may be more likely to issue you a credit card than a national creditor. If you are granted credit, show them that you are now financially responsible by paying all your bills on time!

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

* Rule 1: Pay your bills on time
It sounds simple, but we all know how life’s curve balls can make things difficult. That’s why it’s important to learn how to manage your money wisely.

* Rule 2: Avoid having too much debt
You can accomplish this by reducing the number of credit cards you have and keeping your balances low. A good rule of thumb is to have only one or two major credit cards and use them for emergencies only. If you must charge something, make sure you can pay it off at the end of each month.

Online Debt Assessment.

* Rule 3: Limit the number of inquiries into your credit and don’t open several new accounts at once
Too many inquiries in a short period of time may be seen as an indication that you are actively seeking credit, perhaps because of financial problems or desperation. In the same way, opening several new accounts at the same time may also be interpreted as a sign of financial trouble. To avoid this perception, be selective when you shop around for credit. Limit the number of inquiries by creditors and keep your credit accounts to a minimum.

* Rule 4: Check up on your credit report at least once a year
Even if you have been careful to follow all the rules and pay your bills on time, there may be incorrect or outdated information on your credit report that is hurting your credit profile. To ensure the accuracy of your credit report, contact one or more of the reporting agencies listed below to obtain a copy. The cost is usually less than $20.

o Equifax Credit Information Service
P.O. Box 105783, Atlanta, GA 30348
http://www.equifax.com

o Experian
ATTN: NCAC
P.O. Box 2104, Allen, TX 75013-2104
1-800-682-7654
http://www.experian.com

o Trans Union
P.O. Box 390, Springfield, PA 19064-0390
1-800-888-4213
http://www.transunion.com
Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

Use the 100 Word Statement

If you dispute information on a credit report that you believe to be incorrect, the creditor may disagree. If this happens, the information will remain in your credit history. But your efforts don’t have to stop there. If you still think the information is wrong, continue to pursue the issue with the creditor. In addition, you should compose a statement of 100 words or less explaining your dispute and send it to all three credit bureaus. The statement will become part of your credit record and will appear on your credit report for as long as the disputed item. You may also use the 100 word statement to explain why you haven’t paid an undisputed bill, as long as the reason is true. For example, a divorce, illness, or death in the family may have caused a delay or a break in your scheduled payments.

Take a step in the right direction

Seven to ten years is a long time to live with black marks on your credit. The good news is that there are steps you can take NOW that will help you to re-establish your reputation as a responsible credit user.

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

I.D. Section

Here you’ll find identifying information like your:

* name
* current address
* social security number
* date of birth
* spouse’s name (if applicable)

Easy, right? But don’t just skim over this section. Read all the entries to make sure everything is correct. One bad piece of information and the credit history listed on your report could be wrong.

Credit History Section

This is the meat of the report. It contains a list of your open and paid credit accounts and indicates any late payments reported by your creditors. Although it may seem a little tedious, it’s essential that you read through this section very thoroughly. If you find any information that is incorrect or accounts that don’t belong to you, you’ll need to submit a dispute letter to the credit-reporting agency.

The basic format for the credit history section (see sample) is as follows:

* Company Name – identifies the company that is reporting the information.

* Account Number – lists your account number with the company.

* Whose Account – Indicates who is responsible for the account and the type of participation you have with the account. Abbreviations may vary depending on the reporting agency but here are some of the most common:

o I – Individual
o U – Undesignated
o J – Joint
o A – Authorized User
o M – Maker
o T – Terminated
o C – Co-maker/Co-signer
o S – Shared

* Date Opened – This is the month and year you opened the account with the credit grantor.

* Months Reviewed – Lists the number of months the account history has been reported.

* Last Activity – Indicates the date of the last activity on the account. This may be the date of your last payment or last charge.

* High Credit – Represents the highest amount charged or the credit limit. If the account is an installment loan, the original loan amount will be listed.

* Terms – For installment loans, the number of installments may be listed or the amount of the monthly payments. For revolving accounts, this column is often left blank.

* Balance – Indicates the amount owed on the account at the time it was reported.

* Past Due – This column lists any amount past due at the time the information was reported.

* Status – A combination of letters and numbers are used to indicate the type of account of the timeliness of payment.

Abbreviations for the type of account are as follows:

o O – Open
o R – Revolving
o I – Installment
o Abbreviations for Timeliness of Payment varies among agencies. Numbers are used to represent how current you are in your payments. Current or paid as agreed is usually represented by 0 or 1. Larger numbers (up to 9) indicate that an account is past due.
* Date Reported – Indicates the last time information on this account was updated by your creditor.

Collection Accounts Section

If you’ve had any accounts referred to collection agencies in the last seven years, this is where they will be reported. The name of the collection agency will be listed along with the amount you owe and, in some cases, their contact information. If a collection is listed on your report that doesn’t look familiar to you, contact the credit bureau and submit a dispute letter.

For your own piece of mind, you may also want to contact the collection agency to determine the nature of the account. Here’s why.

* You may find out that the collection account is NOT yours. Perhaps it belongs to someone whose name or social security number is very similar to yours. If this is the case, ask the collection agency to acknowledge this fact in writing. They should send a copy of the letter to you AND the credit reporting agency so that the mistaken information can be cleared from your report.

* You may find out that the collection account IS yours. If so, it is in your best interest to determine the accuracy of the amount of the collection account and make arrangements to satisfy your obligation as quickly as possible. Once the collection account has been paid, you should request a letter from the collection agency to this effect. Again, make sure the credit reporting agency gets a copy of the letter so that they can list the account as paid.

Courthouse Records Section

This section may also be referred to as Public Records. Here you’ll find a listing of public record items (obtained from local, state and federal courts) that reflect your history of meeting financial obligations. These include:

* Bankruptcy records
* Tax liens
* Judgments
* Collection accounts
* Overdue child support (in some states)

Look closely at all the information listed here. If anything is mistaken, contact the credit bureau and submit a dispute letter.
Additional Information

This section consists primarily of former addresses and past employers as reported by your creditors.
Inquiry Section

Contains a list of the businesses that have received your credit report in the last 24 months. If you find the names of businesses that sound unfamiliar, you should find out who they are and why they’re looking at your credit! The credit-reporting agency may be able to help you with contact information. Remember, only companies that have received your written authorization should be able to check your credit history.
Time information is retained

The length of time that information remains in your file varies.

* Credit and collection accounts will be reported for 7 years from the date of the last activity with the original creditor.
* If you’ve filed a Chapter 7 or Chapter 11 bankruptcy, this information will be reported for 10 years from the date filed.
* All other courthouse records will be reported for 7 years from date filed.
Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

Your first step is to contact one of the major credit reporting bureaus — that’s right, there’s more than one. But you don’t necessarily have to order a copy from all of them. So how do you decide which one gets your business? Here are a few good rules to follow.

* If you’ve been turned down for credit, you’ll receive a declination letter with the name of the credit bureau that provided information to the creditor. You can obtain your credit report from that agency free of charge within 60 days. Just send them a letter requesting a copy of your report (see the following sample letter) along with a copy of your denial letter.

* If you’re just curious as to what your credit report is saying about you, consumers in 13 western states can now receive a free credit report annually from each of the three credit reporting agencies, Experian, TransUnion, and Equifax. Additional states will be included quarterly throughout the year:

Midwestern states: March 1, 2005
Southern states: June 1, 2005
Eastern states: September 1, 2005

There are three ways to order your free credit reports:
1. Order from the only authorized site, www.annualcreditreport.com
2. Call 877/322-8228
3. Download a form from Experian, TransUnion, or Equifax, fill it out, and mail it to:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

* If you request a copy of your report from one agency and find that it contains incorrect or outdated information, it is a good idea to obtain reports from the other two agencies as well. This will allow you to compare the information and resolve any problems simultaneously.

You can contact each agency directly:
o Equifax Credit Information Service
P.O. Box 105873, Atlanta, GA 30348
1-800-685-1111
www.equifax.com

o Experian
ATTN: NCAC
P.O. Box 2104, Allen, TX 75013-2104
1-888-397-3742
www.experian.com

o Trans Union
P.O. Box 390, Springfield, PA 19064-0390
1-800-916-8800
www.transunion.com
Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

Another thing that creditors consider when assessing risk is the amount of outstanding debt you have — too much and you appear to be overextended which makes you a higher risk.

Other indicators of risk include:

* Length of credit history
If your credit history is too short, there is not much of a picture for potential creditors to look at. In other words, you have not yet proven yourself. Because of this, you may be considered a higher risk.

* Pursuit of new credit
Too many inquiries and it looks like you’re racking up too much credit. Potential creditors see this as a negative because you may be creating a situation where you are overextended and that may affect your ability to repay them.

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

* Identifying Information
Your name, current and previous addresses, telephone number, Social Security number, date of birth, and current and previous employers.

* Public Record Information
This includes bankruptcy records; tax liens; judgements; collection accounts; and, in some states, overdue child support.

* Inquiries
The name of those who have obtained information about your credit history.

Of course, information about you must be updated frequently in order to keep the report current. That’s why some of the information — such as inquiries — will drop off after two years. Closed accounts, negative payment histories, and public records will remain for a full seven years. Bankruptcies will follow you around for up to ten years!

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

Have you ever read the fine print on those “easy credit” ads? If you do, you’ll find that people with bad credit and bankruptcies are paying double, triple, even quadruple the amount of interest that a person with good credit pays. For example:

Let’s say a person with good credit qualifies for a five-year car loan for $17,000 with an APR of 8%. Here’s what he or she will actually pay for the car.

* Amount Financed $17,000
* Interest paid in 5 years at 8% $5,000
* Total price of the loan $22,000

But that same person with bad credit or no credit will pay a higher price because of the greater risk involved for the lender. For our example, we’ll say triple the original rate of 8%–that equals 24%.

* Amount Financed $17,000
* Interest paid in 5 years at 24% $17,000
* Total price of the loan $34,000

In this comparison, good credit will save the borrower $12,000 in five years!

If you think those numbers are impressive, think about the difference good credit can make in your mortgage payment. An article in the Los Angeles Times warned that “A poor credit rating can wind up costing a borrower an extra $418 per month on a $300,000 loan. That’s $5,016 a year or $150,446 over the course of a 30-year loan.”

But paying less for the credit you need isn’t the only benefit of having good credit. Take a look at the following list of advantages you’ll enjoy for being a responsible credit user.

* More employers are checking the credit ratings of prospective employees than ever before. If your credit is good, you’ve already got an edge on competitors who haven’t proven themselves to be as responsible.

* Insurance companies will check your credit report if you apply for certain types of insurance. Good credit can qualify you for better rates.

* Good credit makes it easier for you to obtain more credit whenever you need it. So if your roof springs a leak or you need a new car — you won’t have to worry about how to cover the cost.

If your credit problems stem from too much debt, it’s time to create a debt repayment plan. The only way you can avoid a repeat performance of past financial problems is to change the way you handle your money. Start by analyzing your spending habits, creating financial goals, and setting spending priorities.

Buying on credit makes it easy for you to lose track of how much you’re spending each month. To reduce your spending, try paying for everything with cash. When you pay with cash or even a check, you are forced to limit your spending to the amount of funds you have in your checking account.

Apply for Secured Credit

If you have declared bankruptcy or have had your credit cards revoked, you’ll need to find a way to prove that you can handle credit responsibly. One way to do this is to apply for a secured credit card. A secured credit card requires a specified dollar amount to be deposited with the card issuer. These funds are then put on hold and a credit card is issued with a line of credit equal to the amount you have on deposit. If you make payments as agreed for approximately one year, the creditor may then release the funds held as security and issue an unsecured card. Be sure to look for hidden fees and charges. Take time to shop around for the best interest rates and lowest annual fees.

Apply for Unsecured Credit

A local department store may be more likely to issue you a credit card than a national creditor. If you are granted credit, show them that you are now financially responsible by paying all your bills on time!

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

To begin, take a look at the following steps. They’ll tell you how to establish a favorable credit history on your own and protect your good name from the credit blunders of a former spouse.
Five Steps to Starting Over

* Step 1. Obtain a copy of your credit report
This will give you a clear picture of what your current credit history looks like and will provide you with the information you need for the next four steps. Click here to find out how to order a copy of your credit report.

* Step 2. Protect your credit
If possible, work with your ex-spouse to analyze all your debts and decide who should be responsible for each account. Once these issues have been decided, call your creditors and ask them to transfer your joint accounts to the person who will be solely responsible for payments. Be aware that creditors are not obligated to make these changes. In some cases they may require that the person who will be responsible for making payments re-qualify for credit as an individual before transferring the account into his/her name (this is especially true for mortgages). If a creditor does not agree to transfer joint accounts to an individual, then both of you are still responsible for full repayment to the creditor, regardless of how you’ve agreed to split the bills in the divorce settlement.

* Step 3. Establish your own good credit
Start small and build up. Apply for an individual credit card account that has a small credit limit, perhaps from a local department store or financial institution. Pay your bills on time. After six months have gone by-long enough to prove you can handle the first card-apply for another card. If you can’t qualify for new credit on your own, ask a relative or friend with an established credit history to co-sign your loan or credit application. Another option is to apply for a secured credit card with a local bank. Of course, you should avoid running your debt up beyond what you can afford to pay. And be careful not to obtain too many new cards. One or two should be your maximum.

* Step 4. Pay your bills on time!
The best way to prove that you are a good credit risk is to consistently pay your bills on time. Your payment habits during the first two years after being divorced or separated are especially important to creditors in deciding whether you will live up to your obligations now that you are single. So make prompt payments a priority!

* Step 5. If you’re having trouble paying your bills, get help!
Making ends meet as a single person may seem like an overwhelming task. But don’t make the mistake of filing for bankruptcy without exploring your options.

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

Perhaps the most important safeguard built into these regulations is the rule that prohibits credit service organizations from charging you “up-front” money for their services. In the past, credit service organizations commonly required a large payment in advance, usually between $300 and $500, before performing any service. The law now requires that all services be completed in full before the credit repair clinic can charge you a fee.

The law also requires that Credit Service Organizations:

* Refrain from engaging directly or indirectly in any act, practice, or course of business that would operate as a fraud or deception upon any persons in connection with services.

* Provide a complete and detailed written description of the services to be performed and the total amount the buyer will have to pay.

* Complete the performance of contracts within 90 days.

* Print a statement in at least 10-point boldface type stating, “You have the right to sue a credit services organization if it misleads you.”

Should you choose to do business with any credit service organization, make sure they are adhering to these rules. If not, take your business elsewhere!
Beware of Imposters

Although there are some legitimate credit service organizations, many are simply interested in taking consumers’ money with no results. To protect yourself, contact CCCS for advice before you make an agreement with a credit service company. Remember that anything a credit repair company can do, you can also do by yourself – at no cost!

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

The bottom line is credit repair companies cannot do anything for you that you cannot do for yourself. No matter what they tell you, they cannot make your past credit mistakes magically disappear from your credit reports. And if that doesn’t surprise you — maybe these facts will.

* Fact 1: Consumers often receive little or no help in exchange for the exorbitant fees charged by these so-called “credit clinics.”

* Fact 2: In many cases, these companies skip town with the consumers’ hard earned money, then continue to operate somewhere else under various corporate disguises.

* Fact 3: Credit repair companies have even resorted to criminal acts against creditors, credit reporting agencies and consumers through fraudulent claims and other deceptive practices.

How Do Credit Repair Clinics Work?

Credit Repair Clinics will try to sell you on two questionable repair techniques: frivolous and irrelevant bombardment and file segregation.

* Frivolous and Irrelevant Bombardment: The Fair Credit Reporting Act of 1971 mandates that credit bureaus be given a period of 30 days in which to investigate consumer credit report disputes. If disputes are not settled within the 30 days, the credit bureau must eliminate the item. In the past, credit repair companies have tried to use this time limitation to their advantage by bombarding the credit bureaus with disputes that were too numerous to be handled in the allotted time.

During the 1980’s when credit bureaus were less automated, credit repair scams achieved a certain level of success with this fraudulent method. However, major advancements in technology and automation at the credit bureaus have made it ineffective. So if a credit repair clinic tries to sell you on this idea, consider it a waste of time and money.

* File Segregation: With this technique, the credit repair clinic encourages its clients to apply for a new social security number or Employer Identification Number (EIN) in order to start a new credit history. The problem with this method is that it is a federal crime to misrepresent your Social Security number or obtain an EIN from the IRS under false pretenses. In addition, people who change their Social Security numbers could be cheating themselves out of future Social Security payments.
Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

Q: Must credit bureaus maintain separate files on me now that I am divorced from my spouse?
A: Every credit report is for an individual, regardless of their marital status. However, that information may include your credit history on accounts that you held jointly with your spouse prior to your divorce, or information on accounts that were in your spouses name but authorized for your use.

Q: I was turned down for credit because I don’t have enough of a credit history. How can I get credit if I don’t have credit?
A: The thing to remember when you’re trying to establish credit is to think small. If you were turned down for a Visa or MasterCard (the big daddies of credit cards), go to a local department store and see if you can qualify for credit with them. You may also apply for a secured credit card with a local bank. A secured credit card requires a specified dollar amount to be deposited with the card issuer. These funds are then put on hold and a credit card is issued with a line of credit equal to the amount you have on deposit. If you make payments as agreed for approximately one year, the creditor may then release the funds held as security and issue an unsecured card. Either one of these options will give you the opportunity to create a credit history.

Q: My former spouse was a poor credit risk and had an unfavorable credit history. Can I be denied credit after we divorce based on information creditors receive about accounts I shared with my ex-spouse?
A: If you had a joint account with your former spouse and there is accurate negative information on that joint account–such as late payments or a “charge off”– then you could be denied credit based on that information. When you have a joint account you are both responsible for that account. Accurate negative information will remain on your credit report for seven years.

That is why it is extremely important to pay attention to your credit report, especially if you are going through a divorce. If you and your spouse have a joint account and you agree in the divorce settlement that one of you will be responsible for that account, remember that your creditor did not agree to this arrangement. This means if the spouse who agreed to pay the debt in the divorce settlement does not pay, the creditor has every right to collect the money from the other spouse. If the account has late payments and/or is “charged off” that negative information will appear on both credit reports for seven years.

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

Q: I co-signed on a car loan for a friend who has since decided to stop making the payments. Am I responsible for this bill?
A: Yes. As a co-signer you are equally as obligated as your friend. To protect your credit, talk to your friend and urge him or her to resume making the payments. If this is not possible, see if you can arrange to sell the item that is secured by the loan-such as a car-and use the proceeds to pay off the loan in full. Before you co-sign a loan, know the facts: In 75% of all co-signed loans, the original signer defaults, leaving the co-signer to pay. Be sure you can pay off the entire debt yourself before you co-sign, because chances are excellent you’ll be paying it back alone!

Q: My spouse and I recently separated. Can I prevent my spouse from using our joint credit cards?
A: Yes-but only if you close the account. If either party of a joint account notifies the creditor that he or she wants to close the account, the creditor will close it. Neither party will then be able to use it. You can then apply for credit in your own name, based on your own credit worthiness. Remember, however, that while you have the power to close the joint account, you are still responsible for what has already been charged.

Q: I gave my credit card to my roommate to use for one small purchase and she ran up my balance so high that I cannot afford to make the minimum payment. Do I have to pay for the purchases she made?
A: Yes. Never lend your credit card to ANYONE! Unless your credit card is stolen and/or used fraudulently (without your knowledge) you are obligated to pay the debt. If you can’t afford to pay it, your credit will suffer.

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

* Why do unsecured credit cards for bad credit have higher interest rates?
When creditors provide unsecured credit to those individuals with bad credit, the credit issuers face higher financial risks. So, to protect themselves, creditors set higher interest rates and fees for those with bad credit.

* Why should I pay a company to repair my bad credit if everything is going to reappear after a few months?
If you use a reliable credit repair service, everything WON’T reappear after a few months – if you have been the victim of identity theft, all of the wrong information should be removed. Most reputable bad credit repair services correct your entire credit file and stick with it until all issues are resolved and cleared. Your bad credit might have a long and deep trail, so it could take time to completely clear your credit file of all issues.

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

Fair Credit Reporting Act. The Fair Credit Reporting Act (FCRA) requires a card company or other creditor that denies you credit based on information in your credit report to:

Notify you of its decision to deny you credit.

Explain the item in the credit report that led to its decision.

Identify the credit bureau that provided the credit report.

Authorize you to obtain a free credit report from that bureau and to dispute the item.

You have 60 days to request the credit report. If you dispute an item, the credit bureau has 30 days to notify you and correct any errors. The law was amended in 1997 to add further protections from potential abuses of credit bureau information.

A common mistake on credit reports is inaccurate information, such as showing the incorrect number of late payments. Another common mistake is reporting as your debts those belonging to another person with the same name.

If a credit report dispute is not resolved to your satisfaction, visit the Web site of the U.S. Federal Trade Commission (FTC) for additional information.

Equal Credit Opportunity Act. This law prohibits a card company or other creditor from denying you credit based on your sex, race, age, religion, marital status, national origin or receipt of public assistance. You are entitled to receive an explanation if denied credit.

Fair Credit Billing Act. This law protects you from unauthorized charges made to your credit cards or other types of revolving credit. You have 60 days to notify the creditor, which must acknowledge receipt of your notification within 30 days. The creditor must resolve your dispute within two billing cycles, which are usually months.

Fair Credit Debt Collection Practices Act. This law prohibits a collection agency from harassing, intimidating or using abusive tactics to collect amounts you may owe. Collection agencies may not contact you at work if they know your employer disapproves. Moreover, collection agencies are limited to contacting you between the hours of 8 a.m. and 9 p.m.

The above information is educational and should not be interpreted as financial advice. For advice that is specific to your circumstances, you should consult a financial or tax adviser.

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

Buydown: a payment made to a creditor by the borrower to reduce the amount of the borrower’s repayments.

Credit History: a personal record of past credit accounts paid. Credit history is commonly used to predict a person’s likelihood of making payments on time.

Fair Isaac and Company: Fair Isaac is the company responsible for creating the FICO score. This three digit score is created using information from your credit report and ranges from 300-850. The major credit bureaus use this score in evaluating your credit.

Check out our do-it-yourself Credit Repair Manual online!

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Place a fraud alert on your credit reports, and review your credit reports.

Fraud alerts can help prevent an identity thief from opening any more accounts in your name. Contact the toll-free fraud number of any of the three consumer reporting companies below to place a fraud alert on your credit report. You only need to contact one of the three companies to place an alert. The company you call is required to contact the other two, which will place an alert on their versions of your report, too. If you do not receive a confirmation from a company, you should contact that company directly to place a fraud alert.

Equifax: 1-800-525-6285; www.equifax.com; P.O. Box 740241, Atlanta, GA 30374-0241

Experian: 1-888-EXPERIAN (397-3742); www.experian.com; P.O. Box 9532, Allen, TX 75013

TransUnion: 1-800-680-7289; www.transunion.com; Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790

Once you place the fraud alert in your file, you’re entitled to order one free copy of your credit report from each of the three consumer reporting companies, and, if you ask, only the last four digits of your Social Security number will appear on your credit reports. Once you get your credit reports, review them carefully. Look for inquiries from companies you haven’t contacted, accounts you didn’t open, and debts on your accounts that you can’t explain. Check that information, like your Social Security number, address(es), name or initials, and employers are correct. If you find fraudulent or inaccurate information, get it removed. When you correct your credit report, use an Identity Theft Report with a cover letter explaining your request, to get the fastest and most complete results.

Continue to check your credit reports periodically, especially for the first year after you discover the identity theft, to make sure no new fraudulent activity has occurred. It’s always better to learn of such things before visiting a lender about getting your next car, house, etc.

TransUnion was created in 1968 by Union Tank Car Company as their holding company. Its credit business began with the purchase of Credit Bureau of Cook County (CBCC) in 1969. Trans Union was built from acquisitions of major city credit bureaus, with service agreements with local owners of bureaus which were not for sale. Today it operates 250 offices across the U.S. and in 24 countries worldwide. It is based in Chicago, Illinois.

TransUnion was a subsidiary of The Marmon Group until January 2005. It is now an independent, privately held company.

Trans Union allows consumers to dispute items in their file online, via mail, and via telephone. Compared to the other two bureaus, Trans Union’s process was slower and service quality lower when resolving a verifiable error. Trans Union’s primary accountability is to the companies who provide and license its data.

A major credit card company, wants to promote a new credit card. They contact the credit bureaus and deliver a profile of the kind of person they think will be interested in the new card. The profile might include things like personal income, region or state the person lives in, number of credit cards, credit score, etc. The credit bureau then searches through their records looking for anyone that matches that profile. If you fit the profile, an offer is mailed to you or someone calls you on the phone at dinner time. It’s one of the ways the credit bureaus make money.

A good credit rating is very important. Businesses and financial institutions inspect your credit history when they evaluate your applications for credit, insurance, employment, and even leases. Based on your credit payment history, companies can choose to grant or deny you credit provided you receive fair and equal treatment.

Experian’s principal lines of business are Credit Services, Marketing Solutions, Decision Analytics and Interactive Services. It collects information on consumers, businesses, motor vehicles and insurance, along with lifestyle data from a range of on- and offline surveys. Access to the much of the information Experian holds is subject to regulatory control, depending on the regulations in each country it operates.

Experian employs approximately 13,500 people in 36 countries and as of 2007 had clients in more than 60 countries. Its corporate headquarters is in Dublin, Ireland with operational headquarters in Nottingham, England and Costa Mesa, California, USA. According to its corporate site, Experian’s annual sales exceed $3.4 billion USD (£1.8 billion) and it has net assets of $2.107 billion.

Experian was demerged from the British company GUS plc in October 2006. The new company, Experian Group Ltd, is listed on the London Stock Exchange under the abbreviation EXPN The company is part of the FTSE 100 Index.

Experian acquired its US credit reporting business from TRW in 1995, and its databases contain credit information on 215 million consumers in the United States. In addition to providing credit reports, Experian maintains a database of over 450 million vehicles containing title and registration data from North American governments and provides address information for more than 20 billion promotional mail pieces to more than 100 million households every year.

Like the other major credit reporting bureaus, Experian is chiefly regulated in the United States by the Fair Credit Reporting Act (FCRA). The Fair and Accurate Credit Transactions Act, signed into law in 2003, amended the FCRA to require the credit reporting companies to provide consumers with one free copy of their credit report per 12 month period. Like its main competitors, TransUnion and Equifax, Experian markets credit reports directly to consumers. Experian heavily markets its for-profit credit reporting service, FreeCreditReport.com, and all three agencies have been criticized and even sued for selling credit reports that can be obtained at no cost.

Experian handles its credit disputes in its National Consumer Assistance Center (NCAC) in Allen, Texas. It is frequently sued for violating the Federal Fair Credit Reporting Act (FCRA) and uses the large national law firm of Jones Day to defend these lawsuits. Experian’s litigation and settlement decisions are made by its in-house attorneys based in California. You may contact the NCAC once you have a copy of your personal credit report by calling the number that is located on the personal credit report itself. Experian announced that it would be opening a second NCAC in Santiago, Chile during the summer of 2007. Many divisions of the Allen NCAC will be relocated to the Chile location.

Experian provides regional data at nationalscoreindex.com which shows average credit scores by region and zipcode as well as various other measures of household debt. The site does not indicate if it uses a FICO based credit score, the new VantageScore, or some other scoring model.

Consumer reporting agencies (CRAs) are entities that collect and disseminate information about consumers to be used for credit evaluation and certain other purposes. They hold the databases which are the origins of a consumer’s credit report. CRAs have a number of responsibilities under FCRA, including the following:

1. Provide a consumer with information about him or her in the agency’s files and to take steps to verify the accuracy of information disputed by a consumer. Under the Fair and Accurate Credit Transactions Act (FACTA), an amendment to the FCRA passed in 2003, consumers are now able to receive one free credit report a year. The free report can be requested by telephone, mail or through the government authorized website, annualcreditreport.com.
2. If negative information is removed as a result of a consumer’s dispute, it may not be reinserted without notifying the consumer within 5 days, in writing.
3. CRAs may not retain negative information for an excessive period of time. The FCRA spells out how long negative information, such as late payments, bankruptcies, tax liens or judgments may stay on a consumer’s credit report – typically 7 years from the date of the delinquency. The exceptions: bankruptcies (10 years) and tax liens (7 years from the time they are paid).

The 3 big CRAs Experian, Trans Union and Equifax, do not interact with information furnishers directly as a result of consumer disputes. They use a system called E-Oscar.

An information furnisher, as defined by the FCRA, is a company that provides information to consumer reporting agencies. Typically, these are creditors, with which a consumer has some sort of credit agreement (credit card companies, auto finance companies and mortgage banking institutions, to name a few). However, other examples of information furnishers are collection agencies (third-party collectors), state or municipal courts reporting a judgment of some kind, past and present employers and bonders.

credit bureaus measure a person’s level of responsibility with money. Those that have proved that they can use credit efficiently and pay back borrowed money on time will continue to enjoy the privilege to borrow. Those that have a bad credit rating on file with credit bureaus will have a very difficult time finding a reputable loaner. This causes many with bad credit to turn to less reputable sources of money such as loan sharks who charge exceptionally high interest rates because they know that individuals with bad credit are in a bind and cannot find any other way to obtain a loan.

Generally, your credit score is determined by your payment history for the latest two years. Technically, CRAs calculate your score using a closely-guarded formula. TransUnion, for example, determines credit scores using a variety of factors.

For most of its existence, Equifax has operated primarily in the business-to-business sector, selling consumer credit reports and related analytics to businesses in a range of industries. Business customers include retailers, insurance firms, healthcare providers, utilities, government agencies, as well as banks and other financial institutions.

Equifax sells businesses credit reports, analytics, demographic data, and software. Credit reports provide detailed information on the personal credit and payment history of individuals, indicating how they have honored financial obligations such as paying bills or repaying a loan. Businesses then use this information to decide what sort of products or services to offer their customers, and on what terms.

Beginning in 1999, Equifax began offering products that help people monitor their credit history, including alerting consumers to the possibility of their being a victim of credit fraud or identity theft. Equifax, and other credit monitoring agencies are required by law to provide US citizens with one free credit file disclosure every 12 months, which may be requested on-line at Annualcreditreport.com. Equifax also sells online reports and a subscription services for credit monitoring.

Associated with a person’s credit history, though not part of the credit report, is a number called the credit score, which is a mathematical model used to predict how likely a person is to repay a loan. The score is based on information in a person’s credit report, and the most commonly used credit score is the FICO credit score, used by over 70% of the nation’s creditors. For the FICO credit score, the scores range from 300 to 850, with higher scores considered better. The majority of credit scores fall within the 600s and 700s.

Set-up for the call. Nothing gets a debtor off the hook faster than a caller who is unprepared. You are going to ask for something the debtor does not want to give up. Your conversation should be pleasant, but you are on opposite sides of the fence. Your best interests are contrary to the debtor’s best interests.

Do not expect the debtor to help you collect. If you don’t have your facts straight, the debtor is off the hook. Here is what you need:

Order information. Who said to do the job? You should not only know their name but have their signed order. You should also have them listed on the credit application as one of the company representatives that may place orders.

Approval Information. Who said the specifications were acceptable? This should also be in writing and should also be from somebody the debtor company listed as having the authority to deal with your company.

Shipping Information. Who signed the bill of lading? You should have a copy of the shipper’s information so you can snuff out any notion of shipping problems. If there was a problem, it would be on the bill of lading.

Invoice Copy. What was sold under what terms? This document should match closely with the purchase order provided by the debtor. You should know when it was mailed to the debtor and if the debtor has received additional copies of the invoice.

Customer satisfaction information. A good vendor calls  customers to verify what is received in writing. You should make notes of these calls, who you spoke to and what they said. Problems that did not exist after two weeks have no right to appear after two months.

Follow up information. When were statements sent out or second and third copies of the invoice? You cannot stop a debtor from pleading ignorance, but you can keep it from being blamed on you.