Facing the Credit Error Monster and How to fight it!

Facing the Credit Error Monster

Are you thinking of seeking out a lender for a potential purchase? You’ll need to see if your credit is good first! Having a solid understanding of your credit record and subsequent credit score is a great way to plan for your financial plans. If you have a good looking score, the better the odds you have at getting approved at a reputable lending institution—with a really convenient rate to boot!

So how do you check your credit record?

You do that by getting a copy of your credit reports from credit bureaus. If you’re worried about fees, don’t worry about it. Federal Law protects your rights to request for a free copy once per year.

Before you freak out, the file they have on you isn’t that extensive. They’ll only have information from any lenders that you’ve worked with before (with your permission), any records that are made public, and other sources. Your credit record will never have your annual income on its file—that would be unethical.

When you get your credit record, it is important that you peruse it carefully and thoroughly. It is critical that you make sure that the information is up to date and does not reflect any inconsistencies. For example, you might have already paid of a loan but your credit record says that it’s still ongoing—that can be a pretty annoying issue down the road.

You find an error in your credit record! Now what?

Stay calm and get started on the process on contesting that error. The unfortunate part of this is that the process can be a lengthy one depending on what avenue you choose to pursue. What’s important first and foremost is to find where the error comes from!

Common reasons/sources for credit report errors!

Credit reports take time a lot of manpower. So while credit bureaus hold all the necessary information about you and your credit history, there are still frailties within and outside of the system that can lead to errors. Here are a few:

Clerical errors by credit bureaus

While we would love to think that the process is streamlined and all they have to do is to press a button and your information is herded together and printed out—this is hardly the case. This is often easy to track. If you have documents to show that: 1.) You did not make any mistakes in your provided information and 2.) Your bank or lender did not make any mistakes in the information they forwarded.

If you can establish that the error comes from the credit bureau, you have a great start at fixing the error.

Personal errors

We cannot stress the importance of writing legibly and triple checking the information you have on the application forms for any loans or credit establishments. If you review your paperwork and you find that you have made an error, it would be prudent for you to contact where you made the error and have it changed accordingly.

It may be a bit of a hassle, but getting that fixed is super important so it doesn’t blow up into a larger issue later on.

Clerical errors by banks or lenders

One of the more highly frustrating sources of credit report errors as it is often difficult to get them to cooperate unless you subject them to an official investigation.

When you do subject them to an investigation, make sure that all your paperwork is in order and that there are several copies prepared. Also, be consistent with your follow up.

Identity theft

This crime is one of the highest reasons for credit report errors. If you cannot spot any errors in your personal records, your bank’s record, and the credit bureau’s records—it is highly possible that you are a victim of identity theft.

You can protect yourself from having this happen to you by carefully tracking your spending. Always review your credit card statements or any bills that are under your name. If you spot anything that you personally do not have knowledge of, it is important to follow up on that right away. There are clues that you can rely on like dates of purchase or location. If you can prove that you were somewhere else during those dates, places, or times, it is easy to prove to your bank or credit bureau that the negative and false information should be stricken from your record.

Now that it’s clear where the issue is from, what do you do?

Handle the disputes in person

One of the worst things that you can do is to send a dispute or inquiry online and through the website of the source (not including identity theft). Lawyers will tell you that most establishments will have you click an “I accept” before you get to type out your dispute. This means that there is a high possibility of them hiding a clause that waives your right to sue after you prove that the error was made by them.

Protect yourself from such sneaky tactics by writing out your dispute letter and having a trusted carrier deliver it. Be prepared to have multiple copies of that letter and any evidences that you have to prove that there was a mistake in your credit report.

Prep paperwork for each dispute

If you notice that there is more than one error in your credit report, do not let that slide. Prepare a document for each separate error. While it can be a monumental hassle, it is better to fix this now before you get declined later over an erroneous report. Keep everything in clearly labeled folders for your personal copies.  Keeping organized is one of your best ways to beat off a credit error.

Get an attorney

Having someone who is fully versed in consumer law is important. They will be able to offer you insight and guides on how to safely maneuver through these troubled waters.

Now, forge ahead and fix that error!

5 reasons why your mortgage application may be rejected

mortgage_application_may_be_rejected

Everyone dreams of owning a house where they will spend the rest of their lives peacefully. However, not many people are fortunate enough to become the proud owner of a beautiful house. The home prices are rising and the mortgage rates are also high. When you apply for a mortgage, it is uncertain whether your application will be accepted or not. Many factors are involved in a successful mortgage application. If you know why your application may be declined then you will be able to increase the chance of getting a mortgage for your dream home. Here are some of the reasons why your mortgage application may be declined.

Bad credit history

This is the most common reason for not getting your mortgage application approved. When you apply for a mortgage, the lender will go through your credit history and see if it’s in good standing. If you couldn’t pay off your credit card bills or utility bills then it affects your credit score. It shows that you are unable to pay off your debt. So, the lender will be reluctant to give you any more loan. Your mortgage application will be rejected if your credit score is poor as the lender will assume that you will be unable to repay your mortgage amount on time. If you had a County Court Judgment (CCJ) ever issued under your name or if you have applied for bankruptcy ever, then these will be reflected on your credit score report. So, you will have very low chance of getting a mortgage. Before you apply for a mortgage you should make sure that you have a good credit score. You should always pay off your debts on time.

Not sufficient credit history

Having credit card is a bad thing, but not having it at all is also bad. Some people only use cash for their expenditures. They choose not to apply for any credit card or personal loan ever in their lives. So, when they apply for a mortgage the lender doesn’t know anything about their credit history. They won’t be able to conclude whether you will be able to pay your mortgage on time or not. There should be sufficient information on your credit report that shows that you can handle credit well. If you are thinking of applying for a mortgage then you should build up a good credit history. You should have one or more credit cards, use them sometimes and pay off the balance on time. You should make sure that you don’t miss any monthly payment; otherwise, your credit score will be affected.

Low down payment

Down payment is considered to be an investment. When you buy a house, getting a mortgage isn’t enough. You must give some down payment as well. The more down payment you pay, the more lenders will be convinced that you are financially strong. So, your chances of getting a mortgage will be higher. As a thumb rule, you will have to pay 5% to 25% of the total home value as down payment. So, you need to make some good savings before you apply for a loan.

Employment gaps

You must have a consistent employment history to get a mortgage. Most lenders ask for minimum two years of continuous employment. If there is a gap in your employment history then it will affect your credit score. It shows that you had been in financial difficulty for some time. If you switch jobs often, it will give an impression that you are not stable. Also, it indicates that you might not be able to pay off your debts on time. The amount of mortgage you get depends on your affordability. So, your employment is a very important factor in deciding whether to approve your mortgage application or not.

Insufficient or incomplete information on the application form

You must fill in your home mortgage application form very carefully. You must ensure that you give all the required information. You must not hide any essential information, like any gap in your employment or any loan you already have, etc. If you don’t provide enough information then there is high chance that your application might be rejected.

It can be very frustrating if you get declined for a home mortgage, especially if it’s your first time. You must have dreamt of your own house and did all the calculations for months before applying for the mortgage.Not getting your application approved can be very disappointing. To avoid such situation, it is wise to build up your credit scores and talk to a financial adviser to learn about the mortgage requirements.

You should make sure that your application is strong enough that there is least chance for it to be rejected. In case you get declined, it doesn’t mean that you won’t be able to apply for a home mortgage again. You should understand why your application had been declined and try to fill up the gaps in your application. Your circumstances may change, you may become financially more sound and stable.

Then you can reapply and get the loan. If you have a good credit history, stable employment and enough money to pay your down payment then you will definitely get a home mortgage. If your credit score is good, you might get a mortgage at a low interest rate. Buying a home is one of the major milestones of a person’s life. You should do your homework well before applying for a home mortgage.

 

Steps to Take When Starting a New Business

Steps To Take When Starting A New Business

Entrepreneurship is the new sexy!!! It is 21st century’s coolest career option.

Entrepreneurs are today’s superheroes and world changers!!! It’s Entrepreneurs who create the future!!! Steve Jobs, Bill Gates, Mark Zuckerberg, Elon Musk, Richard Branson, and many more have changed the face of entrepreneurship.

We have more people taking up entrepreneurship today than at any time in the past. But, what most people do not understand is that Entrepreneurship is tough. It is more difficult than it is sexy. The people who succeed at entrepreneurship are way too small compared to those who fail.

Success in business is not guaranteed under any circumstances, but there are some things that you can do that increases your chances of success.

Is Entrepreneurship for You?

As exciting as it may sound, starting a new business is no simple task. There are many challenges and obstacles that you will face on a daily basis. So the first question you need to ask yourself before venturing into a business is whether you are built to be an entrepreneur. The answer to the question lies in understanding if you possess the following characteristics and skills:

Hardworking High risk taking Good negotiator Creative Independent Self discipline Good at people management

Finally, the most important is whether you are all persuasive: This is the most important of characters required if you have to succeed in business. Steve Jobs rightly put it when he said, “I’m convinced that about half of what separates successful entrepreneurs from the non-successful ones is pure perseverance.”

Once, you are convinced that you have it in you to be an entrepreneur; it’s time to roll up your sleeves and get to work.

Following are some steps you need to take when starting a new business:

Business Plan: This is the most important step when starting a new business. Never go into a business with just a half-baked idea. Have a clear roadmap as to what needs to be done for the business to succeed. Brainstorm your idea, understand the market and assess your finances. Your business plan should outline the business’s activities and strategy for the next three to five years. Be flexible but at the same time have a plan. Remember, good Preparation is half the job done.

Get Assistance and Training: Attend business programs and seminars. Find yourself a mentor if you can. Get any training that you think is necessary. There is nothing as excessive knowledge. This will prepare you for everyday challenges.

Location: Finalize on your business location. Take into consideration how important physical visibility for your business is. If an e-commerce business, get the services of the best designers and developers.

Funding: Plan ahead for at least a year in terms of finances. Do not go into business with a short-term plan. Irrespective of your business’ success, it will take time for you to post profits. So, know where your money is coming for the next year.

Legal Structure: Your business must have a legal structure. There are many options available such as proprietorship, Limited Liability Company (LLC), partnership and private limited company. Decide and move ahead with the best option for you.

Register Business: Once the structure is decided, finalize the name and register it.

Tax Identification Number: A tax identification number is a must for a business, and you will need to get it from the state revenue agency and the IRS. It is a must to register with state government agencies to provide worker’s compensation, disability, and unemployment insurance.

Business License and Permits: Depending on the nature of your business, you will have to get necessary permits and licenses from respective agencies, local, state and federal.

Employer Responsibilities: Being an employer comes with many responsibilities. You must gain a clear understanding of this to legally hire and manage employees.

Once you have done the above, you are ready to take your business to the market.

How to Manage Business Finance

Manage business finance

Every business is different and juggles with different amounts of finances. Some share a big portfolio of billions of dollars while others a few thousand. However, all businesses, from plumbing services to paper manufacturing share one common goal — to make a profit!

In order to maintain or maximize that profit, and give your business a fighting chance vis-a-vis a potentially more robust and established competition, you need to understand some basics of business finance management. The lifeblood of your business might come to depend on it, especially if you have newly set up shop and has little to no financial means of hiring professional aids like an accountant or business consultant.

– Automate your Cash Flow Management

The more finances you have at hand, the more you can invest in making your business grow.

Managing cash flow blindly, without a consistent and systematic method will consequently result in a catastrophic cascade of bad investments resulting from bad decisions. The trick in business is replicating successful ideas and discarding bad ones. You will make mistakes, bad investments and so on However, limited by human memory, it is easy to lose track of those “winning decisions”.

A good business finance management software will help you keep sight of your investments, good or bad so that you can go on and repeat only those decisions/investments that work for you and your business. They are also relatively cheap, considering the benefits they can bring to your business.

Alternatively, you can do it the old-fashioned way with a book record. It is daunting, and a little less effective than automated software, but still more efficient than relying on nothing but gut feelings and fuzzy memory.

Heck, before the advent of computers, this was the only way for anyone to keep track of anything, and it has proven to work for thousands of years, hasn’t it?

– Consolidate your Debt

Sooner or later, you will face a situation or many situations where your clients fail to meet their end of the deal. Clients not paying in a timely manner can put a big ding on your financial help. Don’t let it accumulate and make provisions on a weekly, monthly or yearly basis on how many clients you can allow not paying their due. If you go beyond this threshold, consolidate your debt immediately.

Your clients need to know that they have to pay you, based on the terms you establish. This is also important on a legal front. You can then delegate those payments into micro-tasks. For example, profits from a set number of clients go into payroll, another into buying advertising and so on Be on top of things by keeping track of every penny you spend in your business by using the methods we mentioned above.