Where to Begin

A gift of excellent credit is one of the best things that you can give to your child. There are a few ways to help your child create a great credit report including the following:

  1. Allow your child to become an authorized buyer on your credit card. Even though you will be responsible for paying for all purchases, you will help to build your child’s credit when paying off all balances in full. This is one of the easiest ways to show your child how to handle credit responsibly as well.
  1. If your child is old enough, you can cosign on a credit card for him or her. All people under the age of 21 must have a cosigner according to the law, so this is the perfect opportunity to help your child build credit while also displaying responsibility credit-wise.
  1. If your child is not old enough for a credit card of their own, you can also open up a store credit card under your child’s name – again, you will have to pay the bill (or work out an arrangement with your child), but these cards provide a

Credit score is influenced by four factors: history of payments, length of accounts in good standing, inquiries, and types of accounts.

It is difficult to obtain history, length with accounts, or types of accounts when you do not have any kind of previous history. Most credit agencies will turn you down or denied your application because they do not know you. To start building a good credit score, you must establish a secured account. Some institutions call it “secure credit cards” or “secured loans.” Secure products will help you generate history with a credit institution with a low-cost and without risk of generating unnecessary debt. A secured account starts by initiating a savings account which will be taken “hostage” by the financial institution in case you do not repay the loan they will give you for the same amount on the savings account. This way, creditors will be more likely to give you an account regardless of your past history or credit scoring. This product works perfect for college students who want to establish a positive history and get denied for not having any yet. There might not be a need to borrow against the secured line


Now that you’ve gathered all the information from the credit agencies, set aside some time to figure out where you went wrong with your credit and prepare to fix it. If there are any items on your credit report that are wrong or don’t look familiar, file a dispute in writing. Even errors such as misspelling of your name, social security number or address could mean your personal information is mixed up with someone else. The credit agencies are obligated to remove any errors in personal information, which will help increase your score. The most highly used credit score scale used by the largest banks and lenders is the FICO score and generally a score of 720 and above is considered good.


One important factor to raising your credit score is to make sure you pay your bills on time. While this may not seem important, 35% of your FICO score is determined by your history of payments made – whether you were late or current with your obligations. During this time of repairing your credit, you should prohibit yourself from applying for any additional

  • Secure Credit Cards – This type of card is offered by large banks (available online), local banks, and credit unions. A secure card usually requires a $300 to $500 deposit to open an account. The servicers of the secure card will report the payment activity to the credit bureaus just like a standard credit card. This is a great way to obtain new credit. The last thing you want to do is apply at numerous lending institutions and pile up inquiries (which will lower your scores). You may need a co-signer if your credit scores are below 500. After six months of on-time payments with a secure card, ask the lender to upgrade your secure card to a standard card. When the card is upgraded to a standard card, ask for the credit limit to be increased. This will give you more room to keep your balance under thirty percent of the available limit, thereby maximizing your potential scores.
  • Department Store Cards – These are a good place to establish credit, because they’re usually easier to qualify for. Pay your balance in full and on-time each month and then try applying for a regular bank credit card

Preserving Your Credit Scores, Made Simple

  1. You must regularly check your credit reports and notice the contents for any errors in them. When you notice an error, make sure you report it to the concerned creditor and get it rectified immediately. If you delay or ignore it, your figures get lowered permanently. Human mistakes are possible and it is in your interest to get things corrected for your own benefit. It becomes increasingly difficult to correct the error, the longer the error sits on the credit report.
  2. It is your responsibility to pay your bills on time. If by any chance you are unable to pay due to lack of funds, you must immediately contact the creditor and inform the position. If you sit with the creditor and discuss the ways to settle the dues, you can find most of the creditors willing to help you come out of the mess. If you delay due to inaction inadvertently or by lack of time, you can opt for the automatic debit from your bank account on the due date by giving an authorization to your bankers. For this you have to arrange funds only and the other formalities will

Controlling your expenses

The problem people have with credit cards is uncontrollable expenses as they spend their money not in cash. By checking your credit report regularly, you know how much you have already expended in a particular time so you can control your consumptive behavior. Knowledge is power when it comes to controlling your expenses.

Avoiding identity theft

It is still a hot issue and it still happens to many credit card holders who do not check their credit record regularly. Identity theft is something serious because you will be responsible for the expenses that you actually do not spend. By regularly checking your record you are able to see if there is anything suspicious showing up on your credit profile. Most of the times this will be the first place to look to see if you have been a victim of identity theft. This will allow you to act fast if you do see anything that doesn’t look right.

Spotting mistakes quickly

Still related to identity theft, checking your credit report regularly enables you to spot any mistakes or unusual transactions in your record quickly. Your fast move will help your

Hidden – more often than not – in the tomes of credit-card lore, there’s a practice that would widen most eyes with surprise. Far too many credit-companies exist that begin charging you interest, not from the moment they actually buy the item you charged from the merchant, but from the moment YOU charged it. This is important because there can be several days’ difference between the two.

This means they are slapping you with an interest charge for no defensible reason! After all, interest can’t gather on the promise of a charge; only on the charge, itself. Right?!

Why does this matter, you say? Consider: one could argue that there shouldn’t be a problem since you bought the merchandise on that date. In truth, however, it isn’t really fair, because this means the company has started charging you interest for an item you haven’t bought yet!

In the highly automated computer systems of credit card companies, your account reflects the effects of their purchase in the time it takes an electron to fly from one end of the building to another!

If you decided to annul the purchase in the time between when you

  • Keep in mind the people who are often seeking credit repair help are already having financial difficulties. In order to attract clients, a credit repair company will need to set rates that are reasonable and affordable for those who need credit help. To make money in business, it is important to appeal to the target clientele. Without clients, a business will fail.
  • Reputation is everything in the business world. Doing a good job for a client will prompt that client to refer their friends and family to the business. Dedicate the proper amount of time and energy to every client to ensure the best possible outcome. Communicate regularly with clients and keep them informed of what is happening with their creditors.
  • Brush up on negotiation skills. Consider taking a class on business negotiations for further experience in the art of negotiation. This can really help a client get the best deal possible from creditors. Negotiating is truly an art that requires a lot of skill and practice to get down. Being a negotiation novice may damage a client’s ability to get a fair deal from a creditor.
  • Do some homework and learn about the ins

How Do I Approach My Clients for Payment?

For accounts that have just fallen overdue, the ideal solution is to call them, simply because there is a better than average chance you will hear the most commonly used excuse “Oh I don’t have your invoice – can you send it to me again, please?”

Make sure you are well positioned to access soft copies of your invoices that can be easily emailed to your customers while you are on the phone, so you stop them using the same excuse again!

Don’t be surprised if they ask for another copy – expect it. Always ask for the name of the person you’re speaking to. Always ask them for an expected payment date. Always make sure you have documented the conversation.

How Will They React?

“No Two Customers Are the Same”

The golden rule here is: Politeness & respect is key! – The majority of your unpaid invoices will be pure oversights on your customers part, never assume that just because they haven’t paid on time makes them a bad customer.

Will it Affect My Relationship?

Collecting money for an unpaid invoice isn’t

Eliminating the carbs from your food choices makes the diet too difficult and leads to failure before you start seeing the small success. The same is true of completely changing your financial behavior. We are trying to get out of debt because we bought too many of the things we love. So if you don’t absolutely have to, don’t sell the big house you love, or the car you like to drive, or the jewelry or clothes. Instead make small changes that are doable for you, that will change the way you spend money slowly which will lead to success in your financial diet. Something my mom would always say “Rome wasn’t built in a day”, means hey you don’t have to do everything today; you don’t have to solve the problem right now, take time and solve the problem one stone at a time.

That’s what I am telling you to do, make small doable financial changes that will slowly get you out of debt and build your wealth, one “stone” at a time. For me, I would go out to eat 4-5 times a week I didn’t eliminate going out to eat, I love to

The goals of debt counseling are simple. If you are not familiar with this term, you may know it as debt management or credit counseling. While it is very effective, you have to know that it is not applicable to everyone. Let us define the things that debt counseling can do for your credit situation.

First of all, this type of debt relief enlists the help of a debt expert. Commonly known as a debt counselor or credit counselor, they are part of a company that is usually funded by credit companies to encourage and assist troubled consumers to pay back their debt. Once you enroll in a program, you will be assigned a counselor that will assume coordination with creditors and collectors. That means collections calls will lessen – if not stop. You don’t have to deal with that anymore and you will have peace of mind as you concentrate on growing your funds for debt payment.

The counselor working with you will help you analyze your finances and debt list to find out how much you can afford to set aside for your debts every month. The goal is to arrive at an amount

There has been a huge increase in the number of families relying on food banks this winter to keep them afloat during the cold months. It’s a difficult position to be in when you find yourself choosing between turning on the heating or stocking up the fridge.

Families that are struggling with debts will find their financial position even tougher, because they don’t only have to contend with soaring food and fuel prices, but huge chunks of income are eaten away by debt repayments every single month.

People that are unable to cover their usual household expenses, including shopping and heating, because of unmanageable debt, need to take action. The longer financial difficulties are ignored, the harder the problem becomes to resolve, so it’s imperative that people start as soon as possible. Facing up to debt worries and financial problems can be really scary – to the point that some would prefer to shuffle them under the carpet. It’s important that families in this sort of trouble remember that there are plenty of debt solutions out there that could help the strain on their income.

With food and heating devouring through more and more income

  1. Aging Reports. In the aging report, details for the initial application are included. The report mentions the amount that the customers owe and the time they will take to make payment. Usually, customers that make payment within 30 days are considered better than those who take more time.
  2. The Process of Factoring. The buying of accounts receivable at a good ratio of discount is called factoring. The factoring provider offers an upfront payment on invoices that are approved. The factor takes care of the collection process and then releases the balance as soon as the invoice is paid by the customer. The fee is deducted by the factor before the balance is released.
  3. The Cost of Factoring. So, how much will the factoring cost? This is a common question. The cost depends upon the industry, customer strength and the time it takes for the payment to be received. The pricing is also affected by the value of invoices. The rates will be better if the volume is higher.
  1. To Make That $$$. Wealthy people use cards to expand their businesses. They use it to make that $$$. Here is the key! They pay off their balances at the end of the month. They generate income with their cards and then pay it off. They hate paying interest. I am an affiliate marketer and I use my credit cards for marketing and I pay the balance every month. There is a daily limit on your debit card usage. But not with credit cards and I don’t need limits on my spending. My credit cards help me make money. If your plastic can help you increase your income then by all means use it.
  2. Not for Personal Use. If you can’t pay the balance by the end of the statement do not buy it. If you couldn’t buy it with cash then don’t get it. I know you will pay it off later. If that was true there wouldn’t be all this credit card debt floating around. Don’t even carry it with you. Just having it will give you an urge to buy stuff. Stuff is what kills people financially. Broke people pay fees and interest rates because they can’t

Why you should make credit card payments on time

There are many lenders (auto, mortgage and credit card companies) that access your credit history before making a financial decision on your behalf. One category that always gets a good looking over is your payment history, because it shows the lender how responsible you are with making your payments and making them on time. The good is if you have missed a payment here and there it is not a huge deal but if you miss payments a few cycles in a row that is not good. It is like when you are interviewing for a job and they call your last employer and they find out you were late quite a bit. On the other hand if you were late to work once every 2 months it won’t be mentioned. Same principal for making payments on time with your credit cards.

In addition, when you miss a payment you become subject to a few issues with credit card companies. First, your credit card will attach a late payment fee and in some cases they may give you a penalty interest rate. As if your life is

  1. Look Through Your Credit Report. Get your credit report. Look through it to see if there are any errors. If there are, report them immediately so that they do not drag down your rating. Continue to monitor your credit report to avoid anything that should not belong.
  2. If No Card, Get One. If you have no card, then get one. Part of increasing credit is actually having a credit card. Even if you have to attach your name to someone else’s account, if they allow it, make sure that you start building that credit.
  3. Pay Down Any Current Balances. Before you start doing anything, pay down whatever balance you have. Paying down a current balance can keep you looking good to creditors. On top of that, it lessens the stress that you may have when dealing with credit cards. A lower overall balance is easier for you to manage.
  4. Budget and Plan Use of Card. You should never use your card just whenever. Plan out the budget and use of your card so that you know how much and when to use. It keeps you on track, avoiding a bigger debt than you can handle and missed payments.
  1. Credit Applications – Believe it or not, multiple applications for credit can be a red flag that will keep you from getting approved for a loan. Too many in a short period of time will make your company look desperate and be a sign to potential lenders that things are going downhill. What you can do: plan your use of credit accordingly, and keep applications to the minimum necessary to accomplish your goals.
  2. Blanket UCC Filings – One thing that many people don’t realize is that they need to pay attention to the order in which they get certain types of loans, and what UCC filings the lenders will file. Some lenders may file a “blanket” UCC filing, which essentially says they have an interest in ALL of your assets. These blanket UCC filings will then take precedence over any subsequent ones, which drastically reduces your ability to get credit elsewhere. What you can do: plan your credit carefully, and negotiate UCC filings according to what your needs are. For example, if you need particular assets excluded from a UCC filing to use as security for another loan, explain that fact in advance to get those items

They were so ingrained that debt was something I expected to have and since I expected it, it happened. But eventually, I learned that most debt was not helping me and my family. Debt was keeping us broke and keeping us from enjoying the good things in life. It was also the driving force keeping me in the work force long after I wanted to retire. I was a slave to the creditors because I did not have a good handle on managing money and debt.

Growing up with people who expected to be in debt probably did not help me much, but the only person that I can really blame is me. I was not dumb by any means, just uneducated when it came to managing debt.

After I decided to turn things around, I learned two things that helped keep me motivated. The first thing was if you have money, debt is something you never need. The other thing was that anyone can get out of debt. It takes hard work and common sense, not debt consolidation, debt management companies or bankruptcy.

It just takes commitment, some sacrifice and time. If you are

With the help of a licensed insolvency practitioner (IP), you will work out the amount you can realistically afford to pay back over an agreed period of time – normally 3 to 5 years. At the creditors meeting your practitioner organizes, if 75% of your creditors agree, your debt and all the future interest will be frozen at the time that the IVA proposal is agreed. At the end of this period, any debt you could not afford to repay is written off. This is why you need to keep up with the negotiated monthly IVA payments. Typically, you will repay around half of what you owe, depending on your circumstances up to 70% of your debt may be forgiven. Once you enter an IVA, your creditors have to freeze interest and charges on your debt.

If you own a house that is worth more than the mortgage, then you will be probably asked to contribute from that towards the end of the IVA. However, you will not be asked to sell your home. The additional mortgage cost will be deducted from the IVA payment so you never pay more than you can realistically afford.


The first financial advisor will tell you to pay off the lowest balance and work your way up from there. The benefit of this approach is that you will likely feel energized by paying off your balance and will be more likely to carry your momentum forward. Another benefit is that you will have less bills to worry about, and therefore will be less likely to miss or make late payments. However, this approach will not work if you have the type of personality that is motivated by this type of progress.

The second option is to pay off the card with the highest interest rate first and go down from there. This approach offers you the biggest “bang for your buck.” However, if all your cards have identical interest rates this approach is probably not the best one for you as you’re not going to save any money in the long run.

The third option is to pay off your debt strategically. You should be using 30 percent or less of the available balance of any card at any given time. Paying off your cards so that they are below this limit has significant advantages

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