​Tip #4 – Get Your Free Credit Report & Dispute Any Errors

One of the biggest problems people have with their credit score is that they don’t know why it’s so low. They just check their score without looking into the details of their history.
It’s so paramount to get a credit report, and it’s even offered free by the United States government. https://annualcreditreport.com
Once you get it, review it closely and look for errors. Common errors include:

• Clerical errors (mistyped dates, duplicates of loans on the credit history, and other odd looking things)
• Loans that are in your name, but don’t belong to you
• Fraudulent items

Even if you don’t think there are any errors, there might be items on there that shouldn’t be there. The Credit Pros is here to help you out.
We will review your credit report and look for items that, by law, are no longer allowed to be on your credit report. We dispute these items and make sure they’re removed, giving you a fair chance.
Removing derogatory items from your credit report is going to see a drastic improvement in your credit score. For that reason, it pays to have credit professionals check over your report and make sure everything is on the up and up.

Tip #3 – Set Up Payment Plans for Your Largest LoansGot huge amounts of debt, but are having trouble making the payments? You may have to renegotiate a payment plan.

Your largest loans impact your credit score mainly due to how much they affect your amounts owed.

If you are missing payments because you can’t afford them, call the lender and negotiate a payment plan. A lender would much rather get some of their money back than to let it go into default, or worse, write it off & put it in collections.

The best payment plans have reasonable interest rates (although you may expect to pay a larger rate than you are now) and have a specific completion date.

​Tip #2 – Take Care of Collection Items & Items in Default
Collections items and items in default are some of the most impactful negative (or derogatory) items on your credit report. Having just one of these can bring your score down dramatically.

​Items in default need your immediate attention. If it’s in default, it could move to collections.

When items move into collections, that’s bad news bears: items in collections can no longer be paid to the lender. In this situation, you will need to negotiate with the lender to avoid the item going into collections.

For items in default, it’s ideal to settle for an agreeable amount or set up a payment plan with the lender. However, some lenders will not accept it unless it is paid in full. For issues like these, it may be helpful to hire a debt relief company to negotiate on your behalf.

Items in collections often stay on your credit report, even if you’re paying them down. With collections items, it can be best to settle with the debt collector with the agreement that it will be reflected on your credit report as an item no longer in collections.

Ideally, you would have the debt collector settle while removing the item from your credit report. However, there are other arrangements. Learn more about items in collections here!

Part 3 in another blog

​It’s a new year, and a new you. Welcome to New Year’s Resolution season! Got a goal you never got a chance to attain? Now you can think more about it and take action to make your dreams a reality! If you’re ready for a new you, then use these best tips for improving your credit score in 2019!

One of the most popular New Year’s resolutions is to improve your financial standing. This could mean getting a new job, starting or growing a business, or doing a better job with saving money.

A big element to financial responsibility is your credit score, as it’s a numerical measure of your creditworthiness. Many American adults ignore their credit score at their peril: your credit score can be one of the easiest things you can improve! Best of all, you can make sure that your credit score only keeps improving over time.

Here are the best tips for improving your credit score in 2019!

Benefits of a High Credit Score
So why should you even focus on your credit score in the first place? The main reason is because a high credit score will help you achieve financial milestones. It will help you get a house, start a business, and even get certain jobs.

A high credit score gets you access to additional credit at a lower interest rate. It costs less to borrow money, leaving you less liable to be trapped in a debt spiral.

​A high credit score allows you to qualify for mortgages at lower rates, making it easier for you to afford your dream home.

With a high credit score, lenders, landlords, and even employers will see you as more trustworthy. There’s no reason why you shouldn’t focus on having a good credit score.

So, how do you improve your credit score? Here are some of the best tips for improving your credit score in 2019. They’re simple, and some of them can be done by the end of January!

Tip #1 – Snowball That Credit Card Debt
If your credit score is low, then you can almost be sure that your credit card debt is at least partially to blame.

Large amounts of credit card debt could be what’s keeping you from having excellent credit: even if you make your minimum payments on time!

So what does it mean to ‘snowball’ your debt? Snowballing debt is the act of paying off the smallest balances first, then working on the larger balances later. You pay the minimum payments on large balances while paying down the small balances aggressively, all the way down to 0.
This will free up additional credit, it will lower your utilization ratio, and it will ultimately improve your credit score very quickly.

This blog is to be continued

Short Repayment Plan
When you take out an emergency loan, you will have two weeks to one month to pay it back. This will reduce your stress level because you will not have to be making payments over a long period of time. There may be some circumstances where you will need more time for repayment, and this can easily be arranged.
Small Loan Amount
An emergency bad credit loan is typically $1,000 to $1,500. This will help you to avoid borrowing more money than you are able to repay. If you have the means, you may be able to borrow a higher amount. The laws of your state regarding loans will determine how much you can borrow and how much you can take out at any point in time.
No Collateral Required
One of the biggest benefits of emergency loans is there is no collateral required for you to get the cash you need. You won’t need to put your vehicle or your home at risk in order to get needed funds. In addition, if you are borrowing money for business expenses, you can rest assured that you and your family will not face homelessness or other hardships related to that business failing.
When you need money for personal expenses or just some financial flexibility.

​Today’s credit card market is absolutely bursting with card options, making it easy for nearly any consumer to wind up with a pocket full of plastic (or, in some cases, metal) cards of all makes and models.

Which isn’t necessarily a bad thing — credit cards can be fantastic tools. Between the security and convenience, purchase rewards, and extra benefits, credit cards are not only easy to use, but, when used responsibly, they can also be valuable savings tools.

And that savings can be compounded when complementary credit cards are used in conjunction to maximize rewards and perks. For example, pairing a card that offers bonus rewards for groceries with one that gives double points on dining can help you earn more on every meal, regardless of its source.

But, at what point do you have too many credit cards? There’s no set-in-stone limit on the number of credit cards any particular person can have (though individual issuers tend to set their own limits). No, determining if you have too many cards will depend on your specific situation, though there are a few common ways to tell you may be nearing your limit.

You Have Trouble Paying On Time
The credit card equivalent of the robot yelling “Danger, Will Robinson!”, losing track of due dates and missing payments is a big red alert that you’re juggling too many credit cards.

While occasionally being a few days late typically won’t cause long-term damage — late payments aren’t reported to the credit bureaus as delinquent until they’re more than 30 days past due — late payments often come with late fees, which can add up quickly.

can't pay credit card

Additionally, once you’re past the grace period (which generally ends on your due date), your balance is no longer immune from interest, which means you won’t be able to avoid interest fees. Indeed, even if you have an active 0% APR offer, a late payment will typically cancel your promotion, leaving you stuck paying interest fees at the regular rate.

If you’re loath to reduce your cards but want to avoid paying late, consider setting up automatic payments through your bank. This can help ensure you never miss a due date by automating the process. You’ll need to make sure you always keep enough money in your account to cover your next bill, of course.

You Can’t Afford to Pay in Full
Another surefire sign that you may have an overabundance of credit cards is if you’re struggling to pay all of your balances in full each month.

That’s not to say you can never carry a balance — sometimes it’s hard to avoid — but consistently charging more than you can repay is not only a warning sign you may have too many cards, but it is also a sign you may need to reevaluate your finances.

The main reason to pay your cards in full each month is to avoid interest fees. Most credit cards offer a grace period for new purchases that allows you to avoid interest if you pay the full balance before the end of the grace period.

Although the answer to having too many credit cards is rarely getting another card, if you absolutely need to carry a balance, you may want to consider a new card with an introductory 0% APR offer. This can give you a year or more of 0% interest on new purchases (though you still need to make at least the minimum payment each month).

If you find yourself falling behind on even the minimum required payment for your credit cards, it’s time to seriously evaluate your financial state. You may need to consolidate your credit card debt with a balance transfer or personal loan, as well as reduce the number of credit cards you hold to help avoid the temptation to add to your existing debt.

Your Wallet is Full
While not as alarming a sign as missing payments or carrying a balance, if your wallet is full to bursting, it may be time to audit your credit card collection to ensure you’re making the most of your purchases.

Given the abundance of credit cards on the market — and how frequently they change their offers — it’s easy to wind up with cards that provide overlapping purchase rewards or benefits. What’s more, our spending habits and needs can change over time, meaning the perfect card one year may not provide as much return the next year.

As such, it’s a good idea to inventory your credit cards at least once a year (ideally before any annual fees hit) to make sure each card is still worth carrying around. This is also a good time to brush up on the current offerings to see if a better card has come on the market that could replace one (or two, or three) of your existing cards.

You should crunch the numbers to see if any cards that charge an annual fee are still carrying their weight, and consider canceling or downgrading them if they’re no longer worth the fee. For example, if your credit card charges a $100 annual fee but you earn more than $100 worth of purchase rewards, it may be worth keeping the card, assuming you can’t find a cheaper card with a comparable rewards rate.

wallet full of credit cards

Cards without any annual fees are often best left active but placed in a drawer or safe. Closing unused credit cards can reduce your overall available credit, which may cause your utilization rate to increase if you’re carrying a balance on other cards.

Creditors Start Rejecting Your Applications
The last sign that you may have too many credit cards is when you start getting rejected for loans or credit cards. Although you can technically have as many credit cards as you can qualify for, opening too many new credit card accounts in a short period of time can be a warning sign to creditors that you may about to take on more debt, increasing your apparent risk.

But that’s not all. Credit card issuers are becoming increasingly strict about credit card churners — consumers who open new credit cards simply to earn a signup bonus, then close the accounts. Issuers want loyal consumers who will use the card well beyond the on-boarding period, not one-and-done users who won’t make them any money.

Most of the credit cards from Chase, for instance, fall under the bank’s 5/24 Rule that automatically rejects applicants who have opened five or more credit accounts in the last 24 months. This means you could be rejected solely on the basis of having too many new accounts even if you have a perfect credit score.

Other issuers have restrictions on the number of credit card accounts you can have with that issuer. For example, Discover limits users to two consumer Discover credit cards per person, while American Express typically limits cardholders to five consumer cards each.

If you’re being rejected for new credit based on the number of credit cards you have, your best option may be to “garden” your credit. This basically means avoiding opening any new credit cards for a year or two while your current accounts age. Be sure to responsibly maintain all of your existing credit cards while gardening to avoid damaging your credit in the meantime.

Credit card fraud is the illegal use of your credit card by someone who purchases goods or obtains funds from your account without your permission. It’s important to note that identity theft and credit card fraud tend to spike around the holiday season, so vigilance is key right now!

Credit card fraud is a specific type of identity theft, which is when someone steals your identity (i.e., Social Security Number, medical record information, other personal data) and uses that information to gain credit for themselves. It’s much smaller in scope, and there’s less financial liability. Still, it’s something that needs to be taken care of quickly in order to minimize the impact on your finances.

How Credit Card Fraud Occurs
There are many ways credit card fraud can happen – both online (through the Internet) and offline.

Examples of online credit card fraud:
Card-not-present transactions that are made through online retailers.  Some online merchants may allow or not properly prevent hacking of your credit information. Untrustworthy sellers can also use your card number to their own advantage.
Phishing occurs when thieves send you an email that appears to be coming from your financial institution. The email tricks you into believing they need you to send them information in order to verify your account. Once you click “send”, the criminal has your data.
Account takeover happens when a criminal obtains your personal information through a weak password or lack of virus protection and then uses your data, including your credit card information, to make purchases.
Examples of offline credit card fraud:
Dumpster diving, unbelievably, remains a big problem. This is when thieves go through trash (and mailboxes) looking for credit card offers, then complete the forms and use your information to get a card for themselves.
In-person transactions with a dishonest seller can lead to credit card fraud if you leave the card in their hands for an extended period. They can write down your credit card number, or take a picture of it with their phone, and then use it online.
Skimming is a crime that occurs when a particular device is put on an ATM (or other card swiping technology). The skimmer reads your card’s data and then stores it in a database where it can then be used or sold to the highest bidder.
7 Ways to Avoid Credit Card Fraud
Now that we know how credit card fraud occurs, let’s talk about different ways to avoid it…

Keep track of your bank statements. If you’re aware of the purchases and charges on your card, you’ll be able to pick up any signs of fraud quickly.
Shred old cards and bank statements. If you’re not using a credit card or it’s expired, cut it up or shred it. The same goes for printed bank statements. If you shred the statement and then throw it out, you’re helping to protect your personal information.
EMV Technology. Apply (or ask) for a credit card that has this technology (also known as the “chip”). This provides more security than cards with “magnetic stripes” that can be copied with illegal card reading devices.
Set up fraud alerts. If you set up a fraud alert on your credit report (from each of the three credit reporting agencies), you’ll be notified if anyone tries to open an account with your information. Again, this helps stop thieves from moving further into stealing your cards and/or your identity.
Confirm website legitimacy. When making an online purchase, be careful about storing your information with that merchant. It makes it easier to purchase goods, but it also makes it easier for thieves to get your data if the site is hacked.
Online security. In addition to having a reliable antivirus program on your computer, be sure to create an online account with unique, secure and complex passwords that you change often.
Website security. Online transactions should be made on websites that have URLs that start with https:// or includes a lock symbol in the browser bar. This helps determine if the site is safe and secure.