Step One To Get Started – Fix My Credit
Posted at by ifydcat on category CreditConsider a situation that you need to purchase machinery or any other important asset for setting up a business, but do not have adequate cash. You may ask a bank for a business loan, but have to wait weeks to see if your loan is approved or not. In such a scenario, taking a business credit card will be an ideal option to bridge a gap in funds.
What’s in your budget? The purpose of credit counseling is to get you into a DMP, or a debt management plan, and most credit counselors, which are non profit, have a suggested monthly service donation of $40 to $60. So in the long run credit counseling may cost you more but debt settlement also comes with its monetary risks and disadvantages because when you enroll into a debt settlement program your payments stop to your creditors and your creditors may choose to sue. Although some debt settlement organizations will charge you an upfront fee and can also have monthly service fees, credit counseling, in general is the more costly route.
How is this going to affect your credit? Credit counselors report that credit counseling and their DMPs do not have a negative effect on your credit rating. That may be true, your score may not be lowered as a result of credit counseling but it will show on your credit report that you are or were in some sort of credit counseling. A debt settlement program on the other hand will have some negative effects on your credit report because the purpose of the debt settlement program is to stop making payments to your creditors, instead you stock pile your funds for a lump payment. Credit counseling is the definite better choice if your credit is your highest priority.
It is very important to understand that once you get begin to fix your credit, you will need to access your credit reports several times to see if the work you or your credit repair professional has implemented is working. On average every third to fourth month after a request has been made to either the creditor or bureau, will be a good time frame to access new reports to see if corrections have been made.
Get your reports electronically (PDF format) if possible. Save these files so that you can reference them in the future once your credit repair is underway. In addition, if you need to share these reports with anyone who is counseling you or help you repair your credit, it will be much easier to send an email with the PDF attachment them having to fax 30 or so pages.
There is a great feeling of accomplishment when you begin to see negative items on your credit report removed or deleted. By having previous reports you can reference, you will know how long your credit repair should take and reinforce your determination that you can fix your credit. Take action, stay committed and do not keep repeating any habits that got you here in the first place.
It all comes down to what you’re comfortable with, if you really feel that you have nothing to lose and you’re very close to bankruptcy and you’re not adverse to risk than maybe debt settlement is the best bet for you. If you are adverse to risk and cherish your credit than maybe credit counseling may be in your best interest, but like we mentioned earlier what type of debt you have is very significant because if you have 100% of a certain creditor that will not settle, than you are probably going to be better of with credit counseling.
It is very important to evaluate your financial requirements before choosing a card for the business. If you have a tight budget and do not have the cash to cover the expenses, then resist the temptation for the business credit cards.
Harris Smith offers advice on Debt Consolidation and obtaining credit. Applying for Debt Consolidation can help.