How to Eliminate Unsecured Credit Card Debt

Everyone's debt situation is unique and determining what will work best for you begins with categorizing your debt. Whether your debt is secured or unsecured significantly effects the measures you can take to eliminate debt.

Secured debt is a loan which is "secured" by property. Simply put, if the bank can come and take something from you if you don't pay (ie; home, car) then the debt is secured.

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Unsecured debt is the most common type of debt and is typically in the form of credit card debt.

How to Eliminate Unsecured Credit Card Debt

Eliminating Unsecured Debt

The three most common ways to eliminate unsecured debt are

1. paying as agreed

2. bankruptcy

3. reaching a settlement with the creditor for less than the balance due - also known as debt settlement or debt negotiation

Bankruptcy is rarely a viable option. Due to the changes to the Bankruptcy Law in 2004 by the Bush administration, estimates are that less than 10% of people who file for bankruptcy are successfully discharging any debt. Most have to pay it back now under Chapter 13.

Credit Counseling and Debt Consolidation services typically focus on eliminating your debt by settling with your creditor for less than the balance due. These services are typically owned by large banks and credit companies and typically charge a fee. The good news is, this is something you can do on your own.

Settle For Less than the Balance Due

The key to a successful settlement is leverage. If a bank thinks they can get more out of you, they will not settle. This means that you may have to go months without making any payments. This will reflect poorly on your credit report and affect your credit score, but it is a necessary to obtain a good settlement.

During the time you are not making payments to the credit card company they will constantly attempt to contact you to discuss it. This is best dealt with from the very beginning by sending them a letter requesting that they only contact you in writing. Also, it is very important that you familiarize yourself with your rights under the Fair Debt Collections Practices Act and the Fair Credit Reporting Act. Collections representatives often behave in unscrupulous ways and knowing your rights is your key to fighting back.

Once you have sufficient leverage against the company it is time to attempt a settlement. A realistic goal would be to settle the debt for between 35%-50% of the balance. Contact the bank or credit card company directly and they will likely transfer you to their collections department. Once in touch with the collections representative simply let them know you wish to resolve the debt. Typically, they will make you an offer to settle for 65%-80% of the balance before you ever make an offer to pay. Let them know what you do have; an initial offer of 15%-25% of the balance is reasonable. They may tell you no or tell you that they have to speak with their manager but continue the negotiation as necessary to settle within the range that you desire.

Some credit companies are more apt to settle than others. For instance, American Express can be a very difficult company to settle with for less than 60%. Search the internet for information on your particular bank or credit card company to see how others have fared.

How to Eliminate Unsecured Credit Card Debt

Learn everything you need to know about negotiating a debt settlement and eliminating your credit card debt at

The Disadvantages of a Credit Card

When looking at the advantages of having a credit card it is very easy to overlook the disadvantages and the possibility of the spiraling costs of items compared to waiting and paying for them once you have saved enough money to pay outright. Here area few of the basic disadvantages.

With a credit card comes the interest payments. Unless you pay off the total amount of your credit card each month (and chances are you won't) you will end up paying interest. This interest will mean that the cost of paying for items ends up being much more than they originally cost.

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It is easier to buy on impulse. When you have the ability to pay for something there and then on the spot means that you are more likely to pay for something on your credit card. This means you are more likely to get into debt buying things that would normally be either too expensive or a luxury.

The Disadvantages of a Credit Card

If you are late with your payments then you will pick up charges, the average late charge is so imagine if you miss 3 payments by a day you will pick up in charges. Doesn't matter if you owe 00 or you will pick up the full charge so always pay on time!

Annual fees are very common with credit cards which again can push up the cost of paying for items without you even realizing. There are some transaction fees that you will encounter when buying certain items but this varies from card to card.

Basically be very careful when you are applying for a credit card make sure you weigh up all sides of the argument for getting one.

The Disadvantages of a Credit Card

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How Often Do Creditors Report to the Credit Bureaus?

Credit reports provide great details about a person including name, birth date, Social security number, home address, how payments are made, income, employment history, home ownership, previous address, court cases, judgments, and bankruptcy and foreclosure records.

Above all it gives details about a person's credit history. These include all the creditors with balances and accounts that are closed or in collections. It will also indicate if there are any late payments, and any other irregularity. In addition it will also list the requests for that credit report by creditors during the past year and requests for credit reports including those by employers for the past two years.

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These reports are maintained by three nationwide credit bureaus which use slightly different sources to compile the information. Based on the information they have credit bureaus calculate a figure called the credit score. The three credit bureaus Equifax, Transunion, Experian use different formulas to arrive at their score. The credit score can be considered a mathematical way of determining the likelihood of the borrower paying back a loan.

How Often Do Creditors Report to the Credit Bureaus?

This information can be accessed by creditors, insurers, employers, and others who have been legitimately allowed access subject to conditions through The Fair Credit Reporting Act (FCRA). It is clear that accurate information in the credit report is important to everyone concerned not only for the person about whom it is concerned but to anyone else who may want to rely on it for decision making. As such it is important to understand how the credit report is compiled and the accuracy of the information and sources on which that compilation is made.

It is important to know how and at what frequency credit information reaches the credit bureau. On examination of their procedure, it is clear that frequency of reporting varies depending on the creditor. While some creditors will report any changes in the customers' balances every day, others will report once a month or at longer periods. This is mainly due to efficacy reasons, since with most people there will not be much of a change in credit balances. Because of that creditors will only report if there are any changes in the credit balances. This therefore means that for some people their credit report will get updated about once a month while others may not see any change in their credit reports for 3 or 6 months. On the other hand creditors will report late payments and other negative activities quite promptly.

How Often Do Creditors Report to the Credit Bureaus?

Find out how to obtain a free credit report online by visiting a popular credit report website that offers tips, advice and resources to include information on obtaining a free copy of your credit report

Loans For People With Fair Credit, A Second Life Chance For You

If you are classified as a bad credit holder, the financial market tends to shy aware from you. If you approach a lender or any financial provider, you are likely to be turned away. This is not good for you, especially if you find yourselves in a dire financial need. Some financial hurdles, such as unexpected medical operation, utility bills, urgent car repair and such others, can not wait until the end of the month or your next payday, rather they have to be settled immediately. This is why a person should always try their best to see that any due loan installment is settled immediately before it develops into something they can not be able to handle.

Otherwise they are those who are considered as fair credit holders, meaning that their credit rating is not very bad and lenders can avail them with the loan amounts they require without much of a hassle. Though they are considered as risky borrowers, lenders still grant them with their loan request but at a high rate. When they get the money they required, their credit rates improves greatly if they show a consistent repayment pattern. The reason the lenders charge them a higher interest is to cover themselves, just incase the borrower defaults once again.

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It is always a good idea for a borrower to know their credit history score before approaching a lender for a loan. This is done by getting a credit score from organizations such as fair Isaac credit organization (FICO). Their score ranges from 350-800. If a borrower scores more than 720, then their score is considered as good, whereas if the score is lower than 600, then it is considered as a bad one. Anything between 600-720 is considered as a fair credit score. This is where those borrowers seeking for Loans for People with Fair Credit falls in. Other agencies that will help you to know your credit score rating includes; Trans union, Experian or Equifax.

Loans For People With Fair Credit, A Second Life Chance For You

A loan for people with fair credit can be used for various purposes; for instance, paying for your education, debt consolidation, paying for your wedding expenses. There are two ways of attaining a loan for people with fair credit; unsecured and secured. If you obtain your loan in the secured format, then you must pledge an asset that corresponds with the loan amount requested. Here, the rate of interest is comparative lower and repayment term is flexible, it can be extendable to suit your financial resources. However, if you take your loan in the unsecured format, then the rate of interest is higher with a shorter repayment period the reason being that you pledge no security or collateral against the loan amounts. The money that can be availed is also smaller and it is dependent on what you earn per month or your total monthly income. The higher you earn, the greater the amounts that can be availed and the vice versa is true.

Proper documentation is required with these types of loan products. The documents required includes, a full detailed credit report, income tax returns, bank statements and details of property on which you are pledging as the security. Depending on the borrowers credit history, and repayment capabilities, amounts ranging from ,000 to ,000 can be availed. The repayment duration varies from 5-25 years depending on the borrowers repayment capabilities. If you shorten the loan repayment duration, then your debts burden is reduced significantly because less money is paid off as interest. Moreover, if you paid your loan installments in a timely manner, your credit score improves greatly.

There are various methods of applying for Loans for People with Fair Credit; you apply by physically visiting your financial institution or you can apply online. Applying online is the easiest and most hassle free amongst the two methods. Your loan will be waiting for you, the shortest time possible. But before the lender can grant you with your loan request you must fulfill their basic loan requirements. These are; you must be 18 years of age or over and must be a permanent citizen of the country you are applying in. Another requirement is the need for a regular persistent income that comes at regular duration. Lastly, you must have a valid and active bank account on which the loan amounts will be deposited in.

Loans For People With Fair Credit, A Second Life Chance For You

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Landlord Background Checks - Do a Background Check On A Tenant

Many people with properties earn an extra income or make their income by renting out their home or establishments. The landlord usually tries to rent out their home or other establishment to known people or through people known to them in order to avoid the risk of getting tenants who may not pay the rent properly.

But, renting out the home or establishment to a known person is not always a possibility and the landlord might have to rent out their place to a person unknown to them. In such cases, it becomes necessary for the landlord to run a background check on the tenant to ascertain his credibility and the ability to bear the financial responsibility of paying the rent.

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There is also the risk of the person whom the landlord wants to rent out his premises having a criminal background or being a terror suspect, etc. There are chances that the person may be a habitual sex offender. All these associated risks make it imperative for background checks by a landlord on his tenant.

Landlord Background Checks - Do a Background Check On A Tenant

Usually, such background checks for the landlord are conducted by accredited agencies that work on the guidelines from Fair Housing Laws and Fair Credit Reporting Act. As per these acts, there are certain types of landlord background checks on the tenant that require a consent to be signed by the prospective tenant before they can be conducted.

Based on data provided by the prospective tenant, the agencies will verify the information with references and also by checking various data bases. The agency will first conduct the employment verification and tenant verification by contacting the list of references provided and checks the authenticity of the information.

Once this has been completed, the agency will then continue the landlord background check on the tenant by accessing several public records such as social security number, driving motor vehicle records, etc to check the identification of the person and also to cross refer the information provided by the tenant as well as his references.

They will then conduct a search on some databases such as state or county criminal records, sex offender registers, state eviction records, etc to search whether the person has any criminal background and to ascertain whether the person has any history of violence and creating nuisance. The also access a database called the terror watch list report that has a list of terror suspects and most wanted people to eliminate the chance of the person belonging to any such lists.

If sought for, the agency conducting the landlord background check on the tenant will also run a check on credit history of the person. This is to ascertain whether the person is running any bad debts that may affect his financial standing and his capability to pay the desired rent.

Landlord Background Checks - Do a Background Check On A Tenant

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