Debt Management Programs Destroy Your Credit Rating

By Amy Nutt

A debt counselling company is where an individual turns when they feel too overwhelmed by their debt. They are looking to debt management because they are hanging on by the skin of their teeth or they have already fallen off the wagon. They can't make their payments with their current income, so they have to find something other than bankruptcy that can relieve the issue.

When they turn to debt management, they may find that there are a number of services that are offered. The first of those programs is debt consolidation. This involves taking out a loan that consolidates all unsecured debt into one payment. For example, unsecured personal loans and credit cards can be combined. The interest rate can be lower and the payment can be lower than what all of the separate payments were before.

However, you have to be careful because this can have an impact on your credit rating in a number of ways. It is true that the idea behind debt consolidation is to keep your credit rating in tact, but you have to keep some things in mind.

Your credit rating

When it comes to debt consolidation, some people make the mistake of closing their accounts. It is actually not wise to close accounts for the fact that this lowers the amount of available credit that you have to your name. One of the things that contribute to your credit score is how much of your available credit you are using. If you have open accounts with balances of $0, that will have a positive impact. However, if you close your accounts and you have a debt consolidation loan that has no available credit, this can be harmful to your credit score.

Even if you're not using debt consolidation and you are using another type of debt management, there may be a negative impact on your credit score. For example, you may not be able to take out a debt consolidation loan, so you need a debt management company to negotiate lower interest rates and a lower payment with your creditors. They may also be able to lower the amount of the debt. When this is done, this can affect your credit score negatively.

How does it help?

However, the repercussions that come with debt management are much less than that of bankruptcy. The consequences of debt management may last a period of three years, but bankruptcy can last ten years or more. So this is something that you should weigh when looking for a way to get out of your financial situation.

As for the benefits that you will experience in the present time, you will find that you will have more money in your pocket. Better yet, you can take that money and deposit it within a savings account. That way when you get back on your feet after your debt management program, you are able to have money in the bank that can help you out of a tough situation later on.

Nevertheless, you will have to work on building your credit back up after a debt management program. This means you'll have to use your credit and make on-time payments. This is one reason why you don't want to close accounts. You can take an existing account, charge a little on it, and then pay it off before your due date each month. This will allow the creditor to report positive marks on your credit report. This will also raise your score. Most of all, having to go through a debt management program can help you learn a very valuable lesson. After that, you shouldn't find yourself having credit problems again.

About the Author:

Credit Counseling service teaches consumers how to budget, get out of debt, and use credit wisely. When looking for free debt and budget analysis, consider Consolidated Credit Canada.

Identity Theft Protection: Easily Protect Your Good Name

By Harvey Warmuth

With over 79 million cases of identity theft in the last year, it is one of the most rapid growing crimes in the US. Identity theft costs consumers billions of dollars each year, and is very expensive to the individual that becomes a victim of this crime.

Identity theft is a crime against consumers that, while it might not affect each of us directly, we all are indirectly impacted. Identity theft is the act of using someone's personal identifying information for criminal purposes, often times resulting in some sort of financial gain for the criminal.

By stealing personal information such as Social Security Cards, bank accounts, credit card numbers, etc., an identity thief will attempt to open up accounts in your name for their use, or steal money directly from your bank accounts and credit cards. The ultimate goal of identity theft is to financially enrich the thief at the expense of consumers.

In order to not become a victim of identity theft, you need to be very careful with how you handle your sensitive personal data. You also need to be aware of your online activity, including the use of email, as this is becoming an increasingly popular avenue for identity theft.

There are companies that offer identity protection solutions which compliment the steps that you should be personally taking to secure your identity. Due to the fact that the crime of identity theft is on the rise, you need to take some serious measures in the fight against identity theft. One of the best steps to take is to make use of one of these identity theft services.

An identity theft protection company will automatically place fraud alerts on your accounts with the major credit bureaus. Fraud alerts are one of the best ways to prevent identity theft, and can be done manually or through a service. The advantage of using a service is that they will automatically renew your fraud alerts, which is something that has to be done every 90 days.

With identity theft becoming a larger issue with each passing day, it is becoming increasingly important to protect yourself. The use of an identity theft protection solution has become one of the most affective, and easiest, ways of identity theft protection.

When you use the services of an identity theft protection company, you are purchasing a safety net in case you do become a victim of identity theft. These companies will assist you in undoing the damage of identity theft, but more importantly, they will greatly aid in your defense against ever becoming a victim.

Identity theft is the fastest-growing white-collar crime in the US, and it often has devastating effects on those that become its victim. Take the necessary steps today to ensure that you do not become identity thefts next victim.

About the Author:

Harvey Warmuth is a consumer advocate specializing in identity theft and highly recommends using identity theft protection. To learn more about how smart and cost affective using some kind of identity theft fraud protection is, please visit his website.

Filing Your Business Name Correctly to Maximize Business Credit

By Susan Carter

This is one area of business where the saying Anything worth doing well - is worth doing right is so true. Filing your business name paperwork correctly is critical to obtaining business credit. If you do it wrong, you could give someone else the ability to use your business name or even take it from you once you have your company established.

There is always paperwork involved in this type of process, and it needs to be done right. This is one of those times when you want to make sure you have double checked everything to verify its accuracy.

The first step is to be sure youve got what you need to set up your company. Below is a simple checklist you can use to verify your company does not look like a hobby, but rather a real business.

Company Name " Your business must have a name that is available for use in your State. You cannot register your business entity if someone else has already used the name you choose. You can find out if your name is available by going onto your States website and doing an entity name search. For example, in Michigan you would go onto their website www.michigan.gov. If your name is available, then you make the decision at this point what business structure is going to be best for your business (i.e. corporation, LLC, etc.). Generally, you can obtain the forms you need to register by going onto your States website and down-loading them for free. Address " Your business needs a real address, not a P.O. box or UPS address. You can use your home address if you wish, but the main idea is that your address needs to be a physical address that can accept mail for your company. The address you register with the State must be the same address you use when you apply for business lines of credit or vendor credit (like a Home Depot card). Tax Payer ID Number " After you have registered your company with the State in which you are going to do business, you must then get your Employer ID number (EIN) from the Internal Revenue Service. This EIN is the number that you will use when you apply for business credit. You will not use your social security number (unless you are a sole proprietor) on business applications. Phone Number - Once you have registered with the State, and obtained your EIN from the IRS, you should get a separate phone number dedicated to your business. This phone number must be listed in the national 411 directories with the same name and address that you registered with the State. When you call to set up your new phone line, be sure your use your EIN and not your social security number. You should not use your cell phone number as your primary business number. Lending institutions will generally call 411 to verify that the name and phone number you list on your application matches the information that they find on the State website where your business is registered. If there are discrepancies in the information provided, you may not be able to obtain any business credit.

Dont forget to consult a professional. Its always in your best interest to consult with a tax professional or an attorney before you begin any new business venture. There are possible tax implications that could hurt you or your business if you set up your company incorrectly. A tax professional may also offer the benefit of being able to discuss with you the advantages and disadvantages of each of the business structures that are available and can help you decide which one is the best for you financially.

About the Author:

Find out more about how to present your company as an established business so so you can get business lines of credit from lending institutions and obtain vendor credit without hurting your personal credit scores.

Ultimate Debt Guide - Get Out of Debt With Debt Consolidation?

By Ash Ford

How to get out of debt by not filing for bankruptcy or by signing up to a long-term debt relief plan which has the potential to push you even further into long-term debt and financial disaster is one of the key objectives of The Ultimate Debt Guide is a course.

Anyone in debt will tell you that it's very easy to get into debt and be in over your head with loans, credit cards, car payments, mortgages etc. Finding a way out isn't that easy and the Ultimate Debt Guide is a short course that shows you how to do it fast

The Ultimate Debt Guide was created by a guy called Scott Stephen. Scott has experienced things first hand and is a person who in every sense of the word has "been there and done that." The Ultimate Debt Guide is full of quick and easy-to-use information.

As a guide on how to get out of debt, the Ultimate Debt Guide covers all the facts from the standpoint of someone who has researched it in detail. You'll be able to see how each individual plan provided works and get the opportunity to decide for yourself which one will work for you. There's information on credit card debt relief, debt consolidation loan consequences, debt consolidation, debt consolidation loans and much more.

What are you looking for? Is it authoritative information on debt consolidation? debt consolidation loans? credit card debt? debt cures? You'll discover a lot of useful information in The Ultimate Debt Guide. Select a plan that fits your situation and make your own informed and sound decisions without being pressured by time or a lack of time. Whatever you do this will move you forward.

Here are some of the phrases included in the handy glossary included with the Ultimate Debt Guide - debt consolidation; debt; debt consolidation loans, credit card debt, debt relief, debt settlement etc. There are many more phrases that you'll discover and these are the ones you need to understand in order to beat the credit cards and other debt related companies at their own game. I now know a lot about the issue of bankruptcy and debt relief and why it didn't work for me at all.

The whole truth about the credit card game is clear to me now and you'll learn why numerous people remain in debt to the credit card companies their entire life. This course gives you information on how to get these types of companies off your back and even how to get them to forget about you and remove the debt.

The Ultimate debt guide really opened my eyes and has helped me become literally debt-free in under six-months (not including my mortgage of course). I really had no idea most of these methods even existed.

The Ultimate Debt Guide will show you how-to get the credit rating you deserve. Credit bureaus, with your collaboration, will make sure your credit rating is what it was before you got into debt. I didn't have a clue that I could get my financial life back (so as to speak) this easily.

The Ultimate Debt Guide is something you should strongly consider reading if you're suffering under the burden of debt and want to do it quickly and legally.

About the Author:

Discover the little known debt relief secrets for how to get out of debt fast when you download The Ultimate Debt Guide, and learn the debt cures the Credit companies don't want you to know about

Houston Credit Repair Coach Talks About Rapid Rescoring

By Cliff Pape

Too many people have been losing loans or just paying too much interest because of some inaccurate information that has been reported by the credit bureau on their credit report. You may be able to get your credit score recalculated in a few days by a company who specializes in rapid credit rescoring and who has a special relationship with the three major credit reporting agencies.

The problem is that YOU cannot access them. They can only be accessed by mortgage banks which means you have to ask your loan officer to run a rapid credit rescoring. The rescoring companies also charge a fee so be sure your committed.

I always recommend implementing a strategy to solve the problems with your credit score at least six months before applying for a home loan but I understand that reality does not always go according to plan. It may still be a good idea to ask for a rapid rescore if you are wanting to make a loan application with a month.

Please be aware of what a rapid rescoring service can and cannot do for you:

1. They are not able to work with YOU:

You cant use this service yourself directly. Rapid rescoring of your credit is usually offered by a small credit reporting agency. This type of company is just the middleman between the credit bureaus and some loan officers and mortgage brokers.

2. These services make no promises:

This is something I talk to all of my clients about. In some cases, deleting "derogatories" can actually harm your score. This is more than likely not the case for you but it is worth noting.

3. They can try to help you get some errors fixed, but they cant remove a true negative item that is in dispute:

Proof of an error is necessary. If the credit bureaus have already reviewed your dispute then it will not be included.

4. Proof is a must

The best plan is definitely to repair (or restore, or whatever you want to call it) your credit FIRST because the services require that you have the approved dispute in writing. Otherwise, the usually short turnaround time for a "rapid rescoring" takes much longer - but they may still be able to get the proof for you.

A rapid rescorer can only improve your credit score if the creditor admits to a mistake or agrees to remove specific information. For example, you might owe a big balance on a credit card that is negatively affecting your ability to get a lower mortgage interest rate. You can pay off the credit card electronically today and have a rapid rescorer get your credit score recalculated within 72 hours instead of waiting for your payment to show up on your credit report a month later.

Good luck.

About the Author:

Home Buddies is a real estate business credit repair coach. Home Buddies develops and implements a customized strategy to restore credit and creates a business development strategy to help them overcome obstacles to financing properties and growing their portfolio.

Home loans

By Tom Martens

Before starting the homeownership or monthly mortgage installment ; take a minute to find out what goes into an installment since majority of the people this kind of knowledge is vast. Without carefully noted the rules of the mortgage installment it can quickly grow beyond our budget.

A monthly home loan installment contains three parts. First is your monthly repayment loan amount with capital and interest payments. Second is their monthly administration charge. Third is the insurance premium of the homeowner and sometimes life insurance premium also.

To start manipulating your expenses, you can contact house credit calculators or actual domain websites. This will be your initial starting point. Considering that your home loan part payments cannot surpass 25% of your gross basic earnings if you are solo or 30% of a mutual earnings.

High interest rates can drastically raise your monthly payments. The "home loan base rate" is the typical rate an average person is charge. This rate is linked to the prime rate set by the Fed. When determining this rate, your credit history and credit score are major factors in whether your bank considers you a high risk borrower. The better your history, the better your rate. You could also qualify for a lower rate if you're a loyal customer with your bank. However, the most important thing is to request several quotes and use these to negotiate a lower rate to get the best deal.

Monthly installments are also heavily affected by repayment terms. Even though the normal period is 20 years you can choose to extend that period by 5 or 10 years more. When you do this your monthly payment will be less but you will pay significantly more money in interest over time. By using an online payment calculator you can get help deciding which route will be the best for you to take.

Administration fees payable every month differs with each loan, so check what amount applies for you before agreeing on the loan.

Now,Thanks to the N.C.A. also known as the National Credit Act,You,as the Borrower now do not have to buy homeowner's insurance from the bank,that financed your home loan. You can now look around, and choose a policy that will fit your needs! You, as you know, will have to talk with your lender about the policy. Buying a policy with another carrier will add more to your monthly fees. When and If you do decide to buy the INS. (Insurance)from your lender, the new premium will be added to the monthly payment. It says that it is 50.3% unique

It is an optional requirement to pay for an insurance cover to secure your mortgage after death. You can gain additional benefits to your instalments. It is advisable to consider your family's tranquillity by acquiring a life cover although your banker may not give credit to this bonus move.

Getting pre-qualified is an excellent idea, even before you start house hunting. Getting qualified by the will not only let you know how much loan money you can get, it will also tell you what your monthly payment will be. Having this certification is a further benefit because it shows sellers that you're serious about buying. And in the end, when you do find the house you want to buy, the entire loan process will be much faster if you are pre-qualified.

About the Author:

Tom Martens is the content coordinator for South Aricas leading Homeloan portal which amongst others offers origination services for FNB homeloans

New Rules for Reverse Mortgage Interest Rate Pricing

By Matt Vanrock

Fannie Mae and the powers behind her, last week, changed the manner in which us little reverse mortgage companies can price our loans to consumers. This is a big change.

Formerly I could give a customer hard numbers immediately. In other words I could tell them which interest rate and how much money they qualify to receive right off the bat.

Additionally, my numbers would be locked in for up to one hundred twenty days.

The 120 lock period is no longer available. Rather, the new pricing structure has much shorter interest rate lock periods. This likens itself to the forward mortgage market.

Since most reverse mortgages take longer than the lock periods some customers will get burned. Quite a few senior borrowers are banking on the reverse mortgage to come in and pay off their forward mortgage.

These folks need extra money and eliminating that payment associated with the mortgage is just the ticket.

Here is where they can get in trouble. Often the loan amount, offered by a reverse mortgage lender, is just enough to pay off the mortgage. A big factor determining how much the borrower gets is the interest rate.

How much a lender lends is inversely related to rates. When they go up, the borrower gets less, and vice versa.

Where our group of customers may be in trouble is they will call in for a quote. Rates will be good that day and the lender will verbally green light the transaction.

Envision this.. Fourteen days later, when the borrower can finally lock in the rate, what if rates are up one percent or so. This borrower will be out of luck in as far as paying off that mortgage.

Now the borrower is stuck either waiting for rates to come down or is left with the choice of coming in with cash to pay off the mortgage.

We can see that a few of these borrowers will absolutely go through this in the coming months and years.

I believe this new pricing model, though negative in my example, should drum out a good number of the poor loan officers in this industry.

The stronger, more knowledgeable LOs will see this as old hat, know how to explain it, and probably garner more of the business.

About the Author:

Folks in California interested in the reverse mortgage, scooch on over this this spot. Additionally, go here for the revealing ofthe big mistakes you can make in California procuring a reverse mortgage.