Bad credit can happen to anyone. Having a decidedly lower than average credit score does not make you a bad person; it simply makes you a person that has had tough financial times. In this present day and age, this does not make you any different from the rest of the country. The United States in general is going through one of the toughest economic crises we have ever faced. So it is important than anyone facing their own individual crises not think that they stand alone in what they are experiencing.

That being said, being a good person does not excuse anyone from doing all that they can to extricate themselves from their current credit standing. Being resigned to a bad credit report and low credit score is not an effective means of taking control. Instead, those consumers that are interested in taking a stand for their financial future and fighting their way back to good credit may consider bad credit loans to help them in the present day.

Bad credit loans may have a bad connotation for most people but the truth is that such a loan can refer to a great many things. Some of the ways in which people with bad credit can be helped through bad credit loans include:

* Secured credit cards. This is a great way to begin rebuilding your credit. Secured credit cards extend you a credit line but only so much as you can pre-deposit into a secured savings account. This deposited amount protects the lender so that if you were to default on the loan they would be covered; which is why such cards can be offered as bad credit loans.

* Conventional loans with higher interest rates. One of the ways that lenders are able to offer bad credit loans is by profiting for the risk they are taking. This may include a higher than average interest rate, or additional charges that make the loan worthwhile for the lender but still offer the consumer an opportunity to spend wisely and rebuild their credit.

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In the last post, we talked about the current struggle of the nation’s economy and how it can be easy to chalk up our own financial situation to what’s going on around us and leave it at that. But the truth is that by ignoring our own finances today, we are doing more damage in the long run.

It is up to us – and only us – to be our own financial advocates; especially in a struggling economy. The country is all in this together but our own personal finances are ours alone to manage. Don’t let the state of the nation stop you from doing what you have to do to protect yourself and your family.

In order to ensure that we are always on top of our credit report it is important to order free credit reports from the credit bureaus. Today, getting free credit reports is easier than ever through online resources. In fact, the website www.annualcreditreport.com offers consumers the opportunity to order their credit report from any (or all) of the credit bureaus – Experian, Equifax, and TransUnion.

Many people may not know that the ability to get a free credit report is a part of our right as consumers. In fact, we are all allowed one free credit report from each of the credit bureaus once a year. If you are smart about when you order your free credit report, and from which credit bureau, you can easily work it out that you always have access to a free credit report every few months.

Free credit reports are only one step in protecting our finances of course. The other steps are on us as far as spending within our means, paying our bills on time, and essentially being restrained and careful in our financial life – especially during these shaky times.

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Most of us watched as President Bush took to the airways and confirmed what most of us already knew; our economy is in a perilous state and we are facing many months – and possibly even years – of struggle ahead of us as we look for a way out of these tough times. Government is mostly focused on bailing out businesses that have been hit the hardest. But the fact is that private citizens are struggling equally. Most of us have seen firsthand the damage the economy has caused and we are all fighting in our own way to stay afloat.

Poor economic choices result in downsizing and closed doors for American businesses. But for American consumers, poor economic choices often results in a damaged credit report. We can run but we can’t hide from the decisions that we have made; they are all right there on the credit report held by the three largest credit bureaus that are responsible for gathering such information. It can seem almost too much to bear for some people. Why check our credit report when the economy is in such a desperate state all around? Isn’t it better to just grind through the tough times and deal with our credit when the economy gets back on its feet?

The answer to this, no matter how difficult it may be to face, is no.

Yes, it’s true that the economic state of our country has served to all but obliterate the struggle of the average consumer. We are, after all, one man among many who are struggling right now. But the fact is, that if we are not going to pay attention to our credit report we will have no one to blame but ourselves when we are still facing economic challenges long after the country’s economy has rebounded.

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Every penny counts. We’ve heard that expression time and time again; and the fact of the matter is it’s very true. When you stop paying attention to your finances and let small things – even those pennies – slip through the cracks, you are vulnerable to paying significantly more for things than is necessary. And in this current economic climate, when we are all just trying to get by, every little bit can help.

One of the areas in which all of us are guilty of spending far more than is necessary is credit card payments. The interest rate we pay for our credit cards can make a major difference in how much we pay every month. An inflated interest rate translates to a larger minimum payment every month and the less headway we are able to make in paying down – and ultimately paying off – our credit cards.

In order to get the best interest rates for our credit cards and ensure that we are not spending more than is necessary, it pays – literally – to compare credit cards. Credit card offers come in the mail everyday; and now, with the Internet at our disposal, we often receive credit card offers online. If each of us took the small amount of time that it takes to compare credit cards – the interest rate being offered by a new card compared to the credit card we are currently carrying - we could wind up saving hundreds of dollars a year. Add that figure up over the lifetime of our credit cards and we are talking about thousands of dollars worth of savings if we compare credit cards.

Credit has just been accepted as something that is a part of life as we know it; but that doesn’t mean that we have to pay through the nose for the privilege. Compare credit cards and make some headway with regard to your debt.

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Those of us who have been a part of the consuming public for quite a number of years know the ins and outs of the credit report. We understand the ramifications that a poor financial decision can have on our credit standing; how it can affect the likelihood of an approval for everything from a credit card to a mortgage.

But young people rarely have the understanding of how a credit report works and even when they do they are often unconcerned with the future impact of their present decisions. It’s hard to tell a nineteen year old that the wardrobe they are buying today for school may very well stop them from getting a new car in two years.

But one of the ways to teach financial responsibility and get young consumers in the habit of being connected to their credit report is through the use of free credit reports. Because there are three credit bureaus that collect our financial information – Experian, Equifax, and TransUnion – we each have three credit reports. According to the law, as consumers, we are all entitled to a free credit report once within every twelve month period. This means that we can request a free credit report from each of the credit bureaus in a rotation so that we can constantly have access – every couple of months – to at least one of our credit reports.

What free credit reports provide to us is the ability to see our financial decisions on paper and also to catch any possible mistakes or activities that could signal identity theft. Showing young people how to order a free credit report is easy as everything can be done online these days (something that they are, most assuredly, accustomed to doing). And getting them in this good habit of participating in their financial life – rather than just being a bystander - will last them a lifetime.

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Last year I broke up with my boyfriend. We had only been dating six months but it had gotten pretty serious and I was so sure that he was the “one” and that we would wind up getting married. I attribute my complete trust in this person to having fallen hook line and sinker in love with him but in any case he turned out to be much different than I thought he was.

Fast forward six months through the relationship when I wake up to a handwritten note saying that he’s left and that I shouldn’t try to find him. Then when I go to get money out of the ATM later that afternoon I discover that he had completely wiped out my bank accounts. Further investigation revealed that he has taken my one and only credit card and by the time I call the credit card company he has already racked up thousands upon thousands of dollars.

Needless to say this was a very dark time in my life and if it wasn’t bad enough that I was struggling emotionally, I also had to deal with the financial repercussions of a relationship gone wrong. Of course I reported the theft to the authorities and eventually they did catch him. But the damage to my credit report was already done and now I was in the position of having to defend myself and go through every purchase step by step to identify which ones were his.

Luckily, I was able to get free credit reports throughout that year so that I could make sure that things were getting cleaned up and that there were no new “activities” reported to the credit bureaus. In fact, online I was able to order free credit reports from all three of the credit bureaus as well as sign up to have my credit report monitored to prevent against identity theft in the future.

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Buying a home is an incredible financial undertaking. It is about more than making that initial purchase – which is difficult enough especially when you consider coming up with a specific sum for a down payment – it is about making sure that you, as the homeowner, are able to make the monthly mortgage payments and still handle the utility payments and other payments associated with the daily cost of living.

It takes a certain amount of adjustment after a home is purchased; the homeowners must get used to paying their mortgage and juggling all the rest for which they are financially responsible. And so, during this particular time period, it is especially important to keep an eye on finances and our credit report especially.

Late payments can do incredible damage to a consumer’s credit report; and with many things up in the air during this time, it is easy to see how a new homeowner can suddenly find themselves financially overwhelmed and even facing late payments. Once damage is done to a credit report, however, and a credit score is lowered as a result, a consumer can find themselves in the position of being denied further credit. This often has the ability to have a snowball effect and really put someone in a bad position.

Getting free credit reports is always important throughout the year in order to make sure that there is nothing erroneous on your credit report. But it is especially important following a large purchase such as after the purchase of a home. Credit bureaus allow for free credit reports once a year; be sure to request your own free credit report from each of the credit bureaus every couple of months and you can stay on top of any changes and easily nip any problems in the bud.

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Everyone deserves a second chance, especially when it comes to finances. After all, how many of us are above reproach for having made a poor financial decision at one time or another? Mistakes happen; and unfortunately with finances, one mistake can topple a financial standing that was already precarious to start.

Getting out of debt and making up for past financial mistakes is not for the faint of heart; it takes patience, perseverance, and single-minded focus to achieve your goals. Those in this kind of situation will often turn to such measures as debt consolidation, or even debt settlement or negotiation to help them start the process of living debt free.

And it is a process. Don’t expect to decide to get out of debt and instantly awaken the following month free and clear and ready to go – unless of course you have a windfall of money that allows you to eradicate debt in one shot.

But even after the debt is paid off there is the matter of your credit report which may have sustained damage due to the debt you were carrying or a history of late payments. The process of paying off debt should also include a commitment to cleaning up your credit report as this will be the deciding factor for your financial long term health.

To this end, make payments on time, pay off credit lines but do not close out accounts, stop charging, and pay more than the minimum payments on the credit cards you owe. To keep careful track of your credit score, opt to have free credit reports sent to you throughout the year. The credit bureaus can be accessed through www.annualcreditreport.com where you can order your free credit reports. Because we all have the right to receive a free credit report from each of the three credit bureaus once a year, you can order one from each every four months and always have access to your credit report as a way to gauge your progress.

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For most of us, the thought of staying in a hospital for an extended period of time is worse than anything we can imagine; especially considering that such a stay will undoubtedly infer that we are dealing with a medical crisis. Unfortunately, however, many people deal with just such a scenario all the time and they find that their medical crisis – while they may thankfully come through it with their health intact – will leave them in financial despair.

It’s not difficult to understand how such a thing can happen. The growing cost of medical care, combined with the stunning inadequacies of health insurance are reason alone for a hospital stay or medical crisis to take their financial toll. But add to that the fact that such a crisis will force us to take time off from work (and not just us, often another earner in the household who is taking time to stay by our side) and we can easily understand how a medical crisis can put us not only financially behind but also in significant debt.

Slowly, piece by piece, we begin to rebuild our financial house after such an occurrence. And part of what we must do in order to get back on the right road is to check in with our credit report on a regular basis to ensure that nothing is there that is inaccurate or is causing our credit score harm. In order to do this most effectively it helps to order free credit reports through the three large credit bureaus that are in charge of accumulating all of our financial information. These credit bureaus – Experian, Equifax, and TransUnion – are required by law to each provide us with one free credit report every year. But rotating which credit bureau we order from we can be sure to have free credit reports throughout the year and ensure that our medical crisis will not cause us long term financial damage.

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In the last post we started to talk about the importance of your credit report. For a great many people – too many people, in fact – the term “credit report” scares them into hiding. In fact, there are also far too many of us who will go to a lender with absolutely no idea of what they will find when they pull our credit report. As responsible consumers, we need to be in charge of our finances and aware at all times of what our credit report is saying about us. There should be no surprises when it comes to applying for a loan. And the only way to do that is through the regular procurement of free credit reports.

Many consumers do not know that they have the absolute right to see their own credit report at any time. All three of the credit bureaus – Experian, Equifax, and TransUnion – will send you a copy of your credit report for a small fee. But it is also our right to receive one free credit report a year from each of them; something that can be easily done online through www.annualcreditreport.com – a clearinghouse for all three credit bureaus. Through this service you can request a free credit report from each of the credit bureaus once within every twelve month period. By rotating the bureaus from which you request, you can essentially keep track of your credit through free credit reports throughout the year.

Free credit reports will alert you to a drop in your credit score for any reason and will allow you to catch and resolve inaccuracies in a timely fashion. Further – and this is especially crucial in this day and age – free credit reports will help you catch identity theft very quickly as any unusual activity will show up on your credit report.

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