So, onward and upward, right? Right! Let’s talk about debt validation again, in case you might have missed the earlier notes on this.

Validation of debt is simply where you figure out whether or not the collection agency that’s been breathing down your neck actually has the legal right to collect on the debt. They have to provide you proof, and proof is definitely important. A lot of people just automatically assume that a collection agency has the right to take your money without proof, but that’s not the case at all. The truth here is that if they can’t prove they have that right, the debt isn’t valid and it gets dropped off your credit report. But the trouble here is that even though it’s your legal right to do so, a lot of people skip this step, for strange reasons. You see, it’s really just a matter of knowing your rights and fighting for them — but it can be frustrating. You’re going to have to wait long periods of time before you get an answer, and it might not always work out as straightforward as you think.

There is a time limit for validation of debts as well. Debt collectors have to send you a debt validation notice within 5 days of contacting you to collect a debt. You have the right to validate and/or dispute the debt within 30 days of receiving the letter.

As a side note, this is a good reason why you really need to make sure that you’re staying as organized as you possibly can when it comes to this stuff. You want to make sure that you mark down in your calendar not only when the CA addressed you formally, but when the deadline is for you to respond. Make sure that you don’t wait till the last minute — after all, you’re going to need to bake some time in for the debt validation letter to get over to them.

The details that you get with your debt validation request are simple enough:

The first detail that you get is proof that the collection agency actually does indeed hold your debt. It means that they show you that the account has been sold to them or assigned to them from the original creditor.

Your payment history also comes into play — they will need to send you the total amount you owe, including any fees that are added to your debt. You also want to make sure that you know how the collection agency has tabbed everything up.

You also want to get a copy of your original agreement that you signed agreeing to pay the debt. If they don’t provide this, then the validation has failed and you have other options.

So, how do we actually get this ball rolling? Well, simply put — you need to write letters. You need to first start by writing a request letter to the collection agency to validate the debt. There are plenty of validation sample letters online for you to choose from, so don’t feel like this is a step that’s out of your control.

From here, you will need to make sure that the collection agency is licensed to collect money in your state. Not every state requires this. For example, if you live in Kansas and the collection agency doesn’t need to have a license, then you cannot use this defense.

If they do not validate your debt, then you will need to make sure that you save a copy of your validation letter, a copy of the return receipt (given to you when you mail your letters through Certified Mail, return receipt requested), and a statement that the collection agency has violated the FDCPA. Those violations carry severe fines and penalties, but if you don’t know your rights the collection agencies won’t tell you this. They’ll merrily continue on hounding you for a debt that they might not even have the power to collect from you — how crazy is that?

If the collection agency does not validate your debt, then the collection listing needs to be removed from your credit report. This can dramatically raise your score, because collections listings lower it seriously. Lenders realize that if an account has gone to collections, it means that it has been a very late account and thus you are not as willing to pay as other customers might be. So you’ll end up paying higher interest rates until you can build your credit back up.

If the collection agency still won’t remove the listing, then you can file a lawsuit against them. However, before you take that little step you want to make sure that you bring in the credit reporting agencies.

You see, the CRAs know that if something isn’t validated, then it doesn’t belong on your credit report. You might be surprised at how many CAs won’t answer a validation response, or even remove negative listings when they don’t have the proof. This can be something that works very well into your favor — especially now that you know about it, of course.

However, make sure that you don’t just think that the CRAs are your friend here either — if they verify the collection listing but won’t send you the validation proof, then they’re just as guilty as the CA is. You need to send proof that you have attempted multiple times to validate the debt, but the CA has refused to respond. This is a FDCPA violation as well, and they need to be included in your lawsuit. Don’t worry — filing suit is not an expensive process and if you have the facts on your side, it’s one of the best ways to get the company’s attention. No company likes lawsuits, after all.

Validation and verification go hand in hand — basically, you always want to make sure that any company that contacts you truly has the right to collect the debt in question. It’s tempting to just assume that it doesn’t matter, but the reality here is that it very much does — it’s your financial future, so make sure that you protect it at all costs. Why not start today?

The reason why we’re always talking about credit is because now is the best time to make sure that you are thinking about it. You want to always make sure that you focus on your credit because this is the top time of year when identity theft happens. Even if identity theft weren’t the top thing that you were focusing on, it still needs to be in the back of your mind that as you are spending money, there’s a possibility that credit thieves are dreaming about spending your money and ruining your good name too. That’s why we’re constantly singing the praises of credit monitoring services. When you compare their value to their price, you’ll find that most of them are a bargain. With a 30 day trial backing most of them, you will be able to see if you’re getting any benefits out of it or not.

Yet you don’t need to just stop there — why not expand into other parts of the DIY credit repair world? It’s okay if you want to start out with just getting an eye on your credit and making sure that nobody is trying to mess you up, but it goes so much deeper than that. You can actually make sure that you go through the process of checking your credit score for errors.

Errors happen over time, and sometimes there’s nothing you can do to prevent them. However, there is a point where you can dispute these errors. The trouble that comes online is that people tell you can’t. The issue here isn’t that there are negative pieces of information on your credit. Not at all. In fact, if you have negative information that’s accurate, there’s nothing that you can do about that information except wait. How long? Well, you have to wait until the statute of limitations is run out on the debt. The negative information will then go off of your credit report. Sometimes this does not happen and people believe that they are stuck paying for debt that should have been brushed off. You will need to make sure that you look up the specific statute of limitation laws for your state as well as the state where the company in question does business. If your contract with them specifically states that they are going off the laws in their state, then you must make sure that you go off the information for the SOL in their state.

So, to recap — ACCURATE negative information is not an error. Errors would be debts that you did not ring up (identity theft), as well as incorrect information — a trade line reporting a 5,000 debt instead of a 500 dollar debt. These things can really mess up your credit score.

To fight them you’re going to have to break out the printer and type up some letters. You can’t go on the phone, and you can’t send email. That doesn’t establish a proper paper trail that you can use in court. There’s nothing wrong with calling around to get information, but you want to make sure that you save the real heart of your argument for letters.

You also need to make sure that you send your dispute letters certified mail, return receipt requested. It’s still the gold standard for making sure that someone actually did receive what you were trying to send them. It’s hard to think that your letters will be effective — especially if you really don’t hear anything else from the person. But you have to make sure that you give the other party at least 30 days to respond to you before you can move further with your case.

Hopefully you will have the error not only corrected but in most cases it will be removed from your record. This should raise your credit score.

The only word of caution that we give is that it’s so important not to try to dispute information that is correct. All you will be gaining is a temporary rise in your credit score. If you dispute correct information that is proved true, you can draw attention to it without expecting it — which can invite aggressive collection efforts, of course. If you’re trying to go under the radar, sometimes it’s a good idea not to wake up a sleeping giant if you can honestly help it.

Now is definitely the time to give yourself the gift of DIY credit repair. Yes, there are a lot of things that you’re going to have to learn, but that doesn’t mean that it’s the end of the world, really. You just need to make sure that you have all of your ducks in a row quickly so that you’re moving forward to a better financial life, inside and out. Why not start today? It really could be one of the best decisions that you’ve made to date — don’t delay for too long!

It’s not like this is the first time. There are fees for money orders, fees for checkbooks, fees for the ATM — including the ATMs that are outside of your bank’s network. Your bank is already hitting you up for fee after fee — even when your account was supposed to be low fee. Can they really change horses in mid-stream like that?

Sure they can — but so can you. You might want to think about the wide variety of different banks out there that offer relaxed fees. The biggest target right now is Bank of America, where they charge customers for using their own in-bank ATM network as well as hitting them for the debt card swipes. To use the Bank of America debt card, you’re going to be paying 5 bucks a month for that privilege.

Should we get up in arms about five bucks? Of course we should — it’s your money, and you should make sure that people are using it in order to provide you with better services. With the same old banking complaints still coming down the pipe, you’re going to need to make sure that you compete hard in order to win in the long run. That’s something that some people aren’t used to doing. They’ve relied on the bank having a long standing relationship with them — why would the bank hurt them after so many years of dutifully depositing their paychecks?

Again, the banks need money, and since the only real asset they have involves you, guess what? There’s going to be a lot of fees in the future. The debit card fee is being tested out, but as people get used to it, more banks are going to be pushing this fee in the future.

What you can do now is to look for a bank that doesn’t have the fee and think about moving over there. We say think rather than just packing up and moving over because banks have a tendency of changing their policies. Now, if you can compromise with the bank and agree to hold a certain amount of money in your account all the time, you might actually be a lot better off in the grand scheme of things. That’s because when you have a nice little pool of money in your checking account, you’re actually helping the bank out. “Drainers”, people that constantly drain their account to the bare bones, are the ones that banks have a hard time dealing with — they can’t count on that money, so they have to count on your money.

Keep your eyes open as you work with your back. The era of loyalty is long over and now is the time to do what’s right in your own best interests, and not the banks. That type of thinking only leads to more fees as the banks figure that their customers will live with it. Vote with your wallet and watch the difference.

Moving back to the subject at hand, have you ever thought about your local credit union? Sure, they don’t advertise as much as the other banks do, but that doesn’t mean that they aren’t important. That doesn’t mean that they aren’t there to help you. In fact, it’s scenarios like the one you’re dealing with right now that are the key reason why credit unions exist in the first place. They’re designed to give everyone a start in life — not just the ones that the big banks feel are going to spend the most money.

In order to get started with this plan though, you’re going to need to build the relationship slowly. Start with a checking account and a savings account. That’s a good way to let the credit union know that you’re trying to stick with them for a while. Over time, you can pick up other things like CDs and even money market accounts. You can rest assured that your deposits are still safe even though it’s a credit union and not a traditional bank.

Once you’ve been with the credit union for a while, you can ask one of the representatives there about credit products. Mention up front that you don’t have a credit history yet, and you’re trying to figure out the best way to get things rolling. Believe it or not, the credit union reps like when you’re willing to take risks and push forward. It’s better than thinking that you really don’t have any recourse to get what you want. Being passive about your credit is not a smart idea at all.

If you have sufficient savings, you might be able to go ahead and get a signature loan. This is a loan that sounds exactly what the name implies. You sign off, and you can use your savings account as the collateral. Of course, the credit union is going to make a little bit of interest off the purchase, but otherwise you have some leeway in the type of loan you get. Start with their smallest one — even if the rep is willing to give you a higher account. You want to make sure that you are building trust with each and every step of the way, and you cannot do that if you are only focusing on the biggest loan amount possible. What if you can’t pay all of it back on time? This will mess up your credit before you’ve even had a chance to get things done, and who wants to really deal with that?

So the best thing that you can do for yourself is to go ahead and make sure that you take things slow. It cannot be stressed enough that you will want to make sure that all of your payments for the amount you were loaned are paid back in a timely fashion. If you can pull it off, it might not be a bad idea to go ahead and pay these debts early on.

Don’t just settle for one loan product — see what else you can get – like personal loan!

So, the question today is really how can you build your credit quickly after bankruptcy? The answer is definitely secured credit cards — they are a perfect way to rebuild your credit after bankruptcy because you will come to a point that you have some savings. You can always pick up secured credit cards — they are open to anyone that can make the deposit.

Deposit? Well, we hate to burst your bubble but the truth is that you will have to get a deposit together in order to get a credit card of this type. The deposit can range from $100 all the way up to $500, but it really is better to drop in as much money as you can. That will give you the most credit line possible.

Just because you’re getting a new credit card doesn’t mean that you get to go crazy with it. As long as you start thinking about the things that you really want in life, you’re not going to go crazy with your credit cards. Isn’t that what really put you into problems in the first place? It’s better to think sensibly about credit cards.

It might seem like it’s hard to build credit with secured credit cards, but there will come a point where it’s very easy to move forward. You see, what you’re actually building is trust with your new credit card companies. You’re going to come to a point where you will show that you can be trusted with higher lines of credit. That means that you will have more credit power and also a higher credit score.

Now, how did we come to this conclusion? Well, it’s simple: once you start paying your secured credit cards on time, you’ll be building your credit score. Yes, it’s not going to be overnight. However, after your first year of paying completely on time, you should start getting better credit terms. After your second year, you might even be offered an unsecured credit card or two again. That’s why it’s a good idea to get your secured credit card through a company that also has unsecured credit cards. This will let you easily “graduate” to a higher level of credit.

It cannot be stressed enough — you will need to make sure that you actually pay your credit cards on time. If you have the ability to do so, you should make sure that you pay for your credit card at least a week in advance. If you’re going to send it by mail, then you will need to make sure that you do it two weeks in advance. That is the best way to make sure that your payment will be received on time. Every credit card company is different, and that means that you will want to make sure that you actually look up the terms and conditions separately. Yes, we know that they’re very long most of the time, but the reality is that if you don’t know the terms and conditions, that’s not an excuse to use in a court of law. In other words, but using the card you’re automatically bound by those terms and conditions. Keep that in mind as you go along and everything will be just fine.

Bankruptcy is a process that can be pretty stressful, but you don’t have to go through the process alone. There are plenty of support groups where people have emerged from bankruptcy and started taking back their financial lives in a healthy and positive way. Seek these groups out online and get the support you need to make the same positive choices in your life.

While we’re on the subject of rebuilding your life after bankruptcy, make sure that you also take the time to save some money as well. A lot of the time you will come to the point where emergencies happen. However, is every “emergency” really an emergency, or simply the result of a lack of planning ahead of time. Car registration, for example, isn’t an emergency — you already know that it’s going to happen ahead of time, so why not budget the money? That will allow you to always make sure that you have these expenses covered.

Overall, the road to getting out of debt can be long, but it’s definitely worth it when you can start making other financial dreams come true — try it for yourself today!

1.    Come out in the open. Most people with bad credit prefer to keep their problem a secret as they are ashamed and are afraid to be criticized.  With this kind of attitude, you might never get hold of the right solution to your problem.  You have to open up to your family so they can understand what’s going on with your finances or why are you following a very strict budget.  By opening up to them, you might even get some inputs on how to deal with bad credit.

2.    Evaluate and gather up all your debts.  Before you figure out what to do on your debts, you first have to know how much you really owe all in all.  Gather all your latest credit card billing statements, loans and mortgages then get the total.  When you have availed of a mortgage, make sure that this is in your top priority because failure to settle it may mean foreclosure of your property.

3.    Determine the rates of interest of all your debts. You need this data for negotiation purposes.  You can lower your monthly repayments by talking to your creditors.  Ask them if they can lower the interest rates applied on your credits or loans or even waive them.  Most banking institutions and credit providers usually would agree to this rather than having to deal with bad debts.  Aside from debt negotiation, debt consolidation is also a good debt solution to bad credit.  Debt consolidation is the act of obtaining a single loan, and this loan will be used to pay off all of your debts.  You will have a better understanding of this method if you talk to a credit or debt consolidation expert.

If you are not familiar with the different debt solutions, you might be taken advantage by some companies.  This is usually the case for people who settled for an Individual Voluntary Arrangement (IVA).  You have to see to it that you’ll end up with a good deal.  Otherwise, you will end up paying more than your bad credit.

The good news that you have to absorb is simple: time really does heal everything, including your credit!

Let’s go through a few examples:

If you have a bankruptcy on your credit report right now, then you should know that it w ill fall off your credit report after 10 years from the date of discharge. That means that it won’t last on your credit report forever, but it is a reminder that you will need to make sure that you’re a lot more careful in the future with your finances.

Other things, like liens and delinquencies and judgments last for 7 years, but this can vary on your state as well. You will need to just wait it out.

In order to move on from the negative things, you have to add something positive to the discussion. You don’t want to just sit and do nothing to improve your credit. You just need to start with something small, like a secured credit card. Now this means that you will need to put a little money into fixing your credit, but that doesn’t mean that the money is lost forever. Think about the last time that you signed up for cell phone service. You had to most likely put down a deposit, which was returned to you after about a year. This is the same case with secured credit cards — you might have to give up the money to begin with, but that doesn’t mean that the money is lost forever. In fact, if you use the credit cards wisely, you can not only have your deposit money returned to you, but you can also have your limit raised. What’s better than that? You will have it converted to an unsecured credit card, which is the best type of all credit cards. Now, that’s not to say that secured credit cards are bad. However, there is something powerful about being able to say that only your word is keeping your credit line open, rather than having to give up money just to get a credit card. In addition, the fees for unsecured credit cards are less, since the credit card company trusts that you will pay the money back.

Overall, it will take some time before your credit score gets better. You will need to also make sure that you’re mixing things up. You need to think about getting installment loans and other types of revolving credit as well. If you wanted to go with a store credit card, you should probably be able to do this as well. The hard work you do in rebuilding your credit is definitely wroth it when you think about all of the rewards, so don’t be afraid to get started today!

Grace? Yes, we got the word right — if you really want to get anything done, you will need to make sure that you’re handling your creditors with grace. Getting angry only makes your position look weaker. You might be able to get a lot more out of your creditors in terms of flexible repayment than if you just assume that you have something that you’re being owed. You don’t want to look entitled to anything when you contact your creditors, but at the same time you want to make sure that you fight for the rights that you know you have.

So, how do we really get started? So glad you asked!

1. Remain Calm

It goes without saying that you want to remain calm, but that doesn’t stop a lot of people from getting fired up! You might think that it helps your case to get mad, but it does the complete opposite — no one is going to want to take you seriously if you aren’t going to work towards being serious. Stay professional — it’s really the best way to get things done.

2. State Request Clearly

You might think that your sob story of choice might sway the creditors one way or another. While there is something to be said about circumstances, you don’t want to try to waste an hour of someone’s time going over your negative experiences. This doesn’t look good on your part, and it takes away your negotiating power. You want to come off as someone that has things under control, you just need a little assistance and you want to get the debt settled for good. This will give you the most power when it comes time to actually negotiate for a brighter future.

The best way for retailers to ensure they only approve low credit risk customers is to sharpen the accuracy of their credit reporting systems.  A lot of finance providers make the mistake of basing approvals purely on a customer’s credit history and are oblivious as to how they can assess spending patterns, current credit commitments, fraudulent behaviour and even future indebtedness of individuals.

The profit losses and hassle involved with non-paying debtors can be very serious.  Sometimes retailers are willing to settle for a lenient credit authorisation system as they incur more sales.  This may seem logical as the stores hit more short term targets but as soon as customers begin to default, avoid payments or even affect the business through fraud – the drop in revenue can come back to haunt the provider.

Luckily, there are cutting edge credit scoring services available for retailers to utilise.  Huge customer profiling data is stored and updated daily by credit reference agencies.  By using advanced verification tools, these agencies can thoroughly screen a customer on the behalf of any retailer.

In a nutshell – agencies analyse a customer’s previous credit activity plus their current and future living circumstances – all with the intention of deciding on whether the customer’s overall affordability is enough, in order for them to acquire the credit agreement they are applying for.

Such in depth profiling is unachievable through basic credit reports and the advanced tools used by the agencies allow them to rapidly provide results – which is ideal for processing finance agreements in store.

Not sure where to get started? Instead of getting frustrated, it’s just time to look at these three credit fixes and apply them to your life as it stands:

First and foremost, you will want to get a copy of your credit report. You can’t fix anything unless you actually know where you stand. Instead of feeling bad about your credit, you should be able to stand tall and accept responsibility for the way things are. Yes, there might be some bad financial decisions that you’ve made in the past, but the reality of the matter is that you will have to face those problems in order to get solutions. There are a lot of people that will feel like they don’t have to revisit these mistakes in order to overcome their overall financial status, but that same group of people will never get out of their financial situation. Are you one of those people? Definitely not, so let’s move on, shall we?

From here, you will also need to look at your credit report and everything on it. If there are any mistakes, you will want to make sure that you prepare a formal letter to the credit reporting bureau in question stating that the debt in question is not yours. You do have certain rights that you will need to exercise in order to build your credit score again.

Finally, don’t forget to practice some of the classic debt repair tactics, such as filing for new credit lines. This is something that a lot of people are scared to do, but what would be the point of rebuilding your credit if you couldn’t actually get any credit lines? Now, keep in mind that you will need to keep things small to begin with. It’s better to get a small unsecured card than a large one that could put you right back in the same situation you just got out.

You might want to also invest in a credit monitoring service that will let you not only pull your credit report month after month, but also get your credit score. Everyone needs something to look forward to. If you’re going to last in the credit repair game, you will need to set a goal that you can look forward to fulfilling. For example, if you find that your credit score is in the low 400′s and you want to get to the high 600s, it’s good to get a monitoring service that will let you track your progress. There’s no reason to ever think that you can’t achieve your goals in the credit repair game just because you’ve had some credit problems.

One final point: your current credit lines are not something that you can overlook, either. Let’s say that you’re getting behind in your current credit lines. The biggest thing that you will want to avoid is simply ignoring the problem. Don’t try to dodge the phone calls. Don’t refuse to open the letters — this is where a lot of people go wrong, since it opens them up to the possibility of a lawsuit. You will need to actually contact your creditor and work something out. If you’re only 30 days past due, you have a lot more options than you realize — just don’t let them bully you, and don’t forget to follow the tips in this guide. It’ll be one of the best things you do all year long!

The answer to the question is actually more straightforward than you think. The reality is that you can definitely find a mortgage company that will be willing to work with you, but you will need to pay more as a down payment, or a higher interest rate. It just depends on the home that you’re trying to buy. If you’re trying to buy a more luxurious home, you might have some trouble. On the other hand, if you go with a more modest home that is reasonably within your budget, the mortgage company will be much more likely to approve your loan.

From there, you will still need to clean up your financial history as much as you can. If you have old debts that have not been paid for yet, you will need to still set up financial arrangements to have those covered.. It also goes without saying that you will still need to have money saved up for the various fees involved with being a serious homebuyer. Again, if you aren’t ready to take that step you’re better off waiting a few years before entering in the purchasing process. You will need to also make sure that you read the terms of the mortgage clearly. When you’re trying to rebuild your credit history, the last thing that you need is an adjustable-rate mortgage.

Overall, can you really buy your first home with bad credit? The answer is that you can — check out mortgage brokers that handle bad credit today!

Credit card companies offer many services, depending on which card you decide upon. These services may include protection from fraud or theft, offer you low interest rates, and reward your purchases with benefits or points to obtain items or frequent flyer points from their vast catalogs. Some of the larger credit card companies will offer a large variety of services to help you best manage your credit card usage. Many card services will allow you to build and maintain household budgets and make wise savings choices, from establishing a retirement account to finding the right auto insurance.

Credit card services are complex, and credit service companies will act as your guide to becoming a better informed credit card user. They can help you acquire your credit report from the three major credit report bureaus, help you in reviewing it, and then help you if your credit score is low, perhaps with credit repair. A credit monitoring service will periodically review your credit score, pick out major changes including inquiries, and relay them to you. If you’re unsure as to how to handle your credit by yourself, a credit service company can provide excellent advice and help you follow through.

The right credit service for you is dependent on your personal needs.You may need some credit repair done, or are into a large and unmanageable debt situation and need help. A credit report service can best analyze your credit report and help you with any disputes you may have. Each credit service company has its own table of fees.

If you want to open your own home-based business, credit services can be of aid in finding business loans, and helping to manage your business finances. Credit services are made up of finance professionals who will understand your situation, and help you to build up your credit score.

You’re not alone in finding that managing credit is more difficult and confusing than you once thought. Many people have huge debts due to lack of knowledge, which leads to misuse of credit. Credit services can help you in any credit situation, be it a crisis, a beginning, or general management.