Getting Credit Help

If you are hopelessly in debt, or simply dealing with a bad credit report, you need credit help. Let's deal with areas of credit help separately. Your financial condition will only get worse unless you become proactive in protecting and/or rebuilding your credit standing.

If debt is the problem, credit help begins with getting the debt under control, and then we can clean up the credit report. Mortgages and personal loans are not the only places you will pay for needing credit help. Insurance companies and auto loan lenders use your credit score in determining your policy rate or the interest rate of your car loan. Along with your claims history, insurers see a bad credit rating as a sign that you are more likely to claim damages. If you plan to buy a car, a bad credit rating could rev up your interest rate to over 200 percent more than that of a person with excellent credit. A persistent history of missing credit card payments could also impact your job prospects, as some employers check the credit rating of applicants. In many cases, those with bad credit are denied housing, utilities and insurance. You must stop the financial hemorrhaging; take control.

It should go without saying, to improve your credit, you must have household income. You must find and/or keep the most suitable employment. You may need to work two jobs. You might consider selling anything you don't really need, especially if you are paying to have it stored. Live within your means - don't spend more than you bring home.

The first step to take in improving credit is to pay off or settle as many outstanding debts as possible. Then, reduce, and keep, your balance on all revolving credit accounts to below 45% of your gross earnings. This will demonstrate that you do not live on credit, and have planned for possible unforeseen needs of that available credit.

Call your creditors and negotiate some of the terms on your account. You may be able to lower interest rates, stop late fees, eliminate over-the-limit charges, and in some cases settle a debt by making a partial payment in lieu of the total amount due. It is a myth that credit card companies aren't willing to work with you. Most are, if you will make an honest effort. Pick up the phone and show your good intent to pay your obligation. Let them know, you don't want bad credit.

Once you have taken the above steps to reduce debt, and clean up your credit, it is time to start rebuilding your credit. That's credit help. This may sound contradictory, but the best credit help is to obtain credit. There are lenders that will grant credit to high risk consumers. Once you have a credit card, your proper use is reported to the credit bureaus. Secured credit cards are a good way to build credit. Be careful not to fall victim to certain credit help programs that charge application fees, a high annual fee, and monthly participation fees.

We are often asked, "How can I fix my credit, and raise my credit score?" Under the Fair Credit Reporting Act, you can dispute information in your credit files with the three credit repositories, and the creditor is required by law to verify the disputed information. That which can't be verified within 30 days must be removed. While credit repair can be a do-it-yourself project, it is time consuming and tedious. RMCN Credit Services specializes in credit repair, restoration and education.

Here are some facts about radical debt reduction alternatives

Credit Counseling or Debt Consolidation as credit help: A credit counseling plan does not erase your credit history. Your creditors will continue to report information about accounts that are handled through a credit help plan. For example, creditors may report that an account is in credit help counseling, that payments may have been late or missed altogether, or there are write-offs or other concessions. Under the Fair Credit Reporting Act, accurate information about your accounts can stay on your credit report for up to seven years, that's seven years after your last payment on each account. A demonstrated pattern of timely payments will help you obtain credit in the future. Does that sound like credit help?

Bankruptcy as credit help: Many people do not understand all of the consequences when filing bankruptcy. Bankruptcy attorneys will often try to convince you that there are minimal consequences associated with bankruptcy. The reality is that bankruptcy has consequences far beyond your credit report. Federal Law requires you to disclose the filing of bankruptcy, regardless of the timeframe, when asked on any future employment application, loan application, mortgage application and numerous other documents you may be required to fill out in the future. Does that sound like credit help?

Debt Settlement as credit help: If you have cash, you may be able to negotiate with creditors to accept a lump sum payment for less than the actual balance due. In order to obtain a favorable settlement, it typically must be paid in full within 10 days of reaching an agreement. Some creditors refer to debt settlement as debt forgiveness, settlement in compromise, or a negotiated settlement. Any amount of debt forgiven is normally reported to the IRS, so that you pay income taxes on that amount. Attempting to get credit help through settlement is looked upon more favorably than filing bankruptcy. Does that sound like credit help?

You may also like to visit these pages:

• Debt Counseling Service - When it makes the most sense to use a debt counseling service.
• Establishing Credit - Where you can go to get help establishing credit.
• Bad Credit Help - How to get help if you have bad credit.

RMCN Credit Services

1611 Wilmeth Road, Suite B

McKinney TX 75069