Posts Tagged: ‘bad credit’

Tips to Improve your Credit Score

February 8, 2017 Posted by kingcade

Having a low credit score can cost you.  If you have a credit score of 620 or below, this is considered to be “bad credit.”  Lenders or credit card issuers, if they are willing to extend you credit at all, are likely to charge you a higher interest rate.  You may also have to pay a utility deposit when starting or renewing service, something people with good credit do not have to pay.  Having a bad credit score can even effect how much you pay for car insurance.

Now onto the good news- there are things you can do to improve your credit score.  Following these easy steps will help push your score in the right direction.

  • Watch your credit card balances.  A major factor in your credit score is how much revolving credit you have versus how much you are using.  The smaller the percentage, the better your credit rating.  The ideal amount is 30 percent or lower.
  • Eliminate small credit card balances.  When you have small balances on credit cards, pay them off.  Charging $50 on one card and $100 on another instead of using the same card (preferably one with a good interest rate) can hurt your credit score.
  • Leave “old debt” on your report. Some people believe that old debt on their credit report is a bad thing.  Good debt- such as a home or car you recently paid off – is actually good for your credit.  Do not close out old accounts where you have had a solid repayment history.
  • Use your calendar.  If you are shopping for a home, car or student loan, it pays to do your rate shopping within a short period of time. Every time you apply for new credit, it can cause a small dip in your credit score, which can last up to a year.
  • Pay your bills on time. If you are planning a major purchase (like a home or car), one of the biggest factors in having a good credit score is simply making on-time payments month after month. Saving up money for a major purchase is smart; just don’t neglect your bills.  This can even extend to outstanding library books.  If the original creditor, such as the library, does not report it to the bureaus, they may eventually call in a collections agency to recoup the unpaid bill.
  • Avoid risk. One of the best ways to improve your credit score it to avoid purchases that might lower it.  This could include taking out cash advances, using cards at businesses that could cause future money stress, etc.
  • Do not obsess. If you are getting ready to make a big purchase, pull a copy of your credit report. You are entitled to one of each of your three credit bureau reports (Equifax, Experian and TransUnion) for FREE every year through AnnualCreditReport.com. While the score you receive may not be the exact one the lender uses, it will grade you on many of the same criteria. If you are denied credit, the lender has to show you the credit score used in their decision making, thanks to the Dodd-Frank Wall Street Reform and Consumer Protection Act.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources: http://www.bankrate.com/finance/debt/7-simple-ways-improve-credit-score-1.aspx

 

Can an employer check my credit?

June 1, 2016 Posted by kingcade

While credit checks are not the norm in the job application process, the practice is common for jobs where candidates will be privy to sensitive information or making financial decisions.

States and local jurisdictions are increasingly regulating the use of credit reports in hiring. Eleven states limit employers’ use of credit reports,  and other states are considering similar legislation.

When an employer checks your credit they are reviewing your credit report, not your score. What are they looking for? In most cases they want to see evidence that you are honest and responsible- this is not always the best indicator of either.

It is important to remember that the employer needs to ask your permission and receive written consent, before running a credit check. If your poor credit disqualifies you, the employer is required to let you know and give you a chance to respond.

Regardless of where you stand, it is a good idea to take a look at your credit report before you start a job search. Check for inaccuracies and take steps to correct them. Remember, there are three different credit bureaus—Equifax, Experian and TransUnion. You can access your FREE credit report at AnnualCreditReport.com.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

WARNING: Personal Loans with No Credit Check a Bad Idea

March 21, 2016 Posted by kingcade

Lenders who do not require credit checks seem too good to be true.  That’s because they are. These offers are as predatory as payday loans. “Installment loans,” are also something consumers need to beware of.  These loans come with extremely high interest rates, often more than 200%, and lenders do not consider a borrower’s ability to repay the loan.  A paycheck and a bank account are usually all you need to qualify, because lenders withdraw payments electronically, often relentlessly.

It’s no wonder borrowers frequently default or get trapped in new loans.  Consider this: One lender advertises a $2,600, 18-month loan at 187% interest.  That would mean a borrower would repay almost $8,000!

Borrowers usually have low incomes and limited access to traditional forms of credit, according to studies by the Center for Responsible Lending.  Installment loans may seem like a good alternative compared with payday loans, but the exorbitant interest rates make them more harmful in the long run.  Some lenders tack on additional fees, like credit insurance, that drive up the cost of these loans even more.

The increase of these predatory loans have gotten the attention of the U.S. Defense Department that recently expanded regulations to cap the interest rate on all loans at 36% for military members and their families.

There are safer alternatives to no-credit-check loans and installment loans.  If you are in need of cash and have poor credit, your local credit union is a good option.  Most credit unions offer small-dollar loans of $500 and above, and they are often willing to work with you to make the payments affordable, even if you do not have the best credit.  Many also have starter credit cards or loans to help you build a credit history. The interest rate charged by a federal credit union is capped at 18%.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources: http://www.nerdwallet.com/blog/loans/no-credit-check-installment-loan/

Consumers Beware: No one can Erase Bad Credit

February 6, 2015 Posted by kingcade

The Better Business Bureau is warning consumers to beware of companies making false promises of quick credit repairs.  They have seen an increased number of complaints against local and national credit repair companies that are claiming to be able to erase bad credit for upfront fees of $250 or more. So can you actually erase bad credit? Consumers can have credit reporting errors corrected, but unfortunately, if the debt is valid no company can make it disappear.

For a fee, credit repair companies promise to clean up your credit report so you can obtain a car loan, mortgage or even a job. Based on the BBB experience, many of these companies fall short on their promises. After consumers pay these companies, sometimes thousands of dollars in fees, they do nothing to improve the consumer’s credit and simply disappear with the money.

The Federal Trade Commission has the following tips to help consumers avoid the pitfalls associated with these credit repair companies:

•Avoid any company that tells you it can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.

•Avoid any company that charges an upfront fee for credit repair services. This is against the law.

•Beware of any credit repair company that does not tell you your legal rights and steps you can take to repair your credit score free of charge.

•Avoid any credit repair company that tells you not to contact a credit reporting company directly.

•Avoid any credit repair company that advises you to dispute ALL of the information in your credit report.

•Avoid any company that suggests creating a new credit identity or applying for an Employer Identification Number to use instead of your Social Security number. Not only is this illegal, it leaves consumers open to prosecution for fraud.

Click here to read more on this story.
http://www.theadvertiser.com/story/money/business/2015/01/03/beware-claims-one-can-erase-bad-credit/21251883/

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Beware of Credit Repair Companies

January 8, 2014 Posted by kingcade

We are bombarded with ads for credit repair companies, claiming to “Erase your bad credit history simple, fast and easy- Guaranteed!” Others promise to “Boost your credit score to 750 in just one week.” Consumer credit counselors are warning consumers to take caution when it comes to these type offers because it is likely a scam. In reality, there is no quick fix for credit problems; improving your credit score takes time and effort on your part. No one can remove accurate negative information from your credit report.

Here are some tips from the FTC on how to evaluate the trustworthiness of credit repair companies. Proceed with caution if…

• The company wants you to pay for credit repair services before they provide any services.

• The company does not explain to you your rights and ways you can fix your credit score for free.

• The company recommends that you do not contact any of the three major national credit reporting agencies.

• The company tells you it can get rid of negative credit information on your credit report, even if that information is accurate and current.

• The company suggests you invent a “new” credit identity and a new credit report by applying for an Employer Identification Number, instead of using your Social Security number.

• The company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness.

Know that if you follow illegal advice and commit fraud, you can land up in hot water. It is a federal crime to lie on a loan or credit application, to misrepresent your social security number and obtain an Employer Identification Number from the IRS under false pretenses. Even if a credit repair agency advises you to do this, you yourself will be held accountable.

Click here to read more on this story.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.