Credit repair scam - How to avoid being a statistic?

Credit repair scam - How to avoid being a statistic?

A good credit history is critically important for consumer. A bad credit will prevent you from getting a business loan, owning a home, or even a job. Promises to "fix" your credit are always made by credit consolidation companies, but they are seldom true. Here are some of important tips to avoid scams:

• First things first. Negative information cannot be erased if information is correct. Only inaccurate information can be corrected in your credit file. Credit file information remains on your record for seven good years from time it is reported to bureau. For bankruptcy, information remains on your record for ten years. All consolidated information about your credit bills you fell behind on, but are now paid, will remain on your report for time period mentioned above.

• Do not pay credit repair company unless their promises are kept. Remember, law is on your side. Federal law requires credit repair companies to give you a complete detailed explanation of your legal rights, a completely documented written contract, and above all, 3 days to cancel. This applies to all credit repair services including for-profit services, non-profit services, creditors and credit unions.

• Be wary about emails you receive. When you hover your mouse over link in email, you will know for sure if it is a trusted website or a fraudelent one. If fraudelent, report it to your bank promptly.

• You don't need a counselor to correct your mistakes in credit report. Take charge of it yourself. If you were recently denied credit, you can request a free credit report. Otherwise there is a small charge for it. Some states will allow you a free copy of your credit report once a year. It doesn't cost you anything to dispute or question items in your credit report. Get online or follow instructions from your credit bureau. The three major credit bureaus are Equifax (800- 685-1111), Experian (800-682-7654) and Transunion (800-916-8800). In most cases you will need to contact all three credit bureaus as information they have about you may vary.
  
  

Simple Tips on Saving

Simple tips on saving can very often make quite a big difference to your finances. Saving means giving up something now, so you will have more in future. A consistent, long-term saving program can help you achieve your goals. It also can help you build a financial safety net. Experts recommend that you save from three to six months worth of living expenses for emergencies.

Savings grow beyond what you contribute because of compound interest. Over time, value of compound interest works to every saver's advantage. Keep in mind, however, that inflation reduces return on your money.

It's not easy deferring or eliminating purchasing things you want today but like everything else in life, more you do it easier it becomes. Here are some useful saving tips to help you:

Take a portion of savings from every paycheque before you pay any bills. Use your company's payroll deduction plan if available. Arrange for a fixed amount to be taken out so that you never see it. What you don't see, you don't spend. You also can direct automatic current account withdrawals into a savings account.

When you get a raise, save all or most of it.

Pay off your credit card balances and save money you're no longer spending on interest.

Move credit card balances to a card with a lower interest rate and use savings to pay off balance.