How to Check Your Credit For Free

Check Your Credit For FreeMany of us never bothering checking our credit. Why? Because we feel like we’ve gone through a few rough patches; maybe defaulted on a loan, have a past eviction, or even stolen a few items from a rent-to-own business and the credit world has flagged us for life. This is why leaning how to check your credit for free will give you an overview of where you stand with your credit and see how bad it really is or isn’t.

First, let me say that you shouldn’t just assume you have bad credit. If you had a problem with not paying your bills, collections, or even judgments against you that does not stay on your credit report forever, so don’t just assume you can’t get credit because of your past.

Many sites will tell you to contact the creditor and pay off your old debt, but what the smart people will tell you is check to see how long ago your bad debt was reported to the credit bureaus. After seven years, many items will fall off of your report and while it is the honorable thing to contact your creditor and pay it off, the smart thing to do, especially if you don’t have the extra cash is to let it disappear into the sunset and be gone forever. Just remember, to never try to get credit from the company again because they will remember and turn you down flat.

One fantastic and free way to check your credit is through the credit monitoring sites like Credit Karma. Now this is not an advertisement for the website, but simply letting you know that by entering your personal information, you can get a full account of who you owe, how old the debt is, and how much they’re claiming you owe.

This site, like many others will offer suggestions based on your credit score, which they will provide to you, what credit you will likely qualify for. The forum is filled with others just like yourself who have had ups and downs with credit, so you will know what to expect before applying.

The truth is, some individuals are just afraid to check. They again, assume their credit is horrible so they result to having no bank account (due to bounced checks), no credit cards (due to defaults), and end up using the local check cashing brick and mortars and prepaid debit cards, both of which you have to spend money to have access to. This is just crazy to spend money to add money to a prepaid card, or to pay 3-5% to cash your paycheck.

If you’re ready to get your credit together and are able to use credit responsibly, now is the time. Once you’ve signed up and reviewed your situation, try the shopping cart trick to see if you qualify for department store credit cards. You can find this information at My Sista Gurl and see how easy it is to get cards like Victoria’s Secret, The Avenue, Gap, and more without a hard inquiry on your credit report.

Building Your Business Credit Report

Business Credit ReportA business credit report can be started much the same as a consumer report commonly is, with small credit cards.

The business can be approved for small credit cards to help them build an initial credit profile.

These types of initial cards in the business world are commonly referred to as “vendor credit”.

Net 30 terms are common with most vendor credit sources. This means they will give you credit on “net 30” terms, giving you 30 days to pay the bill you owe in its entirety.

Some companies will require you buy their products while others won’t.

Some companies will have you pay for your first couple of orders, others won’t.

Some companies report your credit very quickly and it reports quickly, some don’t.

Look out for all of these things when applying with vendors.

Always apply first without using your SSN. Some vendors will request it and some will even tell you on the phone they need to have it, but submit first without it.

Most people you speak with at the credit issuers don’t even know that you can get business credit without supplying your SSN, so follow these steps I outline and don’t apply with your SSN.

When your first Net 30 account reports your “tradeline” to Dun & Bradstreet, the DUNS system will automatically activate your file if it isn’t already. This is also true for Experian and Equifax.

Some of the most popular vendor sources include: Uline, Laughlin & Associates, Quill Office Supplies and Reliable Office Supplies.

Next, start building revolving accounts…

You will need a total of five payment experiences reported to start getting revolving store credit.

Don’t apply for store credit with no payment experience, no score, and no profile, or you WILL get denied.

Most major retailers do offer revolving business credit. To get approved they will want to see that you do have established payment experiences, an established credit profile with at least one preferably two reporting agencies and positive credit scores with the reporting agencies that your credit is being reported.

Your major business credit scores are based on the timeframe you pay your bills.

So to have good scores you just need to make sure you pay your bills on time or early, the earlier the better.

So even with net 30 vendor terms, try to pay your bill as soon as you get it to have the highest possible scores.

Remember, many credit issuers have their computers approving files automatically. These computers are looking for high scores, so give them what they want.

You should have five payment experiences reported to start applying for revolving credit. Some starter revolving accounts include: Radio Shack, Lowes, Home Depot, Staples and Office Depot.

Most major stores do offer business credit even though they don’t promote that they do. So once you have followed the steps outlined here, you can start getting credit with these major retailers: BP, Chevron, Walmart and Target.

These stores also offer business credit: Amazon.com, Best Buy, Nordstrom’s, Sam’s Club, Costco, and many more.

Finally, get CASH credit…

Once you have a total of 10 payment experiences you can then start getting approved for cash credit sources.

It’s also recommended that you have at least one account with a $10,000 high credit limit so your cash limits are as high as possible.

How to Improve Your Credit After Bankruptcy

Examine Your Credit ReportAs you may know already, Chapters 7, 11, and 12 will remain on one’s credit report for ten years from the filing date. A Chapter 13 bankruptcy is reported for seven years from the filing date. Accounts included in a bankruptcy will remain for seven years from the date reported as included in the bankruptcy. Your ability to re-establish your credit after filing bankruptcy is better now than it has ever been. After your bankruptcy is discharged, you will start receiving a great number of solicitations offering to finance homes, vehicles and credit cards.

These are some of the following steps you should take:

1. Examine Your Credit Report – The very first thing you should do is obtain a copy of your credit reports and make sure there are no errors or inaccuracies in you report.

2. Pay Your Bills On Time, Every Time – Pay your bills and rent on time all the time. Remember your payment history is 35% of your credit score.

3. Bank Account – Start with a checking or savings account. Lenders may use this to determine if you are currently being responsible with finances.

4. Build With Store Credit – Apply for store credit cards or gas card. Use it for items you would normally pay cash for, this way it keeps your monthly balances within reason which makes it easier to pay off each month.

5. Secured Credit Cards – Apply for a secured card where you can deposit cash and charge against it. Pay advances back over two months so that they will be reflected as positive marks on your credit report.

6. Friends Or Family – Find a friend or relative that is willing to co-sign for you on a loan or add you to their credit file.

7. Look For The Right Lenders – Search out lenders that are more apt to consider to help you even with a bankruptcy.

8. Buying A Car – If you buy a car, make sure it’s a used car so you do not get hit with the depreciation that occurs during the first two years of a new car purchase.

9. Stay Away From Payday Loans – Payday loans that are at high interest rates they are a “bad credit” trap.

10. Be Proactive – Often times writing a letter to each of the credit bureaus explaining the circumstances that initially lead you filing for bankruptcy.

One of the most important lesson to learn in dealing with the challenges of a bankruptcy is to be patient. Understand that the path to bankruptcy did not happen overnight. And neither will the path to improving your credit. By following the tips above, the path to improved credit score is very possible. If you adhere to these 10 tips you will be able to improve your credit score and your life.

Great Tips On How to Repair Your Credit Fast

Repair Your Credit FastIf your credit history has put you in the position where you are not able to obtain a regular credit card, try to apply for secured cards. If you get a new card and use it responsibly, a new card can help you fix your credit.

If you have credit cards with a balance that exceeds 50% of your credit limit, pay these down right away.

Opening an installment account can give quite a better credit score and make it easier for you. You can quickly improve your score by properly managing these accounts.

You can dispute inflated interest rates. Creditors are skirting aspects of law when they try to charge you exorbitant interest rates. How ever you did sign a contract saying that you agreed to pay off the debt. You need to be able to prove the interest rates are too high if you want to sue your state’s statutory limits.

Make sure you thoroughly research into any credit counselor before you do business with them. Although some can be quite legitimate, other credit counselors are not honest and upfront with their motives. Some credit services are just people trying to scam you.

Be very wary of credit repair scams that can get you in legal trouble. There are scams all over the web that teach you how to create a new credit profile. Do not attempt this. It can get you in hot water and if you get caught. , You may end up in jail and you will have a lot of legal issues.

Even if the negative report is true, if you can locate an error in the report, then it may be possible to have it removed from your credit report.

If you are having problems retaining control of your charge habits, have your credit cards merged into one single account. You may be able to transfer balances to your open account. This allows you to focus on paying off a single account, rather than many smaller ones.

Check your credit statements to ensure that there’s no errors. If you notice unwarranted fees or surcharges, you need to get in touch with the credit card company right away to avoid adverse action.

Take the time to carefully go over all your credit card statement. You are responsible for the accuracy of information on your statement.

Lowering the balances on revolving accounts can improve your credit score. Your credit score can go up if you lower your balances.

Make sure a credit repair agency is reputable. There are plenty of shady operators in the credit repair agencies that can cost you money and do nothing for you. There are numerous people have been the victim of credit repair scams.

Try not to use your cards only for purchases you can afford to pay off. Use cash for purchases instead while you need to buy something. If the purchase you’re buying is more than you can currently afford you can use a credit card, pay off the debt in full each month.

It is understandable if you are frustrated about your credit score. Use these tips to change all that. The helpful hints here can end your credit rating free-fall and even encourage it to start rising.

Factors That Affect a Low CIBIL Score

Low CIBIL ScoreA Credit Information Report (CIR) offers an individual a numeric summary of their credit history. It plays a major role should an individual want to apply for a loan, or a credit card, as all banks and financial institutions run a CIR as part of their loan approval process.

A credit score constitutes a part of the Credit Information Report. Basis the financial information provided by lenders to Credit Information Companies, a score is determined. This score, based on a scale of between 300 and 900, is what is taken into account by a lender prior to offering a loan.

With Credit Information Bureau (India) Limited (CIBIL) a score of 750+ points is considered to be good. For a first time borrower with no previous track record, a score of -1 is displayed.

Different Credit Information Companies however, may have different scoring parameters. Most companies use the definition of ‘bad loan’ as a customer going more than 90 days past in 12 months.

Let us take a look at the factors that can negatively impact your CIBIL score.

Multiple loans and credit cards

Having too many loans and cards can prove detrimental, as it can indicate a high level of borrowing. This would mean that a potential lender may choose not to sanction any further loans as your repayment capacity may already have been maxed, your income. Further, it may get difficult to manage payments between multiple cards, and can lead to your having to stretch your income in order to keep up.

Not using your credit card

Having a credit card with no usage, makes the customer’s file inactive as there is no transactional data. This in turn can negatively impact the score.

No loans at all!

On the other hand, having no loans or no credit cards makes it difficult for a lender to assess your repayment capacity. Hence it may be a good idea to maintain a loan or card well within your means, to set a benchmark for future borrowing.

Delayed and skipped payments

This is typically the case with credit cards, wherein a customer does not make a timely payment owing to the fact that it slipped out of the mind. What would help in this case is to set up payment reminders and ensure that the outstanding dues is paid up as per the payment dues date. Even a single skipped payment can have an adverse impact on your score.

Increased credit limit

While this may have a feel-good factor, it may not have such a positive outcome after all! Constantly increasing your credit limit may again indicate a high level of debt. Instead, keep your card dues to approximately 30% of the assigned limit.

Not using your credit card

Having a credit card with no usage, makes the customer’s file inactive as there is no transactional data. This in turn can negatively impact the credit score.

Too many unsecured loans

Personal loans or an excessive number of credit cards can mean higher payments owing to higher rates of interest, these being unsecured loan products. This can result in a lower score.

Now that we know what can affect your score.

Financial discipline

Timely and full payments on loan and credit card outstanding go a long way in maintaining your CIBIL rating.

Having a healthy product mix

Balance of secured and unsecured loans shows that an individual is capable of handling finances well. This can help you to improve your CIBIL score.

Track your credit report regularly

An erroneous entry in your CIR can prove detrimental, as the score can go down. It would be prudent to check your report at regular intervals and ensure that the score is not adversely affected.