Credit - Leverage and Other Peoples Money - Secrets Revealed

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VantageScore
I recently saw on CNBC that a new credit bureau called VantageScore is trying to update and levelize the way that credit scores are tabulated for creditors. Their "leveled credit characteristics" across the three credit agencies, Equifax, Experian and TransUnion will try to ensure that any credit score differences for the same consumer are attributable to what is in each agency's database, not the... Read credit counseling article



How to Handle Bad Credit Management
In today's modern world, you are greatly limited if you have a poor credit rating. You may not realize it, but many companies may require you to have a high Beacon score before they will even consider you for any kind of position with them. You may be denied car or homeowner's insurance coverage due to your credit rating. With the economy and unemployment rates, it is hard to have perfect credit, ... Read credit counseling article



Credit - Leverage and Other Peoples Money - Secrets Revealed
Credit: Simply put, credit is financial responsibility and a way to pay for goods and services immediately but arranging for a deferred payment of purchase or loan.

Credit cards have changed the way we live, globally, but they've also put us into massive credit card debt. But "debt" whether through credit cards or loans doesn't necessarily have to be good or bad. It's all relative to what the debt was used to purchase.

Good debt is when you gain a financial benefit. This can mean an investment where money comes into your pocket every month (say from a rental property) or a business where the income or assets exceed the debt every month. It can even be a "no frills" credit card which can be used to buy property to give you an income.

Bad debt is when people use debt to cover depreciable luxury items, holidays or even consumables and so live beyond their means because at the end of the day they still have an outstanding balance.

Leverage is one of the most powerful words and greatest means of creating wealth. Warren Buffet, Billionaire, said "I'd rather have 100 people working for one hour, than 100 hours working on my own" - that's leverage of time, and this is basically how big business, network marketing etc work - the use of leverage.

However to make use of this tool when using other people's money (OPM) - which increases your purchasing power - you have to first have good credit relationships, prove to be trustworthy in your past credit dealings, and now more and more, a good FICO score. When you use OPM you must be certain to calculate how you're going to repay the individual or institution who loaned you the money. Remember using other people's money has been the way many honest poor men have become rich.

The wealthy in our society know that credit is much more than those things above. The wealthy also think differently to the average borrower with a mindset of millions or billions, not thousands or tens of thousands of dollars. I always remember during one of my first jobs my boss saying "always think BIG" - at the time I didn't understand the enormity of that statement but as time went on the mindset of "abundance" over "scarcity" and a positive mental attitude (PMA) became clear. Ironically, just today I read an article on Donald Trump's Trump University blog "You Can't Get Rich by Thinking Small" - check it out.

With a mindset change and PMA, evaluating where you are at present with your debt and getting professional help if you can't handle your finances, is a great start to become greater than average - but it does mean you have to ACT ... do it now! Educate yourself on credit, debt, investment - there's plenty of free stuff on the internet. Of course one of the ways to learn is to follow what the wealthy do - there's information on two of these people: Donald Trump and Warren Buffet as a starting point.

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Fix Your Credit

Though there is not a quick way of reestablishing credit, these tips can aid you in the process. Patience is necessary since raising your credit score won't happen in a day or two. It can take months or even years to rebuild your credit history depending on the amount and seriousness of the delinquencies that have affected your credit.

Make Sure Creditors Are Reporting All Your Timely Payments

You can have creditors adding good information to your credit report. Creditors are not required to report information to any of the three credit bureaus. After obtaining copies of your credit reports, make sure to note if there are any creditors with whom you have a good history that haven't reported this to the credit bureaus.

If this is the case, contact them and ask them to release the information to the credit bureaus. For a small fee, a credit bureau will contact your creditor. Simply call and give the credit bureau your creditors name and phone number. Positive repayment information can help neutralize some of the negative information on your credit report.

Tell Your Story

Add a statement to your credit report telling your side of the story. You may include a 100-word statement in your credit report to explain negative credit reports. Write each credit bureau a letter and ask them to include your statement in your credit file. State the facts about your situation. If your credit history shows that you typically pay your bills, a statement can explain away an isolated instance or period of bad credit.

Most financial transactions and situations are susceptible of being proved. Thus, don't waste your time making up stories, if you have a good justification for the delinquencies that appear on your credit report, add the statement. Otherwise, refrain from doing so and concentrate on improving your credit score by making all your payments on time.

Keep Creditors on Your Side

You can also work with your creditors to clear your credit record. If your poor credit resulted from circumstances that were beyond your control, like illness or losing your job, make sure to keep in contact with your creditors. Once you have reconciled your account, your creditor may be willing to remove negative information from your credit report or at least report you've brought your account current.

If you can't make your payments, contact the creditor and propose a pay-off schedule. If the creditor has charged-off your debt, they may work with you. You may be able to work out a proposal in which you make partial payments, and the creditor changes the information it provides to your credit bureau. Be sure to get your agreement in writing.




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Credit - Leverage and Other Peoples Money - Secrets Revealed
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