Credit Smart

Bad Credit Checking Accounts by Timothy B. Robbins

2009-11-15T19:25:00.000-05:00

For people who have been blacklisted by the backing world, there are checking accounts for people with bad credit that are available as a second option. Before you get one of these accounts though, realize that they should only be used as a last resort (and temporary) option.

If you do a search for bad credit banking, you will no doubt see many sites offering you free checking accounts for bad credit. Don't believe it folks - there is nothing free about bad credit checking accounts. You may be lured into signing up for a "free" account, but you are going to pay more somewhere down the line. The same thing applies to bad credit loans - yes, some companies will offer you a loan if your credit is terrible, but the interest rate you get on the loan will be skyscraper high. The same principal applies to no credit check checking accounts - you might not have to pay to sign up for one of these accounts, but you are going to pay for it.

Does that mean these poor credit bank accounts are bad or a rip off? Not at all, but before you sign up for one of them, you need to read the small print. The bottom line is that if you can't open a bank account with any bank because your credit problems, then you have no other chance but to open a bad credit checking account.

Now, there are a few things you can do to ensure you get the best deal on one of these accounts. You should do some comparison shopping to make sure you get the best banking fees. A little shopping around can save you a lot of money. Also look at using the bank account for only a year - after that, you can use the account to help open a new bank account with a regular bank. Banks want to see you are able to maintain an account in good standing and if you have a second chance checking account for a year, that meets their pre-qualifications for an account.

Want to get no credit bank ? Try looking online for a non-chexsystems bank or think about opening a second chance account.

Article Source: http://EzineArticles.com/?expert=Timothy_B_Robbins

How-To Guide: Smart Uses Of Credit Cards by Micahel Huchs

2009-11-12T19:24:00.000-05:00

Since most Americans carry credit cards, it is important that we know how to make the best of them so they don't lead us into a bad situation. Very often we hear talking, how bad credit companies are. But in fact, banks are not bad, they even good in giving you the opportunity of having an instant credit and paying it later. It's usually credit card holders behave irresponsibly that leads to financial problems.

Most of the Americans now have credit cards. But how to use in a smart way and prevent financial disaster? Very often we hear talking, how bad credit companies are. But in fact, banks are not bad, they are even good in giving you the opportunity of having an instant credit and paying it off later. It's usually credit card holders behave irresponsibly that leads to financial problems.

First rule to follow: protect your credit score. When you use your credit card to make purchases, you have a certain amount of time (usually one month) to pay that card off or you will be charged interest. If you are late making the payment you're then charged late fees. Also, any late payment lowers your credit score.

Another term that you need to be familiar with when dealing with credit cards is grace period. A grace period is the time that you have to pay off your monthly statement before you will got charged for interest. There are three types of grace periods commonly associated with credit cards. They are: a typical grace period, a full grace period, and no grace period.

With a typical grace period, you pay interest on all new purchases unless you have paid off your previously monthly balance. A full grace period means that you never pay interest on new purchases regardless of weather you paid off your balance the previous month. No grace period means that you pay interest on new purchases weather or not you have paid off your previous months bill. The way you can figure out this information is to call your bank and ask. If you don't have a credit card yet, it's always better to apply for one with a full grace period.

If you like to shop online, it’s really easy with credit card. When you use it online you do not have to worry about people stealing your credit card information anymore. Many credit card companies give you a different card number for online purchases so that your real credit card information is not on the Internet.

Another good way you can use your credit card is to help you protect your large purchases. Let's say you go to the store and buy a flat screen TV. Some credit cards have 'extended warranty' option. It means that if your flat screen has 1 year of warranty, (if you purchased it with your credit card) visa or mastercard could add another year of warranty to your purchase. If your flat panel breaks one month after your manufacture warranty expired, you can pay the repair with the same credit card and apply for deduction at "claims department" of your bank. But before doing that, check with your credit card company, if your card has this option (its usually default with high range cards like: gold or platinum).

When used the right way a credit card can be a good thing to have. But you have to be responsible and use caution.

What are the Best Credit Cards for Poor Credit?

2009-11-06T18:53:00.000-05:00

People with a bad credit rating are keen to understand what are the best credit cards for poor credit. Yes, there are credit cards for people with poor credit some help people to rebuild bad credit with credit cards meant for people who do not enjoy a good credit rating.

Perils of Bad Credit

It is advisable not to make purchases beyond your paying capacity. On certain occasions, you may not be in a position to pay back the amount due on time and such instances could lead you to a situation where your credit rating is adversely affected. Some of the possible reasons leading to bad credit and lower credit rating could be loosing a job reducing your earnings, making heavy purchases beyond your paying capacity, incurring heavy medical expenses, having court cases and many other.

Credit Cards Options For People With Bad Credit

Having a bad credit is not the end of the road for you because many companies have credit cards for people with credit. These credit cards for people with bad credit not only help you in having credit card for your use but also help to build credit with credit cards for this purpose. There are some drawbacks for credit cards for people with bad credit. These cards are usually rather expensive and have a higher APR compared to normal credit cards. When applying for a new credit card with bad credit you should expect to be given a different treatment than normally given to people with good credit in the form of being charged higher annual fee, enrolment fee, etc.

In such situations it is necessary that weigh all the options available for best credit cards for poor credit and get a credit card low fee bad credit option. Yes, the competition among card issuers have launched low fee credit cards for people with bad credit rating. Before buying bad credit credit card scrutinize the terms and conditions attached with it. Applying for credit cards for people with credit implies that you will be reported to different credit card companies.

Judicious Use of Credit Card

Once you get the bad credit credit card you must use it judiciously to rebuild your credit because if you try to get a home loan or auto loan or any other loan, your credit history plays an important role in securing the loan. Eventually, bad credit cards help to rebuild credit with credit cards. By using the card judiciously and paying all the dues on time use can rebuild your bad credit. You must realize that no creditor would like to give credit to a person having bad credit. You must be absolutely careful in not exceeding the credit limit, pay the bills on time otherwise you end up paying more than the required amount. Another way of knowing about your bad credit is to keep a vigil on your transactions by getting the credit report.

Manage, But Don't Be Managed by Credit by Mirsad Hasic

2009-11-05T12:43:00.001-05:00

redit cards are not bad. The increasing problem of bad debt of the past few years is not caused by the credit card itself - but by the management of the credit account by both the consumer and the lender. To be seen as a responsible person who is worthy of credit you need to build a good credit history. Whether we like it or not our credit rating affects many parts of our daily life in this society.

Money is an emotional subject for many of us. In some families, money is the source of constant disagreement while in others money is a private issue and discussed in a secretive way. The result for many of is a love/hate relationship with money that spills over into the area of credit.

Credit can be managed well or poorly. To live a life that is free of worry about debt requires good money management habits. Too often, our hang-ups about money cause us to freeze and do nothing when we find ourselves in debt. We feel guilty, ashamed, and angry - we apply emotion to a practical aspect of life. If you want to regain control of your financial outlook, your debt and your peace of mind, a good first step is to learn how to manage your credit cards.

It's not as hard as you might think. Many people find that once they have taken a hard look at what went wrong and what needs to change they almost immediately feel a sense of control over what happens to them. Once you assume responsibility for where you are and accept it's up to you to solve the problem, you are in charge of your debt rather than a victim of it.

The first step is to eliminate any fees and charges (other than interest, of course) that are being added to your account needlessly. Don't pay any late fees - make those payments on time every time. If your balance is not large you may find yourself making a minimum payment of $60 with a large part of the payment going toward interest and then find a $50 late fee added to your balance. You made a payment late - and your balance went up instead of down!

Late payments not only cost you fees but also damage your credit rating. Of course you know that - but do you realize how much a few late payments can really cost you? Perhaps you were busy or distracted and the due date just slipped by you two or three times in the past few months. You meant to pay on time, perhaps you even wrote out the check - but it didn't get done, the check didn't get mailed until it was too late.

"Oops" is not an excuse that your lender will appreciate. The lender reports to the credit bureau and the late payments are recorded there. Your three digit credit score goes down. But that's not all that can happen just from a couple late payments. You may be charged a higher price for insurance, you may be denied for an auto loan or turned down for a mortgage. You may not get the rental apartment you applied for either.

When it comes to making credit card payments on time - "oops" can cost you a lot of money. Any credit expert will advise you to never pay only the minimum amount due. The one exception to that rule is when the alternative is paying late. One payment of only the minimum amount due won't harm you but one late payment will.

When you are paying on time every month and paying more than the minimum due, you may have some leverage with your bank. Ask for fees to be reduced or removed, ask for a better interest rate or the credit line to be raised. Raising the credit line (without using that money) will immediately make your debt to income ratio look much healthier and won't cost you a dime.

Mirsad Hasic is the webmaster and editor of http://www.think-creditcards.com where your will get tips and advice on different types of credit cards, debt control, credit report monitoring and more. He is also regularly contributing with guest posts on other blogs as well where he shares his knowledge within the finance area.

Article Source: http://EzineArticles.com/?expert=Mirsad_Hasic

How to Get a Favorable Credit Card Debt Settlement in This Market by Eric Stump

2009-11-03T13:32:00.000-05:00

The recession put many of us further in debt which is one of the explanations relief is at an all time high.
American consumers are receiving collection call repeatedly. It is high time for them to take action now and to go through programs designed for consolidation or debt settlement.

Federal stimulus money has made this financially feasible for the major creditors. Major creditors were granted millions of dollars in federal stimulus money and are now using this money to mitigate their losses in settlements. These creditors of unsecured debt realize that if a consumer defaults on their account they will probably never collect a single penny. Instead of incurring a complete loss, creditors are agreeing to settlements which are becoming more generous by the day. Creditors are using the stimulus money as a cushion to offset losses they have already budgeted in for settlements. This stimulus money however is now indirectly helping consumers settle their unsecured debt for very generous settlements.

Debt settlements will eliminate credit card debt at the 60% range on average in this market. So if you have $20,000 in unsecured debt you should expect to pay around $8,000 with the help of a decent settlement company. The top performing settlement companies are able to eliminate credit card debt in the 70-90% range. It is very important that consumers know where to find the best debt settlement companies to eliminate credit card debt. Finding the right debt company can end up saving you a lot of time and money. The Fed stimulus cash have made providing debt relief financially possible for major creditors and it'd be wise enough to take advantage of such favorable market conditions before it's too late. Once the bailout money runs out creditors will not be so generous.

Going through a relief network will ensure that the debt settlement company you are provided with is a legitimate and respected company.

It would be wise to not go directly to a debt settlement company but rather first visit a debt relief network. The top debt relief networks only allow debt settlement companies into their accredited organizations that prove a track record of successfully negotiating debts and have also been certified.

Debt Relief Network

Article Source: http://EzineArticles.com/?expert=Erik_Stump

Don't Be a Credit Card Fraud Victim - 4 Things You Must Do by John Philipps

2009-11-02T19:42:00.000-05:00

You can be a credit card fraud victim even if your card has never left your sight. Thieves and hackers have figured out how to help themselves to your money, and you need to minimize the damage if it happens to you. Here are a few tips.

The first thing you need to do is to contact the card issuer. Most have a 24 hour hotline setup just for this purpose. They don't want strangers spending your money any more than you do! By law, the most you would be responsible for is $50 per credit card, and then you will be responsible for no further unauthorized charges to the account. However, if you lose an ATM or debit card, you could lose everything if you wait too long in contacting the issuer.

Next, you'll want to contact the authorities. File a report with the police. Make sure to get a copy of the police report for proof of the unauthorized charges. Also file the reports with the Federal Trade Commission.

Contact the three credit reporting bureaus. TransUnion, Experian, and Equifax will place an alert or flag an account signifying possible fraudulent activity. They will contact you before any new lines are opened. You can also ask to have an account frozen; your credit history can't be reviewed by lenders, and you cannot open any new lines of credit.

Finally, stay on top of everything you have done to this point. It's very important that you start or continue to keep a close eye on all your credit card statements, bank accounts and credit reports.

Although stolen or lost credit cards remain the biggest source of fraud, online hackers are becoming a very close second. Don't become a credit card fraud victim. Watch your credit and money closely!

To find out more about what consumer debt solutions may be right for you, visit: credit card debt information.
John Phillips owns and operates http://ccdebtinfo.com

Article Source: http://EzineArticles.com/?expert=John_Phillips

The Credit Repair Answer For Collections by Ian Weber

2009-11-01T12:01:00.000-05:00

he Collection Problem

Collections are one of the most onerous credit repair issues, more prone to reporting errors than any other type of account. And there is a good reason for this. Unlike most other types of accounts collections change hands, in some cases often and repeatedly. This fact alone increases the probability of error and the necessity for credit repair.

The Evolution of a Collection

Collections begin their life sometime after default occurs on an obligation. Defaulted credit cards, for example, are typically turned over to a collector 180 days after the original default date. The collector will attempt to collect for a period of time, and if they do not receive payment they may sell the account to another collector, who will then try his luck. This cycle may continue for many years spawning repeated collection efforts.

Credit Repair is Needed

Collectors are expected to make collection efforts and to report their accounts to the credit bureaus. The credit repair problem does not arise from the reporting process, but from the collector failing to withdraw their reporting. When a collector sells a debt to another collector they are required to cease reporting the account. This often does not happen. The end result is that multiple collections report for the same debt. Hence, credit repair is needed.

Old Account Removal

One of the essential first steps in any credit repair effort is the identification of these wayward collection accounts. This is not a difficult task, but it does require some attention to detail. The telltale signs of redundancy may include identical account numbers, original creditor name, if provided, and the dollar amount of the collection. Keep in mind, as you continue your project that any of these may change. This is true of the amount of the collection, as interest and fees may be added.

Reporting Period Limits

Given the potential for collections to change hands repeatedly, it is not uncommon for these errant accounts to report well beyond the reporting period limit. An understanding of reporting limits is the key to successful credit repair. Generally, derogatory information can report for seven years, but the Fair Credit Reporting Act provides a more precise way to calculate the limit on charged off accounts which may report for seven years plus 180 days from the date of original default.

Learning to Count

Also indispensable to your credit repair project is the understanding that reporting period limits are to be counted from the date of original default. This date is the first time that you missed a scheduled payment in the progression that led to the charge off or collection status. Collectors cannot reset the reporting period limit by buying or selling the debt. It is possible to reset the clock by entering into a repayment arrangement with a collector, which effectively creates a new contract.

Statute of Limitation

There is one other date that has bearing on your credit repair project, and which may guide the approach that you take when dealing with collectors. This is the statute of limitation (SOL). The SOL has nothing to do with the reporting period limits and is almost always considerably shorter. The SOL is the length of time that a collection can be enforced through the court system. Research the SOL as part of your credit repair effort. If the collector cannot sue you they should be more eager to negotiate should you decide to eliminate a debt by paying it. Good luck!

Copyright © 2009 Ian Webber. All Content. All Rights Reserved.

Ian Webber is an expert in consumer law and credit repair. Ian is a graduate of the London School of Economics and The University of Chicago where he earned his LLM. Ian consults with one of the leading online credit repair services and is currently based in Florida.

Article Source: http://EzineArticles.com/?expert=Ian_Webber

6 Little Spending Mistakes That Can Cost You Your Financial Freedom

2009-10-31T15:40:00.001-04:00

Can't seem to get ahead financially? Debts piling up? Maybe you're making some of these mistake unknowingly. These mistakes listed below will help you understand where you may be going wrong and how to get back on track quickly. You can be debt free.

Mistake 1. Living Beyond Your Means

This is the real cause of your worry and stress. If you are spending more than you are earning, whose money are you spending? It's the credit card provider's or the bank's. The cost of this money is interest.

The way out - Make a Commitment to yourself only to spend within your income limits. Maybe you could increase your income (or cash in) by applying for more skilled positions, selling some of your unused articles or assets. Is the second car really a necessity? What about working out ways to make your hobby pay for itself?

Why not find ways to reduce your spending? How much would you save each year if you decided not to have the daily coffee shop coffee? Why not make your work lunch each day rather than buying it? Commit to only buying the necessities.

Mistake 2. Paying Off Less Than the Full Credit Card Balance Each Month

Get this debt under control and your life will be much easier. If you are like many others and only pay the minimum balance each month, the interest on the interest makes those purchases oh so expensive.

The way out - Find ways to put aside more money to apply to the credit cards. It will take time to reach this goal. However, if you don't make a start now you may never pay them off. This situation did not occur overnight and neither will the solution. But, by diligence and commitment you'll get there.

Mistake 3. Not Really Knowing Your Financial Situation

Before you can set meaningful goals and develop savings strategies you need to know your financial situation now. The best, proven and tested method by far, is by developing your own personal budget. This is not hard to do. Please don't give up now. Just follow these simple steps:

The way out -
a)Find your latest credit card statements. Write down all the unpaid balances.
b)Are there any other unpaid debts (not home or car) then include these balances as well.
c)List out your (or family) monthly income. Only the amounts "brought home". Include all types of income.
d) Work out your monthly spending. List out where all the money goes. Don't leave anything out.
e) Minus the monthly spending total from the monthly income total and review the answer.
This will give you an initial idea as to whether you are living within your means or on borrowed money.

Mistake 4. Continually Adding to Your Debt

If debt has got you into this situation it is critically important not to add to the state of affairs and thus make it worse.

The way out - cut up the credit cards, keeping only 1 for emergencies. Don't buy on impulse. Ask yourself twice or three times before you buy anything "Do I really need this?" before you hand over your hard-earned money. Don't buy at the height of the fashion or fad. Commit to never paying full retail for anything. Get it on sale or negotiate a lower price.

Mistake 5. Spending All Your Income

It may sound OK to spend any money you earn but there are risks attached to this strategy. How are you going to pay for emergency items? What about major car repairs. What about major electrical appliance replacement? Are you going to pay for these on credit? Bad idea! How are you going to save for a substantial deposit on the next car?

The way out - Once you've prepared your budget you will clearly see what you need to do to put some income aside for other needs such are emergencies and repairs.

Mistake 6. Spending Without Caring About Your Future

Unless you are planning for your future and financial security, you cannot be really happy. There are always worries lurking in your mind about how you would survive in a financial emergency if you have no savings. It can be very rewarding to see how quickly your savings multiply over time with only a small investment each payday.

The way out - Take stock of your life and realize that tomorrow won't look after itself. It needs your attention. Keep some funds aside to put away for your retirement, children's college costs, emergencies, holidays and major purchases.

Avoid these 6 spending mistakes and you'll be well on your way to financial freedom. Guaranteed. Source:free aricle, by bhokin

Free Credit Report Online - What You Need to Know by R Dodger

2009-10-30T17:22:00.000-04:00

For many concerned about their credit, there is confusion between the credit score and the credit report.

First, the credit score is derived from your credit report. In fact, it is likely that you will have three separate credit scores reflecting the information on your credit report from the three main reporting agencies: Equifax; Experian; and TransUnion. Since their information can be different, their scores will differ as well. This is why lending institutions will consider all the scores (based on their internal policy).

Second, you are entitled to get your credit report for free at least once a year. This can be done online with any of the three reporting agencies mentioned above. And, it is good practice to spread the request for each over 4 months to keep track of your credit history. That is, request a report from Equifax; then 4 months later, request a report from Experian; and then 4 months later, from TransUnion. All free reports.

And third, your focus should be on correcting any errors in your report. Removing errors will have an immediate positive impact on your credit score. Once that is done, then you would want to get your credit score if you are planning to obtain financing. The credit score will provide you with an idea of the cost you may face when seeking financing; such as, planning to get credit or a loan, or to renegotiate interest rates.

The other confusion is the cost for obtaining the credit score. Unlike the credit report (which is free once every 12 months per agency), the credit score is not free if you request it from the agencies directly. Some have applied to services that offer the credit score (they generally charge approximately $15 monthly). Understand that a service generally has a 7 day trial, after which you will be billed monthly until you cancel the subscription.

If you've applied for financing, the institution you've applied to will generally provide you with your credit scores from the three agencies cited above at no cost, if you request it (whether you're accepted our not). It is, as mentioned above, best to know your scores before seeking financing.

Free Credit Report Online:
Now, onto more practical matters. It is not unusual, unfortunately, to have the credit agency claim that you have already received your free report, and then require payment for your request. Here are some suggestions.

First, if you are routed to an out of country customer service support line, request immediately to be routed to an in country support line. This will save tremendous frustration when trying to resolve the problem.

The problem typically occurs when using a service like AnnualCreditReport.com which may be sending erroneous request information to the reporting agencies (Equifax, Experian, TransUnion).

Second, when talking to customer service from any of the three reporting agencies, request to obtain the free report online. This will avoid the delay in receiving the report, and supposedly lost reports in the mail.

And third, when dealing with Equifax, which seems to have a majority of the free report problems, their manned support line (as of January 2009) is: (888) 265-8807. It is advised that whatever agency you deal with, that you try to locate the manned line (as opposed to an automated line) to resolve issues quickly.

The author has an MBA in Finance and extensive experience with financial institutions. You can also check out his latest website on Free Credit Check which provides sources for credit reporting and credit scores, or Free Credit Report Online for understanding your credit report information and what you can do to improve your score.

Article Source: http://EzineArticles.com/?expert=R._Dodger

Credit Repair, Debt Settlement, and You!

2009-10-30T09:26:00.002-04:00

I cannot tell you how many times I have been asked how settling your outstanding debt effects FICO! People I speak with in all walks of life tell me "I was told that settling my debt will lower my credit score". Well yes and no, let me explain.

When people say "lower my credit score", I have to stop and ask them; "lower than what? Lower than it is now?" Chances are that if they have negative debt on their credit report, simply paying off a settlement will help their credit score. If they have a very high credit score to begin with then yes, it very well could hurt their credit score. Most people with high credit scores have good credit, have the money to pay debt, and probably should not have any reason to have bad debt to begin with anyway, in theory.

If they're struggling day to day, paycheck to paycheck, or experiencing a hardship and do not have any way out in the near future. The simple act of paying the debt will reduce their debt to income ratio, and by doing this alone this can increase their credit score.

Now, I don't have the formula for FICO, and I have read on the internet where other people seem to be able to calculate it. To be honest I have never met anyone who was able to give me a straight answer on how to calculate FICO and I have not met anyone who can calculate it themselves. So most of us are at the mercy of the bureaus calculating it and telling us what it is.

There is a hidden clause that most people and creditors will not tell you about when dealing with settling debt. The IRS repercussions, yep that's right; Uncle Sam has his hand in this cookie jar too! By IRS (federal) law, anything more than $600.00 can be reported to the IRS as unearned income. Think about it, the creditor is due this money, the debt has been created; the creditor has 2 choices here...they can pawn the debt off on you and make you pay taxes on it or they can pay the taxes themselves. Since they are not receiving any compensation for the write-off amount, they don't want to pay the taxes on something they never recovered. So most companies will 1099 (IRS tax form that you will get at the beginning of the year) you for the difference in the outstanding balance and the amount you settle the debt for.

If you are interested in Credit Repair yourself, you can get a Free Credit Repair Course.

Clay Bowden has been a debt collector for 15 years, and is now the owner of Epic Internet Ventures. Which "Empowers People With Information So They May Help Themselves". You can visit http://www.epicinternetventures.com to grab a FREE Credit Repair Kit.

Article Source: http://EzineArticles.com/?expert=Clay_Bowden

What Do All Those Numbers on Your Credit Report Really Mean?

2009-10-29T15:55:00.003-04:00

The 1st thing you should review for accuracy when you get your credit report is:

· Name

· Address

· Phone (if listed)

· Place of Employment (if listed)

· Credit Score *should be at the top or towards the top)

Tradelines:

You will see the name of the creditor, and under (or next to that) you'll see your account number. Very close to the beginning you should see a Date the account was opened. Going to the right you will see a High Credit (highest balance that item has ever had), Credit Line (your max credit avail on that item), and Current Balance. Then moving more to the right you will see a DLT/DLP (everyone calls this something different Date of last Transaction/Payment - most will use transaction from what I have seen) and a DLA/DLR (Date of Last Action/Reporting). If there is a term loan like a fixed amount that is lent to you and you are scheduled to make X payments at $X.XX you will find this in this line somewhere. It will say something like 48mo/$250. You should also see something showing what status you are on the account (i.e. I-individual and C-Cosigner).

Monthly Aging:

Then you should see something like this:

211111111114

311111111111

This is a 24 month reporting on your pay history. The way to read this is, the top line far left is the last reporting from the creditor. This monthly reporting correlates to the DLA/DLR. Meaning that this is the last time the creditor reported your account to the bureau. Not always is this date this month's date; some creditors have (or used to) a quarterly reporting schedule contract with the bureaus. When you go delinquent, when the creditor may have financial problems, or when a creditor is bought; you may see a lag in these dates and reporting. Then from the top left you count backwards in months to the right to the end of the line. Then you start again on the bottom left and count to the right.

Example, using the above for reference:

The 2 would represent this month (assuming the DLA is 10/09), then the 4 would be 11/08, then the 3 would be 10/08, and finally the 1 on the end of the bottom line right side would be 11/07. It's a 24 month aging of your account.

What do these numbers mean?

· 1=paid as agreed (you are not more than 29 days delinquent - from the creditor's billing cycle date; meaning if your bill is due on the 15th, you have paid every month before the 14th of the following month).

· 2=30 days late (paid after the 15th of that following month but before the 14th of the next month)

· 3=60 days late

· 4=90 days late

· 5=120 days late

· 6=150 days late

· 9=charge off

· 0=too new to rate or no activity that month

· X=no activity, closed, cancelled, charge off (this is a pretty broad range but it is relevant to what the current status of your account is. I have seen it on brand new cards meaning no activity, I have seen it on charge off meaning closed and dead card in collections. So it really is dependent on what the status of your card is when you are looking at this).

Rating:

You will see a rating on each line item, either in the front (far left) or the end (far right). There are 2 aspects of the rating system.

1. Type of account:

· O = Open line of credit, can fluctuate up and down (normally these are signature loans that you can continually take money out of as you pay it, or an equity line that operates the same way); normally this is a loan.

· R = Revolving, not to be confused with O because these are normally credit cards. They operate much like the O but the O is normally a loan.

· I = Installment, this has a fixed lending amount and normally cannot be used like an O or and R. The more you pay this down the lower the balance gets but you cannot increase this loan. Normally this is mortgages, car loans, and household goods.

· M = Monthly, this status isn't used much anymore, but it is pretty much the same as the I.

2. Number rating:

This is a bit harder to define. The bureaus will rate your performance on that trade line. The X below represents the type of account as described above.

· X0 - meaning too new to rate

· X1 - best rating possible

· X2 - pays late occasionally

· X3 - has a few late pays

· X4 - pays late more frequently

· X5 - collections

· X9 - Charge-off

That is pretty much it. There is a lot of information here, but you can use this as a reference guide. The credit report you order should come with a full definition of terms. There are a few other items tossed in there that I may have mentioned, but those are rare cases.

Clay Bowden has been a debt collector for 15 years, and is now the owner of Epic Internet Ventures. Which "Empowers People With Information So They May Help Themselves". You can visit http://www.epicinternetventures.com to grab a FREE Credit Repair Kit. he also runs a Credit and Credit Repair Blog at http://www.epicinternetventures.com

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Are times tought

2009-10-24T16:22:00.000-04:00

In the media eveyday, we hear of how the recession is hurting more and more indivuals. To say the truth, I did struggle myself at first but it had nothing to do with the recession. i stopped struggling when the recession was at its peak.

How?