The Universal Default Clause Is Alive and Well – Know Where You Stand Today!

If you’re trying to figure out your path through the credit card jungle, universal default is one of the biggest concepts that you need to learn. You see, it’s a practice that is industry wide that could absolutely derail your credit repair plan before you know it.

Simply put, universal default means that the terms of a loan can be changed when that lender is informed that you’ve defaulted with another lender. The way they figure it — if you’re going to default on one, chances are very good that you’re going to default on the others. So the credit card companies have realized that they might as well raise your interest rates just in case. They are looking at make as much money from you as possible. You will just need to make sure that you’re focusing on getting your finances back on track rather than worrying too much about universal default.

However, it is something that’s definitely alive and well in the industry, and it looks like it’s definitely going to be here to stay. Credit card companies are always worried that they are going to not only lose out on money, but also find that they really can’t charge you as much as they wanted to charge you in the beginning. Therefore, if you are going to default on anything, you will end up paying a lot more in the long run than you expected.

Instead of worrying, it’s important to plan your credit products wisely. This is why limiting the amount of credit cards that you get is very important. You don’t want to find yourself getting too many cards that you later can’t repay. This will only raise your interest rate across the board.

If you look at the fine print on your credit cards, you’ll often find that they include a separate interest rate that kicks in when you default on your card. Under universal default, you’ll now have to worry about other cards that could affect your credit performance. The more interest you are charged, the harder these credit cards are to repay in the long run.

Some argue that the credit card companies are just trying to protect themselves, and there are some valid points in this direction. However, you’re going to have to make sure that you focus on your own financial interests and not the credit card companies. They’re going to make money whether or not you’re on board with it — you just need to think about how their policies are going to affect you in the future.

Getting your payments done online in an early fashion is one of the best ways to make sure that you don’t default ever. They can’t ding you for an early payment, and you will save on interest based on the way it’s calculated.

Check it out today — it could really be the best decision you make!

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The Real Reason Why You Have Negative Information on Your Credit Report

Negative information on your credit report can be a real downer. There you are, trying to improve your credit and actually move on with all of your financial goals and then you get told that you really get do any of that. That’s a low blow, but it really doesn’t have to be that way at all.

It’s time to realize the underlying reasons why things are showing up on your credit report. First and foremost, the top reason why negative information is on your credit report at all is because it’s a way to get your attention. When you think about it, it makes sense.

If you know that you’re not going to pay your debts and you don’t really care about your credit, then it really doesn’t matter. However, since most people dream about getting things with good credit, the concept makes more sense. You’re going to check your credit, see the negative information, and want to change it. Most people feel that paying their debts is also the moral thing to do, so they make sure that they work out plans to do it.

The mistake that many make is trying to do everything in the phone. This is a mistake because there’s no way to really prove what was said. The collection agency isn’t going to let you record them. So if you’re going to work with a collection agency, you have to make sure that do it in writing. You never know whether or not you’re going to have to take this collection agency to court. This means that you really need to make sure that you focus on trying to get as much of a paper trail as you can.

Negative information can indeed be removed from your credit report, but that’s only after you work out an agreement to that effect with the collection agency. Don’t let them tell you that they don’t it — if they really know that you will not send any money until you get that agreement worked out, they will be more apt to listen. It’s all about negotiating properly.

Doing your negotiations in writing is actually better because you won’t have to deal with your nerves if you were talking on the phone. Most seasoned collection agents are skilled at telling you anything they want in order to get that payment out of you — which would affirm the debt as well.

Now that you know the real reason why you have negative information on your credit report, you can deal with it. However, we have another problem: which debts do you really need to pay and which ones do you need to skip? That’s coming up next!

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The Fair Credit Reporting Act – A Law With Real Power for Bad Credit Repair Fans Everywhere!

Legal language is tedious, and a lot of people don’t really bother reading it because it really is so lengthy. But there are ways to get around it — you just need to get the highlights and work from there. If you don’t know the laws, you can’t fight back. If you can’t fight back, then the collection agencies win. If you’re dealing with a debt collector, you need to realize that they couldn’t care less about your problems. A lot of people try to reason with collection agencies like they actually care about what’s happening in your life. All they care about is whether or not they’re going to get paid. They know the laws on their side, but it’s time for you to know the laws on your side as well.

The Fair Credit Reporting Act has been around for a while, and it gives you the power to push away inaccurate credit reporting. No one can argue with federal law except in some rare cases where state law actually protects you better than the federal law.

This is actually going to be a little longer so that we cover all of the important points for you.

One of the top sections that you want to pay attention to when it comes to the FCRA is Section 1681c. These are the requirements that relate directly to information contained in consumer reports (aka your credit report).

Information excluded from consumer reports, exempted cases, running of reporting period (how long it can be on your credit report), what information IS required to be disclosed, the indications of a closed account by consumer, the indication of dispute by consumer, and anything else that needs to be excluded.

Debts that were included in a bankruptcy can only be on your credit report for a maximum of ten years — though it is often 7 years from the date of the entry of the order for relief. Sometimes it is the date that the bankruptcy was charged. Keep both dates in mind before you file any type of letter asking for the information to be removed.

Civil suits, judgments, and records of arrest last for seven years or until the statute of limitations regarding these events has expired.

Paid tax liens last for seven years as well.

Accounts placed for collection or charged off last for seven years.

Now, we’re going to break away from listing things to remind you that collection agencies are tricky. They assume that you don’t read the law, so you won’t have any clue of what’s going on. So they might tell you that they can extend the reporting time of 7 years. That’s absolutely false, and they know it. But if you don’t know it, you’ll be living in fear for no reason at all. The reporting time is determined by federal law and it lets you know exactly how long an item is to stay on your credit report. You might not realize this, but it is 7 years from the date it was charged off or placed into collections. The date of last payment or the date the item was sold to a 3rd party debt collector does not matter.

If you have a really old debt that is still inside the statute of limitations for collecting a debt, you are better off settling and getting a better credit rating. Make sure that if they will not delete the item off your report that you get “paid in full” rather than “settled for less than full amount”. It does make a difference in how your score is calculated at the end of the day.

The better situation would be where the collection agency will actually remove the tradeline from your account in exchange for payment. That’s going to give you the best way to clean up your credit since the information won’t even be there in the first place.

Now, it’s also important to make sure that you watch out for closed accounts. A lot of people think that you should close accounts that you no longer use. If these accounts are old, they’re going to absolutely damage your credit score. Why? Because you’re cutting off history that raises your score. Lenders want to make sure that you have used credit for a long time and you have a history of paying off your debts. Once you close an account, you lose all of that history with it. Good information lasts for 10 years or better, so you need to make sure that you wrack up as much good information as possible. If you feel that you can’t handle credit, then you might want to make sure that you actually take steps to correct your spending.

Credit is just a tool — it’s what you make of your credit that truly makes all of the difference! So make sure that you read up on the FCRA for yourself and then take action — that’s the best way to go!

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Taking Your Bad Credit Repair Goals Beyond Mere New Year’s Resolutions!

Another New Year has come and gone, and you’re left with one thing: resolutions. It always starts out great — you really get committed towards a goal that you really want, and you think that there’s no possible way that you could ever get sidetracked. There’s no possible way that you will ever wake up and not be able to really get things done. There’s no possible way that you will ever fail …but eventually, your passion for the resolutions falls flat.

When it comes to resolutions, many people want to get out of debt. Money troubles plague a lot of people, and everyone can usually agree that getting out of debt is a pretty lofty goal. We all want to have a debt free life, and it means that you have to take real steps to getting there. It’s not just enough to set a resolution when you’re filled with champagne and you feel good about the world around you. You’re going to need to make sure that you focus on really getting to your goal.

Taking your bad credit repair goals beyond mere New Year’s Resolutions is a good thing. It means that they have a higher chance of getting done if they’re not just some resolutions that you’re going to forget about.

The first step that you can take is making sure that you tap into your new goals is that you need to get accountability. Getting someone that can hold you accountable can be difficult when it comes to your finances. If you have a best friend that you tell everything to anyway, this might be who you want to confide in. However, you might feel better going with an anonymous person that can help you really figure everything else out. Sure, this can be embarrassing because no one wants to admit that their finances aren’t the best. However, if you really focus on getting the job done in the long run then you’ll get over short term embarrassments.

You also want to build in some rewards. A lot of people find that when they set up rewards, it’s not really a chore. Don’t limit your budget so hard that you get your goals done at the cost of everything else that you love. You often hear stories online of “extreme cheapskates” that slashed just about every last pleasure out of their budget, but the truth is that most people can’t do this at all. They only end up getting tired and frustrated. What would truly be the point of that, honestly? It’s better to make sure that you start thinking about how to get things accomplished rather than just thinking that you’re going to have to deprive yourself. The more you try to deprive yourself in life, the harder it will be to achieve your goals. Weíre not saying go all out on some sort of luxury bender, but it’s easier to make sure that you focus on the task at hand — and that means getting out of debt.

The focus should be on building a plan that you can stick to. Even though people say that budgets donít work, knowing what’s going on in your finances is definitely a great start to a new life — don’t miss out!

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Quick Mistakes to Avoid in Credit Repair

If you’re looking for things to avoid in credit repair, you’ve come to the right place. There are countless mistakes that you can make in the world of credit repair, and these mistakes add up to some serious consequences. Not getting details ironed out in the right way can make it even harder to get out of debt. In some cases, getting the details wrong can even invite a lawsuit. That’s why it’s so important to really make sure that you’re focusing on the bigger picture as much as possible. That’s the real way to get to the goal of being out of debt.

One of the top mistakes that you will want to avoid is trusting a collection agency. Remember that their job is to get money out of you no matter what they have to say. If they have to threaten you with legal action, they will certainly do that. If they have to call at all hours of the day and night, they will certainly do that. They have the technology to call you over and over — it’s really no stress on their side.

What you need to do is make sure that you get a limited cease and deist letter printed and sent to them. Make sure that you are always using a traceable method of delivery. We recommend Certified Mail because you can request for a return receipt. That’s the best way to get these problems solved.

Now, you might assume that you don’t need to do everything in writing — they can’t really be that intent on screwing you over, right? Wrong! Collection agencies couldn’t care less about what’s going on in your life, or anything of the sort. They care about money, and they want to make sure that you are giving them the full amount that they ask for.

Another mistake that you want to avoid is thinking that you don’t have any way to negotiate anything. On the contrary — you actually have more power than you can imagine. All they can do is attach negative information to your report and keep sending you letters. They can threaten all they want — the damage is already done. Your collection information on your credit report will fall off after 7 years from the date the collection accounts were originally created.

No matter how many times the collection agency threatens you, you need to make sure that you know your next steps. Asking for validation of the debt is one of your strongest defenses. Even if you know that the debt is yours — they still have to validate. They still have to prove to you not only is the debt yours, but they have the right to collect upon it. This is something that might take some time, but it’s definitely worth doing in the long run.

When you want good credit, you have to learn to work with the collection agencies to get it. Arranging for a pay for delete situation is also a good idea — it makes those tradelines disappear, boosting your credit score dramatically.

The final mistake that many make in credit repair that bears highlighting is that they focus so much on getting rid of bad debt that they never get into credit again. Becoming a cash only customer really isn’t a wise idea. You’re a lot better off making sure that you have some type of credit.

Even if you have to start over from scratch with store cards, secured cards, and other small cards, that’s better than being cash only. If you dream about having a car loan of some kind in the future or even a house, you’re going to need to prove that you can handle credit. By paying off all of your debts and then never getting anything else, all you’re going to show is that you really can’t handle credit at all — not the impression that you want to give off!

Now is definitely the time to make sure that you focus on the task at hand — keep these mistakes in mind when you embark on your journey. Good luck!

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How Fast Can You Really Patch Your Credit

Credit repair is a subject that’s getting more and more attention as time passes. People are finding themselves with a lot of bad credit and debts to get through, but they are no longer thinking that this credit situation has to be permanent. They’re not thinking that they have to freeze up and let life pass them by. They’re not thinking that they’re never going to get out of debt.

You have more power than you think to change your financial life, and it’s time to take on that power. But there might be a question that remains: just how fast can you really handle your credit report journey? The answer is a little complicated.

You see, it just depends on what you’re trying to do. If you’re trying to get from one “block” of credit to another, you can do that in a matter of months. For example, it’s well known in the industry that any score under 600 isn’t going to get very favorable credit terms — if they get any type of credit at all. So you need to make sure that you focus on raising your score over 600 first. That might mean disputing inaccurate information, or just making sure that you start replacing your credit stuff with better information. That could mean opening up secured credit products and taking good care of them. It’s not just enough to open an account — you also want to make sure that you’re going to be able to pay them off regularly. Meeting the minimum payment is good, but you don’t want to get caught in a vicious cycle where you can’t keep up the payments. If you only pay the interest, the principal will grow and grow until you owe a lot more than what you can handle.

A secured card is a good start. In addition, you’re going to want to make sure that you’re looking at your credit report frequently. Subscribe to an online service that lets you really see the progress that you’re making with your credit report. If you only deal with the hard parts and skip seeing the rewards of all your hard work, you’re going to have a hard time staying consistent.

Consistency is really the best way to make things happen for you. If you only think about all of the challenges ahead, there’s no reason to stick out your goals. You just have to keep pushing forward and making sure that you have things under control.

If you’re trying to make a huge increase to your credit score, then you have to realize that it’s going to take some time. You’re going to have to add a lot of new positive information to your credit report and make sure that you’re sticking with it through good times and bad times.

A savings account to make sure that you aren’t putting yourself into another period of rough times isn’t a bad idea either. It’s all about knowing what you can handle, what you can’t handle, and the things that you need to get help handling. Enrolling yourself in a non-profit credit counseling course can also help you make bigger gains in the world of personal finance.

Good luck out there — don’t give up on your dreams, because then you won’t have any chance of seeing them come true!

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