If you are applying for a loan, obtaining a copy of your credit report is the first place you should start.  Your credit report more than likely is the first thing a potential creditor will look it.  Even if you pay your bills on time and have a good credit score you want to ensure that all the information in your credit report is accurate and up-to-date.

Studies have shown that many credit reports contain inaccurate information what could affect your credit rating and even cause your loan application to be rejected.  If you discover a problem, you can fix it before potential creditors access it.  

You can get a free copy of your credit report from AnnualCreditReport.com. You are entitled to 1 free credit report within a 12-month period from each of the three agencies.   This free credit report doesn’t show your score, but will show items listed on your credit report.  To get your score you will have to purchase your credit report from services such as Equifax.

Before applying for a loan, check your credit report for the following items:

Clerical Errors
Credit reports sometimes contain errors that are a result of clerical (human) error or a computer glitch.  These may include late payments, payments not credited, or data mixed in from a credit file of someone with your similar name.  

Excess Unused Credit
The fewer charge accounts you have the more attractive you are to a potential lender.  You may want to consider reducing the number of revolving charge accounts listed as active in your credit report.  Lenders sometimes view too many revolving debt as a negative when considering a loan application.

Inactive Accounts
If you have accounts you have stopped using, it’s a good idea to close these accounts if you don’t plan on ever using them.  When you close an account, make sure your creditor notes the account as “closed at consumer’s request”; otherwise, a potential lender might assume the creditor closed the account for other reasons.

Credit Card Accounts
Well managed credit cards may improve your chances of getting a loan at a good rate, especially a mortgage loan, where lenders use stricter qualifying guidelines.  It’s also advised to keep credit card balances around 75% of the available credit limit.  Ironically, credit cards with high credit limits are viewed as potential debt, while maxed-out cards make consumers less desirable credit risk.  Both of these scenarios could limit your ability to get a loan.

30-day and 60-day Late Payments
If your credit report contain a couple 30-day late payments entries that are accurate, lender may over look the occasional late payment if you explain the situation and your credit score is good.  Try to avoid late payments over 60 days because it will raise a red flag to some lenders.  Even if you obtain the loan, it may come with a higher interest rate and will less favorable terms.

Most lenders are interested in the last two years of data on your credit report.  Therefore it’s a good idea to maintain on time payments and verify that the payments are credited properly on your credit report.

Avoid Unnecessary Inquiries
Every time your credit report is accessed by a creditor it is noted on your credit report.  Most inquiries stay on your credit report for up to 2 years.  Inquiries made by you, for drug screening, pre-approved credit offers, background checks for employment are not reported on your credit report.

Excessive inquiries may cause lenders to think you are trying to get credit due to financial difficulty or you are taking on more debt than you can repay.  However, lenders do realize that some inquiries are a result of shopping around for the best loans and will overlook a block of inquires within a recent period.
 
The key to smart credit management is to fully understand how your credit report affects your financial future.  Reviewing your credit report is a vital part of financial planning and is one of the best ways to ensure you meet your financial goals especially when it involves major purchases.  Unknown inaccuracies on your credit report could cost you hundreds or thousands of dollars in the long run because creditors my grant you loans with higher interest rates and stricter guidelines.

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Will a negative item on my credit report come back after I succeed in deleting it?

Credit bureaus will sometimes delete a negative listing temporarily if they haven’t heard from a credit grantor within 30 days.  If a credit grantor then reports a negative listing, the credit bureaus will often reinsert the negative listing on the credit report and reverse the credit repair.  However, many times, the creditor will fail to respond and the negative listing is permanently deleted and repaired.

Credit bureaus must follow strict procedures, per the Fair Credit Reporting Act, to notify you if they decide to re-report a listing on your credit report.    

Are negative items such as bankruptcies and foreclosures impossible to remove from the credit report?

There is no type of negative listing that can’t be removed and repaired from a credit report.  It has been done many times.  However, negative items such as unpaid debt and bankruptcy are very difficult to remove and repair.

Do I get a new credit report if I declare bankruptcy?

Bankruptcy is to the credit rating what a nuclear bomb is to the battlefield.  When an individual files for bankruptcy, every credit account that’s included in bankruptcy becomes an “included in bankruptcy” item. Bankruptcy discharge listings and filings will appear in the court records section of the credit report. With so many negative items are attached to a bankruptcy, it will be extremely difficult to remove all trace of the bad credit, if at all.  As a result, it is advised that you should avoid bankruptcy at all cost.

It is true that disputing items on my credit report is easy and can be done by myself?
 
It is true that disputing items on your credit report is very easy. However, getting results (and actually repairing bad credit) is very difficult, complex, and can be very infuriating. Repairing your credit is like repairing your car transmission or representing yourself in court; it is possible, but is it smart to do. It can be very time consuming and risky.

The Federal Trade Commission (FTC) receives more complaints against credit bureaus than any other type of business. As a matter-a-fact, if you call the FTC to report a complaint about a credit bureau, their phone system will prompt you to press one if your complaint is about a credit bureau or press another number if your complaint is about another type of business anything else.

Will my account show as “paid” and no longer considered negative when I pay off a past due account?

It is very difficult to repair your credit without taking care of your outstanding debts.  Paying off your debt will improve your credit rating by much, if at all.  Negative credit stays on your credit report for a maximum of 7.5 years, except for bankruptcy which can stay on your credit report for 10 years.

Paying off outstanding diligent debt will change the account status to “paid was charged off”, “paid collection, or “paid was late”.  This will stand out as a very negative item.  When you have outstanding debt, it is recommended that you seek professional help to settle it without further damaging your credit.  Sometimes, it is possible to negotiate a deletion of negative credit as part of the payoff.

Do creditors read my 100 word statement on my credit report explaining my side of the story and do they take my statement into consideration?

Most creditors do not look at the credit report when a credit application is completed.  They are most interested in the numerical credit score to determine whether or not they should extend you credit.  Your FICO score does not take into consideration the content of your statement.

However, the statement does very that some of the negative listings on a credit report are technically accurate.  This makes a credit repair job more difficult and the word statement should be the first thing to delete from your credit file.

Can I trick the credit bureaus into starting a new credit file under my name if I change my social security number or by using an EIN (Employer Identification Number) tax number?

This scheme is know as “file segregation” and is promoted by many credit repair operators.  Some individuals have been successful in using a false Social Security Number and have tricked the credit bureaus into giving them a new identity.  The scheme is totally illegal and lying on any personal information on a credit application is a federal crime.

The scheme is very complicated because you must change almost all identifying information about yourself and be very careful to never use the old information again.  Some people make the error of using their old information only to mix the old with new and get in trouble.  They will end up with both credit reports merging their information which then becomes suspicious to the credit bureaus.

Worst yet, some people have been charged with crimes, or terminated from jobs for using the false information.  

Will by bad credit be improved if I build enough good credit?

Any amount of bad credit limits your chances of being approved by a credit grantor. Most creditors do not look at your credit report but instead have a computer pull your credit report, rates your credit standing, income, indebtedness, and stability, generates a number (or FICO score,) then determines an acceptance or denial.
A simple one or two slow payment can trigger a credit card or personal loan denial. The smallest amount of negative credit will cause the interest on a loan (home, auto, personal, etc.) to skyrocket

Is it illegal for creditors to take an accurate negative listing off my credit report?

The fact is that the law demands that negative listings appear on your credit report for no longer than seven years. The credit bureau or credit grantor can choose to delete the negative credit listing whenever they like.

Will the Consumer Credit Counseling Service help me repair my credit, especially if I can’t pay all my bills?

CCCS or Consumer Credit Counseling Service is a nonprofit debt counseling service funded and controlled by the credit grantors and the credit bureaus. CCCS helps individuals who are over their heads in debt.
 
Often, CCCS provides beneficial services to consumers, however, because there is an allegiance between CCCS and the credit bureaus, you cannot reasonably expect CCCS to do anything that the credit bureaus would not like such as help you repair your credit.

If you decide to leave CCCS before finishing their program, they can list your failure to complete the program as a negative listing on your credit report (although this is rare.) When you participate in the CCCS program, your creditors will often note it on your credit report. If you want to keep your perfect credit, do not use a credit counseling service because their process will generally make you late on your bills at least 30 days, thus creating negative listings on your credit report.

Using a debt counseling program is a red flag for prospective credit grantors. Paying off your debts is a good start in the right direction, but it does not repair your credit.  Consumer credit counseling can really help you if you’re over your head and need some help.

How difficult is it to repair my credit?

Repairing your own credit by yourself is possible, however, the credit bureaus want you to fail and have experience in discouraging consumers.  However, some consumers have been successful in repairing their credit without professional assistance.  Keep in mind that the process can be very time consuming and you have to educate yourself of the process.  The process can take 12 and 18 months and take a lot of hours per month.  It is definitely a good idea to get some help from companies like Lexington Law.

Green appliances for your home can put money in your pocket.  Household appliances account for about one third of your homes energy consumption excluding heating and cooling.  Green appliances also help the planet!

Energy efficient appliances often are more expensive; however, you’ll make the money back because eco-friendly appliances use up to 30% less energy.  Eco-friendly appliances are usually better designed, such as clothes washers holding more clothes, dryers that are more efficient and stoves that heat up faster.  This all adds to the hundreds and eventually thousands of dollars in savings over the years.

Washing Machines
Front loading washers save money because they use less water and less energy saving you about $100 per year.  Front loaders use considerably less detergent which is gentler on your clothes.  This allows you to save on detergent and your clothes lasting longer.

Clothes Dryers
Save money by choosing a model with a moisture sensor that will shut off the unit when your clothes are dry.  This saves on electricity and saves your clothes and linens from unnecessary destructive overheating.  Stay away from dryers that measure the temperature of the exhaust air to determine when the laundry is dry.  These units are not as effective.

Dishwashers
Choose a dishwasher that gives you the option to use the heated dry function, which allows your dishes to air dry thus saving you money.  In the winter time you can open the dishwasher door to release warm air that will humidify you home.  An internal water heater will allow you to increase the water temperature when needed allowing you to turn down the temperature of your home’s water heater thus saving you money.  Finally, find a model that uses less water.  This can reduce your water consumption by 1,000 gallons per year and electricity usage by up to 25%.

Water Heaters
About 14% of a household energy cost goes to the water heater, according to the Department of Energy.  Unfortunately, the majority of the money used to power your water heater maybe going right down the drain because traditional water heaters fill to capacity and heat the entire tank.  Your home may not need as much heated water.  You can avoid this waste by installing a tankless water heater that heats the water on demand.  A gas fired tankless water heater can pump 5 gallons per minute keeping up with the busiest family.  Electrical tankless water heater cost between 10% and 20% less per year to operate than a tank-based heater, according to the National Association of Home Builder.

Refrigerators
Your refrigerator is most likely the most power hungry appliance compared to the ones listed above.  An old refrigerator can cost you about $300 per year in electricity cost.  Purchasing a smaller unit will reduce your electricity cost.  Find a model with the freezer on the top or bottom because these units use 13% to 16% less energy than units that are side-by-side.  If you can give up the icemaker and cold water dispenser, this will reduce your energy by 13% to 20%.  Models with an “anti-sweat” heater to eliminate moisture on the exterior will add 5% to 10% in energy consumption.

Below is a finance calculator that determines how much money you can save by reducing your spending. You'd be amazed how much money you can save over the years by making simple sacrifices.

Good news, yes negative information on your credit report can be erased.  The fact is everyday negative credit listings are deleted from individual’s credit reports by the thousands every day.  However, these individuals did get some help.

Lexington Law has reported helping clients remove about 50,000 negative credit listings in about two years.  However, this doesn't include bankruptcies that can't be deleted.

Well how is this possible?  It’s possible because the Fair Credit Reporting Act (FCRA) allows consumers to challenge the information on their credit reports on the basis of "completeness and accuracy."

When a consumer files a dispute, the credit bureaus must contact the source of the credit information (the creditor) and confirm that the information is accurate, verifiable, and not obsolete.

However, in some circumstances, the credit bureau is required to go beyond a simple verification of the creditor's own computer record. If within 30 days the credit bureau has not received verification from the creditor, then the credit bureau must promptly delete the credit listing.

To help clean up your credit report consider contacting LexingtonLaw.com. Lexington Law is a law firm that has been around for 17 years that specializes in credit repair. They has served thousands of clients since 1991. Lexington Law works closely with credit bureaus and creditors to help clients clean up their credit. The process is simple; you give Lexington Law all the information they need, you then sit back and relax and they will go to work for you.

Knowledge is power! If you are looking to increase your knowledge about investing, currency trading, stock trading or EFT trading, you may want to consider myWealth.com online courses and investor forum.  The courses are available 24/7 with instructors to answer questions each business day (8AM-6PM Monday to Friday).

The courses are taught via an online forum where you can read the lessons, view videos and ask questions of any lesson. Instructors are monitoring the forum throughout the day and respond quickly.

myWealth.com was founded in 2008 and was created to help investors from around the world take control of their portfolios by mastering the fundamentals of key markets.

The Investing 101 Course ($99) Syllabus:

• Lesson 1: Establishing Goals
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The Currency Trading Forex Course ($99) Syllabus:

• Lesson 1: Introduction to Forex
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• Lesson 6: Analyzing Market Indicators
• Lesson 7: Spotting Trading Opportunities
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The Stock Trading Course ($149) Syllabus:

• Lesson 1:   Ways to Trade Stocks
• Lesson 2:   Types of Orders
• Lesson 3:   Types of Brokers
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• Lesson 7:   Sectors
• Lesson 8:   Advanced Strategies
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• Lesson 10: Fundamental Analysis
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The ETF Trading Course ($149) Syllabus:

• Lesson 1:   Introduction to ETFs
• Lesson 2:   Diversification
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• Lesson 5:   Fundamental Analysis
• Lesson 6:   Technical Analysis
• Lesson 7:   Avoiding Pitfalls
• Lesson 8:   Risk Management
• Lesson 9:   Best & Worst Performers
• Lesson 10: Think Like a Hedge Fund Manager
• Lesson 11: Hedging
• Lesson 12: Advanced Strategies

 

For more information visit myWealth.com.

Below is a post by Jeremy Schoemaker of Shoemoney.com.

I am hearing a lot of great stories from people who have gone through my free shoemoneyx.com course and doing some neat things generating revenue.   Please keep sending me your stories.  I love hearing them! That is why I made the program!

Now I don't mean to pee in your cheerios but I want to talk to you and share something with you. Something I feel is really important.  Making money online is easy.  Profiting from it over the long haul IS NOT.

Eventually everyone's ship comes in.  When your ship comes in what will you do?  Maybe your ship just came in?

This is my personal story and dealing with my first big success and how I was able to position myself for the best outcome.

I hit rock bottom about 8 years ago.  I was 420 lbs, smoked 2 packs of cigarettes a day, about 60k in credit card debt, and just had lost my job.  I also sleeping on my friends couch.

 Its important to know what rock bottom feels like.  Its important to know what its like to really be hungry.  Its important to know what it feels like to drive a 1990 rusty van with no muffler.  Its important to know what having massive amounts of credit card debt and what appears to be no way out feels like.  Its important to have that feeling that you are a failure at life and maybe that's all you will ever be.

Now I say that its important but to me it was ABSOLUTELY crucial in developing my mindset for success.

I am guessing you have seen the image of me and the Google AdSense check for 132,994.97 for one month.  

Its actually hard to search for anything related to making money on the internet and NOT see it...

The one thing I have never really talked about was the back story on WHY I took a picture of me and that AdSense Check for 133k before taking it to the bank to cashing it.

As I am sure you know Google AdSense is run on your website and you get money when visitors click on your AdSense ad.  Almost all of my traffic was coming from Google so I felt it was really a house of cards.  If Google felt my website was no longer relevant for the keywords they were sending me traffic then over night I was done!

At the time I was totally new to making money on the internet and I never thought it was going to last.

I took the picture because I always thought that if my websites disappeared tomorrow I could leverage that picture into a book or something... I didn't really know...

I always had in the back of my mind what rock bottom felt like and I never wanted to experience that again.

In hind site it was even more brilliant then I ever thought it was going to be.  Especially that that month was the last month that Google ever sent out paper checks for over $10,000.00  so really nobody will ever have a check.

But I never took my success for granted and I diversified my website income into many other forms instead of just Google AdSense.

I learned how to make money from donations,  affiliate programs direct banner sales,  selling my own products, and subscription.  Within a few months my subscription revenue, Direct banner sales, and affiliate revenue each by themselves dwarfed my Google AdSense revenue.

So I have all this money coming in from the website im all diversified but I still did not really feel safe.

So I started the ShoeMoney blog (originally on googleninja.com before I obtained shoemoney.com) basically just talking about the ins and outs of making money.

Because I had the Google AdSense Check for 133k and some pretty other large screenshots of revenue that I could use to make points on what I was talking about the blog VERY quickly became an authority in the space of making money online.   So much so that in its first year that we implemented advertising on shoemoney.com we did over 2007 $100,000.00 in revenue.

In 2008 we boosted that to $490,000.00

in 2009 shoemoney.com will make over $750,000.00 probably closer to 1m in revenue.

But lets take a step back.  Because we had built this authority we were able to leverage our audience into starting our own conference called the elite retreat.  We started the event in 2006 and have sold out events every year since.  Even at a price tag of $5,000.00 per person.

In 2007 we leveraged the blog audience and our contacts and started our own advertising network called Auctionads.  Auctionads is truly an amazing success story and one of my proudest accomplishments.  We took a company from 0 to 25k active publishers doing over 3 million per month in revenue in less then 4 months and sold the company.  That is simply unheard of.  It would not have been possible without leveraging our previously accomplishments and taking them to the next level.

So what drives me to keep doing more things?

I can remember that feeling of hitting rock bottom like it was yesterday.

ONLY now the steaks are MUCH bigger.  I am now married and have 2 kids.  I also have 20 employees that I am responsible for.

So why am I telling you all this.

I want you to recognize what you have and not take it for granted.

I had to hit rock bottom to find myself and really develop a work ethic and drive for more.  Maybe you don't?

Always be leveraging your current position and looking for your next thing.

I have no doubt that everyone reading this will come into money/success eventually.  If you love what you do and you keep trying then its just the law of averages.  Eventually its going to work.  But when it does what will you do?