Welcome: DebtWizards.com is a useful FREE consumer advocate site giving
you tips on establishing new credit and reducing debt, credit card applications,
credit counselors, dealing with harassing collection agencies, disputing and restoring bad
credit, getting your credit report and avoiding credit doctors. Plus college student
warnings and loan & consolidation scams so you can make educated financial decisions.
How good is your credit score? Have you taken your credit pulse yet?
Most people are unaware of their credit rating and that's a
dangerous situation to be in, especially when you buy a car, and car dealers will walk all
over you, because they know more about your financial history than you do. It should
be the other way around. If you are planning to buy furniture, a car, or a home, you
could turned down if your payment history is spotty, or even for errors in your credit
report. It's the stupid little things like not getting the last utility bill paid
when you move out of an apartment that keep you from getting credit later on.
Sometimes the bill does not get forwarded to you, now you have a charge off on your credit
report for a late or unpaid bill. Did you ever overdraft on your checking
account? It's probably on your credit report, and you should see about getting it
removed.
Online
Sites To Get Your Credit Reports |
 TrueCredit lists your
credit reports online instantly. |
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| Consumerinfo Online A
great place to get your credit report instantly online. We send all our friends and family there, because it's so easy to use. |
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 MoniTrust instant
online credit reports and credit monitoring services. |
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| Equifax Instant Online Credit
Reports & Score Power |
- Score Power credit report with your FICO Credit
score. Online investigation request.
- Equifax Credit Watch credit monitoring service, email
alerts of changes to your report.
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| Equifax is one of the big 3 credit
bureaus, used by most creditors who run your credit profile. When you apply for
mortgages and car loans, banks get your credit report from the big 3 credit bureaus.
By using the same credit reporting agency as the bank, you'll be in sync with what they
see. Inferior credit bureaus may not have all the information that the Equifax
report has, and this could lead to you getting rejected on your loan. The Score Power Package includes your Equifax Credit
Profile, the FICO score based upon that profile (also known as your BEACON score), plus a
personalized analysis that provides tips on how to improve your score over time, how you
rank among other consumers, and how lenders interpret your score. |
DebtWizards.Com
Credit Rule #1 |
If
you don't know how much you owe your creditors, you
have a credit problem. |
Like
alcoholism, credit problems begin with denial. A quick test to see if you have a
credit problem is to ask yourself how much debt you owe your creditors, right now.
If you can't itemize how much money you owe your creditors off the top of your head, then
you have lost track and are in the early stages of credit problems.
You may have a
credit problem if....... |
| Your creditors keep calling you for payment. |
| You don't have a budget worked out. |
| You use your credit card to buy groceries. |
| You pay bills at a check cashing store or a
Western Union instead of mailing them. |
| You have to cash your checks at a check cashing
store. |
| You use your credit card for cash advances at the
ATM. |
| The banks won't let you open a checking
account. (History of bouncing checks). |
| You are thinking about filing for bankruptcy. |
| You have more than 3 Master Card type credit
cards. |
| You carry a balance on your gas card. |
| You carry a balance on your department store
cards. (Usually APR is 23%). |
| You withdraw small amounts of cash from the ATM
more than once per week. |
| You only send in the minimum monthly payment on
your bills. |
| You can't even afford the minimum monthly
payment on your bills. |
| You had to drop cable TV or your cell phone
because you can't afford it. |
| You owe more money on your car than it's worth.
(Upside down on the loan). |
| You can't afford your car payment, or you are over
the mileage limit on your lease. |
| You've never seen your credit report. |
| When dining with friends, you often collect the
cash, and pay with your credit card. |
| You have been recently turned down for credit or a
loan. |
| You don't have 2 months living expenses in the
bank. |
| You are afraid to show your spouse the checkbook,
and it is not reconciled. |
| You move around more than once per year because
you can't afford the rent. |
Debtwizards Money Saving Tip
CoolSavings is a great free site that allows you to print coupons from your
computer.
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Take Your
Credit Pulse
There is only one way to know the current state of your credit: Get
your credit report. Before financing
anything it's a good idea to scrub your credit report. Many people are afraid when
they apply for credit because they don't know what's on their credit report or how it will
affect their chances for a good deal at car dealers, for example. Dealers use this
to their advantage because almost everyone has a bad mark on their report, often
erroneous. How often does this happen: You get an erroneous notice from a credit
card or bank saying "we never got your check". You call them up, find out
it's their mistake, no problem. But many people are shocked to find out this error
made it onto their credit report! My friend found 3 such errors on his report that kept
him from getting a loan until he had them corrected. Many errors can be quickly
removed with a phone call to your creditor. Creditors such
as auto dealers use these errors to charge you higher interest!
Experian (formerly TRW) used to give you your credit report free if you asked for it but
they ended that program. You are allowed one free copy of your credit report from
any of the big 3 bureaus if you get turned down for credit, otherwise you have to pay $8
for it, no big deal.
What's On Your Credit Report
Your credit report has personal information, such as your Social
Security number, address, date of birth, and employer. It also lists your
credit history from banks, credit cards, furniture stores, car dealers, and others.
Bounced checks, late payments, utility bills left unpaid will all come back to haunt you
on your credit report. The report gives details of each account, stating if you have ever
been late with payments, or delinquent, and lists the current status of each account, and
the current balance. Your credit report shows who has made inquiries into your
credit report. All those credit card letters you get? Most of the
companies ran a credit check on you to match your credit background with their
criteria. Then they mass mail to everyone matching the criteria. Also found on
your credit report is public records such as tax liens or bankruptcy. Some credit
reports even contain information on how you behave at your apartment complex. When
we screen potential tenants for our investment condos, we run a credit check that produces
this information. So if you pulled a Melrose at your previous apartment complex,
this will make it hard for you to get approved for moving into another apartment.
Most condo homeowner associations require this background check on all potential tenants.
DebtWizards.Com
Credit Rule #2 |
Your
creditors should NEVER know more about your credit history than youTM.
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People
With Bad Credit Or No Credit
How does bad credit hurt you? Car dealers are notorious for walking
all over people with bad credit, and not just with the interest rate. They charge
you 18% interest or higher, while the rest of us enjoy maybe 8%. Many banks run
credit reports on all new checking account applications, and if you have bounced checks in
the past, you won't be able to open a checking account. The fact that you shafted
all of your creditors is coming back to get you. Many cases of bad credit are
due to bad circumstances, but most are from pure ignorance. Don't live beyond your
means! Plan your life with a budget that has a reasonable and sustainable payments, and
has a positive cash flow at the end of each month.
Go to the next chapter All
About Credit Cards
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