People who have never had any type of credit account before do not have histories at any of the big three credit agencies, so that makes it difficult to calculate the statistical odds that these consumers will pay their bills on time. If you can demonstrate income, or line up a co-signer, you can get a reasonably affordable deal on a card. If you don’t have either, and are under the age of 21, you won’t be able to get a credit card.
Tighter Credit
Federal laws passed in 2008, and that went into effect early in 2010, limit the practice of granting credit cards to people under the age of 21. The legislation requires underage people applying for credit cards to demonstrate their ability to repay debt or have an adult co-signer agree to accept joint responsibility for the account.
Doing anything yourself is going to save you a lot of money. Whether you have to fix a faucet leak, or maybe you want to get your credit repaired, if you skip out on the professional companies, you’re going to be able to save yourself a lot of money.
How can I repair credit all by myself?
For starters, you’re going to find that debt doesn’t go away by itself. It’s going to take some motivation and action. This is the step that many people skip out on. It’s going to take time, effort, as well as money. Money will always equal getting rid of debt!
Step #1 Get your credit report checked
The first thing that you’re going to want to do is get a copy of all three credit reports. You can get your free credit report annually through the government at annualcreditreport.com. Be sure to study each and every one. If everything looks great, we’re ready to go! If there are some errors, refer to a post that I made earlier titled “How to get rid of negative items on your credit report.”
Things that you’re going to want to look out for are charges that were never made, late payments that you didn’t make, or accounts that are not even yours. Be sure to highlight those that are raising question marks.
Step #2 Start fighting off that debt
A lot of debt is going to lead to a lower credit score. The more debt you have, the harder you’re going to have to work. Sure, there are good debts such as your mortgage, but it’s always wise to pay those off as well.
First of all, you’re going to want to focus on your debts such as loans, credit cards, and more. Again, there is NO secret formula. You’re just going to have to make money to get rid of these debts. Pay off each credit card, while paying the minimums on the others. You don’t want to miss a payment.
Experts are going to tell you to pay off the highest interest rate first and I 100% agree. Pay the most toward the highest interest rate, while paying the minimums on everything else.
Step #3: Keep on fighting
As the debt does down, your score is going to rise. This isn’t going to happen over night. Instead, you’re going to want to wait a few years before you see it rise significantly. As your score goes up, this more than likely means that your debt is going down.
Again, you’re going to want to realize that there is no magic formula. Kill your debt and throw as much money as possible. It really isn’t hard, it’s just going to take a lot of time. If you find that you’re having a lot of trouble, you can always meet up with non-profit organizations that can give you counseling.
A Retail Merchant is usually a shop-keeper or store owner who purchases goods at wholesale and resells them directly to customers. The general public makes the majority of their purchases from Retail Merchants.
The term Retail refers to the price paid by the ultimate consumer, and such sales are, for the most part, transacted in smaller quantities, as opposed to Wholesale, where things are bought in bulk.
Retail Merchants sell their goods in either a walk-in store, or an on-line web store, or both. Their mission is to make a profit on the goods they resell to the public.
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I was up late at night the other night and I saw a commercial while half awake at 2 in the morning. They had claimed that you can create your own credit file for a low fee! It’s that easy. You can start from scratch and you don’t have to worry about your lousy credit past.
So, this got me thinking because I have honestly never heard of something like this. I was really curious on how it works because generally, if it sounds too good to be true, it generally is! What I had found is that this is usually the case but I had found some alternatives that you can use if you’re looking to start a new credit file.
How can I start up my new credit file?
Now, since we want to be legal on this blog, you’re going to have to follow these instructions carefully. If you want to start up your new credit file, the only way that you can do this is simply by applying for an EIN. An EIN is your employer identification number.
Your EIN is generally distributed to those that have their own business. This means that if you want to start up a new credit file, you’re going to have to start up your own business legally. No, you can’t just set up your own fake business and get away with it, because you’re going to find that it’s not going to work.
Now, you’re going to realize that many companies are still going to require your social security number, but there are places that will accept an EIN. You’re going to have to find these places. Establishments such as jewelry stores, office product based stores, and places that relate to businesses are going to accept your EIN, rather than your social security number (SSN).
When those places do accept your EIN, this is technically your business and not your personal credit report. Chances are that if you do use this number, your credit limits are going to be rather low, since you will be new to the game again.
You have to remember that these EIN’s are assigned to new businesses only and this is one of the only ways that you can legally establish one. You don’t want to apply for one if you don’t intend on opening up your own business, because the IRS will catch onto you.
How can I get my EIN?
You will simply want to go to IRS.gov, request a EIN and fill out the application. The IRS will give you a temporary EIN. You will then receive a packet confirming that number.
More than likely, those that are going to say that they can create a new creit file are those that are going to scam you, so beware!
Credit Card Debt–Moving Forward
The last edition of this column provided some advice for those who are struggling with credit card debt. It was directed toward people who still have some hope of digging themselves out of their hole, but ended up suggesting a way forward for those who’d hit bottom, and were now seeking ways to rebuild their credit scores.
It recommended signing up for a secured credit card, such as the Public Savings Bank Secured Card, the Applied Bank® Secured Visa® Credit Card, or the New Millennium Bank Secured Gold Visa® or Mastercard®. Secured credit cards usually report your account activity to the big 3 credit bureaus (make sure that the one you pick reports to all three) so you have an opportunity to repair the damage to your credit score.
Credit Card Use Without the Credit
But the problem with secured credit cards is you have to lodge an upfront deposit with whichever of the credit card companies you choose.
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