Hi , so I started out with a 421 in December 2014 , I had a foreclosure , no credit cards , horrible spending habits , collections etc. My foreclosure fell off my report and I went to 453 . I applied for a credit one unsecured card , high interest and annual fees but all I could get at the time (300 credit limit). Charged gas every month , maybe 50 and paid it right off .In March got a cl increase to 500. My credit went to a 479. Appied for a Capital one card w/ 300 cl. Got it , charged very little every month paid it off , in June got a credit increse to 700. Also got offered a platinum mastercard w/500 cl from Credit One . I also had my husband add me to his Capital One credit card w/ 1000 cl. As of July 15 my score is 556. Not ideal but every week I check with Credit Karma and my score is going up . It takes time but you have to be disciplined . My name added as a user on hubbys card and my new credit card has now shown up yet on my credit so Im hoping for a decent jump when it does . As far as old collections , I paid off a 1700 Fingerhut bill and it had no effect on my credit whatsoever , I really wish I hadnt paid it , it says paid but still shows as derogatory. Tommorow I am going to my bank and getting a 500 secured card . As you can see I started this quest in December 2014 when I decided it was time to take responsibility and do something and its been 8 months and my credit score has jumped about 135 points .
The two primary forms of bankruptcy that consumers choose to file are Chapter 7 and Chapter 13. Chapter 7 allows a filer to liquidate nonexempt assets to pay off creditors and discharge their remaining debts. Chapter 13, called a wage earner’s plan, gives filers with regular income the opportunity to create a short repayment plan to pay off their debts.
Once you have your credit reports, read through them completely. If you have a long credit history, your credit reports might be several pages long. Try not to get overwhelmed by all the information you're reading. It's a lot to digest, especially if you're checking your credit report for the first time. Take your time and review your credit report over several days if you need to.
The root cause of your debts hasn’t been settled.Florida consumer protection lawyer Donald E. Petersen said consumers should not file bankruptcy until the root cause of their financial distress is solved. “If a consumer has severe health problems and is incurring medical bills that they are unable to pay, do not file bankruptcy until after the course of treatment is complete,” he said. “Similarly, consumers who are unable to pay their bills because they are unemployed or underemployed should not file bankruptcy until their employment status has stabilized at compensation that they can live on without accumulating additional debts in order to meet ordinary living expenses.”
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.
The Walmart® Credit Card offers a three-tiered cashback program to benefit avid Walmart shoppers. You receive 3% cash back on Walmart.com purchases (including purchases made on the Walmart app), 2% back on fuel purchases made at Walmart or Murphy USA (excluding Murphy Express) gas stations and 1% at Walmart & anywhere your card is accepted. Your cash back will be issued monthly as a statement credit for all earnings during that period. Note: This card can only be used at Walmart Stores, Walmart Supercenters, Neighborhood Markets, Walmart.com, Walmart and Murphy USA Gas Stations and Sam’s Clubs.

Your goal with a balance transfer should be to get out of debt. If you start spending on the credit card, there is a real risk that you will end up in more debt. Additionally, you could end up being charged interest on your purchase balances. If your credit card has a 0% balance transfer rate but does not have a 0% promotional rate on purchases, you would end up being charged interest on your purchases right away, until your entire balance (including the balance transfer) is paid in full. In other words, you lose the grace period on your purchases so long as you have a balance transfer in place.
If you are struggling to pay off multiple credit cards, consolidating your debt may allow you to reduce your interest rates and lower your monthly payment. However, a lower monthly payment can mean a longer repayment term and more interest paid over the life of the loan. Whether you should consolidate your credit card debt depends on your individual circumstances and the terms of the consolidation.
If you’ve missed enough payments that an account was sent to collections, it can be a tricky proposition. Leave it alone, and it will continue to appear as a blemish on your credit report for a long time. But pay it off, and it still might hurt your score in the short term. Luckily, there’s another way to deal with collections that will help—not hurt—your score, and that’s paying for deletion. Just like it sounds, you’ll contact the collections agency (which will love to hear from you!) and make a deal; if you send in full payment, the collections company will erase the negative reporting from your credit. They may even take less than 100 cents on the dollar to do so – as many debts settle for far less than what was originally owed. Just make sure get this arrangement in writing and mail a check to them certified mail with “Cash only when you delete the account from my credit report” written right above the endorsement line.
Step 2: Tell the creditor or other information provider, in writing, that you dispute an item. Include copies (NOT originals) of documents that support your position. Many providers specify an address for disputes. If the provider reports the item to a consumer reporting company, it must include a notice of your dispute. And if the information is found to be inaccurate, the provider may not report it again.
You can apply as a non-member online to get a decision before joining. And Justice is unique in that the Student VISA® Rewards Credit Card from Justice FCU is also eligible for the intro 0% for 6 months on purchases, balance transfers, and cash advances. So, if your credit history is limited and you’re trying to deal with a balance on your very first card, this could be an option. The APR after the intro period ends is 16.90% fixed.
The credit union is probably taking all your debt into consideration, not just the mortgage. And with a personal loan, new mortgage, credit cards, car loan and student loan, it sounds like you have quite a few bills you’re handling. It’s understandable you want to get your interest rates down, though, and it’s good you’re trying to be proactive about the process. Just because one lender turned you down doesn’t mean they all will. But you do want to be careful about applying for loans with multiple lenders as the inquiries can impact your scores. You might want to try one of the other options mentioned in the article before you give up. If you get turned down by multiple lenders, though, then you may want to at least talk with a credit counselor to see if they have suggestions.
Isolating your financial needs on different credit-card accounts will help you get the best possible terms on every transaction that you make. For example, you could get the best cash-back credit card for everyday expenses, the best travel rewards card for airfare and hotel reservations, and the best balance-transfer card for reducing the cost of your existing debt.

However, there is a big risk to using a debt consolidation loan. Once you pay off your credit cards, you will be tempted with a lot of newly available credit. If you got into debt because you spent too much money on credit cards, creating more spending power on your credit cards can be a dangerous strategy. Dave Ramsey regularly tells listeners that they cannot borrow their way out of debt. On his blog, he write that "debt consolidation is nothing more than a "con" because you think you’ve done something about the debt problem. The debt is still there, as are the habits that caused it — you just moved it!"

Get the advice of a nonprofit credit counselor before consolidating your credit card debt. Credit counseling offers free debt help and the expert advice could save you time and money. You may find out that your debts are indeed overwhelming and bankruptcy is best your option, or that your debts are judgment proof and thus you have nothing to lose by defaulting.
Negative credit information is any action that causes creditors to consider you a riskier borrower. It includes late payments, accounts in collections, foreclosures, bankruptcy, and tax liens. Once negative credit information is introduced into your credit history, you cannot remove it on your own. However, time heals all wounds. The longer it’s been since the negative information was introduced, the less it will affect your credit score. In time, negative information falls off your credit history.
In a competitive market, credit card companies are always trying to lure customers with their frequent flyer miles and cash back offers. Even if you have found a new-and-improved credit line, keep your oldest account active and in good standing. While new credit is important, credit history has a larger impact on your score. Use your old card for occasional purchases to keep things balanced. It could help boost your score with little effort.
Contrary to popular belief, credit repair is not always difficult and frustrating. While many see the process as long and confusing, there are many ways to clean up your credit in just a few minutes or hours. If you are looking to take control of your financial future, get started by using the tips below. Credit repair may be easier than you think.
It’s likely that the debt collector has the incorrect amount for your debt or has tacked on high fees — Rheingold said you may owe $500, but a third-party debt collector may inflate that number to $2,500 with fees. Both of these practices are illegal. Third-party debt collectors cannot misrepresent the amount you owe or collect fees or interest above what’s stated in your original contract.
A debt consolidation loan streamlines existing debts into one new loan. Most unsecured consumer debt can be consolidated, including credit cards, medical bills, utility bills, payday loans, student loans, taxes and bills sent to a collection agency. Having one monthly payment instead of several can make it easier to get your finances in order and could allow you to save money on interest fees. When shopping around, it’s essential to find a loan with a lower interest rate and better terms than the original debts.
If we can stress any point more than anything- do not forget to make a payment. If you miss a payment in effort to pay off another line of credit, this can debilitate your credit score more than you think. There have been cases of people claiming a decrease in credit score up to 100 points, which has also been confirmed by Equifax. If you are in a situation trying to pay off multiple loans, start small and tick with the minimum payment. Build a budget where you can effectively manage all your bills and ensure that each of them get paid. Only then can you consider putting more money aside for to eliminate debt quicker However, you should never sacrifice an on-time payment for anything. Otherwise, you are sacrificing 35% of your total credit score.

If following the steps above seems daunting, some organizations specialize in paid credit repair services. Most of the services require a monthly subscription fee between $60-$100 per month, and most reviews report that the negative items are completely removed within 3-5 months. Despite the high cost, legitimate companies provide a valuable service if you’ve been the victim of identity theft and you want someone else to do the work for you.

You cannot pay down your debt on your own and you continue falling further and further behind. “It makes sense to file bankruptcy when you can no longer keep up with your bills,” said Leslie H. Tayne, a debt resolution attorney and founder of Tayne Law Group, based in Melville, N.Y. “If commercial creditors are breathing down your neck or if you are in danger of losing your home, it may then make sense to file bankruptcy.”
Personal Loans: With the rise of marketplace lenders, obtaining a personal loan with a low interest rate has become increasingly easy. Most lenders will allow you to shop for an interest rate without hurting your credit score. You should shop around for the best rate online at websites like MagnifyMoney or NerdWallet, where you can find variable interest rates as low as 4.74%.

While the Savings Secured Visa Platinum Card from State Department Federal CU has a slightly higher security deposit at $250, it does have one of the lowest APRs of a secured card at 13.99% Variable. This may come in handy if you find yourself carrying a balance month to month — but we strongly encourage you to pay each bill on time and in full to avoid interest charges. This card is available to everyone regardless of residence by joining the American Consumer Council for free during the application process.


Thank you for this. I have been building my credit back after Economy struggles and long term illness.  Today, I'm in a better position physically and materially. Most of my credit issues are resolved. However, I'm curious as to your next step once you resolved the medical bill situation.  Did you pay the creditor and subsequently write a letter to the credit bureaus? I have a $284 medical bill I can't recall not paying, but I would like to resolve the matter this year. 


If your repayment term is extended when you consolidate, it may take you significantly longer to pay off your credit card debt. While it may be nice to have a more manageable monthly payment, it also means paying more interest over the life of the loan. Review the terms of your consolidation carefully before deciding that it is the right choice for you.
While the Savings Secured Visa Platinum Card from State Department Federal CU has a slightly higher security deposit at $250, it does have one of the lowest APRs of a secured card at 13.99% Variable. This may come in handy if you find yourself carrying a balance month to month — but we strongly encourage you to pay each bill on time and in full to avoid interest charges. This card is available to everyone regardless of residence by joining the American Consumer Council for free during the application process.
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.
Many homeowners are relieved to find out that they may be able to save a home that’s in foreclosure by declaring Chapter 13. But at what point in the foreclosure process must you file before it’s too late? As it turns out, you can file for bankruptcy protection well into the foreclosure process and still save your home, according to Florida attorney Ryan Albaugh.
We recently completed a debt consolidation loan with you and were so impressed on how quickly and less painful it was to apply and get an approval. I have been in the banking industry for 30 years so I am well educated on the hoops some institutions make you jump through to get a loan. We were so impressed that we decided to upgrade to a new car, so I applied this morning for a used vehicle loan. Incredibly, five hours later I received an email; you had two simple questions and didn't need further income documentation since you already had it on file. About 15 minutes after that call, I received the approved loan email; that's just incredible.
Isolating your financial needs on different credit-card accounts will help you get the best possible terms on every transaction that you make. For example, you could get the best cash-back credit card for everyday expenses, the best travel rewards card for airfare and hotel reservations, and the best balance-transfer card for reducing the cost of your existing debt.
Ultimately, the best way to consolidate credit card debt depends on your financial situation. If you want a quick application process and the potential for no fees, you may choose a balance transfer credit card. Meanwhile, if you don’t have the good or excellent credit needed for a balance transfer credit card, you may look toward loans. If that’s the case, the question becomes whether you’re willing to put your home up for collateral to get a potentially higher loan amount, or withdraw from your 401(k) or simply receive cash from an unsecured option like a personal loan. And, if you struggle with managing payments for various credit card debts, you may lean toward a debt management plan. Whichever option you settle on, make sure you have an actionable plan that allows you to fully repay the loan during the term and maintain a debt-free life.

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.
If you’re the parent of a teenager, you might wonder if now is the right time to help them open a credit card. It can be hard to decide if they’re ready to take on the responsibility that comes with having a credit card since you need to trust that your teen has the restraint to limit spending and pay on time. Generally, we recommend introducing your teen to credit as soon as you can since credit is such a large part of life as an adult — you need credit to take out loans, apply for a mortgage and even make certain purchases. Plus, it’s important for your teenager to learn how to manage credit responsibly so they can build good credit.
If you’re financially drowning, of course you can declare bankruptcy. The problem is that bankruptcy is a serious derogatory mark on your credit. It won’t prevent you from getting credit in the future, but for a time some credit products will be unavailable to you and others will come at very steep prices. Also, not all debts can be discharged in a bankruptcy.
my credit is 631, I finally got approved for a credit card. I am in school , with 2 kids and need my own house as well as a car ! I cant get approved for a loan based off my credit. I need the increase FAST ! I don't have much in my name, I have 2 student loans, one paid off fully one doesn't start payments for 6 months.. I have one bank account that went to collections for identity theft. I have 8 hard credits from past and present ): I don't know where to turn but I need HELP!
If your current credit score isn’t great, take measures to improve it. Payment history and credit utilization can make up to 70% of a credit score, according to Experian, so simply paying your bills on time and keeping your balances low can be a tremendous help. You can also help your score by only applying for new credit only when absolutely necessary and getting a head start at paying your loans off now, if possible.
The deal is you get the prime rate for 3 years with no intro balance transfer fee. That’s currently 4.75% variable, though your rate will change if the prime rate changes, either up or down, and you have 60 days to complete your transfer with no fee. After that, it’s $10 or 3% of the amount of the transfer, whichever is greater. Also beware the prime rate deal isn’t for new purchases, so only use this card for a balance transfer.
Credit scores are calculated from your credit report, which is a record of your credit activity that includes the status of your credit accounts and your history of loan payments. Many financial institutions use credit scores to determine whether an applicant can get a mortgage, auto loan, credit card or other type of credit as well as the interest rate and terms of the credit. Applicants with higher credit scores, which indicate a better credit history, typically qualify for larger loans with lower interest rates and better terms.
Getting a bump in credit limit on one of your existing cards has a similar effect as getting a new credit card on your credit utilization but is even quicker and easier. Another plus: While you may not get as much of a credit limit increase as with a new card, your credit score will also not suffer the new credit card ding and will benefit from the age of the existing account.

You may also be able to negotiate with creditors as part of a "goodwill adjustment." They may be willing to remove late payments that they've reported to the credit bureaus, especially if you have a history of on-time payments. While you're trying to fix your credit, don't neglect your current obligations. Whatever you do, be sure to pay all your bills on time so you don't accrue any more negative items on your report.
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 the steps above may seem lengthy and cumbersome, debt management plans exist because some consumers are simply unable to get out of debt on their own. Bruce McClary, vice president of communications for the National Foundation for Credit Counseling (NFCC), said that an array of circumstances can lead to situations where families need outside help. Job loss, chronic overspending, reduction in work hours, loss of income and unexpected major expenses are often the biggest culprits when consumers spiral into debt they cannot control.

In general, older consumers have higher credit scores than younger generations. Credit scoring models consider consumers with longer credit histories less risky than those with short credit histories. The Silent Generation and boomers enjoy higher credit scores due to long credit histories. However, these generations show better credit behavior, too. Their revolving credit utilization rates are lower than younger generations. They are less likely to have a severely delinquent credit item on their credit report.


At this point, you will need to continue following the advice of the credit counseling agency you hired to help and remember the benefits of being debt-free. Life is a lot more difficult when you’re juggling credit card bills and other payments each month. If you want to avoid winding up back in debt, it’s crucial to remember how far you’ve come and how wonderful freedom feels.
Those with poor credit or no credit can obtain a low credit limit secured credit card (by putting up a security deposit). This is reported to the credit bureaus as a regular credit card and allows you to build a positive payment history quickly. Eventually, the credit card company (and others) will offer you a higher traditional credit limit without the security.
Once you’ve confirmed the accuracy of your credit reports, you can begin working on the mistakes that you’re responsible for. One easy way to pinpoint your credit-score weaknesses is to sign up for a free WalletHub account. Your Credit Analysis will include a grade for each component of your latest credit score as well as personalized advice for how to improve problem areas.
I have approximate $15,000 in high interest credit card debt and just spinning my wheels making minimum monthly payments. My credit is borderline fair/good. Would credit counseling help me pay this off quicker?? I just recently leased a brand new car for 3 years and when the time comes to trade it in or finance it and keep it I want my credit to be okay to do so. What do you recommend for me??
Some of your creditors and lenders might report only to one of the credit bureaus. And, since credit bureaus don’t typically share information, it’s possible to have different information on each of your reports. Ordering all three reports will give you a complete view of your credit history and let you repair your credit at all three bureaus instead of just one. 

Negative records that you cannot successfully dispute will remain on your credit reports for roughly seven to 10 years. The best way to overcome such negatives is to add a pile of new positive information to your credit reports. Doing so dilutes the negative information and shows that you’re really a responsible borrower who just made a few mistakes. We’ll explain how to go about doing that in the steps below.
If an investigation doesn’t resolve your dispute with the credit reporting company, you can request that a statement of the dispute be included in your file and in future reports. You can also ask the credit reporting company to provide a statement to anyone who received a copy of your report in the recent past. You can expect to pay a fee for this service, and a dispute on your credit report does not improve your credit score.
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