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Do Not Pay to Get PPI Claims

September 25, 2012 by Shawn · Leave a Comment 

The bottom line? You don’t need to hire anyone to reclaim the funds you may have put into PPI (Payment Protection Insurance). While there are certainly reputable ppi claims firms, it’s an interesting twist that some companies are trying to mislead the same people that were mislead by unethical lenders already. Keep reading »

What is Payment Protection Insurance?

September 16, 2012 by Shawn · Leave a Comment 

Payment Protection insurance, or ‘PPI‘, is a type of insurance that ’s typically sold as a rider on a loan, credit card agreement, mortgage, etc. The purpose of PPI is cover the monthly payments of the loan should unforeseen circumstances arise that make it impossible for you to pay them on time. Keep reading »

Q&A: Tenant Screening

September 14, 2012 by Shawn · Leave a Comment 

If you happen to own rental property, this Q&A helps show the value of doing a tenant check before renting out your unit…

Q: I own a rental unit and here’s my question: If I have a questionable tenant…the type who’s always late with the rent, is there some way that I can get this noted on his credit report?  I would love to notify the credit reporting agencies about this, but it seems like that’s only an opportunity for larger lenders and companies.  Short of that, is there some other way I can ensure that his future landlords can be aware of his history? Keep reading »

Credit after Debt Management

February 15, 2011 by Shawn · Leave a Comment 

After a credit card debt settlement, it may take several years to reestablish your credit, but taking it slowly is probably the best option anyway. The following are some general tips to rebuilding your credit.

1. Obtain Secured Credit Cards – A secured credit card is one of the most effective ways to get creditors confidence back up. Since the amount deposited is considered the consumer’s credit line, it is easier to get approved for this type of credit.

For example, if the consumer deposited a $1,000 amount, then their credit line is also $1000. Another advantage of a secured card is you can deposit more funds to increase your credit line.

2. Store Cards and/or Gas Cards - A store card or a gas card is not hard to acquire but it usually comes with very small credit limits. Even though the credit limits may not be large, it isnot advisable to use more than 50% of the credit line on the same purchase.

3. Savings - It’s a must for the consumer to open a new savings account to break-off the bad habit of relying on credit cards for simple purchases. Once a consumer has successfully opened a new savings account, there must be an effort to deposit into it monthly. Having savings is critical to obtain the credit you need for important purchases like a new home.

4. Payments on Time – Of course making your payments on time every month is the most critical function for rebuilding your credit. If need be consult with a credit card debt relief service for help consolidating your bills.

5. Make Sure to Not Have Any Extra Credit - Lenders hate seeing large unused credit lines. The worry is that if a consumer has too much unused credit and they are applying for more they could be gearing up for a large spending spree. After all, why apply for more credit if you already have some available?

Dangers of Debt Settlement

March 7, 2009 by Shawn · Leave a Comment 

These days advertisements for debt settlement companies are all over the TV, Internet and radio. The promises of decreased debt can be quite tempting for consumers who are struggling financially. However, it pays to get all the facts before turning to a settlement company to handle your debt problem. While these companies promise to reduce your debt what they may not be clear about is the effect of their services on your credit report.

The first step in debt settlement is providing the settlement company with details regarding your creditors and how much you owe each one. This information will be analyzed and the debt settlement specialist working with you will devise a repayment plan supposedly designed to reduce your debt and save you money. You will pay a monthly payment to the settlement company who will distribute it among your creditors.

So what does the settlement company get out of the deal? They take up to four of your payments as compensation for their services. After that, your payments are put in an account and when it has reached a certain balance the settlement company will negotiate debt settlement details with your creditors. While the idea of paying off your debt this way may seem convenient, there are some hidden drawbacks.

A creditor is only able to settle an account after it is charged off. In order for an account to be charged off, there must be six months of consecutive non-payment. This racks up late fees and shows up in a negative manner on your credit report.

You may already know that an item can stay on your credit report for seven years, however you may not know that time resets when you make a debt settlement. When the settled debt is paid off, it is not removed from your credit report. The debt will be marked Paid Settled or Charged-Off Settled.

If you’re overwhelmed by debt consider various alternatives to debt settlement. Credit counseling is one alternative that can help you pay down your debt in a convenient and effective way. You might also want to consider negotiating with your creditors on your own. Many creditors do have special hardship programs for those experiencing financial problems. These programs may reduce your late fees and interest rate for a specified period of time while you get your finances in order.

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