Link Audit Finance

All money is a matter of belief

Month: August 2018

How Credit Repair Works

Credit problems can affect anyone at any given time. Whether bad credit scores arise from a layoff, wrongful termination, new or old medical conditions that cause large bills to pile up, divorce, improper money management, or other reasons raising a credit score can be a daunting task for even the most dedicated individuals. Not only can credit problems affect your loan interest rates but it can also prevent a person from landing a job that also bases a person’s character on their credit worthiness. When an individual finds himself or herself in this situation there are a couple potential solutions. One, to do the time-consuming research necessary to find the rules and regulations in order to fix your credit yourself, or two contact a reputable credit repair company that has already undergone the training and acquired the skills to negotiate through the credit lines and repair them.

What Repairs Do:

The process is started by reviewing your credit history on your credit reports. Once a thorough assessment has been made, we can determine the best course of action in your individual circumstance. Credit repair is not for everyone, and not all negative items can be removed from a credit report. Some items on a credit report may require settlements with an agreement that the specified item is modified to a positive line on the credit report while others take less drastic measures and require only the removal of the negative items. Contacting a credit repair company is the first step in beginning the repairing your credit.

How It Works:

There are legitimate negative errors on your credit report. A professional that repairs credit can contact the companies and have these errors fixed.

Errors on the credit report that cannot be verified. If any specific item in the credit report cannot be verified from, a company closing or being bought out our specialists can fix these errors by having the credit bureaus contact the lenders. Once they receive no response from the original creditor, the items must be removed.

Lenders willing to work with companies. The company contacts the individual companies and negotiates a settlement with them in order to create a positive remark on the individuals credit score. Not all companies are willing to negotiate with many companies, so this route does not always work.

Do I need to have my bad credit repaired?

You should ask this question before beginning the process of removal of derogatory marks from your credit.. While companies can help pretty much everyone with any type of credit repair it does cost money. If in your specific situation there are only one or two small problem lines which do not affect your credit score then companies are not of much use or if your payoff amounts for the negative lines are very small it may be easier and cheaper to just pay them off on your own. However, if you have a few or more lines with negative results or larger amounts owed which will require negotiation to lower the total cost to settle, it is in your best interest to contact a specialist today.

 

All About Student Loan

Discussing family accounts as a way to build credit, it was mentioned that people starting out will usually have student loans as their first credit account, unless they obtain a car loan or credit cards tied to a family member with credit history. Student loans are a tricky area of installment credit history because they are not looked on as favorably as you would imagine.

You might think that having opened student loan accounts when you first went to college would show a history of the account, but in actuality, only when you start making your first payment will student loans count as “credit payment history.” Most student loans are in a deferred status as long as you are in school. Once you are out of school, you have one to four months before the companies begin asking you to make monthly payments that pay down the principal and interest.

Yet, when you have student loans, you have an “amount owed.” This amount owed can actually be reducing your credit scores. One the one hand, you feel that making payments should increase your scores, but then you get dinged for having a high amount owed.

So what can you reasonably do about student loan debt? Do you want to pay it off right away?

According to people like Stephen Snyder and Robert Kiyosaki, if you have student loan debt, you want to leave it as the last items you pay off. It comes down to an IRS strategy. The history of this strategy has existed since student loans became necessary for people to go to college. The minute the IRS allowed you to use your student loan interest paid as a deduction is when this strategy came into being.

How it Works

  • Each month you make a payment you pay interest and a little towards your principal, when you are newly paying on the account.
  • When you file taxes, you are asked to enter the amount in student loan interest you paid.
  • The amount paid is a deduction.
  • During this same period, you are paying a little of the “amount owed,” thus reducing your overall debt amount.
  • You are also making payments, and as long as they are on time and the full monthly amount, you are helping your scores.
  • When you get to a point in the loan, where you are barely making any interest payment at all towards the balance, pay off the debt.

Summary

Student loans, when you first start taking them out appear on your credit report, but without any payment history. It is just an open installment account. The lack of payment history does not help your score, nor does it hurt it. The debt utilization ratio on the other hand will hurt your score a little. It is due to having this debt that makes your score a little lower than if you had no debt at all.

If this is the only debt you have, then it is also considered “little to no debt,” which also does not help when you are trying to get new loans to build your credit history.

When it comes time to make payments to the student loan companies as part of your installment agreement, you need to be on time and pay the monthly amount asked for. If possible, pay more than the monthly amount.

Paying interest helps lower your taxes owed. You want this deduction and the payment history. The deduction may be the only thing you have helping you get a tax refund. The payment history is also helping you increase your score, as the balance goes down.

There will come a point when you are going to pay off the debt in full. Do this when the deduction on your taxes is no longer significant. The reduction of debt owed will also help at this point. The reason behind this key point lies in the other credit you have built. You should be in your 30s or 40s, with a mortgage, credit cards, and other credit that weighs more significantly on your ability to get credit. You no longer need the payment history from the student loans. In fact, given the amount of debt you might have at this point, you want to reduce the “amount owed” you have overall.

 

Tips To Improve Credit Score

What is Credit Score: It is a statistical number based on your credit history, repayment habits and other financial data collected from financial institution by the rating agencies. Your Credit Score is an indicator of your Credit Worthiness. This data is collected by the rating agency based on a key or unique identifier like Permanent Account Number (PAN – issued by the Income Tax Department in India) or SSN in USA. Each rating agency may assign different weight-age to different parameters used to determine it. Generally, it ranges between 300 to 850 points.

With the credit score check, the lender gets an idea about the probability of default by the borrower, in case a loan / credit facility is given to him/her. Higher the Credit Score better are the chances for getting a loan at cheaper rates. Hence it is important for you to check it before applying for a fresh loan or credit. A credit score below 600 is considered poor and generally the financial institutions avoid loans to such individuals. By maintaining financial discipline you can also improve your it easily. The very small things or ignorance can seriously damage your credit worthiness. By paying little attention to these small little things you can improve the credit score and avail cheaper credit facilities.

To improve your credit score, you should follow certain dos and don’ts.

Dos

1. Never delay the payment of installments due on existing loans.

2. Make credit card bills payment always in time. If possible, use the ECS or Auto debit facility on your card bills payment, so that there is no chance of forgetting the bill payment on due date.

3. If possible, try to prepay the existing loans. Making a little extra payment over and above the due EMI or installments not only helps you reduce the interest out-go but also helps improve your credit score.

4. Maintaining good and long banking relations with existing banker helps you increase the credit score. Frequently changing your banker, especially the business related credit facilities, can bring it down.

5. Also make payment of your utility bills like electricity, mobile, insurance premium, municipal taxes etc in time. Though these don’t get reported directly for the credit score check, but these help you maintain financial disciplined life.

Don’ts

1. Do not take different loans from different banks. Try to use maximum credit facilities from one or two banks. For example you have two housing loans, two car loans and one personal loan each of this from a different bank. This kind of arrangement will pull down your credit score. Try to shift all these five loans to one or max two banks.

2. Do not rotate the credit card balance from one card to another card. Rotating balance from one card to another means, you don’t have means to pay the credit card bills. This seriously damages your credit worthiness.

3. Do not fully utilize or over utilize the credit card limit. In case you reach above 90% limit regularly, ask the credit card issuer to increase your credit limit.

4. Do not discontinue your old credit cards without any reason or because you have taken a new card. Longer the credit history with regular bill payments, better the credit score.

5. Do not take too many credit cards from different banks. Maintain maximum 3-4 cards with same number of banks. If you use these cards regularly and make on-time payments of the card bills, your card company would be happy to increase your card limit.

6. Do not withdraw cash from CREDIT Cards via an ATM unless it is an extreme emergency. Frequent cash withdrawal from credit card account brings down your credit worthiness, instead use Debit Cards linked to your savings account for cash withdrawals.

Try to obtain your credit score sheet once a year, so that you know where you stand. In case you find any errors in the reported transactions on your sheet, immediately report the same to the concerned financial institution for correction and updating the same with rating agencies, especially when you are planning to take a fresh loan / credit facility.

Get tips on how to raise your Credit Score and manage credit responsibly. Get more tips, follow the Dos and Don’ts & Maintain Good Credit. Grow a better Money Habit.

 

How To Choose Credit Counselor

It’s one of the worst afflictions when one is in debt and being chased by creditors. It’s worse when one loses everything previously owned and often find they are homeless as a result. To see the repossession agents who pull up and strip their property away from them is one of the most horrendous of all feelings. They serve their summons to appear in court because their troubles are not yet over. So what do they do?

Believe it or not this has happened to me. The difference is that I had the best credit counsellor there is on my side who helped me escape from debt. That’s why I have to tell you about it. You may not agree with me at first but at least think it over if you are in this type of trouble.

Following my reincarnation and with a link to the Spirit of the Universe it was with me all the time. In fact, it was responsible for the situation because that was part of its plan to break me away from the world. It had another purpose for me and all I had to do was respond.

Most would never give it a thought but this supreme intelligence is the Great Creator and it is in everyone and in all of space. In other words, it is God, the real one. It is within us as a little voice or our conscience, whatever you want to call it. Sometimes, however, its voice can be rather loud.

What it does is beyond human abilities or understanding because as it can speak to me it can also speak to everyone else. That’s where the power plays its part to overcome debt or anything else that affects its people.

What is debt after all but the failure of money and the financial system to supply our needs. It is man’s invention and it works against the Spirit. Men have made money their god and they worship it, hoard it, and destroy the earth to make themselves wealthy. It is the cause of evil and greed and because of it the planet is being murdered.

God knows how to manipulate it and make people pay who work against the Spirit. Those who think they are rich are the poor ones because the spiritual people are in possession of a great treasure. Theirs is an inheritance above everything man has ever dreamed possible. They receive instant healing of disease and other problems and peace beyond understanding.

To acquire it what they need to do is surrender their lives and hand over their debt and let the Spirit work it out. It can send people to you with cash to pay the bills, it can force the government to give you a home, it can provide clothing and other things that appear out of the blue as it were. All one needs to do is give it a chance.

Owing money is nothing to fret over and when you have the best counsellor working for you then forget it. God works for everyone who is seeking truth and to serve the Spirit and not the false gods of religion. It is calling those who surrender their possessions and lean on it for their safety and salvation. Debt is one of those possessions you need to surrender.

The worst situation you can be in is one where you don’t know the Spirit and cannot hear it speak to you inside. This happens when worry and trauma take over your life. When you are broken from the world and there is no where else to go that’s when you can hear it the best. Give it time and all things come right and you won’t believe how good you will feel.