Manage Your Credit Score Proactively in 2008

As lenders revise their requirements on the FICO credit score in 2008, you may find that you are being offered higher interest rates or lower lending limits even if your score hasn’t changed. People are scrambling to find new ways to improve their score and taking out a payday advance can be a wily way to do that.

Now, a credit score of 720 (and sometimes 750) is the new line in the sand that determines lending at the best rates. So, if you’ve been gliding along with a perfectly good 680 and now find yourself looking at higher interest rates or restrictive lending amounts, you might want to be proactive and take the time to learn how to raise your score. These are ways to raise your FICO score over time:

• Get copies of your credit score from the three different credit bureaus: TransUnion, Experian, and Equifax. They all may have different information. Dispute and correct bad entries. Keep checking to make sure corrections are made to raise the score.
• Always pay your bills on time. Late payments adversely affect your credit score.
• Take out new small loans, like payday advances, and pay them off in full and promptly to build your credit history.
• Reduce your debt load, paying off credit cards first. You should either reduce or eliminate your revolving credit balance.
• Keep the account open so it doesn’t lower your score.
• If you don’t have your own account, set up a joint account to start a credit history.

 

Valentines Day on the Cheap

Valentine’s Day is quickly approaching, a day that each year puts fear into the hearts of men. Every year, you promise yourself that next year; you are going to do something different. If you still do not have any creative ideas for a special surprise, do not panic. Here are some Valentine’s Day gift ideas (many inexpensive) that are sure to please your love on that special day.

Balloon Surprise
This one will require handwritten notes to your Valentine. Phrases like “I love you”, “Thanks for being you”, or “You mean more to me than anything” are good as well as sayings that have special meaning only to the two of you. You can write short memories of fun things you did together, a memorable vacation or a special moment you shared, like the birth of a child. Once you get the notes written, cut them into small sections. Make sure each note is small enough to be folded and placed in a balloon. You can purchase a small helium tank and balloons at most party stores. Take a balloon, insert a note into it, and then blow it up. When your Valentine comes home, have her pop each balloon to read your message of love.

Recreate Your First Date
Unless it was just a total disaster, your first date probably holds a lot of sentimental value for both you and your loved one. What better Valentine’s Day surprise could there be than to recreate the first date, a time when you first fell in love? Go to the same restaurant, rent the first movie you watched together, take her dancing to the same bar – whatever you did on that first date, make it happen again. Even if it was a disaster, you can recreate it, making it better the second time.

Getaway Trip
This one will require more money and a little preparation, but is sure to be great fun for both of you. Plan a secret weekend vacation. If you have kids, arrange for babysitters without letting your love know about it. Book the airline tickets, make the hotel reservations and when Friday rolls around, surprise her by having her bags packed, ready to go. Las Vegas is a great getaway destination. You can even renew your vows in a fun setting, like wedding chapel that has an Elvis impersonator do the ceremony. If you cannot afford a big trip, book a weekend at a bed and breakfast within driving distance. A getaway involving just the two of you will be fun no matter where you go.

Special Songs
Here is an inexpensive way to show her that you remember those special love songs. Make a compact disc of songs that have special memories for you and your Valentine. You can do this on your computer using iTunes or Windows Media Player. If you do not have the songs on a compact disc already, you can even download them from places like Amazon, Buy.com or iTunes for less than a dollar each. Each time she hears this CD, she will think of you!

Romance Scavenger Hunt
Buy small presents like a bag of candy kisses, a bottle of her favorite perfume or a single rose. Then create a few presents of your own such as a handwritten poem, a compact disc of special songs, or a handmade Valentine’s Day card. Write clues that will be attached to each present, telling her where the next present can be found. Make the last present something that will last a while like a picnic dinner, a bottle of champagne hidden close to the fireplace or lingerie in the bedroom.

Chocolate Fun
If you both love chocolate, this can be a very fun and sexy idea. Make a batch of chocolate pudding and feed it to each other sitting by the fireplace. You may want to place a blanket or something on the floor in case it turns into a playful food fight. To spice it up, remove one article of clothing each time you feed your loved one and ask her to do the same. This can even lead to a romantic shower for two, so have candles ready in the bathroom.

As you can see from these ideas, Valentine’s Day does not need to be anything extravagant. It just takes a little effort and creativity on your part and you can turn this Valentine’s Day into one that your special someone will remember forever!

What ideas do you have for showing your appreciation to the one you love, without blowing your budget? Let us know in the comments.
Article by Sara Fox

 

 

Bankruptcy – How To Recover And What To Expect

by Leslie Nikonic
Bankruptcy is not the end of life. Yes, it does knock down your credit considerably. And, people don’t seem very willing to lend you money after bankruptcy. However, bankruptcy also gives you a fresh start. You have a new opportunity to rebuild your life and your finances. Recovering from bankruptcy is not easy but it is possible if are willing to work toward it.The first thing to do is to evaluate your situation objectively. If bankruptcy was the result of a temporary setback, such as a medical emergency, you do not need any drastic measures to recover. Just take steps to beef up your savings and investments so that if another emergency strikes, you are well-prepared.

In contrast, if the root cause of your bankruptcy was excessive spending, you would need to take tougher steps to recover from this financial blow. You might need to make drastic changes to your lifestyle-spend much less and save much more. If you used to dine out a lot, you may need to switch to home-cooked meals. If your wardrobe was earlier full of designer clothes, you may now need to settle for off-the-rack dresses. These steps may hurt initially but will ensure that your recovery to financial independence is speedier.

In addition to cutting expenditures, it is important to start saving and investing your money wisely. You can start by saving small amounts and then move on to bigger investments as your financial position gets better. Go for a mix of long-term investment options, such as retirement plans, and short-term investments that you can liquefy easily. While the long-term investments take care of your future needs, the short-term ones act as a safety net for you in case of any financial emergency.

About a year after you filed for bankruptcy, you should start thinking about rebuilding your credit score. The easiest way to do so is to apply for a credit card. You may want to do so sooner but it is wiser to wait out a year. This way, you can avoid unscrupulous lenders who charge astronomically high rates of interest because of the recent bankruptcy record.

Once you decide to go for a credit card, make sure you explore all options before settling on any credit card. These days, it is not difficult to get a credit card even if you have a bankruptcy record. If possible, opt for a secured credit card as you will get it a lower interest rate than an unsecured one. At www.bankrate.com, you can find a list of creditors who offer secured and unsecured credit cards after bankruptcy. Some examples of unsecured credit cards for those recovering from bankruptcy are Continental Finance Gold and Merchandise.

Once you get your credit card, use it cautiously. Learn from your past credit mistakes and make sure that you do not again fall into an overspending trap that led you to bankruptcy. In addition, make sure that you pay off your credit balance in full each month. After you have done this for some time, you can negotiate with the lender for a lower interest rate.

The above guidelines will help you recover from bankruptcy, slowly but steadily. In the meantime, keep your dreams alive and don’t lose heart.

 

Shocking Facts – What Debt Settlement Companies Don’t Tell You

 

If you’re thinking about using a debt consolidation or debt settlement service to help you get out of debt faster and save money on your monthly payments, make sure you do your homework before choosing a company. There are definitely shams and scams out there.

First let me say that debt consolidation is *not* the same as debt settlement/negotiation, which most people don’t realize.

Debt settlement companies charge hundreds of dollars as an initial “admin fee” to set up your account, plus a monthly service fee. The fees vary depending on the company and the amount of your debts.

Such companies take your money every month, but don’t make monthly payments to your creditors! Instead, they put it in a trust account, negotiate your debts with your creditors, then make a lump-sum payment when there’s enough in your account to pay a creditor in full.

That can take *years* depending on the amount of debt you have with each creditor. Meanwhile, you can be sued by your creditors and your wages can be garnished! (Or just don’t make payments to your creditors. You’ll end up in the same spot without paying someone to help you get there!)

Settlement companies don’t ask your creditors to stop all interest, late fees and overlimit fees from accruing. That means while the negotiations are ongoing, your bills will continue to grow! So if you’re sued and a judgement is brought against you, you’ll owe more money than before!

And shoddy companies, which there are alot of, don’t tell you *any* of this up front. I call it “getting permission by ommission” because they simply don’t tell you how their program works *before* you sign an agreement with them. Or after, for that matter. But if you ask the right questions, eventually you’ll figure it out. (Or when the crap hits the fan. Whichever comes first.)

Let me give you an example of how debt settlement works.

Let’s say you have $20,000 in unsecured credit card debt. You owe $10,000 to one credit card company, $6,000 to another and $4,000 to a third. You agree to a 5 year plan where you pay $250 a month to the settlement company. (After all, $250 a month for 60 months is only $15,000, so you’re saving $5,000 and you’ll be debt-free in 5 years, right?)

The admin fee will cost you $750. Your first 3 monthly payments go towards that and nothing gets put into your trust account until your 4th month.

The settlement company keeps $50 of your $250 payment each month for the service fee. That means $200 a month is being added to your trust account.

Most debt settlement companies claim to be able to negotiate your debt for about 50% of what you owe. So let’s use the lowest credit card debt as an example.

If you owe $4,000 and your creditor agrees to accept $2,000 as payment in full, it will take 10 months at $200 per month to have enough in your trust account to pay off just that one credit card.

But remember, your first 3 payments to the settlement company only paid the admin fee. That means your first credit card settlement is 14 months *after* you started sending them money.

So what’s the problem? It’s simple. Your creditor won’t agree to accept half of your actual debt unless, or until, it can be paid in full. Otherwise, you’re expected to make your normal monthly payments.

Since you don’t have $2,000 in your trust account, and you won’t have it until more than a year after you stopped paying your creditor directly, they’ll probably take you to court and request that your wages be garnished long before you have that $2,000 built up.

And what about your other creditors? Well, they’ll be waiting even longer to get their money from the settlement company. The $6,000 debt will take 15 *more* months to pay off, assuming your creditor waits that long and agrees to 50%. And that $10,000 bill? You do the math.

On the other hand, if you signed up for a 3 year plan with the settlement company, your debts would be paid off sooner. But, the question is, will your creditors wait that long? Probably not.

The facts are, you can negotiate with your creditors yourself. Most will agree to take a smaller monthly payment from you and stop all interest and fees from accruing. And, of course, you’ll save thousands of dollars in fees to a settlement company.

Before signing up for any service, please be sure you check out the company thoroughly. And don’t let the words “non-profit” fool you either. Alot of debt settlement companies claim to be non-profit.

Going back to the example above, if you pay them $15,000 over a 5 year time frame and they settle your debts at half of what you owed, they’ll make $5,000 from you. I’d call that a profit, especially since they might not have actually helped you in any way.

Most companies will allow you to cancel your account and get a refund of what you’ve paid, less the non-refundable admin fee and the monthly service fees. If you feel you’ve been mislead about their program, don’t hesitate to argue til the cows come home. File a complaint with the Better Business Bureau or hire an attorney if you feel you’re getting nowhere.

You can visit the Better Business Bureau’s website (http://www.bbb.org) and find reports on hundreds of companies. Here’s a small listing of companies that have poor reputations with the BBB:

National Consumer Debt Council LLC – Irvine, CA (A.K.A. NCDC, United Consumer Law Group)
Financial Rescue Services – Burbank, CA
Debt Legal Services – Anaheim, CA
American Debt Relief – Los Angeles, CA (A.K.A. A M Debt, American Debts Relief, Debt Relief)

Please be very cautious when choosing a debt help company and ask lots of questions before agreeing to anything. If you find they’re evading your questions, run fast and run far. There are reputable companies out there, so keep looking until you find one.

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

 

What happens to your credit score when filing bankruptcy

 

Renting Out Your Credit Score