Clean Credit Queen

Education to Get Your Credit Out of The RED and Into the GREEN

WHATS GOOD ABOUT OLD DEBT?

Jan 23

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Worried about old debt?

Thanks to the Fair Debt Collection Practices Act, once a debt is older than the statute of limitations in your state, it is too old for a debt collector to do anything about it. Each state has different rules for how long various types of debt can be collected. You can go to the Bankrate website and search for “limitations for old debts” and find out the limits for your state.

If you are being hassled by debt collectors over a debt that is older than allowed by law, you can hang up on them without fear of reprisal. However, you will need to be careful how you deal with them if you chose to take the call. You can inadvertently start the clock over on that debt, and then you can be sued until the statute of limitations is up again. So what do you do… or rather, what don’t you do?

It can be tricky. If you are called, never do or say anything that makes it sound like you are taking responsibility for the debt. If you see an old debt on your credit report, don’t inquire about it even after the statute has run out. It should no longer appear after 7 years. Though it will hurt your credit, it won’t hurt it as much as renewing the debt since all of the late payments (years in some cases) will now show up on your credit as new ‘lates.’

If you do owe the debt and the statute of limitations has not run out, have the collection agency verify that the debt is yours. They should do this by sending you a written notice with the amount of the debt within five days of contacting you. In that notice they should tell you the amount of the debt, the name of the creditor, and what action you should take if you believe you don’t owe the money. Your next step is to dispute the amount by certified mail asking the debt collector to verify it. You should receive back from them a copy of the original debt or a copy of the judgment against you, including the name and address of the original creditor. If you do not receive this, they cannot contact you again concerning that debt.

If they can prove you owe the debt you can try to negotiate with them to pay it off. Since they most likely bought it for pennies on the dollar, don’t offer more than 20% of the total and work your way up to an agreeable amount from there. Be sure to get any agreement in writing prior to paying them anything.

If you have proof that you paid off the debt then send them a copy of that proof and a letter requesting that they stop calling you.

Til next time, this is Linda Adams, the Clean Credit Queen, saying,

Good Day and Good Credit!

To learn more about how to get your credit out of the RED and into the GREEN, go to my website.

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There are many types of credit reports

Jan 20

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Review your credit reports

Review your credit reports

Credit reports come in many styles but no matter which one you ask for it contains critical information for you to better understand your credit standing. Your credit report impacts you in many ways from your housing to your job, and from car loans to car insurance,  just to name a few. Each type of report contains the same main data like your identifying information, social security number, addresses, jobs, as well as a list of creditors and payments. Below are six variations on credit reports that can be ordered, some by individual consumers, and others only by businesses. Check them out so you know what you are getting!

Credit Reports
Consumer: Single Bureau – The single bureau credit report is the basic report that contains information from only one of the three credit bureaus: (Experian, TransUnion, or Equifax). Even though all three reports are supposed to contain the same material, not every creditor reports to all three bureaus so the information may not be as thorough for each one. This is the least expensive of all the credit reports. Single bureau reports can be obtained from each credit bureau or from Annual Credit Report. See my website to find out how to get you free credit report.

Consumer: Tri-merge or Three Bureau – The three bureau consumer credit report contains information from all three credit bureaus and is a view of your complete recorded credit history. Information is presented in a table format so allow you to compare each of the bureaus, making it easy to check for any inconsistencies.

Business – A business credit report details information about a particular business. It is as important for a business as your personal credit report is for you. It has the same basic information including credit history and inquiries, and all public record filings. It also contains the number of years the company has been in business, the names of principals, the number of employees, and estimated sales.

Standard Factual – The standard factual report is used by mortgage lenders for most conventional loans because it is very thorough. It is also the most expensive type of credit report.

Employment- The report received by a potential employer is very similar to the standard consumer information found on most credit reports. It may also contain current and previous employment information and any public records and, if applicable, criminal records.

Rental Agent – Rental and leasing offices request credit reports that may or may not include a criminal background check, this is usually a single bureau report though can contain more information if the leasing agent requests it.

If you have any one of these reports pulled for you by your mortgage lender or rental agent, ask if you can see it or have a copy. Many businesses will oblige. It helps to see what they see as consumer reports and reports pulled by businesses often contain different information.

Write and tell me what experience have you had with these other reports.

Til next time, this is Linda Adams, the Clean Credit Queen, saying,

Good Day and Good Credit!

To learn more about how to get your credit out of the RED and into the GREEN, go to my website.

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Credit Statistics – How are You Doing?

Dec 7

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How is your credit doing?

How is your credit doing?

I don’t know why, but everyone seems to love to know how they stack up against the latest statistics on anything from driving the right kind of car to cheering for their favorite football team. I have gathered some stats from Consumer Jungle.com to share with you. See how you rank!

  • The average consumer household credit card debt has nearly tripled in the past 20 years: from $3000 to over $8100.
  • That number is increasing because only about 40% of Americans pay off their credit cards each month.
  • That could be because 43% of families spend more than they make – about 20% more!
  • That explains another statistic – for the past 8 years more people have declared bankruptcy than have graduated from college!
  • For those that did go to college, the average credit card debt held by a graduating senior is over $3000. Add that to their average student loan debt of more than $20,000 and you can see that your average grad has got to get a great job just to afford their loan payments.
  • Some of that credit card debt was charged to one of the more than 12 credit card offers students receive per week in their campus mailboxes!
  • Just because the cards are coming to college students does not make them great deals. The average interest rate was nearly 15%.
  • Since only about 7% of high school students have credit cards, most college students are new at the credit game. Unless they have had some credit education they are unlikely to follow all the rules for creating great credit from these accounts.

To learn more about how to get your credit out of the RED and into the GREEN, go to my website.

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Your Credit Score is More Important Than Your GPA

Nov 12

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grade

grade

If you or someone you know is in school right now, the most important number in your life is your grade point average, or your GPA. It is true that your GPA helps determine what school you can get into, what kind of scholarship you may be eligible for, even rates you can get on your car insurance. However, very soon that GPA will fade in importance and another number will take its place. That number is your credit score. That number will determine where you can live, what job you qualify for, and the rates you pay for both your car and your insurance, and much, much more. While you may know how to keep your GPA up, do you know how to develop and maintain your credit score? It is never too early to start building your credit muscle. The laws are changing but until February if you are between 18 and 21 you can qualify for a credit card. If you decide to get a card, or if you already have one, it is not a way to buy more than you can afford. It is the beginning of your credit history and could eventually be worth more than 50 points of your credit score. That is a big chunk when you consider that often even having an extra 5 or 10 points can mean the difference between good credit and great credit. Good credit could mean an interest rate of 11.99% on a car loan while a great credit score could mean perhaps a 3.99% rate or less. That 5% would translate to $50/month. Over 48 months that makes a significant difference over the life of the loan. You would have paid over $2400 more for you car than you should have! Visit my website products page and look for the teleseminars on credit to learn how you can get your credit started the right way and save that $2400 and more!

Til next time, this is Linda Adams, the Clean Credit Queen, saying,

Good Day and Good Credit!

To learn more about how to get your credit out of the RED and into the GREEN, go to my website.

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Identity Theft Risk Now Has Its Own Scoring System

Oct 2

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Just when you finally gIdentity Theft of credit cardot your credit score under control and your debt-to-limit ratio is under 30%, now you have another number to worry about. It’s your IDScore.

‘What is an IDScore?’ you ask. Well, it’s a relatively new number to make sure that you are who you say you are. It is promoted as a tool to predict the likelihood of Identity Theft. The score ranges from 0 to 999, and this is one score that you want to be low. Identity scores are calculated from information in your credit report – yet another reason to make sure that you know what is in all of your credit reports and that the information that is there is accurate!

Identity scores are based on how certain personal information is used in credit transactions or for credit applications. Things that will make your IDScore lower (Better) are: stability in address, living in a single family home where your mail only comes to you not a multi-unit mail box, keeping your maiden name when you marry, and having a local cell phone number as your contact number on an application.

It has been found (Experian did a survey) that those with good credit scores get approved for credit more easily. This makes them more likely to be a victim of identity theft because their scores create fewer barriers to approval by someone who is trying to steal that identity.

If your IDScore is too high when you apply for credit, you will be asked ‘challenge questions’ very similar to those asked when you tried to get your credit report from annualcreditreport.com. I don’t know about you, but I found the answers to some of those questions tough to remember. I know I could not have given the name of my first mortgage company (over 25 years ago!) if I had not had access to my own credit report. If I had not been able to prove my identity by answering challenge questions, I might have been asked to go to a bank or to fax in proof of identity like a passport or drivers license. How inconvenient and what might this do to online transactions?

I know that identity theft is a growing problem but do we really need another ‘score’ to be measured against? The attempt to create incredibly detailed consumer files is troubling. And, toward the issue of accuracy, you now must really be vigilant in checking your credit report and correcting even the seemingly smallest of details as that could be the one thing you are asked to verify your identity. Bad credit report data will make your IDScore bad as well.

You can get a free copy of your IDScores at MyIdScore.com. They ask for your name, social security number, address, phone numbers, date of birth, and email. Without your SS#, the system will return a significantly higher score than it will if you enter it along with the other required information.

You may not think this is important until you try to open a new account and can’t remember your address from 7 years ago and have to go to a local bank to prove you are you. Now is the time to check and make sure your credit reports are completely correct and what you IDScore says about your likelihood of being a victim of identity theft.

Til next time, this is Linda Adams, the Clean Credit Queen, saying,

Good Day and Good Credit!

To learn more about how to get your credit out of the RED and into the GREEN, go to my website.

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Tips for Tight Budgets

Sep 22

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Don't break into your piggy bank!

Don't break into your piggy bank!

This month has been focused on budgeting. Tight money times call for giving priority to fixed expenses like car payments, insurance premiums, mortgage/rent, and credit card debt. The variable expenses are the ones that you can shave down to the essentials to make it through the tough times. However, you don’t have to wait for times to get tough to implement some changes. If you know or even suspect that things are going to get worse for you in the near future, start to make changes now. Stop any unnecessary spending. Can you do with a store brand or shop at a food warehouse where bulk pricing helps you save pennies and dollars? Are there things you are paying others to do for you that you could do yourself like lawn care or house cleaning? Do you car pool, even one day a week? How about reusing or conserving items you might otherwise waste?
Get all of the discounts you are entitled to with your store cards and credit points. Use those store coupons – many are available online. One of the best pieces of advice I got from my mom was to never grocery shop when you are hungry or go to the store without a detailed list that is created from at least a week’s worth of planned meals.

Substitute low-cost protein foods such as turkey, chicken, peanut butter, eggs, and dry beans. Hamburger or large roasts that can make several meals can also save you money. Use your freezer by cooking several meals at once and storing them. This cuts down on preparation time and saves energy by reducing oven time.

If you turn the thermostat to a few degrees warmer in the summer and a few degrees cooler in the winter you will save a noticeable amount on your utility bill. Don’t forget to change furnace filters often – at least once a month if your house gets a lot of dust. Every two if the filter stays clean between changes. Get a phone plan that fits your calling pattern to prevent over charges. The phone company representative can look at your last few months’ bills and help you select the best plan to save money.
Save on entertainment by taking advantage of the many free and inexpensive things that there are to do in your surrounding area: museums, parks, hiking, special local events, wine tasting, church and other community events.

Til next time, this is Linda Adams, the Clean Credit Queen, saying,

Good Day and Good Credit!

To learn more about how to get your credit out of the RED and into the GREEN, go to my website.

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Having trouble with your mortgage?

Aug 2

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house for sale signDid you know that it could cost over $50, 000 for a bank to foreclose on a home? That is a big cost when the bank doesn’t really want the property in the first place. Here are a couple of things you might want to consider. First off, can you sell your house to a cash buyer and then offer to rent it back from them? You might even be able to negotiate buying the house back from them at some point in the future. That clause ensures that you will be taking great care of the property and providing a good cash flow to your new landlord. It this route is possible, you don’t even have to tell the neighbors you were in trouble, just keep living there, paying your new note and no one will know the difference.
If you cannot get a buyer and end up in foreclosure, there are a few things you can do. There is a voluntary program called “Keys for Cash” that some lenders are using to help prevent damage to the house that they will be taking back through foreclosure. Once the sheriff’s sale goes through and the bank still owns the property, you may be in the position to negotiate. This is not meant to be an extortion, you simply state that there are some expenses you will incur to move out of the home and could use some help with. You will turn in the keys, and not damage the property, steal appliances, or strip the house of copper wire or fixtures. In turn you would appreciate money for a security deposit on an apartment, moving expenses, or even a deposit for phone/cable at your next place.

Til next time, this is Linda Adams, the Clean Credit Queen, saying,

Good Day and Good Credit!

To learn more about how to get your credit out of the RED and into the GREEN, go to my website.

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Tackle Credit Card Debt

Jul 26

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Working on Debt together

Working on Debt together

8 Steps to Tackle Credit Card Debt Problem
Looking for a solution to your Credit Card Debt problem?

First of all, you can take comfort in the fact that you are not the only one fighting the credit card debt problem. There are hordes of people who might have an even worse credit card debt problem compared to you; all of them seeking to eliminate the credit card debt problem. So what is the solution to credit card debt problem?

Well, the solution really is to smash the credit card debt problem with full force and eliminate it completely. Now how do you do that? There is no magic pill that will instantly remedy your debt. It took a while to get into debt and it will take longer to get out. There are many ways in which you can tackle credit card debt problem. I strongly recommend against debt consolidation or debt relief unless you don’t mind your credit score taking an ever bigger hit than it has due to your high credit balance to limit ratio.

Different people suggest different ways of tackling credit card debt problem. However, here is a step by step account of what you can do to a handle on your credit card debt problem.

Take stock of the situation i.e. draw up a table with the following fields – Credit card name, balance, payment due day (the day of the month by which you are required to make payment of your credit card bill), APR, reward points earned, redemption offers applicable for your reward points balance, remarks.
1. Fill the table up with data from your various credit cards.
2. Figure out which credit card is contributing the most to the credit card debt problem i.e. highest APR and highest balance.
3. Check if reward points can be used to make partial payments or cover any kind of fees or if the points can be bartered for something you need (spending less means preventing the credit card debt problem from getting worse).
4. Draw a comparison table of offers available for eliminating credit card debt problem (i.e. consolidating credit card debt).
5. First eliminate debt on the credit card that is contributing the most to the credit card debt problem.
6. Practice controlled and healthy spending habits (after all you are looking to get rid of credit card debt problem and not aggravate the credit card debt problem).
7. Look for alternative means of adding to your income (more money means earlier termination of credit card debt problem).
8. See your debt reduce with time and celebrate the day when you finally put an end to your credit card debt problem.
Remember this is just one of the ways of tackling credit card debt problem; you might devise your approach for doing away with credit card debt problem. If you have a better suggestion that has worked for you, please contact me at Linda@CleanCreditQueen.com and let me know. Also if you have found something that backfired – let me know so I can warn others.

Til next time, this is Linda Adams, the Clean Credit Queen, saying,

Good Day and Good Credit!

To learn more about how to get your credit out of the RED and into the GREEN, go to my website.

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Teachers, Firefighters, Buy Houses At a Discount!

Jul 18

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Discount on great houses

Discount on great houses

In a sea of less than promising daily news in the economic sector, there remains the Good Neighbor Next Door Program for teachers, EMT’s, firefighters and law enforcement who are wishing to purchase a home. Sponsored by HUD, it’s designed to be a win-win for those who choose these fields as their life’s work as well as the communities they wish to raise their families in. Although I’ve been aware of this program for some time, I was surprised to learn that those who qualify for this program might receive a 50% discount from the list price of eligible homes. 50%!
Each state has its own revitalization areas and you can find available listings in your home state as well. Of course, HUD has its list of regulations and requirements, but it’s an exceptional program and one that doesn’t receive nearly enough press. One of those stipulations requires a second mortgage be approved for the amount of the discount; although no payments are ever due provided you remain in the home for three years. This is a great way for those who make such incredible contributions to our communities to buy their homes in these same areas. It’s no secret those who teach our children and protect our communities are rarely adequately compensated for the sacrifices they make. Further, they’re often in the very fields that face the harshest cut-backs in tight economies.
If you’re one of those people who’ve chosen any of the above mentioned career avenues, it’s certainly worth checking into. You’ll have the standard process, including credit approval, appraisals and other detailed checklists that come when purchasing a home, but I really believe you might find exactly what you’re looking for with this program. Consider the money saved just on interest over a traditional thirty year mortgage on a loan that’s half of the sell price! Often, those who participate in HUD’s Good Neighbor program go into their homes with substantial equity before they’ve even made their first mortgage payment!
Find out more information, visit the hud.gov site and be sure to visit their frequently asked questions page as well. The properties change weekly, so there’s a seemingly new inventory each time you visit. I believe in this program and I can tell you it’s one of the few success stories in the news today.

Til next time, this is Linda Adams, the Clean Credit Queen, saying,

Good Day and Good Credit!

To learn more about how to get your credit out of the RED and into the GREEN, go to my website.

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Wondering what to do with that Tax Refund?

Apr 7

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Squirrel that refund away!

Don't squirrel that refund away!

Sudden Windfall?
How many times have we received an unexpected financial windfall? Perhaps it was a tax refund or it could be an inheritance from our great Aunt Addie who we’d feared as kids because of her insistence that squirrels spoke to her. Either way, a check in the mail that we hadn’t counted on can work magic for us, long after it’s spent. “How”, you ask?
Let’s say you have an additional one thousand dollars. You have a few ways of spending or investing it. One way, of course, is a much-needed weekend away from life, work and maybe even the little ones. Sounds great, yes? But what if one strategic move allows you to realistically put more than a few weekend getaways in your future? By taking that money and applying it to balances on credit cards or other debt, it will allow you to reap benefits and keep that money working for you. It can set the wheels in motion for lowering future interest rates you might face when you go to refinance your home or purchase a new car. Anytime you can improve your credit rating, you improve your lifestyle and the amount of money you pay each month on expenses. And if you think one quarter of a percent won’t amount to much, think again. If the interest rate on your mortgage is 7.25% today and you refinance it at 7%, guess how much you’ll save just in interest charges over the course of twenty years on a $100,000 loan? Nearly $3,700.
But how does that one thousand dollars translate into nearly four thousand? By ensuring your credit report is accurate and details a timely payment history, as well as keeping credit card balances low (which, of course, means paying as much as you can each month and certainly any unexpected funds you receive towards those balances), you have a far better chance at lower interest rates when you visit the bank with the hopes of refinancing your home. It’s those little efforts we make anytime we can to make our lives better financially that allow us to look forward to those great weekends that include a beach and massages but that don’t include BlackBerries, laptops or even stoves that we must stand in front of on a Saturday night.
Your first step is to request a copy of your credit report. See my article here for more information on obtaining your report. From there, closely examine it and then decide where you’ll spend that nice little cash infusion from Uncle Sam or dear great Aunt Addie. You’ll reap the rewards for years to come and will be thanking her…and her squirrels.

Til next time, this is Linda Adams, the Clean Credit Queen, saying,

Good Day and Good Credit!

To learn more about how to get your credit out of the RED and into the GREEN, go to my website.

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