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Wednesday, May 16, 2007 |
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| Avoid Credit Problems - Know Your File |
By Alphonso Smith
What is a Credit Bureau?
As credit increased thoughout the country, there arose a great need to issue reports concerning those who are not a good credit risk as well as those who are of credit worthiness.
Because of this great need, credit reporting agencies were formed several years ago. These agencies, known as credit bureaus, receive information about consumers (such as you) from banks, loan companies, credit card compnies, department stores and other credit issuing sources. Credit bureaus earn their profits by giving a computer readout showing a financial profile and credit history of any individual. These reports are requested by a lender or any credit issuing firm from which you or any individual have requested credit.
Most lenders will base their acceptance or rejection of your credit application on the information on your credit report. If your credit report shows that you have been reliable in the past, then in most cases credit is granted. The amount being a determining factor also. However, what if your report reveals that you have had some credit problems in the past? Perhaps you have encountered circumstances beyond your control which made it impossible to meet your personal credit obligation. It happens.
What if your credit report shows that you’ve defaulted on a particular credit account or you were constantly late with your monthly payments? Or you have co-signed for a ’friend’ or relative that leaves you holding the bag. This of course can be most embarrassing but worst, usually leads to credit denial.
There are approximately 2500 credit reporting agencies in the U.S. These agencies sell information about you to banks, department stores, credit card companies, loan companies, etc.
These credit bureaus keep on file information concerning you and your credit but they do not make the final judgment on your credit worthiness. The decision is up to the lender which you have dealt with, to decide who to issue credit. The decision is usually based on information in your report.
You have a right to know what is in your credit report. It is your personal credit file, you should know what information the credit bureau is giving out concerning your name and your credit. If the information is adverse, outdated, or incorrect, it can be changed. For the better.
About the Author: Alphonso Smith is a regular writer for GOOD HEALTH MATTERS and Author of "Guide to Good Credit". For more information, Go to: http://www.ourtopchoices.com Essentials for Your Safety, Your Security and Your Well-Being.
Source: www.isnare.com |
| posted by credit bureaus @ 3:22 PM
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Monday, May 14, 2007 |
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| Credit Card Consolidation - Recycling Expensive Plastic Money |
By Ann Gibson
Do you know the credit card debt figures in July 2005? GBP87billion. That is enormous. UK is standing witness to the growing incidence of multiple card holding. 6 out of 10 people have more than one credit card. According to APACS (Association of Payment Clearing Services) two third of adult population in UK is a credit card holder. Guess what, you are part of it. The average interest rate on credit card is 15.75%. No wonder you are in credit card debt. Credit card consolidation is an intelligent step towards finally getting that debt off you.
You probably started off with one or two credit cards and before you knew you were in several hundred of pounds of debt. Credit card consolidation can aid manage this out of control debt situation. Credit card consolidation is the best means of getting a low interest deal in place of high interest credit cards. Basically you are selling your credit cards debt for low interest consolidation loan.
How does credit card holder benefit form credit card consolidation? Let us take a hypothetical situation. Suppose your outstanding credit card debt is 000. And the APR or the annual percentage rate is 20% then you are paying 0 as interest rate every year. By credit card consolidation you transfer all your debts into a single consolidated loan with lower interest rate. Suppose the interest rate is 10%. This way you are paying 0 as interest rate for the same amount saving 1000 pounds. By researching you can get good rates for credit card consolidation.
The monthly payment with credit card consolidation is lower and of course manageable. Credit card consolidation tries to pay off your credit card debts. A credit card consolidation will pay off your debts in shorter time span and without causing any extra stress on your financial situation. This is fundamental with credit card consolidation.
A wrong credit card consolidation can have disastrous consequences financially. Beware of predatory lending. It is oft quoted in credit card consolidation ads that your debt is reduced up to 50%. This is not possible. Lowering of monthly payment is of course possible but that should not be the only criteria for deciding on credit card consolidation. Lower monthly payment over a long period of time can extract more money in the form of interest rates. Concentrate on lower interest rate and not primarily on low monthly payments while credit card consolidation.
Credit card consolidation can be with or without collateral. A homeowner consolidation would enable you to get approved for higher amounts. Homeowner consolidation would work competently if you have credit card debts exceeding 0. And you can even borrow up to 000. For lower loan amount unsecured credit card consolidation is ideal.
Discipline is fundamental with credit card consolidation. After credit card consolidation, the outstanding debts are paid. You don’t owe as much money; the financial position is in control. So it is easy to make new financial commitments. And there you are again in debt. Well, what does it show? There was no use getting credit card consolidation. Credit card consolidation provides you with a new opening to start anew with money issues. Not finding new credit problems.
If you have more than one credit card and you have used one credit card to pay for another you might have realized that it can’t be done without putting an added burden on your debt condition. It is time to rethink the credit card debt and prevent them from becoming an emotional liability. If your debt rather than you start to dominate your everyday expenses then you it is a warning sign. If your personal happiness becomes dependent of your credit card debts then consolidation is the miracle pill for you.
About the Author: Loan borrowing is like once in a life time decision and much is at stake.As a financial consultant the only driving force of Ann Gibson is to provide proper knowledge.To find a UK debt consolidation loan, debt management that best suits your need please visit http://www.ukdebtconsolidations.co.uk.
Source: www.isnare.com |
| posted by credit bureaus @ 5:58 PM
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