Before you can write your credit repair dispute letter, you need to first a copy of your credit status. You can obtain this for free from one of the three credit agencies namely Equifax, Experian or Trans Union.

When you get the copy, review it carefully and check if there are any errors. Take note of every one and then being composing your letter.

Since the credit agencies gave you the report, the errors you would like to dispute has to be addressed to them. Since the report from the three credit agencies may vary, it can be a good idea to send each one a copy so everybody is on a similar page relating to your credit rating.

Don’t make the mistake of putting all the errors in one letter. It is most beneficial to dispute each claim one at a time so the credit agency will not think that you are simply pulling their leg. You do not have to wait for an answer before sending another one it’s just that each claim must be handled delicately so a proper investigation into the matter can be achieved.

You should afford the credit agency time to reply to the claims you have disputed. The reason for this is the credit agency will conduct their own individual investigation before sending you a response. To make their work a little easier, send maintaining documents when you write the credit repair dispute letter.

It may not be a big deal but when you write a letter to the credit agency, consider writing it rather than typing this and printing it on paper.

To prove a point, it is better to use strong words like erroneous, outdated, misleading or unverifiable. Remember, you do not have to go into detail well why you are complaining because the maintaining documents and an investigation will make the truth come out.

For individuals who have never written a dispute letter before, the’re some samples which you can copy online. Just change the name, the date and a few other points because your concerns are completely different from what was established as a guide.

When you finished writing the credit repair dispute letter, mail it using the postal service and just wait. Typically, it may need 2 seven days to a calendar month before they receive it. If the investigation has demonstrated that you are right, you will receive a new credit status 2 to 4 weeks later with a higher credit score.

Since 1970, the Fair Credit Reporting Act of FCRA has been in place to give people the opportunity to dispute the claims that are printed on their credit status. If you believe that the report is false, do not just accept it but take steps so this can be changed.

Now that you know the way to write a credit repair dispute letter, get a copy of your credit report and then review it thoroughly.

Keith has been writing articles online for nearly 4 years now. Not only does this author specialize in credit repair but you can also check out his latest video on Car Accident Claim. Help is not hard to find for Accident Injury Compensation if you look hard enough. Keith’s video has lots of information on Whiplash Compensation and is available for any questions you may have.

1. Open a Savings Account. One way to establish good credit is by opening a savings account. Anyone can have their own savings account, even those below the legal age of 18. You don’t necessarily have to own a credit card right away in order to build credit. A bank savings account in your name is a good start.

2. Open a Department Store or Gas Station Card. A department store card or a gas station card doesn’t impose strict rules to get an approval. In fact, for people without a credit history, these cards are great stepping stones in building one. These cards work much like credit cards in a way that you can borrow credit from your account and pay your balances on a monthly basis. However, since these cards can only be used in exclusive gas stations and limited establishments, you can have more control with your spending and stay away from bad credit.

3. Understand your credit score. Your credit score will be based on two major things. The timeliness of your payments and the how much of your credit is used. However, other things can also have a negative effect on your score like submitting too many applications to different creditors. Understanding how your credit score is calculated will give a better idea on what to do and what not to do to keep your credit in good standing.

4. Don’t be late. Many consumers do not realize the value of paying their bills on time. Even if your credit card doesn’t charge you a high interest, that’s not an excuse to be late on your payments. Bear in mind that a single late payment will affect your credit score.

5. Don’t max out your credit. Aside from promptness, maxing out on your credit limit should be a big no. Ideally, a card holder should not spend more than 30% of his allowable credit if he wants to have an excellent credit score.

6. Pay your balances in full. Contrary to popular belief, leaving a balance on your account will not give you a higher credit score. But paying just the minimum amount of your balance puts you at more risk. You should always aim to pay off your balances in full as much as possible.

7. Get help from a co-signer. Finding a credit card with good rates is too difficult if you have bad credit or no credit at all. Still, with the help of a co-signer with excellent credit, it is possible for you to open a credit card or a loan without resorting to subprime lenders. However, keep in mind that your co-signer is accountable for your debts so be a responsible borrower.

8. Be vigilant on the use of your credit card. Every credit card holder must always be conscious on the use of credit cards. Charge only what you can afford to pay. Don’t get in the habit of using your credit card for purchases that you use to pay in cash. Always remember that credit cards can put you in bad credit in just one swipe.

9. Regularly check your billing statements. Awareness of your credit is crucial. Study your billing statements regularly to make sure that all charges in your account are correct. This will also help you take note of the due dates and pay your bills on time.

10. Budget your money. Finally, building good credit will depend on how you handle your money. Make sure that you are not spending more than what your monthly income allows. Aside from your personal needs and paying your creditors, don’t forget to allot a portion of your budget to your savings account and to your emergency fund. This way, in case unexpected events get in your way, you’ll be financially ready.

]]> http://www.creditcreators.com/top-10-pointers-on-building-good-credit/feed/ 0 http://www.creditcreators.com/top-10-ways-to-get-out-of-bad-credit/ http://www.creditcreators.com/top-10-ways-to-get-out-of-bad-credit/#comments Tue, 21 Aug 2007 14:21:16 +0000 Allison May http://creditcreators.com/top-10-ways-to-get-out-of-bad-credit/

Do you have problems with bad credit? If so, then you’re not alone. Statistics show that an average American family owes $7,000 to $10,000 on their credit cards.

In fact, 90% of Americans spend their earnings paying their creditors. Is there a way to solve bad credit problem?

Consider these top 10 ways on how you can get out of bad credit.

1) Set a monthly budget. The key to getting out of bad credit is budgeting. Learning how to stick on a budget will help you use your monthly income wisely. Allocate your monthly income in advance to make sure that all your utility bills will be paid, your needs are met and that your debts are paid of.

2) Cut back on your expenses. Stop and think about your monthly expenses and carefully consider which of these expenses can be totally ripped off from your budget list. If you find it difficult to keep up with your debts, perhaps you’ve been spending too much than what your budget allows. It’s about time to cut back on your monthly expenses. For instance, cut back on your electricity use, long distance calls, or subscribe for a lower cable plan. Instead of eating out in restaurants for lunch each day, why not bring your own homemade sandwich or lunch kit?

3) Transfer your debts to a lower rate credit card. Another way to get out of debt more easily is to transfer your debts from a high-interest credit card to a credit card with a lower interest. You can even find credit cards that offer 0% APR for six months to twelve months, depending on the credit card company. Just make sure that you check all other rates associated with the card before signing up and transferring your balances. A low interest credit card will enable you to pay off your debts more easily without the interest. Do your best to pay off your balances completely before the 0% introductory offer expires.

4) Don’t use your credit card unless absolutely necessary. Using credit cards can easily become a habit. However, using credit cards to shop can easily lead to uncontrolled spending. Always remember that credit cards can impose high interest and penalties into your account if you fail to pay it back on time. Thus, think ten times before using your credit card for purchase.

5) One or two credit cards should be enough. Some people incorrectly think that owning a lot of credit cards can improve their credit report. However, the number of credit cards you have will not determine your credit standing. Instead, your credit will depend upon how well you maintain the credit cards you own.

6) Don’t take cash advances on your debit card. Some credit cards double as debit cards where you can take cash advances from an ATM. Keep in mind that a debit card will instantly charge you with interest right after you took the cash.

7) Regularly check your billing statement. Keep yourself up to date with your debts and your payment due dates. If your credit card allows you to access your account online, take advantage of this opportunity. If not, make sure that your bank sends you your monthly statement of account regularly. If you do not receive a statement of account on time, notify your bank immediately.

8.) Watch out for the Big Sale Trap. True, shopping during a sale can save you a great deal but if you’re not careful, it could lead to unnecessary spending. If you’re already having problem keeping up with your debts, you should be extra conscious about where your money is spent.

SPONSORED LINK

9) Be determined to make changes. Getting out of debt will require your will and determination. If you see some aspects in your lifestyle that needs change, don’t think that it will be so easy. Nevertheless, be prepared to do everything that’s necessary to get your financial management back on track.

10) Seek Professional Help. For some people, personal budgeting doesn’t work anymore. If you have trouble controlling your spending habits, don’t be afraid to seek professional help. There are reputable credit counseling organizations who can provide you with trustworthy credit counselor to help you manage your finances and get out of debt more effectively. Check on the background and reputation of the company to make sure that you’ll be working with the right credit counselor.

]]> http://www.creditcreators.com/top-10-ways-to-get-out-of-bad-credit/feed/ 0 http://www.creditcreators.com/top-10-ways-to-evade-id-theft/ http://www.creditcreators.com/top-10-ways-to-evade-id-theft/#comments Wed, 15 Aug 2007 16:15:53 +0000 Allison May http://creditcreators.com/?p=10

Being a victim of identity theft and online fraud can cause you bad credit. Many people who have been victimized by identity thieves were not aware until creditors began calling them for past due charges they never made.

Scammers and identity thieves use different tactics to obtain your personal information and use it against you. What can you do protect yourself from fraud and bad credit?

Here are the top 10 ways to evade identity theft:

1) Use anti-virus and firewall applications on your computer. Installing these software applications in your computer can protect your files and important data from hacked. Also, use a secured browser with built-in web security features to protect you while surfing the web.

2) NEVER write your account numbers on an unsecured place. Do not write important numbers such as your bank account, Social Security Number, Driver’s License, pin codes in sheets of paper that can easily get misplaced. If you must write them to help you remember them, use a separate diary or notebook and keep it on a secure drawer in your home.

3) Do not put all your important IDs and credit cards in your wallet. Bring only the credit cards or the IDs you need. In case, your wallet gets stolen, notify your credit cards issuer right away.

4) Check your credit report on a regular basis Getting a copy of your credit report at least twice a year will enable you to personally check your report for any unauthorized charges. If there are, be sure to inform your creditors and three major credit bureaus (Equifax, Experian, TransUnion) right away.

5.) Shred all important documents before putting them in the trash. Yes, identity thieves also look in trash bins for any piece of information they can find. Don’t just throw your receipts, past billing statements, old cards, old IDs and other important documents in the trash. Be sure they’re shredded first before hitting the trash bin.

6) Do not give your Social Security Number. Some business establishments require their customers to give their Social Security Number for verification purposes. If this is the case, explain your view about identity theft and ask if you can provide other forms of verification. Make sure that the business has a Security Policy to protect its customers. If they don’t have a Security Policy, take your business somewhere else.

SPONSORED LINK

7) If your credit card statements are delayed, call your bank immediately. In some cases, identity thieves call the bank and ask for a change of address to prevent you from getting updates on your account. If your credit card bills doesn’t reach you in time, inform your bank your right away.

Be extra careful when using the Automated Teller Machine. Whenever you’re using the ATM, be sure that no one’s looking over your shoulder. This may sound obvious but most identity thieves still use this technique to steal information.

9) Never let your credit card out of sight. If you’re using your card in a department store or in a restaurant, never let your card out of your sight. When dining out, volunteer to take your card to the cashier counter instead of just handing it over to the waiter.

10) Do not give your personal information to anyone over the phone or through the e-mail. You may receive phone calls or e-mail asking you to provide your account number for “confirmation” but never give out anything. Remember that banks do not solicit important information over the phone or e-mail.

]]> http://www.creditcreators.com/top-10-ways-to-evade-id-theft/feed/ 0 http://www.creditcreators.com/top-10-blunders-on-using-credit-cards/ http://www.creditcreators.com/top-10-blunders-on-using-credit-cards/#comments Tue, 14 Aug 2007 16:40:52 +0000 Allison May http://creditcreators.com/?p=4 Whether you’re a first time credit card holder and has been using credit cards for a long time, it’s time to make a check on how you’ve been using that plastic.

Here are the top 10 most common blunders that credit card holders often commit:

1) Closing the wrong credit card accounts. Thoughtlessly closing your unused credit card accounts can do more damage than good for your credit. Yes, owning many credit cards do not increase your credit rating, but closing the wrong credit card accounts can decrease your credit rating. How? Closing an old credit card account is like deleting an essential part of your credit history.

How far back your credit history goes is an important factor on your credit. Thus, if you want to avoid spending on your old credit cards, don’t close them. Use them after every few months for a small amount of purchase to prevent your banks from closing them. If you just have too many credit cards in your account, make sure you don’t close your old ones.

2) Maximizing the use of your credit. Maximizing on your credit limit has a negative impact on your credit standing. Financial consultants recommend all credit card holders not to go beyond 50% of their allotted credit. Not only does this protect you from getting stuck in bad credit, it also protects you from being seen as a high-risk borrower by your creditors.

3) Not paying your credit card balances on time. Delaying or missing on your credit card payment is just plain bad habit. In fact, most people who have bad debt or who had to file bankruptcy started with unpaid credit card bills. Not paying your credit cards on time charges you with high interest and penalty fees that could’ve been prevented if you paid your dues promptly.

4) Excessive spending. Overspending on your credit cards is a dangerous practice. First of all, credit cards often come with high interest and if you can’t pay off your monthly balances, you’re in trouble. As much as possible, don’t use your credit card on unnecessary spending or things that you can pay for in cash. If you must use your credit card, make sure that you have planned a way to repay it before its due date ends.

5) Submitting credit card applications to different banks. Do you often apply for a credit card even without the intention of getting it? Perhaps you’re just after a free t-shirt or other freebies that the credit card company offers for new applicants. Watch out! Submitting too many applications to different banks and lenders can be very damaging on your credit. Remember, each time you apply for credit, creditors automatically check on your credit report. Too many inquiries and rejected applications on your credit report affect your credit score.

6) Signing up for the first credit card offer. It’s easy to get enticed by different credit card offers. Credit card companies often use attractive advertisements just to get new clients to sign up. However, if you’re not careful, you might miss the real terms or hidden charges that come with the card. If you want to get a credit card, take the time to compare different credit cards and make sure you clearly understand all the terms and conditions.

7) Using your credit card to take cash advances. Some credit cards also work as debit cards and allow its holders to take cash advances. However, be aware that these come with high interest and you’re charged with the interest immediately after you made the advance. Never use this option unless in extreme emergency.

Paying only the minimum on your credit card. Paying only the minimum extends your repayment period. Not only will it hurt you with interest fees, it also puts you at risk of being stuck in bad credit.

9) Not checking on your credit card statements regularly. Every credit card holder must pay close attention to his credit card statements. Always ensure that there are no incorrect or fraudulent charges in your account. Furthermore, updating on your credit card statements regularly helps you submit your payments on time.

10) Failing to read the credit card agreement. Your credit card agreement contains all the terms and conditions of your card. It contains your rights and obligations as a credit card holder. A credit card agreement is a binding contract and once you’ve signed up, you’re forced to comply with what’s in the contract.

Bad credit usually starts from small things which when neglected, can result to a serious debt problem. Know the warning signs of bad credit and take the necessary actions before it’s too late.

Here are the top 10 signs of bad credit:

1) You don’t save for the rainy day. Face it, financial crisis can come at the most unexpected times and if you don’t have your own savings to lean on, you could be in big trouble. Financial experts advice that everyone should have his own personal fund which can support you for at least six months without your income.

SPONSORED LINK

If you are the bread winner in the family, you should make sure that you have enough savings to support you and your family in case you’re unable to work. Saving for the rainy day is crucial since debts can easily add up if in case you temporarily lose your source of income.

2) Using your credit cards for most expenses. In most cases, the reason why people get stuck in bad debt is because of incorrect use of credit cards. Because credit cards are a convenient way to shop, most people do not realize the danger of using credit cards for most of their expenses. If you’re in the habit of using your credit card to buy that “gorgeous” dress on sale, or for dining out with your friends on a Friday night, you could be heading toward bad credit. It’s about time you put a check on your spending.

3) Most of your income goes to debt payments. If a huge part of your salary is used to paying debts, perhaps you’ve been incurring more debts that you can handle. For instance, how many credit cards do you own? Is it possible for you to give up some of your credit cards so you can focus on paying only two or three at most? Perhaps you’ve been spending way beyond your means. To see more clearly, make list of all (yes, even the littlest expenses) your spending for the entire month and compare the sum to your monthly income. Are you spending more than what your budget allows? If yes, then you should work out on a budget plan to minimize your expenses and pay off your debts.

4) You’ve used up or is approaching your maximum credit. Financial experts recommend that everyone should not go beyond 50% of their allotted credit. If you’re nearing your credit limit or if you have been penalized because of exceeding your credit limit, you definitely have bad credit. For your information, using maximizing on your credit has a very negative impact on your credit standing. Also, be aware that your creditors can impose higher rates on your debts (credit cards, mortgage, other loans, etc).

5) You are not aware of exactly how much you owe all your creditors. This is a major red flag of bad credit. As a borrower, you should always be aware about the exact amounts of debt you owe to each of your creditor. You should know when exactly is your due date of payment for each of your debts. If your debts are starting to confuse you, you should definitely be alarmed and starting treating your debts more seriously.

6) You don’t have a health insurance. Medical bills can instantly put you in a bad credit situation. We all know that sickness in the family may come at any time and if you don’t have a health insurance to back you up, you’ll be in big trouble. Without a medical insurance, you might be forced to use your credit card, get a home equity loan or other high-interest loan just to get through an emergency situation. Thus, having a medical insurance gives you a support system in case you need it.

7) You have been rejected by a creditor. If you’ve been denied credit, there maybe a serious problem with your credit standing. Check your credit history and see if there are any errors or misinformation in your report that have caused your creditor to refuse you. Some people are not aware that they’ve already been a victim of credit card fraud or identity theft until a creditor denied their application. If you see any errors or fraudulent charges in your account, inform your creditors and the three major credit bureaus (Equifax, Experian, TransUnion) immediately.

Your creditors are starting to call you. If you’re starting to get calls from your creditors reminding you of your debt, it’s a very obvious sign that you’re into bad debt. Perhaps you’ve already missed several payments or it’s also possible that some scammers have been illegally using your account. In any case, if your creditors are trying to contact you, it’s best to talk to them and clear up the situation rather than hide and ignore their calls.

9) You borrow money to pay off your debts. Trying to borrow money to pay off your past due debt to other creditors can be a very risky move. First of all, you could be forced to take a loan with a high rate of interest just to pay off another creditor. If you’re unable to keep up with your debts with your own income, then you might already be stuck in a serious debt problem.

10) You’re starting to get into arguments with your family. Getting into an argument because of debt is a very clear warning sign of unhealthy money-management. If money issues are starting to get in the way of your family relationship, perhaps you should seek help from a legitimate credit counselor who can help you handle your finances more efficiently.