All credit cards are wonderful, but what about those that are bad? The easy answer is that they are absolutely a feature of these cards. As such, a bad credit rating is a HUGE deal. Before getting a bad credit card, many banks will tell you that they can get you to keep one card, but they have to do it for several reasons, one of which is that the companies are intimidated by your past performance. If you have a history of bad debt and you are afraid that they might use this to get you out of debt, that will NOT work if you have one of these cards.
The second reason, as will be explained, is that they try to figure things out for you. This can be a frustrating and frustrating process. For instance, if you have an outstanding payment history with a current creditor, it may be difficult for them to make your application. So what is going on here?
The first part of the ‘instant dispute’ process is that the debt collector is very interested in see to it that you prove to them, and they can get you discharged from your debt. If they are successful in getting a judgment against you, you are in court against the debt collector, and their action is on their property. (They are also entitled to free rein on how much they charge to your account and your access to your credit file!) If they cannot prove to the debt collector that you were a good borrower at that time, your rights and obligations become the property of the collection agencies and you are actually the victim of an expensive “lien” (or, extortion.) In this case, the debtor actually needs to have proof that he/she was a good borrower at one time, and that they can get compensation.
Begin Your Credit Report
Good credit history is a significant factor in getting a mortgage or any other loan. Obtaining and maintaining a good mark on your credit report is the first step towards credit restoration. In fact, most people with poor credit histories will not be approved for a mortgage or any other loan and many consumers with bad-history credit will be removed from their credit file by a sub-prime lending company.
Generally, the higher credit scores an individual has the earlier in the loan process, which may result in making a better mortgage payment. However, there are instances in which a low score may disqualify you for an improved, more favorable loan.
Before applying for any types of credit loans, it is important that you immediately look for the credit report agencies that have a reputation for offering low scores. According to a 2007 study conducted by the Capital One Institute for Consumer Research, only 6% of those seeking credit in the United States maintain a low credit score. A score of 600 or above should not be considered an application for a mortgage.
By following the checklist below may mean that you will qualify for a low-cost, low interest rate loan in the near term.
1) Request a copy of your credit report from a credit reporting company.
2) Be patient and do your due diligence.
3) Make a request that another agency – Equifax, Experian, or Truthful – compile, review, or publish your report.
4) Complete and submit a letter to the acting head of the Federal Trade Commission requesting that the score on your free report be lowered from 480 to 500.
5) Do a background search on the internet.
The Federal Trade Commission maintains a Web site that can be used to view your credit score.
To order your free copy of The Federal Trade Commission’s Personal Credit Report, go to: http://ftc.gov/preciergies).
Begin Your Credit Repair
Pay your bills on time every month. While you are paying them off, you are making minimum payments on your card or your loan. Don’t believe the hype you hear from debt recovery organizations. These companies simply make their money and they do not get any perks or services from the government.
If you have ever borrowed money or been late on a payment, ask yourself it is not a good look to use debt recovery or consolidation loans to go after future creditors. This type of transaction is often illegal and it only takes the government getting involved. You must first ask your spouse who owes money to the majority and then do this for the rest of your life. Ask for a copy of your credit report.