Credit Card Debt Advice

If you are looking to get an instant no credit check loan then Log Book Loans UK could be the answer that you have been looking for.  People who are looking for an instant no credit check loan often don’t want to damage their credit rating with credit checks or already have bad credit - this is the perfect solution for you.

You can read more about our Log Book Loans UK page here or you can apply directly to log book loans UK.

Tags: instant loan with no credit check, instant no credit check loans, log book loans uk

Do you own a car that is free from finance?

Are you feeling the credit crunch?

Do you want to get some fast cash but been turned down?

If you answered yes to these questions then log book loans UK can help you.  All you need is to have a car that is free from finance and you can apply to get cash - even if you have been turned down by other methods.

If you are looking for a Log Book Loan UK for between £500 - £50,000 then Log Book Loans can help you.

Log Book Loans UK can give you an instant decission via their website and moves fast to ensure that you are able to get your cash fast.  This is an ideal solution for those who are struggling to get cash in the conventional way.

Tags: log book loans, log book loans uk, logbook loans in the UK, need a log book loan

When debt problems start to get a little out of control it can be a really worrying time.  When students start to see debt mounting up and realise that they have a problem it can be really distressing.  Perhaps their parents have been assisting them financially and they have still fallen into the debt trap - it makes them feel unable to approach their parents for further assistance.

Debt consolidation for students is something that should be thought through before they jump in and start taking action.  They need to consider what they need to know first. 

Students looking for debt consolidation advice should consider:

• How they are going to lower their spending to ensure that the debts don’t keep mounting?
• Do they know the legalities involved with managing their debt?
• Contacting creditors the right way to get payments lowered to manageable levels.
• How they will start down the right path which will suit them, their situation and needs the best.

These are just a few things to consider when it comes to students looking for debt consolidation advice.  For more information, students can get more information at UK Debt Consolidation. 

This site is great for students who are looking to:

• Find out about a manageable loan
• Lowing their interest rates on credit/getting credit with much lower rates
• Get more information on how to get out of debt fast
• Find out how to lower their monthly outgoings both debts and living
• Plus much, much more

Visit the site now to get yourself out of debt or find out how to consolidate your debt.

Tags: debt consolidation for students, debt consolidation in the UK, how to consolidate UK debt

In a previous post we discussed how students can become prone to credit card debt and need to seek advice fast.  Since then we have also thought about other avenues that will help students to manage their finances in a much better way, so we have decided to show you some of the best help and advice that students can get to manage their finances in a better way.

These are all ideal gifts for any students that you know who could benefit from some credit card debt management advice or simply some financial guidance.

Tags: credit card debt advice, getting students out of debt, helping students cope with debt, student debt books

In a time when credit cards are not seen as a luxury for the wealthy anymore but a life necessity it’s no wonder that more and more people are suffering from Credit Card Debt Problems.  Worse still, it’s not surprising that so many people are having problems with more than one credit card.

It’s when you start to realise that your credit card is now a massive debt problems hanging around your neck that you get a sinking feeling and realise that you are now a member of the group with one thing in common - Credit Card Debt! 

Lets start by looking at the name ‘Credit Card’.  You have a card that you get credit on, it’s that simple.  You have an account with the card issuers who have given you credit.  Every time you make a purchase on your credit card you are just increasing your debt with the credit card company.

Your debt just keeps getting bigger and bigger unless you pay it off in full at the end of each month.  If you are reading this page about credit card debt advice, the chances are that you have not paid off your credit card debt and are now looking for some advice on how best to handle the situation.

On this site, you will be able to find a lot of useful advice that will help you manage your debt, find available solutions and start to get back on track with your credit card.

Each day more and more advice is added, so be sure to check back soon to get more advice.  Bookmark this page so that you can come back time and time again to get more help and advice.

Tags: credit card advice, Credit Card Debt, credit card debt advice, credit card debt management

What causes your score to be high or low? Your credit scored is revealed in a file called a credit report, which is based on information which is held about you. In this chapter we’ll look at some of the reasons your credit score is what it is. You’ll be pleased to know that once you have your credit reports from the major agencies, and you find inaccuracies, you can do a lot to improve the scores in a short time, once you correct the inaccuracies and get the credit reporting agencies to update their records.

What’s included in your credit report?

Your credit report is a file which is made up of information which has been submitted about you. Usually the information is submitted to a credit agency by people like your creditors (those to whom you owe money), by the courts, and by debt collection agencies. To round out the file, information is gathered from other public records – land you own, cars you own, and do on. All the information on your report stays there, and negative notations on the report can affect your ability to get credit for years. Most information stays on your report for seven years; bankruptcies stay for ten years.

Your credit report contains: personal information, public record information, collection reports, your credit history, what you currently owe, credit enquiries made about you, and your credit score. Your credit score is arrived at from the compilation of all this information, when the information is given weighing factors. The lower the score, the greater the risk you’re assumed to be for anyone who is lending you money.

Is the report accurate? It may not be

Your credit report contains various kinds of information, and you should check it all. Mistakes can be made anywhere – you may find that a person with a similar name and the same birth date has information that has been mixed with yours.

There are four kinds of data you need to check in your credit report:

* Identifying information, which includes your full name, your current address and previous addresses, your Social Security Number (SSN), date and year you were born, your current employer and previous employer, and if married your spouse’s name;

* Credit information, which includes your credit accounts and loans from organizations like banks, finance companies, retailers, credit card companies and other lenders;

* Public record information includes any information about you which is contained in state and county court records, like bankruptcies, liens, and monetary judgements.

*Enquiries, which includes and applications that you’ve made for credit.

The information in your credit reports comes from the companies that you do business with. Therefore it’s likely that there will be errors, and you shouldn’t be surprised or upset when you find them. Any errors in your credit reports can be fixed – without bothering to pay so-called “credit repair” companies.

Your first step is to read ALL the information in the credit report, and underline any errors and inaccuracies. Underline them all – even trivial errors, such as a wrong address, can be interlinked with other information held by other agencies and may lower your credit score.

Tags: Why your credit score is what it is

Your credit score is a picture of your credit history. It’s created by a computer statistical model, and if you have a low score, it can mean that you won’t be able to get credit, whether in the form of a credit card, or a loan. Or, if you are given credit with a low score, then it will be at a higher rate of interest.

Your credit score is sometimes known as your FICO score, (which rhymes with ‘psycho’) after Fair, Isaac & Co, the company which creates credit score computer models. These models are mathematical models contained in computer programs. Information is fed into them; this information may contain data about the state of the economy, consumer repayment behavior, wages, and interest rates, and so on, and the models are created out of all these separate pieces of information.

In a nutshell: FICO

FICO is a way for lenders to calculate your creditworthiness. FICO scores are measured using data like bill-payment history, the kinds and number of finance  accounts you have, and your outstanding debts. FICO scores are usually between 300 and 850, and the lower your score, the higher the lender’s risk.

These computer models which calculate the scores are closely guarded secrets, because a lot of research goes into developing them. When the models are applied to a an applicant’s name, a credit score for that applicant is returned. Credit scores are returned as a number, and the numbers can range from 300 to 900. An average score is around 750. When calculated with the FICO model, when your credit score goes down, your risk of defaulting on your loans increases. The correlation between a low credit score, and high default rates, is well understood in the credit industry.

In the USA, there are three major credit reporting agencies, Equifax, Experian, and Trans Union. When you apply for a loan, the lender will contact these agencies and pay a fee to be given your FICO score as calculated by a financial product sold by that agency. Because different information goes into compiling the scores, these scores are sold as financial products, under various trademarks. For example, example Beacon, Beacon 96 and the Pinnacle are products sold by Equifax.

Major credit reporting agencies

Equifax: http://www.equifax.com/

Experian: http://www.experian.com/

Trans Union: http://www.transunion.com/index.jsp

In addition to using report information from agencies like Equifax, Experian, and Trans Union, all major lenders have their own in-house ways of generating FICO scores.

FICO and the law: the FICO computer statistical models are regulated

Because FICO scores are created using statistical probabilities, companies may be tempted to use statistics which are unfair to minority or other groups – women and racial minorities for example. If companies were allowed to do this, it would put entire segments of the population at a huge disadvantage.

Therefore, to level the playing field, the government has decided that companies cannot apply statistical probabilities in any way that they wish. Race, for example, can’t be added to the statistical model. The Equal Credit Opportunity Act makes it illegal to use a credit scoring model with illegal bias taking into account factors like race, color, religion, country of origin, sex, or marital status. In addition, anyone who applies for a credit and is refused must be given a reason, and the reasons that the credit was denied must be exact. No one can deny you credit by saying: “Your score’s too low.”

How your FICO scores are calculated

Of course there’s no way of using a similar computer model as that which is used by FICO because the model is a secret, but a rough guide is useful in that it will tell you what is considered important when it comes to credit scores.

Here’s a rough guide to how FICO scores are calculated:

Your payment history: 35%

How you pay your bills is important. Paying bills late, having an account sent to a collection agency, or a declaration of bankruptcy will adversely affect your FICO score. The further back in time the problem occurred, the less weight it’s given. This means that if you paid your electric bill late a month ago, it’s worse than if you declared bankruptcy six years ago. What happened a month ago indicates your current financial situation.

Your outstanding debt: 30%

When you’re applying for more credit, the amount of money you currently owe is important. If you have several credit cards on which you’re close to the limit, this adversely affects the score. Low balances on your cards helps: it shows that you’re managing your money.

The length of your credit history: 5%

The longer a credit history you have, which shows prompt repayments of your bills and that you’ve been paying off your loans, the better.

Recent inquiries on your report: 10%

If you ask a company to lend you money, they want to know who else you’ve asked.

If you have recently applied for many new accounts, that may negatively affect your score. Promotional inquiries don’t count – those inquiries you make because you were offered an inducement or something free, are not calculated as other inquiries are. After all, you may just have wanted information and the freebie.

The kinds of credit that you use: 10%

What kinds of credit do you have? Any loans that you have from finance companies usually lower your credit score. This is because finance companies charge higher rates of interest, and people don’t get loans from finance companies if they can get a cheaper interest rate from a bank.

If your credit score is low, you’ll have problems getting a loan

If your credit score is much lower than the average of 750, you’ll have challenges convincing anyone to give you a loan at an affordable rate – or even any loan at all.

Your credit history can vary from bureau to bureau, and so can your credit scores

The are three main credit bureaus, Equifax, Experian, and TransUnion are separate companies and they’re in competition with each other, so they’re trying to generate the most accurate credit scores. This means that the scores the companies give you may vary, often widely, depending on how they’ve applied the FICO information. You may have a high score with one and a low credit score with another, and you can have a good credit history with one bureau and a messy one another bureau. There shouldn’t be a big difference in your credit scores with each of the bureaus, but sometimes your score can vary by up to 100 points. Therefore someone who’s working out whether they should give you credit will use the middle score. This won’t help you much if all three scores are low, or if two are low, and one is 750 – because the middle score will be used. Usually someone with good credit will have scores like, 695, 710 and 750.

Tags: how your credit score is calculated

If you ever want to borrow money, whether it’s for small everyday items via a credit card or for larger loans like a mortgage, you need to know your credit score  – it’s vital information. Most people have no idea what their credit score might be, and this handicaps them in many ways.

In this chapter you’ll discover the importance of your credit score.

What’s a credit score?

If you’ve tried to get a loan, and have been refused, you will have heard the term “credit score”. Getting the loan you want, and beyond that, living the sane financial life begins with understanding your credit score. Once you know your credit score, if it’s too low, you can begin to rebuild it.

How to discover what your current credit score is

You have a legal right to know your credit score, but most people first hear the term “credit score” when they’ve been refused for a loan. Even if you’ve NEVER been refused, you need to keep an eye on your credit score because your score can be filled with mistakes, and correcting a mass of mistakes is a huge job. If you keep an annual check of your credit score, you can correct any errors immediately.

You can take control of your credit score

If you’ve been refused credit because of your credit score the first step in building (or rebuilding) your credit score is to find out what YOUR credit score is NOW. You may be depressed and anxious, however you can find out, and this knowledge is power. Even if you’re in debt, and you know what it’s like to dread a phone call, or a knock on the door, you need to take control of your credit score. Even if your situation is so bad that you don’t even open your bills, you shove them into a drawer so that you won’t have to think about them, you can take control. With a bad credit score, getting a loan is almost impossible until you rebuild your credit score. This can be done, so don’t despair, when you find out what your score is.

Look on your credit score as your “how I handle money” reputation: with a few simple skills, you can build a good credit score, as long as you make it a priority in your life. As you rebuild your credit score your money-reputation will change, and before too long you will have a good credit score.

A good credit score means that you’re a good manager of money. You’ve proved that you can handle the money you owe, and pay your debts. With a good credit score you won’t have problems when it comes to making future purchases, whether those purchases are for big-ticket items or for small.

You start to build your credit score by knowing what your credit score is. Once you know, no matter how small it is, you know where you are, and you can begin to rebuild your score.

A credit score is a way for financial institutions to manage their risk. A bank, or other lending institution, must make a profit when they lend their money – in essence, they’re selling the money they have to you, and they want to make a profit to satisfy their shareholders. Therefore, you will repay interest on money lent to you, which is the lender’s profit. If you can’t or won’t repay the money, then the lender has made a loss. Your credit score helps lenders assess your ability to repay, with interest, and money which is lent to you for any purpose.

Tags: credit score, find out what your credit score is