Credit Counseling And Bankruptcy Advice
When fixing your credit situation you are confronted with the difficult choice of whether to file for bankruptcy or use one of the many credit counseling services that are available. This article will give you some helpful advice on how to make that decision.
1. Understanding bankruptcy laws
2. Bankruptcy and credit score
3. Credit counseling companies
4. Credit counseling laws
5. Pros and cons and cons
6. Getting more information
7. Setting goals for yourself
Most people in their life at one point or another have some credit repair issues to deal with and are faced with how to solve this problem. The two most common solutions are bankruptcy and credit counseling. Apply the great advice from this article and soon you'll have a better understanding as to what is best for your situation.
Get Yourself Over The Credit Blues
Credit is a touchy subject for most people, especially those who do not have such great credit. If you do not have good credit, lenders put up a red alert on any loan application you may submit. Basically, if you do not have good credit, you will not get a loan. These days, credit helps get you places. To get to those places, you need to start slow and begin repairing that bad credit. The following advice will help.
1. You are allowed three free credit reports a year from annualcreditreport.com, which is one from each of the three major credit bureaus. (How many free credit reports am I allowed each year from annualcreditreport.com?)
2. Check your three credit reports. (Why is it important to check all three credit reports?)
3. Scrutinize each and every open and closed account and all accrued debt. (Why is it important to look at all open or closed accounts you have when you want to repair your credit?)
4. Dispute any debt that you did not incur yourself or any information that you find to be false on your credit reports. (Why should you dispute debt not incurred by you and false information on your credit report?)
5. Write down all of your past due or closed accounts, and what you owe on them. (Why should I keep a record of all my past due or closed accounts and what I owe on them?)
6. Come up with a plan to begin paying these debts off. (What type of plan can you put in place to pay off debts?)
7. Consider settlements, consolidation, and automatic payment plans. (Why Should You Consider Settlements, Consolidation and Automatic Payment Plans when Repairing Credit?)
8. Cut up all unsecured credit cards you may have. (Why should I cut up all my credit cards?)
9. Apply for a secured credit card to keep your revolving credit going. (What are ways that you can use a secured credit card to build revolving credit?)
10. Revolving credit is the best type of credit you can have. (Is revolving credit really good for me?)
11. A secured credit card is funded with your own money, so it is very easy to get one of these cards. (Why should you try to get a secured credit card?)
12. Do no limit yourself to one secured credit card, get a few. (Why should you have several secured credit cards?)
13. The more revolving accounts you have going, the better. (Why is it important to have more revolving accounts?)
14. Make small purchases on these cards and NEVER max them out. (Why should I make smaller purchases on these cards and NEVER max them out?)
15. Pay the balance in full each month. (Why should you pay the balance in full each month?)
16. Making the minimum payment is never the answer. (Why should you always pay more than the minimum payment on your credit card bill?)
All in all, you need credit to get ahead in life. Without good credit, you have no financial options. To get the best financial options readily available to you, you need to start to repair that bad credit. Remember to start slow, and follow all of the advice this article has given you. So, keep yourself disciplined and get ready to repair that credit!