What is it? Balance transfers are when you transfer debt from a current credit card to a new card, ideally one with a 0% intro APR period. The intro period is for a set amount of time that can range from 6-21 months. Many cards offer 0% intro APR balance transfer offers in order to convince credit card users to give them their business. It’s a win-win situation for the lender and the borrower.

If you want to learn how to repair credit fast, you need to learn how credit score works. There are five different factors that are utilized by credit scoring companies to discover that magical three digital number. What many people do not realize is that, through understanding these five factors, you not only have greater control over your credit score, but now you can begin utilizing credit to your advantage. Here are the five factors used to create someone’s credit score:
Trying to get a little bit of business advice, hope someone can help. We are struggling to make it through our slow months right now. We have about $100,000 in business debt currently active and all in good standing, we have never made a late payment. But we are getting buried with making sure we are paying all of these bills on time while still being able to order products to keep the business fully functional. We are scared we are heading towards bankruptcy or even closure. Would a debt consolidation company be able to help us? Or does it seem we are too far gone? I guess I was hoping with a debt consolidation company we could lower our monthly burden, stretching out our payment to 48-60 months.
Yesterday, Margot used Card #3 to buy an $800 flat-screen TV. Although she only used 8 percent of her total credit limit of $10,000, she charged 80 percent of Card #3’s $1,000 limit. While it’s not an exact science, making an effort to even distribute expenses will likely help your score. Next time Margot wants to spend $800, she should take advantage of Card #2, which would only charge 16 percent of its limit. Utilization can be a friend or foe—practice some planning and let this credit repair component work for you.
The key to debt consolidation is to avoid taking on new debt. If you borrow money, pay off your credit cards and then charge them back up again, you’re in worse shape than ever. If there is any chance that you might do this, or if you find yourself doing it after you obtain the consolidation loan, stop using the cards and just close the accounts. Your credit score will suffer, but your finances will thrive. Your score will come back up over time, and by then you’ll have learned valuable lessons about racking up too much debt.

The debt settlement process involves hard-core, long term debt collection attempts by your creditors, and serious credit score damage that will last for many years. Debt consolidation companies like National Debt Relief and Freedom Debt Relief offer to help you through the process for a fee (eating into your savings). They will instruct you to stop paying your bills, which leaves you open to lawsuits by your creditors.
A major driver of increased scores is the decreased proportion of consumers with collection items on their credit report. A credit item that falls into collections will stay on a person’s credit report for seven years. People caught in the latter end of the real estate foreclosure crisis of 2006-2011 may still have a collections item on their report today.
Rachel Kampersal said debt management plans require you to change your habits dramatically since you will have to stop using credit. “Per requirements from creditors, any card that is entered into a debt management plan will be closed, meaning you can no longer make charges to these cards. While difficult, it’s important to stop incurring new debt.”
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That takes care of your existing credit accounts. To help establish positive credit history, you might contemplate opening new credit accounts in various categories. Showing that you can handle fixed payments as well as credit cards is a plus in the long term. An installment loan for furniture, an auto or a personal loan will round out your credit profile. You might also consider a secured credit card (make sure the issuer reports to the major credit bureaus) if you do not qualify for other types of new credit. Lastly, apply for credit only if you need it and if you can afford new payments. Credit applications generate inquiries on your credit report, which could ding your score in the short term.
Companies that want you to lie about credit history or create a new credit identity can get you into legal trouble. Companies that provide “new” identifying information use stolen Social Security numbers, and if you use this number then you are committing fraud. Likewise using an Employee Identification Number or Credit Profile Number provided by these companies is a crime. Rather than committing fraud, take the steps below to improve credit on your own.
People typically consolidate credit card debt if they have debt on high-interest credit cards and are incurring high-interest charges. By consolidating credit card debt, they can potentially save a great deal of money on interest payments and get out of debt sooner than if they left their debt on high-interest credit cards since more of their payment will go toward their principal balance.

Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.


If you have medical debt, you may be wondering what options are available to you. Medical debt can be consolidated into a nonprofit debt management program, though you may not receive lower interest rates. Considering that much medical debt is already at a low or zero interest rate, this should not be a deterrent. By consolidating medical debt to a debt management program, you are simplifying your bill pay and committing to timely, consistent payments of  your medical debt. This will help you pay off your debt faster and also may have a positive impact on your credit score.
The best way to handle this is first pull your credit reports from the three major credit agencies – Experian, Equifax and TransUnion.  And this can be done free of charge once every 12-months through the site AnnualCreditReport.com. Go through each of the reports as thoroughly as possible looking for any inaccuracies, like – incorrect information on collections, judgments, balances, new accounts, and payment history.
Just because you have a poor credit history doesn’t mean you can’t get credit. Creditors set their own standards, and not all look at your credit history the same way. Some may look only at recent years to evaluate you for credit, and they may give you credit if your bill-paying history has improved. It may be worthwhile to contact creditors informally to discuss their credit standards.
So, the first thing you should do is assess the damage by looking at a current credit report issued from one (or all) of the three major credit bureaus. Under the Fair and Accurate Credit Transactions Act, every American has the legal right to receive one free report from each one of the companies per year, which will save you some money on processing fees. You can get access to each one at the site annualcreditreport.com.

The key to debt consolidation is to avoid taking on new debt. If you borrow money, pay off your credit cards and then charge them back up again, you’re in worse shape than ever. If there is any chance that you might do this, or if you find yourself doing it after you obtain the consolidation loan, stop using the cards and just close the accounts. Your credit score will suffer, but your finances will thrive. Your score will come back up over time, and by then you’ll have learned valuable lessons about racking up too much debt.
After you’ve resolved the negative items on your credit report, work on getting positive information added. Just like late payments severely hurt your credit score, timely payments help your score. If you have some credit cards and loans being reported on time, good. Continue to keep those balances at a reasonable level and make your payments on time.
What is it? A 401(k) loan is when you borrow money from your existing 401(k) plan to pay off debts. The amount you can borrow is limited to the lesser of $50,000 or 50% of your vested balance. After you withdraw the money, a repayment plan is created that includes interest charges. You typically have five years to pay off the loan, and if you take out the loan to buy a house, your term may be extended to 10-15 years.
It should go without saying, but, another quick tip for fast credit repair is through focusing on eliminating outstanding debt. Furthermore, if you have outstanding debt, the idea of opening new credit lines should go out the window. It’s more important, as a responsible borrower, to handle the financial matters at hand and eliminate any outstanding debt first. Through taking the time to do this, you can significantly improve your credit score and likelihood of getting approved or credit increases, all of which can help with credit utilization, enhancing your efforts of fast credit repair!

Anyone can join Money One Federal by making a $20 donation to Gifts of Easter Seals. And you can apply without being a member. You’ll see a drop down option during the application process that lets you select Gifts of Easter Seals as the way you plan to become a member of the credit union. Credit lines for the Visa Platinum Card from Money One FCU are as high as $25,000. After the as low as 0% intro apr for 6 months, there’s a 8.50% to 17.80% Variable APR.
It depends, some credit card companies may allow you to transfer debt from any credit card, regardless of who owns it. Though, they may require you to first add that person as an authorized user to transfer the debt. Just remember that once the debt is transferred, it becomes your legal liability. You can call the credit card company prior to applying for a card to check if you’re able to transfer debt from an account where you are not the primary account holder.
I do not agree with the secured card info you've provided.  They are great tools when used correctly.  You can find one with no/small annual fee.  The interest rate won't come into play if you pay your balance in full each month.  Even if you don't pay in full, the interest on a very low balance is a non-factor.  Alomst any credit union will allow you to open an account with as little as $5 and secured card with $300/500.  My card is $500 and I never charge more than $150(30%).  It takes will power to not max it out.  You don;t want to fall back into old habits (if that is what got you into this situation in the first place).

None of the other banks approved my applications, and my score went down from the very beginning due to the number of “hard inquiries” against my report. Hard inquiries occur when lenders check your credit report before they make lending decisions, and having too many inquiries in a short period of time can result in several dings to your credit score. 
There are a lot of myths out there about credit scoring – hopefully we can help you understand FICO scoring, so you can take action to build your score. There are five major components FICO uses to determine a credit score. Fortunately, understanding the secret sauce can help you build a strong score and healthy credit report. Both a 700+ score and healthy credit report will help keep the rest of your financial life cheaper by enabling you to get lower interest rates on loans and approved for top-tier financial products.
Well, there are some things you can do to help move the needle in the short term, but making significant changes to your credit score will likely take a little time. If you’re looking to apply for a home loan in the not too distant future that’s probably not what you wanted to hear. In this article, though, we’ll highlight some things that will help, and put you in a better position when applying for credit next time.
Credit scoring companies analyze consumer credit reports. They glean data from the reports and create algorithms that determine consumer borrowing risk. A credit score is a number that represents the risk profile of a borrower. Credit scores influence a bank’s decisions to lend money to consumers. People with high credit scores will find the most attractive borrowing rates because that signals to lenders that they are less risky. Those with low credit scores will struggle to find credit at all.
While it seems to make sense to pay off all of your old delinquent debts, this strategy can sometimes backfire and drop your score further. If a credit account is simply overdue and shows as outstanding debt, paying it off will improve your score – though it won't eradicate the record of late payments. But if you have an old debt on your credit report that has been charged off by the lender – meaning that they do not expect further payments – setting up a new payment plan can re-activate the debt and make it appear to be more current than it actually is. This is often the case with debt that has been turned over to a collection agency. The agency may register the debt with credit bureaus as new rather than reporting it against the written-off debt.
Your credit score won’t be affected by placing your loans into deferment, forbearance or using a hardship option, as long as you make at least the required monthly payment on time. But interest may still accrue on your loans if you’re not making payments, and the accumulated interest could be added to your loan principal once you resume your full monthly payments.

Personal information – Make sure the names and addresses reported match your personal history. As noted above, sometimes the reports of people with the same or similar names get combined incorrectly; having your report tied to that of someone with bad credit can lower your score. To correct an error you need to document, in writing, what is wrong. This can be a quick fix if all the negative information belongs to someone other than you, but proving that may take some time.

If you have missed payments, get current and stay current: the longer you pay your bills on time after being late, the more your FICO Scores should increase. Older credit problems count for less, so poor credit performance won't haunt you forever. The impact of past credit problems on your FICO Scores fades as time passes and as recent good payment patterns show up on your credit report. And good FICO Scores weigh any credit problems against the positive information that says you're managing your credit well.
To get your finances in order, it's key to create a budget and track your progress. There's no universal approach for monitoring your budget, but if you're in debt, you'll want to take inventory of your finances often and take note of your spending habits at least once a month. The goal is to avoid overspending – and understand how much you spend each month to create a plan to pay off your debts. "This word 'budget' seems to be such a painful word to everyone, but there is actual power and freedom in having a budget in place and having the power to tell your money where to go," Omo says. "It's the basis of your plan to get out of debt."
Credit repair ,my credit was pretty bad and I didn't think that anybody can help because I was helped by two different companies and all the did they got money from me but they didn't help in any way, after meeting with Mr Avtel he assured me that he can fix my credit, I'm so thankful and happy with the results my credit score was improved from  535 to 720 and just leased my new Mercedes.
A higher credit score: If you have maxed out your credit cards, your utilization ratio will be very high. That ratio can have a big, negative impact on your credit score. By paying off credit cards with a loan, you will be reducing the utilization on your cards. According to a study by Lending Club , people who used a loan to pay off credit cards saw an average score increase of 21 points within three months of the loan. The best way to improve your credit score is to eliminate your credit card debt burden completely.

If you have a rewards card, you may be tempted to spend more money than you have just to earn rewards. As a result, you may need to rethink why you’re using your credit card. You may come to the conclusion that a rewards card isn’t the best option for you. That doesn’t mean you can’t still use credit cards — there are plenty of credit cards you can choose that are basic and don’t have rewards.

Yes it does! I tried this about 20 yrs. ago! I consolidated my debts into one amount! I also had my interest rates reduced by the loan company. I discovered that any money that was shaved off my debt in any way whether by lower interest rates or by taking settlements were considered charge-offs and demolished your credit rating. It took me over 30 yrs. to regain any credit worthiness at all!


While Credit One is not as predatory as First Premier or payday loans, there is really no need to be using it to rebuild your credit score. Credit One makes it a bit tricky to get to its terms and conditions without either going through the pre-qualification process or accepting a direct mail offer. You’ll see this when clicking to look at its credit card option.
You'll probably have a limited amount of money to put toward credit repair each month. So, you'll have to prioritize where you spend your money. Focus first on accounts that are in danger of becoming past due. Get as many of these accounts current as possible, preferably all of them. Then, work on bringing down your credit card balances. Third are those accounts that have already been charged-off or sent to a collection agency.

Exactly like that pie that had all of the kids begging for a slice while it was cooking – it’s only done WHEN it’s done. Bad credit is very similar to that pie; both have a distinct smell inciting a call to action. Biting into a piping hot pie and jumping into a high cost, upfront credit repair plan are absolutely on every top ten list of “things that can burn.”  Some things take the time to bake and then cool while others require a history of doing the right things over a period for the maximum results. Fast credit repair is without question the “drive-thru” of consumer credit restoration – nobody ever knows what’s in the bag until it’s too late.  There is no way to “un-bite” into a sandwich that has the wrong dressing or contains items that may cause an allergic reaction. Millions of consumers who bought into the concept of flash credit fixing may not be experiencing rashes or physical side effects, but every time they check their credit score they wish they could have spit out that decision.

Over one-third of your score depends on whether you pay your creditors on time. So, make sure you pay all your bills by their due dates, keep receipts, canceled checks or reference numbers to prove you did so. While utility and phone bills aren't normally figured into your credit score, they may appear on a credit report when they're delinquent, especially if the provider has sent your account to a collection agency and forwarded that information to the bureaus.


You can also receive a credit limit increase without making an additional deposit after making your first five monthly payments on time. This is beneficial for people who need a higher credit limit and don’t want to (or can’t) tie up their money in a deposit. Also, this card comes with a credit resource center — which is available to everyone — and Platinum Mastercard® benefits that include travel accident insurance and price protection.
This is a great company to work with. Friendly staff and very helpful. I provided them with my filled out form, and they were able to analyze my credit score. They provided sound advice and I was able to raise my score with a few tweaks. Gave their # to a couple of friends that I have heard had great success as well. Talk to the experts at Quick and Easy! They will help make you look good.
Chapter 13 bankruptcy requires a $235 case filing fee and a $75 miscellaneous administrative fee, plus attorney costs. Chapter 7 bankruptcy comes with a $245 case filing fee, a $75 miscellaneous administrative fee and a $15 trustee charge, as well as attorney charges. With both types of bankruptcy, you are also required to pay for two credit counseling sessions that cost $50 to $100 each.

Taking out a loan should be a relatively seamless process. There are a lot of lenders to choose from, so conducting research to see which financial institutions provide the best — and worst — user experience can save you a lot of headaches. Browse each bank’s website to review customer service contact options, read reviews and search social media to see what people are saying about your top choices.
The intro 0% for 12 months offer is only for their Visa® Signature Credit Card – other cards have a higher intro rate. After the intro period ends, 11.50%-17.50% Fixed APR applies. The Purdue Federal Credit Union doesn’t have open membership, but one way to be eligible for credit union membership is to join the Purdue University Alumni Association as a Friend of the University.
When negative information in your report is accurate, only time can make it go away. A credit reporting company can report most accurate negative information for seven years and bankruptcy information for 10 years. Information about an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. The seven-year reporting period starts from the date the event took place. There is no time limit on reporting information about criminal convictions; information reported in response to your application for a job that pays more than $75,000 a year; and information reported because you’ve applied for more than $150,000 worth of credit or life insurance.
When negative information in your report is accurate, only time can make it go away. A credit reporting company can report most accurate negative information for seven years and bankruptcy information for 10 years. Information about an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. The seven-year reporting period starts from the date the event took place. There is no time limit on reporting information about criminal convictions; information reported in response to your application for a job that pays more than $75,000 a year; and information reported because you’ve applied for more than $150,000 worth of credit or life insurance.

How to use it effectively: The money you withdraw from your 401(k) loan should go directly to paying off your credit card debt. After your debts are paid off, payments most likely will be taken from your paychecks until your loan is repaid. If not, continue to make regular, on-time payments. While you’re repaying your loan remember to keep your job — don’t quit and avoid any actions that may lead to your dismissal so you aren’t subject to penalties.

Since debt management plans are individually tailored to each consumer, one plan can be wildly different than the next. McClary said your plan can vary depending on how much debt you owe, your current interest rates and payments and how your interest rates and fees are negotiated down. This is a huge benefit for consumers since debt management plans come with specific advice instead of blanket solutions that may or may not work.
Companies that want you to lie about credit history or create a new credit identity can get you into legal trouble. Companies that provide “new” identifying information use stolen Social Security numbers, and if you use this number then you are committing fraud. Likewise using an Employee Identification Number or Credit Profile Number provided by these companies is a crime. Rather than committing fraud, take the steps below to improve credit on your own.
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