In the last post we discussed how even the best laid financial plans can quickly become vulnerable to life changes large and small. A divorce, a birth, a death, a job loss or career change – among a host of other events – can catapult us into financial distress and without proper preparation we are vulnerable to damage to our credit report and even longstanding financial problems. However, by taking matters into our own hands quickly and proactively we stand a very good shot of getting back on our financial feet quickly without incurring long term damage.

The first step in taking financial control is the procurement of a free credit report. Our credit reports are our financial calling card; potential lenders look to our credit report to decide if we are in fact creditworthy enough to extend credit lines; in fact our credit report is a resource for those looking to hire us, rent us an apartment, and even offer us a mortgage for a home. It is essential, therefore, that every consumer know what is on their credit report and how it ultimately affects their financial standing.

Luckily, free credit reports are offered to consumers once within every twelve month period and can be requested from the three big credit bureaus through a central website called www.annualcreditreport.com. Through this website, consumers are able to request free credit reports from each of the credit bureaus. Because this is offered once every twelve months, it makes the most sense to request one credit report from each credit bureau throughout the course of that year; that way you are always generally aware of what is on your credit report and can quickly respond to any possible issues. The information held on by the credit bureaus – while possibly differing slightly – is generally the same in most cases.

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Change is inherent in life; just when we get comfortable and settle into some sort of a routine, we are faced with some sort of a change and everything is topsy turvy again. The very best that we can do is go along for the ride and try to adjust as best we can. Of course the change that we face in our life is sure to affect different areas of our day to day operations and in many cases we are affected financially. Absolutely anything can have an impact on our current financial status – marriage, divorce, a death, a birth, a change in career, a loss of a job, and so forth. We try to keep pace with the madness by making sure that we are in the best position possible – adjusting our insurance policies, controlling our spending, and making those changes that will enable us to ride through these times in our life with financial dignity.

This is the plan. But of course, as we all well know, the plan and the reality are often too different things. Any change in life leaves us vulnerable to a host of financial difficulties and being even the slightest bit unprepared can launch us into an avalanche of problems that simply snowball if left unchecked. Credit cards are taken out and used when perhaps they had been previously kept at bay, savings and investment accounts are accessed, payments are made late and more and more bills become due; the cycle is enough to put any of us under water. And ultimately what this can mean to our credit report can be disastrous.

Because our credit report is so crucial to our financial health it is imperative that we know what is on that report and how we can make changes to improve our situation. To this end, we need to begin with the gathering of free credit reports.

In the next post, we’ll discuss how free credit reports can be the first step in regaining a solid financial footing after a significant life change.

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In the last post we discussed the importance of taking advantage of our right to get our free credit report from each of the credit bureaus once within every twelve month period. Not enough consumers take advantage of the ability to get their free credit reports and the result is a lack of awareness of what exists on their credit report and a lack of understanding of how this is ultimately affecting their finances.

With a free credit report in hand consumers can begin the process of analyzing their information and taking the steps to improve their credit standing. This process may include the following:

• Check to make sure there is no erroneous information on your credit report. Inaccuracies that go unchecked can eventually have an incredibly damaging effect on our financial health. If you do spot any errors, immediately contact the credit bureau that is reporting this information – in writing – so that they can begin the process of looking into your claim. The credit bureau will contact the lender to validate the information that has been reported. If it is found that there has been an error it is incumbent upon the credit bureau to remove the information; but it is up to you, as the consumer, to follow up and make sure the information is removed.

• Check to make sure that there is no suspect information that could indicate identity theft. Our credit reports are often the first indication for many people that wrongdoing has occurred. If you suspect identity theft contact the authorities immediately

• Ensure that there are no open balances on your credit report that indicate a default on a loan. If so, contact the lender to make arrangements to pay outstanding balances. Follow up so that information is updated on your credit report.

With continued on-time payments and general financial responsibility you should see your credit score begin to rise. By staying on top of what your credit report is reporting about you, you will ensure that you – and only you – stay in control of your financial future.

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Finances are one of those things that tend to snowball. The worse it gets the more we tend to hide our heads; almost as if by not meeting its gaze its power will be somehow less. The reality, of course, is that financial strife does not go away simply because we ignore its existence; in fact, by avoiding it we are ultimately giving it power over us. Only by taking control, sitting up and opening our eyes to the reality of our situation can we even begin to start taking back the power and getting on our feet financially.

How does this process begin? With the use of free credit reports. Our credit report is what ultimately tells of our financial position; it is an accumulation of all of our financial decisions, good and otherwise, that has been collected, analyzed and reduced to a score. Sure, there are the details surrounding any late payments, loan defaults, and high credit card balances, but ultimately there is the credit score – that number that is used by potential lenders when making the decision whether or not to qualify us for a loan.

Lenders have access to our credit report but so do we. In fact, we are allowed free credit reports once within every twelve month period from each of the three credit bureaus that hold this information – Experian, Equifax, and TransUnion. By going to www.annualcreditreport.com we can request a free credit report from any or all of the credit bureaus so that we can familiarize ourselves with the current state of our credit report – and ultimately our financial health.

Armed with this information those in a tenuous financial situation can begin the steps necessary to dig themselves out of debt and improve their credit report. In the next post, we’ll discuss the next steps in improving your credit after receiving your free credit report.

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Free credit reports seem to be all the rage now – more than ever – as people consumers everywhere struggle to get their head above water in a difficult economy. Unfortunately, with prices being what they are – and salaries being what they are – more and more people have been turning to their credit cards. And as minimum payments soar, consumers are suddenly unable to even keep up on that front. In order to get a handle on their finances and make some headway with their credit cards, many people turn to a variety of methods to help them achieve solid financial ground including debt consolidation. But getting a handle on what has already made its way to their credit report is also a crucial step in the process so that any damage can be managed accordingly. The answer? Free credit reports.

Free credit reports are provided once within every twelve months by the three credit bureaus that are essentially in charge of our financial information; these credit bureaus are Experian, TransUnion, and Equifax. And there are particular companies that will provide their clients free credit reports. But looking for free credit reports online can get confusing, especially because there are many companies that will say their service is free only to charge for said service at the end of the transaction.

In order to make sure you are getting free credit reports for, well…free, be sure that you deal with only reputable online services, such as www.annualcreditreport.com - a central website that will give users access to order their free credit reports from each or all of the credit bureaus.

If you are working with any company that offers free credit reports be sure to do a “mock” trial and follow the process all of the way to the end to ensure that this is a legitimate service and not just a scam that will have you digging in your wallet by the end.

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This summer will surely wind down as quickly as it came upon us and before long college students will be heading off to school – perhaps for the first time. This is a huge transition period for students and parents alike and requires enormous adjustment on many fronts. For college students that are just leaving home this experience will often mark the first time that they are without their parents on a daily basis and they will, for the first time, need to consider those things to which they may not have given much thought previously.

Finances, for sure, are something that a new college student must consider; especially if they are not used to budgeting their money or paying bills on their own. While mom and dad will oftentimes subsidize most of the expenses associated with college life, that money only goes so far and it’s up to the student to make ends meet in the most responsible way possible. If you have had lines of credit up until this point, it may be a good time to pull your free credit report to make sure you are in good financial standing prior to starting the school year.

Our credit report is held by three large credit bureaus that are basically a clearing house for all our financial history. All the information together determines our credit score – a score that is lowered for late payments, high debt to income ratio, or loan defaults – and potential lenders use this credit score to decide whether they will provide us with a line of credit.

While it may not seem like a priority to check your free credit report while you’re still in college, it’s actually the perfect time. The college years are when many young people get themselves in financial trouble and impact their credit report before they ever leave school. By getting a copy of your free credit report you can see where you are in terms of creditworthiness and either take the steps to improve your score or make responsible decisions that will maintain your score. All of which will prepare you for life after college.

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If you haven’t been in at least some way affected by the state of the economy then you are certainly lucky indeed. For most of us, the economic climate is hitting us hard; when gas prices, and even a gallon of milk are a daily challenge then we certainly know that mortgage payments and utilities are going to be extraordinarily difficult to face. With most of us financially strapped credit cards have seemed our only way out of the nightmare and a chance to get some breathing room in terms of cash flow.

The reality is, however, that credit cards really only serve to put us deeper into a financial hole if we do not have the cash to begin with; escalating interest rates and minimum payments put us in dire straits and before long we are in way over our heads. While it may be difficult to believe that credit is our way out in the long run, the truth is that the picture is much bigger than that. By making payments late – or worse, defaulting on loans – we are doing significant damage to our credit report, lowering our credit score and making it difficult, if not impossible, to procure credit in the future. This damage to our credit report can thwart our chances of getting a car loan, getting a mortgage, and even getting a job. So steps must surely be taken to change the situation.

To this end, the first thing that must be done is to procure a free credit report from each of the three credit bureaus that are holding our credit report. By getting free credit reports we are able to see exactly what is being reported as far as our finances and what steps we need to take to better our credit score step by step. And in such a case, the next step may be bad credit loans for consolidation purposes and as a means to an end.

In the next post, we’ll discuss exactly how bad credit loans can help consumers begin to repair their credit.

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Organization is a tough thing for many people; it tends to either come naturally or not and when it doesn’t it becomes a difficult road to travel. Trying to make sense of all of the paperwork and clutter that barrages an average household can be challenging at best. For those of us who are organizationally challenged it is important for us to set limits with ourselves and set about a course of action in getting – and, more importantly, staying – organized.

There are, thankfully, a host of organizational products on the market that allows us to clear clutter and file paperwork in a clear and organized fashion. When it comes to financial records, it is even more important to get paperwork organized as not being able to put our hands on something when we need it can cause many problems down the road. First and foremost, when dealing with anything of a financial nature, it is important to know what our credit report is essentially reporting about us. Our credit report is a culmination of all our financial history held by credit bureaus and released to those agencies that are considering extending us credit. So it makes sense that we know what our credit report is saying about us before potential lenders have the opportunity to see it.

To accomplish this, consumers have the right to order free credit reports through a centralized website that grants access to the three large credit bureaus. Through this website, consumers can order a free credit report from each or all of the credit bureaus so that they can determine if the information including in the credit report is accurate. If it is not, they have the then have the opportunity to appeal to the credit bureaus before the information goes to potential lenders. These free credit reports offer just the first step in getting as organized as possible.

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This economy has had an impact on all of us in one way or another. Whether it’s the beating we’ve taken at the gas pumps or the reduction in home values that we have experienced just as we get ready to sell, we’ve all seen the results of a poor financial climate. This can trigger many of us to get in over our heads as we look for alternatives to stay afloat. Credit cards get maxed out, savings are tapped, and before we know it we are looking down the barrel of some significant damage to our credit report.

There are certainly steps that we can take, however, that will minimize the effects of this economy and get us back on the road to financial health. Starting with a free credit report.

* Get a free credit report. Our credit report is what speaks to the world about our financial worth in terms of lending. When we apply for a loan, lenders look at our credit report to ensure that we are a good enough risk. By getting free credit reports we can ensure that our report is accurate so that lenders are looking at the information that is line with the reality of the situation.

* Consider consolidation. For debt that has gotten out of hand, many consumers turn to debt consolidation to help ease their financial burden. A debt consolidation loan essentially collects all existing debt under one umbrella – so that specific credit card debt is wiped clear and the consumer is left with one monthly payment at a much lower interest rate than they had been paying to multiple cards. Debt consolidation can be tricky, however, as it is essential that consumers not turn back to credit cards and essentially double their debt.

* Try secured credit cards. Once debt has been eliminated it is wise to begin building our credit scores back up again. Secured credit cards can be helpful in this regard. Secured credit cards offer consumers a credit limit but the amount of the credit limit must first be deposited into a savings account held by the lender. This negates the risk for the lender as they can simply access the savings account if the creditor defaults on the loan. Conversely, it allows the consumer to begin rebuilding their credit within very defined terms.

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With interest rates fluctuating many homeowners have recognized an opportunity to lower the amount they are paying on a monthly basis and get back in control of their finances; an especially critical accomplishment during this shaky economic time period. Through a refinance on their home, homeowners are able to renegotiate the terms of their current mortgage – lowering their interest rate, locking into a rate, shortening the length of the mortgage loan, and getting cash back to pay off debt and do home renovations.

While a refinance can be a great thing and certainly save substantial money down the road, applicants must first be able to qualify for the loan program that they choose. Rather than waiting to learn their creditworthiness on the day that the loan is processed it makes much more sense for a refinance applicant to pull their free credit reports prior to even applying for the loan.

Free credit reports are offered by all three of the credit bureaus that hold our personal financial information. Through a central website – www.annualcreditreport.com – consumers can choose to get a free credit report from Equifax, Experian, or TransUnion – or all three at once.

With a free credit report, consumers can be alerted ahead of time to any information that may cause a problem through the loan application process. With some notice on this front, consumers may be able to work steadily to improve their credit score prior to submitting their refinance application.

A free credit report also provides an opportunity for consumers to ensure there is no erroneous information on their credit report; and if they do indeed find inaccuracies they can appeal to the credit bureau to investigate the matter. Finally, a free credit report can quickly alert consumers to any possible identity theft that may have occurred so that they can take the steps to rectify the issue.

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