Helping to Turn Bad Credit Into Good Credit
Is your credit score costing you a small fortune?
There are surveys that have shown that out of every ten consumers in America today, nine of them don’t know their credit scores. In this case what you don’t know, can hurt you.
It is pretty obvious that a low credit score will make everything more expensive. But do you really realize how widespread and devastating the effects of bad credit score can be?
Most people buy their homes with a mortgage. Interest rates can vary widely. Take for example a home that costs $200,000.00 Depending on when you read this, with good credit you might be able to get a 30 year fixed loan at 6%. Let’s suppose you are unfortunate enough to have not so good credit and are forced to pay 8% for your loan. Over the course of the 30 years you will pay $96,934.11 more for that house. Now let me ask you a silly question. Would it be worth $96,934.11 to you to do a little credit report repair work? DUH! Why not try installment loans online alternative to payday loans which can help you to either reduce your debt or get the extra cash needed.
It doesn’t stop at the home loans, what you pay for:
• Auto insurance goes up. Nine out of ten automobile insurance companies use credit scores for new business.
• Home owners insurance is usually high for people with bad credit scores because there seems to be a link between low scores and higher claims.
• Employment can even be affected. Just less than half of all employers do credit checks on prospective employees.
Now what if the information they are getting is not accurate. According to PIRG, the Public Research Interest Group, up to 79% of credit reports contain errors. Not all of the errors are really serious but 25% of them are bad enough to deny credit.
So what is a person to do? Well stay tuned because in the next update my friend Jay Peters, founder of the Consumer Publishing Group will let you know some insider tricks to quickly raise your credit score. If you can’t wait, rush of to “Credit Secrets Bible.” and get the whole story.
What do you suppose is the fastest growing crime in America? Drug related crime, internet pornography, tax evasion? If you guessed any of these you’re wrong, its identity theft according to the FBI. How does 50 billion dollars a year sound? That is the cost that is paid every year by you me and the man next door.
People are not ignorant of the problem. It is estimated that 70% of people are at least shredding their important papers, and some of us are subscribing to credit monitoring services.
Here is another eye opener. Most people think that identity theft is because of the internet, wrong! Less than 10% of identity theft originated online. Its people we know and are in contact with everyday that present 40% of the threat to our identity security. When we go to the bank and greet Mr. Friendly teller, or have lunch and send our credit cars off with that personable waiter or waitress, we are exposing ourselves to the greatest risk. How well do you know your neighbor? The person you put your trash next to every week. How about the people you work with who have access to your trash can?
Do you have anyone come in and clean your house, walk your dog, service the pool, how about you hairdresser or the nail lady? See what I mean? Sometime you don’t even think about all the people who are so very close to your personal information.
One third of identity theft comes from stolen or misplaced purses, wallets, checkbooks or credit cards. There are also payday loans direct lenders options available if you need cash as an alternative.
Who is at Risk?
Are you at risk? YES! Your risk increases according to which age bracket you fall in. The good news for seniors 65 and over is you’re in the smallest risk group for identity theft. Don’t totally let your guard down, be ready. The people who are at the highest risk are people 25-34.
Identity Theft Costs
In 2005 the average cost per victim in dollars was $5,885.00, in time it was 28 hours. In 2006 the dollar cost was $6,383.00 and over 40 hours in time.
So What Do We Do?
While credit monitoring isn’t completely worthless, only 11% of consumers catch a theft this way. Identity theft insurance according to some expert borders on being a hoax.
There are two areas to focus on, Basic Identity theft and Credit Hijacking. I’ll cover Basic Identity Theft today and get into Credit Hijacking tomorrow.
Most people don’t realize they have the right to put what is called an Initial Fraud Alert on their credit accounts. It must be done separately at each of the three major credit reporting companies. See our Credit Report page at the top of this page for contact information. Once the Initial Fraud Alert is registered with a credit company it does three things.
• Your name and personal information can no longer be sold by the credit bureaus to third parties. That’s right, did you know they could do that. Do you wonder how you get on so many mailing lists? The people who are supposed to be protecting our identities are the ones who are selling them to the highest bidders.
• No one can be approved for credit with your personal information until the creditor calls the telephone number listed in the Alert. It doesn’t stop you from getting approved for a credit card or opening an account at a store, it’s just that they have to call you first to be sure it is really you. SWEET!
• You get a credit report from each of the three companies you file the Alert with for free.
Remember this is an “Initial Fraud Alert,” is only good for 90 days. You can get it extended to 7 years but you must write a personal letter to each of the companies and give good reasons for the extension. A massive amount of the credit reporting companies income is from selling and renting your information so don’t expect it to be easy to get the extension, but still try.
Tomorrow I’ll share a neat trick about preventing your credit from being hijacked when it comes to using your credit cards online or over the phone.
These tips and tricks come from the folks at “Credit Secrets Bible.” If you would like to get all the information first hand and immediately, click on the link above and get your copy right now.