Bad Credit and Debt Advice

How Reducing Debt Can Help Your Credit Score

There are many ways in which you can reduce your debt so you’re able to positively impact your credit score. However, it’s impossible to precisely gauge the impact that a particular move can do to your credit. That’s because the rate at which your score bounces back depends on several factors. Therefore, the following are ways in which various debt relief techniques can improve your score.

Debt Consolidation

Consolidating your high-interest rate credit card loans with a low-interest fixed rate loan isn’t a strategy for getting out of debts. However, it can improve your credit score in the long run, and this is how. Debt Consolidation Help and Relief is one of the techniques you can use to get out of debts quickly. That’s because when you consolidate your debts, you’re making low-cost payments, which increase the likelihood of staying upbeat with your payments. Consequently, this may help improve your credit score if you had fallen backwards in the past.

Again, if you settle your credit card debt with a balance which is close to the limit, you will improve your utilization ratio. Utilization ratio is a measurement that compares the balance you are carrying with your credit limits, as long as you leave the card open after making that payment.

Credit Counseling

Simply making a call to a credit counseling agency will not help. However, when they get you enrolled into a debt management plan, it will add a positive impact. This is a scheme that lets you make low-cost payments to the credit counseling agency so they can disburse it to your creditors.

Keep in mind that some creditors will report the fact that your debt is being repaid through the assistance of a debt counseling agency, and this is good. Of course late payments will still impact your credit score negatively. But in general, the assistance of a credit counseling agency can help bring your account into good standing. In fact, many creditors ”re-age” accounts after debtors make at least 3 successful payments on time and in the required amounts.

Debt Settlement

Settling a debt through negotiation means paying less than what you owed your creditor. But when a charged-off debt is settled and reported with a zero-balance, it won’t impact your credit score since the damage will have happened. However, it will help you avoid a lawsuit if your creditor was to take you to court. On the other hand, if the debt had not be charged-off yet, you could still settle it through negotiations, thus avoiding your creditor’s action of handing it over to the collections so it can inflict further damage on your credit score.

The points discussed above are some of the ways you can reduce debt fairly easily. For more information and help with debt, visit www.FinanciaLLitNow to get an honest answer to help alleviate your debt burdens. And furthermore, these techniques will help you improve your credit score in one way or another, so use them to rebuild your bad credit score.

How Do I Obtain My FICO Scores?

FICO scores (previously known as Fair, Isaac, and Company) or credit scores have become a widely used and inexpensive strategy when it comes to acquiring credit services by consumers. Lenders such as banks and credit card companies have now employed the use of FICO scores to judge a person’s credit worthiness i.e. the likelihood that the person will pay his debts. The FICO models, used by these credit grantors, combine a consumer’s credit information from three national credit bureaus i.e. Experian, Equifax and TransUnion.

An easy way you can get to know your FICO score is by use of the internet by logging in to the myFICO website. It is an effective method which is widely used not only by other consumers but by credit grantors who wish to check your background credit files. MyFICO is vastly recommended in credit scoring. Ones you log in to the official website, you are offered a variety of questions with which upon answering you will get your FICO score.

How Do I Obtain My Credit Report?

Did you know that the Fair Credit Reporting Act requires each one of the three nationwide credit reporting companies, Experian, Equifax, and TransUnion, to furnish you with a free credit report once every 12 months? If you did not, now you do. The three companies are compelled by low to offer you a detailed account of your credit upon your request which should include your residence, your bill payment history and any other matters that are related to your finances which include any law suits and bankruptcy filings.

To get your credit report today, you can use one of three avenues. The first is to visit and apply for a request to get your credit report or call the official number which is 1-877-322-8228 and ask for your credit report. Alternatively, you can also complete an Annual Credit Request Form and have it mailed to Annual Credit Report Request Service, P.O Box 105281 Atlanta, Georgia, GA 30348-5281.

You should make sure that you do not contact any of the three companies individually but you can feel free to order for the report from each of the three companies at the same time or from each of them at a different time. Remember that this is a free service.

How Can Not Paying Library Fines and Traffic Citations Hurt My Credit?

While many people may not know it, unpaid traffic tickets and library fines can seriously hurt your credit score. But how does this happen? Usually when you are slapped with a library fine or traffic ticket, you are expected to pay within a specified period. Within this period, no report is made to the credit bureau immediately. However, if you do not pay the tickets or fines in a timely manner, the government will turn over the responsibility to credit collection agencies.

In certain counties or cities, the credit collection agencies are required by law to report accounts to the credit bureau. This is when your unpaid library fines and traffic tickets will reflect on your credit score. The credit bureau considers collections negative and deducts as much as 45 to 125 points from your credit score. Even if you perform well in other areas, these rather simple matters can seriously reduce your overall credit score and deny you financing opportunities.