Wealth is Power
Wealth means security, opportunity, and quality of life. Are you ready to take the first step towards financial freedom? Here are some powerful tips that can get you started today!
Learning to Save
A budget is a balancing act between your income and your expenses. If your income exceeds your expenses you will enjoy the comfort of living within your means. If your budget is too tight a single unexpected expense can be the start of credit problems. The first step in building wealth is to structure your budget to allow for savings. Savings will provide a cushion to insure that your credit is unaffected by unforeseen expenses. As time goes by and your savings grow you will discover that you are moving surely towards a life of confidence and financial freedom. And if you are in a credit repair program a savings plan will insure your ability to maintain the great credit that you are working hard to achieve.
Shifting Priorities
There is nothing more uncomfortable than the discovery that you cannot pay your bills. Many financially successful individuals have gone through tough times and successfully channeled their discomfort into a great determination to change the direction of their lives. They forced themselves to examine their budget, live within their means, and to make savings and investment a priority. Over time the shift in priorities resulted in personal wealth, financial freedom, and a quality of life that far outweighed the sacrifices they made.
Getting Started
The first step towards building wealth is to take a close look at your finances. Look at your checkbook and credit card statements. What are you spending money on? Add up your monthly expenses and compare the total with your monthly income. Is there enough left for savings? Examine your expenses. What can you do without? Every dollar that can be cut from your expenses is a dollar that can be saved. Have you ever felt the discomfort of not being able to pay your bills? Most people in credit repair programs are familiar with this discomfort. Consider that feeling and then think about how great it would feel to have money left over each month. What is that worth to you? I think you will find that peace of mind and the knowledge that you are doing the right thing for yourself is worth the effort of budgetary restraint.
The Power of Credit
Credit can work for and against you. There are some purchases that would be impossible without credit. Most people cannot afford to purchase an automobile for cash. But the same credit that makes the purchase possible can be a problem as well. How much of a car do you need? When you see that you can upgrade for an extra $100 each month do you understand the impact of that decision on your life? The decision to upgrade may be fine! But it should be made with a real understanding of the cost. If you put $100 into a money market account each month at an interest rate of 5% you would have saved $6,800 at the end of 5 years. $200 per month translates into $13,600. It adds up. There are many decisions that work the same way. The use of credit on purchases like a car or a television may seem minor, but together they can have a major impact on your life. In the credit repair business we speak with very intelligent people every day that have run into credit problems simply by not considering the long term effect of seemingly small decisions. Ask yourself what you can afford. Ask yourself what the real cost is.
Savings and Your Credit
One of the benefits of starting a budget and savings plan is great credit. If you allow for enough of a margin in your budget to save a percent of your income each month you will find it easy to pay your bills. And in the case of unexpected expenses, that margin will allow you to accommodate those expenses without causing you to be late. Are you involved in credit repair? This will make a world of difference in your life. And it’s just the beginning! As your credit improves and your credit scores rise you will find that lenders charge you lower interest rates. This can affect every credit based expense that you have, from your credit cards to your automobile loan and your mortgage. And as your interest rates fall, so do your monthly payments. You get more for your money and have more left to save and invest. Are you ready? Take the first step today. You’ll be glad you did!
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
Friday, October 26, 2007
Friday, October 12, 2007
Credit Repair: Improve Your Credit Scores NOW!
Understanding the World of Credit Scores
Most people are not aware that most credit scores sold online are not the same credit scores that lenders use in making lending decisions. The score used by lenders is called the FICO score and it is the only score that counts. Unfortunately, the companies that sell non-FICO scores do not make it clear that these scores may vary widely from real FICO scores. Worse yet, the three credit bureaus that provide FICO scores to lenders are among the worse offenders in selling non-FICO scores to consumers!
One Score Three Names
The FICO score has been re-branded by each of the three bureaus for their own marketing, hence you will hear of three scores, although they are all driven by the same software. Equifax calls it a BEACON score, TransUnion calls it an EMPIRICA score, and Experian calls it the EXPERIAN/Fair Isaac Risk Model. The scores may be different because each bureau gathers information from a slightly different mix of creditors. If you look at your three reports you will notice that some accounts are missing on each bureau. Timing also plays a roll. A recent change in your credit may be picked up sooner at one bureau than another. You can purchase your real FICO score at MyFico.com.
Improve Your Credit Score Fast
So what makes your FICO score tick? And what can you do about it? Here are a few strategies that everyone involved in the credit repair process should know.
Check Your High Credit Limits
The relationship between your current balance and the available credit limit on your revolving accounts has a major impact on your credit score. Every revolving account on your report should be examined. If the high credit limit is understated send a dispute letter to each of the three credit bureaus asking them to update the information. If you have extra cash, pay down those balances and watch your score go up!
Increase Your High Credit Limits
There is one additional course of action that you should consider that can also reduce the ratio of your current balance to your high credit limit. Call each and every credit card company and ask them to increase your limit. They may or may not agree, but you might be surprised. Please keep in mind that you are doing this to improve your credit. Having a higher credit limit does not mean that you should use it.
Check the Age of Your Accounts
New accounts count against your credit score. Conversely, the credit bureaus will reward you for the accounts that you have maintained over time. When reviewing your three credit reports be sure to look carefully at the initial reporting date for each revolving and installment account. If the age of the account is incorrect on your credit reports send dispute letters to the bureaus. This is a great credit repair trick and well worth the effort.
Resurrect an Old Account
It is not unusual to discover an account on your credit report that you forgot about years ago. If you don’t have much credit please don’t cancel the account. If you no longer have the card in your possession I suggest that you call the company and obtain a replacement card. When you get it you should make a small purchase. The exact algorithm used in the FICO score is a secret, but based on our observations it is best to have some occasional activity on a credit card.
Double Trouble! Eliminate Duplicates
Look at your credit reports carefully. If you see the same account more than once it is probably hurting your score unless it is over three years old with a perfect history and a low balance. If it does not meet these criteria get rid of it now! Collection agencies are notorious for causing duplicate reporting errors. Only one collection agency can own a debt at a time. Essential credit repair tip! If a collection agency no longer owns the debt they are not allowed to report it. That’s the law!
Post Bankruptcy Cleanup
If you have had a bankruptcy you should take action to clean up your credit with all three bureaus immediately upon receiving your discharge. If you don’t feel up to the task of dealing with the paperwork I suggest that you hire a reputable credit repair company. A reputable credit repair company will be inexpensive and be able to do this for you very quickly. If you don’t take action to clean up your credit report it will not happen by itself. A comprehensive post bankruptcy clean up can have a dramatic impact on your credit scores within as little a sixty days after your discharge.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
Most people are not aware that most credit scores sold online are not the same credit scores that lenders use in making lending decisions. The score used by lenders is called the FICO score and it is the only score that counts. Unfortunately, the companies that sell non-FICO scores do not make it clear that these scores may vary widely from real FICO scores. Worse yet, the three credit bureaus that provide FICO scores to lenders are among the worse offenders in selling non-FICO scores to consumers!
One Score Three Names
The FICO score has been re-branded by each of the three bureaus for their own marketing, hence you will hear of three scores, although they are all driven by the same software. Equifax calls it a BEACON score, TransUnion calls it an EMPIRICA score, and Experian calls it the EXPERIAN/Fair Isaac Risk Model. The scores may be different because each bureau gathers information from a slightly different mix of creditors. If you look at your three reports you will notice that some accounts are missing on each bureau. Timing also plays a roll. A recent change in your credit may be picked up sooner at one bureau than another. You can purchase your real FICO score at MyFico.com.
Improve Your Credit Score Fast
So what makes your FICO score tick? And what can you do about it? Here are a few strategies that everyone involved in the credit repair process should know.
Check Your High Credit Limits
The relationship between your current balance and the available credit limit on your revolving accounts has a major impact on your credit score. Every revolving account on your report should be examined. If the high credit limit is understated send a dispute letter to each of the three credit bureaus asking them to update the information. If you have extra cash, pay down those balances and watch your score go up!
Increase Your High Credit Limits
There is one additional course of action that you should consider that can also reduce the ratio of your current balance to your high credit limit. Call each and every credit card company and ask them to increase your limit. They may or may not agree, but you might be surprised. Please keep in mind that you are doing this to improve your credit. Having a higher credit limit does not mean that you should use it.
Check the Age of Your Accounts
New accounts count against your credit score. Conversely, the credit bureaus will reward you for the accounts that you have maintained over time. When reviewing your three credit reports be sure to look carefully at the initial reporting date for each revolving and installment account. If the age of the account is incorrect on your credit reports send dispute letters to the bureaus. This is a great credit repair trick and well worth the effort.
Resurrect an Old Account
It is not unusual to discover an account on your credit report that you forgot about years ago. If you don’t have much credit please don’t cancel the account. If you no longer have the card in your possession I suggest that you call the company and obtain a replacement card. When you get it you should make a small purchase. The exact algorithm used in the FICO score is a secret, but based on our observations it is best to have some occasional activity on a credit card.
Double Trouble! Eliminate Duplicates
Look at your credit reports carefully. If you see the same account more than once it is probably hurting your score unless it is over three years old with a perfect history and a low balance. If it does not meet these criteria get rid of it now! Collection agencies are notorious for causing duplicate reporting errors. Only one collection agency can own a debt at a time. Essential credit repair tip! If a collection agency no longer owns the debt they are not allowed to report it. That’s the law!
Post Bankruptcy Cleanup
If you have had a bankruptcy you should take action to clean up your credit with all three bureaus immediately upon receiving your discharge. If you don’t feel up to the task of dealing with the paperwork I suggest that you hire a reputable credit repair company. A reputable credit repair company will be inexpensive and be able to do this for you very quickly. If you don’t take action to clean up your credit report it will not happen by itself. A comprehensive post bankruptcy clean up can have a dramatic impact on your credit scores within as little a sixty days after your discharge.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
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