In the last post I talked about my ignorance regarding my credit report. In fact I had never given my credit report a bit of thought until I was forced to face it after being denied for a mortgage loan. That was when I knew that I had to deal with my finances once and for all. I ordered free credit reports from each of the three credit bureaus – something that I have continued to do every twelve months as is allowable by law. Each of the free credit reports from each bureau gives me insight into what my financial standing looks like to potential lenders and keeps me abreast of changes to my credit score and information that could potentially be linked to identity theft should it occur.

In addition to ordering free credit reports I also began checking out secured credit cards as a way to manage my financial comeback. Secured credit cards offer a credit limit to users but the amount of the credit limit must first be deposited into a secured savings account. This protects the lender from the possibility of the cardholder defaulting on their loan. But secured credit cards also protect the cardholder from getting in over their head with a huge credit limit that they can’t pay.

I finally found a credit card that worked for me and I have been using it ever since; only buying things that I need and keeping the balance low and manageable, and making on-time payments every month. My secured credit card is just one stage in my financial reform and a way that I have been rebuilding my credit piece by piece. One thing is for sure – when I go to get a mortgage the next time around I will have a very clear understanding of my credit report.

Popularity: 46% [?]

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When it comes to your credit report nothing can make you believe in the importance of it until you are face to face with the impact it can have on your financial life. I had never given any thought to my credit report; not before I had it brought to my attention. Unfortunately the way in which my credit standing was brought to my attention was during a loan process in which I was trying to get a mortgage for a home. I honestly didn’t know enough about my credit to make a determination which way it was going to go but I thought for sure, in the end, I would be okay and would be approved for the mortgage. With the loan process being what it is right now, however, I was denied for a mortgage loan in short order and I had nothing to blame but my credit report – something that I had actually never laid eyes on until that time.

Since then, my credit report has been a huge part of my life as I work towards fixing my finances and my credit standing. Part of what I am doing on a regular basis is ordering free credit reports from each of the three credit bureaus – something that I am at liberty to do with each of them once within every twelve month period. Having a free credit report on hand allows me to know right away when something needs to be addressed on my credit report and also to watch as change is made through my efforts and my credit score approves.

Additionally I began looking at secured credit cards to help me start to repair my credit; something that I could do that was within my control. More in the next post about secured credit cards…

Popularity: 53% [?]

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I know that I’m not alone when I say that the last year has been a crippling one financially speaking. I went from making good money at a great job to being unemployed and watching everything from my savings to my investments dwindle in front of my eyes. The job market has continued to be difficult and I just recently was able to find another job after almost a year of being out of work. There’s only so far that severance and unemployment can take you and I am regretful to say that I lived quite a bit on my credit cards. It was my only choice at the time but unfortunately that only helps in the short term because as the balance increased so did my minimum payments and before long I was not able to keep up with them either. I fell behind, owed hundreds of dollars in late fees, and watched my credit score plummet.

Now that I am working again my first order of business is to pay off my debt and start to rebuild my credit. It may take me quite a bit of time but it is time well spent to see my credit score improved again which I will closely monitor through my credit report.

One of the ways in which I am planning on helping myself is through secured credit cards. Different than traditional cards, secured credit cards require the amount of your credit line to be secured in a savings account held by the lender. This protects the lender from risk – and the user from requesting too large of a credit limit.

Secured credit cards are controlled and one way in which I can begin the work of rebuilding my credit. It will be a long road but one that I’m anxious to travel.

Popularity: 23% [?]

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In the last post we talked about the importance of knowing what is on your credit report; a financial compilation that is held by three separate credit bureaus. By ordering free credit reports every year we are able to keep tabs on what is happening on our credit report so that we are not surprised when we go to get a loan and so that we can take steps to make credit repairs as soon as we are aware of them instead of allowing them to drag out and cause further damage.

One of the things that we can do to help rebuild our credit even if we are not able to get a traditional line of credit is to look into secured credit cards.

Secured credit cards allow consumers to have access to a line of credit that is backed by money they have put aside as collateral. In other words, no matter what the credit limit on the credit card the consumer must first match that amount that is then deposited – by the lender – into a secured savings account. That way, should the consumer default on the loan the lender is able to cover the credit limit by the amount they have in the secured savings account.

Additionally, secured credit cards provide protection for consumers as well. Because consumers have to match the credit limit with cash to be deposited into savings the credit limit is most often on the low side – minimizing the possibility that the card holder will get in over their head in terms of charges.

Secured credit cards are only one of the ways in which we can take steps to improve our credit report. Making payments on time, keeping debt to income ratio low, and limiting our open lines of credit all help to improve credit.

Popularity: 26% [?]

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Everyone deserves a second chance, especially when it comes to finances. There are virtually none among us who have not made poor decisions at one time or another when it comes to money. It’s difficult to know what road to take, especially in this economy; and sometimes we simply do what we think is right at the time. Decisions we make with only the short term in sight, however, can prove to have vast ramifications in the long term and we are left wondering what would have happened had we chosen another route.

While in theory it makes sense that everyone should have a second chance, this is much easier said than done when it comes to damage that has been inflicted on our credit report. When we make poor financial decisions, when we are late on payments, and when we default on loans all of this information is detailed on our credit report. There are actually three credit reports when it comes to our financial information because there are three credit bureaus – Experian, Equifax and TransUnion. Each of these credit bureaus holds a credit report on every consumer and believe it or not information can vary considerably between the three.

This is why it is so imperative to order free credit reports from each of the credit bureaus every year; which is something, in fact, that we are entitled to receive.

But if you find through your free credit reports that your credit is damaged you need to take steps immediately to begin credit repair. Too many people find out at the most inopportune time that they have credit problems; most often when they go to secure a loan. But by taking certain steps, including getting secured credit cards you can begin to repair your credit. More to come…

Popularity: 24% [?]

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Who knows when these economic difficulties will be behind us as a nation? But what is very clear is that it is important that we all take stock of own personal financial responsibilities. It is up to us – and only us – to ensure that we do not get in over our heads in terms of debt; and that we make financial decisions that continue to move us along in a positive direction instead of drowning us in obligation and fear.

One of the ways that we can take control of our spending is with the use of secured credit cards. If you are among the many consumers out there who have difficulties in staying on track budget-wise, secured credit cards offer hope in providing you with a manageable credit limit that will simply not allow you to get in over your head.

Secured credit cards are presented to the cardholder with exactly the line of credit that they request. The caveat is, however, that the amount of the credit limit – and perhaps more depending on the particular card – must first be deposited into a savings account that is held by the lender. This money is put in place as protection for the lender; if the cardholder defaults on their loan, the lender has the money necessary to cover the debt. Conversely, the money is a physical reminder to the cardholder of how much they can afford and removes the notion that the card is equivalent to cash even if the cardholder will never have that amount of cash in their lives.

Secured credit cards are often the only choice for those consumers with bad credit and the need to procure a line of credit if only to rebuild their financial standing. But they can also be a choice made by those with solid credit standing; a choice to spend within their means.

Popularity: 26% [?]

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Continuing from the last post, more on what we can do to stay in control of our finances:

• Utilize free credit reports. How can you make sure that you keep abreast of your credit report? Free credit reports – something that we all have the right to receive as consumers – can allow us to stay on top of any activity happening on our credit report including the decrease of our credit score and unusual changes. In fact, we are all given the opportunity to get a free credit report once a year from each of the credit bureaus – Experian, Equifax, and TransUnion. By ordering free credit reports from all of the credit bureaus throughout the year we can make sure that we always know where we stand in terms of our credit.

• Compare credit cards. Now is most assuredly the time to stay in control of your spending and that includes spending on erroneous fees. This is why it is so important to compare credit cards throughout the year to make sure that you are absolutely getting the best deal available to you. Different credit cards offer different interest rates and introductory offers; by staying on top of what the credit card companies are offering you can transfer balances, pay lower interest rates – and even zero percent interest for a period of time, and take advantage of the earning of different points good towards travel and the like. Take the time to compare credit cards and you will be taking the time to save money.

• Secured credit cards. For those who are not in the best financial position but still need the credit, there is the opportunity for secured credit cards. Such cards extend the user a particular amount of credit, but the cardholder must match this credit limit by depositing the matching amount into a secured savings account. Secured credit cards protect the lender from default and allow consumers to build their credit.

Popularity: 43% [?]

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We’ve all been in financial trouble at one point or another. After all, this economy – when most of us are struggling like never before – has seen the rise in gas prices, food prices, college tuition, and all the rest, but with no significant increase in pay. The money that it costs to live on a daily basis has to come from somewhere and for many us the only option is our credit cards. With credit cards maxed out and minimum payments through the roof – along with all of our other expenses – before long we are facing financial crisis. Bankruptcy may seem like the only alternative when it gets that far.

But as we’ve all been told, bankruptcy is more difficult to declare these days; and besides that, it is a decision that will stay on your credit report for many years to come. Taking back financial control of our lives – before bankruptcy is the only option – can have a much more powerful effect in our life and allow us to clean up our credit report without doing long term damage.

Debt consolidation loans can help to eliminate credit card debt; as can working with a professional that will provide debt negotiation or debt settlement – both methods by which to lower the total amount of the debt owed. But once credit card debt is eliminated, it may be tempting to get another credit card; a dangerous move that can result in the racking up further debt. Instead, an option to consider is the use of secured credit cards.

Secured credit cards are those credit cards that offer a limit that is only within the cardholder’s means. In fact, the credit card holder is only permitted to get a certain credit limit that they must first match in funds that are deposited in a secured savings account. This protects the lender and also allows the cardholder to take baby steps in using credit responsibly.

Popularity: 38% [?]

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Everyone deserves a second chance in life. After all, how many of us can honestly say that we have not messed up at one time or another? The truth is that without the allowance of a second chance, most of us would be out of the game altogether in terms of a number of things. For instance, when it comes to our finances, there are few among us who have not found ourselves in a position at some point when we could use a little help and forgiveness. One or two poor financial decisions do not define us; we need to learn how to move on from our mistakes towards a much brighter financial future.

Helping us along in this capacity is a number of options available to us in terms of increasing our creditworthiness and inspiring lenders to once again have faith in our choices. There are a number of debt programs available to consumers for instance – developed in response to the skyrocketing debt in this country. Such programs will help consumers to pay down – and eventually pay off – their debt – and get back on their feet in terms of their credit score and overall credit report.

One of the other options available in terms of rebuilding credit one step at a time is the use of secured credit cards. Consumers may often find themselves in a position – following large amounts of debt – where they are unable to be approved for credit cards. But without the credit available to pay towards every month, they are not able to make headway in proving responsible borrowing and payment and therefore increase their credit score.

Secured credit cards are credit cards with set limits – the amount of which the cardholder must match with an upfront deposit into a secured savings account held by the lender. This money acts as protection for the lender; should the borrower default they can recoup their money. For the cardholder, secured credit cards offer a second chance and a way to begin to rebuild their credit.

Popularity: 37% [?]

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In the last post we discussed the impact that bad credit can have on our overall financial health; affecting our ability to get loans of any kind including a mortgage loan, car loans, and other lines of credit. When we find ourselves in a situation where our credit is defining us (negatively, that is) it’s time to take action so that we can get control of our finances and pave a road for success in the future.

In order to get the ball rolling in this regard it’s best to first begin in with the procurement of free credit reports. Such reports are available to us through the three credit bureaus that hold our financial information; we need only logon to a central website, www.annualcreditreport.com to get the credit reports we need.

Following the receipt of our free credit reports we will have much more solid information regarding the state of our credit and what we need to address in order to increase our credit score. Bad credit loans may be the best way to begin the work towards improving our credit score believe it or not. Bad credit loans are provided to those consumers with less than perfect credit; those that would not ordinarily be approved for traditional loans or credit lines. Typically, in order to protect the interests of the lender, bad credit loans are given to consumers with higher than average interest rates, lower lines of credit, or even credit lines that must be secured.

Secured credit cards offer consumers a particular line of credit but only if the cardholder first deposits the amount of the credit line into a secured savings account held by the lender. This protects all parties from possible harm; the lender is protected in that they can access the savings account if the consumer defaults on the loan; the consumer is protected from getting too far in over their head.

Bad credit loans allow consumers to take baby steps and start to improve their credit one dollar at a time.

Popularity: 52% [?]

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