Fix Your Credit

Most people have credit problems from time to time. In fact, most people have bad issues on their credit report that they wished would go away. It could be something serious, like a bankruptcy, or something as simple as a missed or late payment that fell thru the cracks. The fact is, your credit really does cost you a ton of money if your score is below 750. Especially now, since all of the problems, good credit is a necessity. Try buying a car, house, or any other major purchase with a lower credit score - either you are flatly turned down or are asked to pay some outrageous interest rate that simply makes the purchase not worth it.

There are tons of so called "Credit Experts" out there that say they can help you fix your credit for a fee. The problem is, there are ALSO SCAM ARTISTS who will then use the information you give therm to commit identity theft or worse. You really have to be super careful. That is why I am of the opinion, EVERYONE should learn to fix credit problems themselves. Sure it sounds hard (because the world of how credit reports compute your score is gray at best), but in reality, with a few secrets, its actually quite easy to dispute and get negative items off your report.

I will share a secret with you right now that will boost your credit immediately:

Look on your credit card statements. Find the billing cycle - from date x to date y. This will be different from the" due date". The "due date" is the date the credit card companies WANT you to use because it is most advantageous to them. However, the credit card companies report your BALANCE OWED to the credit agencies on the second date (x to y date).. In addition, they use this end of billing cycle date to compute interest owed for the period - so the lower that is, the less you pay. Look at how easy that was and what that accomplishes:


1. A lower balance is shown to the credit reporting agencies on a continual basis.
2. You are paying interest on a lower balance amount.
3. More of your payment will go to reducing the balance.


Tips like this really do boost credit in the long run. While that one seems like a no- brainer once someone shows you how it works, there are many, many other things you can do to ACTUALLY DISPUTE AND REMOVE negative items on your credit report. All you need is the know how.

Learn The Secret to Fix Your Credit

There are all kinds of debt forgiveness programs out now due to the state of the economy. Whether its lowering the balance on your mortgage, getting a write-off of credit card balances, or anything else like this, its in the news all the time.

Once thing most people don't know, and what lenders usually wont tell you, is that if they write off a portion of your debt owed, that is considered INCOME by the IRS. Yep, there is no free lunch. Right now I believe there is a deferral/waiver for the next year for all homeowners who renegotiate the loan terms so you don't owe the IRS. However, as with any government program, it really pays to pay attention to the details. Before you do this, make sure you have thoroughly researched the consequences. Often times it would pay to talk to a cpa. Another aspect no one is talking about - State taxes. The IRS has given a pass to homes, but have the states??? Just make sure whatever you are thinking of doing to really do your homework BEFORE you act. Nothing would be worse than to have no money, get a write down on loans and credit cards, and then find out you actually owe 30,000 in taxes. The credit card companies cannot put you in jail, but the IRS sure can if you don't pay taxes.