Five Things Every Married Person Should Know

Five Things Every Married Person Should Know Before Signing Any
Credit Application

by Jay Peters

Have you ever wondered if banks have a tendency to approve credit cards and loans for one sex more than the other? If you are married (or plan to be) I will share with you five vital keys every married person should know before signing any credit application.

VITAL KEY #1: According to the Federal Equal Credit Opportunity Act (FECOA) creditors cannot deny consumers access to credit because of their sex. However, on average (in surveys) it’s reported that women earn less money than men. Regardless of what the FECOA states, the relationship of credit to income is very strong.

In our society if you make less money you will get less credit, period. The sad fact is that women on there own have less access to credit. It’s for this reason (I believe) it is imperative that women learn and acquire more knowledge about credit than men. Knowledge is power; and in the world of credit that knowledge will often times prove to be priceless, especially for women.

VITAL KEY #2: If you are a married woman with JOINT credit (meaning all your credit accounts are jointly held with your husband) you have NO CREDIT yourself. Many women in America find this out the hard way every year when they get divorced and lose all their credit privileges since all their accounts were jointly held with their spouse. If you are a woman in this position you can greatly benefit by beginning to build your own credit in your own name starting today! The benefits are two fold.

1.) If your spouse has financial difficulties (for any reason) and is forced to file bankruptcy or their credit becomes derogatory, you and your spouse will have your credit in reserve to survive on.

2.) If you ever get divorced down the road (over 50% do and 76% in the state of California) you will NOT end up in financial hardship due to no credit and/or derogatory credit. Instead, you will have your credit to transition to and (believe me) this can be the difference between sailing off in the sunset or drowning in a storm.

VITAL KEY #3: If you are currently married (with some credit or no credit) to a spouse who has excellent credit, you can leverage their credit to build credit in your own name much faster than if you had to build it by yourself. Later, once you have established enough accounts on your own, you may choose to cancel accounts that were held jointly with your spouse.

VITAL KEY #4: If you are a single woman with excellent credit and are getting married you may want to think twice about adding your new lover to all your credit accounts. If he messes up or you end up in divorce down the road your credit will end up taking the beating (regardless of how many years you diligently spent building it up). For this reason, I strongly suggest married couples keep their credit separate. Why?

In most cases spouses have far more to lose than to gain. Naturally, some credit will have to be joint no matter what you do. If you purchase a home (which may require both incomes to qualify) this will appear as a joint account on the credit report. However, the potential abuse with a home mortgage is almost non existent as opposed to Credit Cards.

VITAL KEY #5: Spouses have more to gain by each building strong individual credit reports rather than joining all accounts and building one joint report. For obvious reasons, banks and credit card companies love the “credit ignorance” of spouses who join all their credit accounts upon marriage.

Here’s why: If you take 500,000 couples with credit before they got married, those 500,000 couples actually represent one million credit accounts and liabilities for the banks and lenders. When those couples got married, those one million credit liabilities were instantly were cut in half from one million to only 500,000. For banks this is a very advantageous situation. For the couples getting married (if they have financial trouble) the deal is a little raw. If they have trouble, although they are two people, they are represented by only one credit report. The bank now has the right to go after two different people for one account (regardless of who was financially negligent).

For moment, let’s play out the same scenario with a couple which is financially savvy (note: they’re both on the same “team” but financially savvy). In this scenario, the couple gets married, but instead of joining account each builds their individual credit reports. Now this couple (team) has not one credit report representing them but two. Metaphorically, if the perfect storm (financially) is to rise, this is the difference between the couple being in the ocean with two ships instead of one. If the one ship starts to sink, the couple can always “jump ship” to the second.

While some may criticize this thinking it is no different than buying any kind of insurance. You buy insurance not because you plan on a problem. You buy insurance because you are thinking ahead. This type of thinking is no different. However, if you want to be ahead of the pack that you need to think ahead of the pack.

I cannot tell you how many times I have talked to loving married couples in financial trouble who only WISHED they would have known about these five vital keys before they got into financial trouble. Take them, study them, apply them to your life. As I heard one woman put it “In business and in life I’ve learned to expect the best but plan for the worst”. I thought her words were brilliant. However, I have found that when I expect the best… many times I tend to get it! Take these five vital keys. Study them. Apply them. Then pass them on to someone else who can benefit from them.

Jay Peters is the founder of Consumer Publishing Group which publishes the Credit Secrets Bible (in print since 1994). To receive Free Credit Tips including “How to Bullet-Proof Yourself From Identity Theft For FREE!” visit their website: http://www.creditsecretsbible.org

© Copyright 2007 by Jay Peters

Insider Techniques To Raise Your Credit Score... FAST!

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Insider Techniques To Raise
Your Credit Score... FAST!

-by Terry Price

(C) Copyright Terry Price
All Rights Reserved

Get the Credit Secrets here!
=======================================

If there is one question I'm asked by
consumers more than any other about
credit, it's this "What's the fastest
way to raise my credit score?". My
response is always the same "How much
do you want to raise it?"

If you wish to increase your score
from 580 to 650 then your strategy will
be very different from someone wanting
to go from 670 to 725. Why? Because
you starting point is different which
requires a different approach. Also,
while the removal of negative items
from a report will almost always lead
to an increase in score, it's a basic
concept at best. Therefore, within
this article, we'll discuss somewhat
inside techniques known by very few
(since this is what our company
specializes in publishing).

In relation to just removing negative
items, these are techniques which you
can use even if you have NO derogatory
information on your credit report.
We'll start with the most overlooked
strategy first and that's your...

DEBT to CREDIT RATIO: The most
fraudulent belief I've been hearing for
over 15 years is "I have excellent
credit, I pay all my bills off in full
every month!" This is a false belief
for one to buy into and understanding
your debt to credit ratio holds the key
to getting your "credit mindset" right.

Your debt to credit ratio is your
ratio of debt to total available credit
you have been extended (revolving
accounts only). For example. If you
have $10,000 in total unsecured
revolving credit accounts and you're
currently in debt $2500, then your debt
to credit ratio is 25%. Since the main
way lenders make money is by charging
interest, one of the elements of the
credit scoring model is driven by your
ability to maintain balances and pay
over time. This shows your true (long
term) credit worthiness which is most
profitable to lenders since they make
money primarily via interest and not
annual fees.

Over the years we've discovered
without question that carrying the
proper debt to credit ratio will boost
your score faster than paying off your
bills in full each month. I have
argued with the Better Business Bureau
on this topic for and they still
disagree (despite my sending them proof
from Fair Isaacs own website
www.MyFico.com the organization which
invented the credit scoring software
used by credit bureaus).

Of course, what do you do if you're
like most Americans and your debt to
credit ratio is too high? For example.
You have $10,000 in unsecured revolving
accounts but you owe $8500, thereby
giving you an 85% debt to credit ratio.
How can you bring it down without
selling everything you own? The answer
is simple and takes us to the next
technique which is...

SUB-PRIME MERCHANDISE CARDS: The
single most cost effective (and
powerful) tool for consumers to
increase their high credit limit and
decrease their debt to credit ratio is
the use of Sub-Prime Merchandise Cards
which report to one of more of the
major credit bureaus.

Unfortunately, despite their immense
benefits, these are the most
misunderstood cards in the credit
industry. A large portion of the
misunderstanding is due to marketers
misrepresenting the cards and the
growing number of companies promoting
them. When you learn how they work one
quickly understands why they have been
the subject of much misrepresentation.

A Sub-Prime Merchandise Card is
nothing more than a card attached to a
line of credit which allows you to buy
merchandise from a specific vendor
(usually the company that sold you the
card). The merchandise (in most cases)
will be purchased through a catalog or
online mall.

Where the problem arises is that the
cards are marketed almost exclusively
to the sub prime market via email,
telemarketing and direct mail etc. The
reason for this is they can advertise
almost irresistible offers like "$5,000
Credit Card... GUARANTEED! No Credit
Check! NO Cosigner! You cannot be
turned down!" or "Unsecured $10,000
Credit Line! Everyone Approved!". I'm
sure you get the idea...

While there are many companies which
do this and are a "shady at best",
there are a few which do it
legitimately and it's the best kept
secret to build your credit and build
it fast.

Here's how it works: the company
approves anyone with a pulse
(literally) and gives them a card for
$2,500 to $12,500 with NO credit check
and NO cosigner. However, the card is
only good for merchandise through their
website or catalogs and the consumer is
required to put down a deposit on
whatever they purchase. After the
deposit is paid, the remaining balance
is financed on the card.

For example. A person buys $1,000
worth of merchandise. Their deposit is
$300 so they then finance $700 on their
merchandise card and make payments.
Sound like a scam? If you say "Yes"
like most people then you're missing
the point... big time.

With a legitimate Sub-Prime
Merchandise Card your credit line WILL
be reported to at least one major
credit bureau (or more). This means if
you get a $5,000 card and you finance
$500, on your credit report it will
look like any other credit card and
will do three extremely important
things for you.

1.) It will increase your current
"High Credit Limit" by $5,000 almost
overnight as the account "looks" like
any other unsecured revolving account.

2.) By carrying a small outstanding
balance it will positively impact your
credit report by building and showing
potential lenders your credit
worthiness.

3.) With a good payment history you
are virtually guaranteed to receive
"legitimate" pre-approved credit offers
in the future due to other lenders
renting your name from the credit
bureaus.

This technique is hard to beat for
both cost and effectiveness. Of
course, the whole key is knowing
exactly which cards report to the
credit bureau and offer the best rates.
The only thing more effective is...

PIGGYBACKING: Despite its' virtually
unlimited potential, piggybacking is
not used by nearly as many consumers as
it should be. It's easy, effective,
and extremely fast. Unfortunately,
it's mostly used among parents and
siblings while those who can really
benefit stay in the dark.

How it works. Almost every credit
card or credit account will allow the
primary account holder to add on (at a
later date) what's known as an
"Authorized User" or "Secondary Account
Holder". In most cases, when this is
done, the entire account history
(retroactively) gets posted to the
authorized users credit report
regardless of their current age or
credit history!

For example. If it's a credit card
with a $10,000 limit which has been
paid as agreed for the last 10 years,
then that complete history will be
posted to the authorized users' credit
report. I once saw a clients' credit
report who used this technique with his
mother. He was only 24 at the time and
he had a $15,000 Gold credit card on
his report with history going back 11
years! I laughed as I thought to
myself that this kid would have had to
be approved when he was 13 years old
for this account to be his!

As you can see, this strategy is
usually only used by parents and their
children and in most cases with no
regard to the benefits the children are
reaping credit wise! In fact, in
recent years, due to its'
effectiveness, this technique has led
individuals with excellent credit
scores to "rent out" authorized user
accounts on one or even multiple credit
cards in return for a fee! I once
recall seeing an ad in USA TODAY for
just such an opportunity. Like most
good credit loopholes, I'm sure this
methods' days are numbered much like
what may be the case with...

ADVANCED CREDIT PROFILING: This is a
strategy while not complex, can be
taken to very complex levels. Even in
its' most basic form, it's taken
advantage of by very, very few. It
involves intentionally building your
credit report in a way which creates a
"profile" that closely fits the
criteria of most lenders (as well as
the overall credit scoring system).
Again, this is a technique which can be
used in a myriad of complex ways, but
for simplicity I will explain it in
its' most basic form.

While many consumers will boast when
they have 10, 20, 30 or even 50
thousand dollars worth of credit cards
on their report, many of these same
people do NOT have even one mortgage,
automotive loan or lease, equipment
loan or a even a line of credit with a
local bank or credit union. These
other forms of credit create a much
more well rounded credit profile for
the consumer. This is achieved by
showing greater credit account
diversity and experience with multiple
types of credit due to the various
lines held.

For example. A person with $50K in
credit cards does not represent near
the credit experience as a person with
the same $50K along with a mortgage, an
automotive loan and an equipment lease.
We have clients who have financed
vehicles not because they had to (or
even wanted to) but because they
"needed to" in order to create a credit
profile that would position them in the
future to secure the lowest possible
rate on a mortgage when they applied
and needed it.

More complex forms of Advance Credit
Profiling involve one subscribing to
affluent or semi-affluent business and
professional publications and
organizations. These would include
magazines, newsletters, trade journals
and national associations. The goal is
to get ones name into the databases of
these publications and organizations.
Why? To get on highly targeted lists
in order to receive select credit
offers.

Marketers of credit offers have found
that simply renting names of consumers
from the credit bureaus does not
provide enough information about the
person as a credit risk anymore.
Therefore, it is speculated that many
will rent a list from the credit bureau
and then cross-reference this list
against another list they have secured
from a consumer source such as an
affluent business or professional
publication, trade journal or
organization.

By crossing the two lists together the
marketers find the names contained on
both lists. This in turn provides them
with one highly refined and targeted
list to mail their offer to. This
results in shortening the process of
securing a new quality account holder
thus lower the overall account
acquisition cost of new accounts.

When a consumer learns how to
intentionally put themselves into these
databases to wind up on these refined
lists, the credit building process is
sped up exponentially. Of course, many
would call this "highly speculative"
but we have undeniable experience that
it works.

DEPOSIT LOAN PROGRAMS: This is a
technique so unbelievable that I myself
proclaimed it had to be a scam before
researching the facts. It allows the
consumer (or business) to have a
$25,000 to $250,000 loan appear on
their credit report as "Paid as Agreed"
by way of very creative financing.
This method is extremely effective and
not within the budget of most ($750 to
$7,500 upfront). Also, because this
technique takes advantage of certain
banking laws, I have reason to believe
it could be made unavailable at any
time if those banking laws were to
change. This method can be used with
consumer credit files on SSN's as well
as business and corporate credit files
done on TIN's as well as Dunn and
Bradstreet.

In the end, all of us need to remember
that today our credit score is more
important than it has ever been in the
history of the credit reporting system.
While credit miracles don't happen
overnight, you can create your own
credit miracles by applying simple
insider strategies consistently over
time. Before you know it, you're a
proud member of the 700 Club. The "700
Plus Credit Score" club that is!

In the next segment we'll talk about...

"Facts Consumers Should Know BEFORE
Using A Credit Counseling Service!"

=======================================
The "CREDIT SECRETS BIBLE" has been in
print since 1994 and is published by
Consumer Publishing Group.
For more information on the "CREDIT
SECRETS BIBLE" you may visit here.

=======================================

The TRUTH About Credit Repair…

The TRUTH About Credit Repair…

by Jay Peters

Have you ever wondered what companies send you when they claim you can erase your bad credit overnight? How about those ads that say you can get any major credit card 100% Guaranteed regardless of your credit?

Ads abound almost everywhere (online and off) selling books, systems and secrets to help you fix your credit in a hurry. Many of these programs have claims which read like the covers of supermarket tabloids “In 3hrs my credit score jumped from 580 to 676!”… “Erase bad credit and smash your debts with just 2 Magic Letters!”. “Create a completely new credit file in 24hrs!” Are these types of claims ALWAYS too good to be true? The answer is “Yes and… no”.

While many people would love for you to believe that the only thing that can fix bad credit is time; in reality… nothing could be further from the truth. The fact is, time is only one factor which will fix a credit report (but it’s a far cry from being the only factor). How can I back this up? Easy. Under a consumer protection law known as the Fair Credit Reporting Act (a.k.a. the FCRA) the only negative information which can remain on your credit report is not what is accurate… but what can be proved as such. What’s this mean to you?

It means any negative item on your credit report can only remain there if it is accurate and CAN BE PROVED AS ACCURATE under the guidelines of the FCRA. This undisputable fact presents consumers with both good news and bad news. The good news is that through the FCRA your credit score can most likely be improved dramatically in a very short period of time with only a modest amount of effort on your part.

The bad news is that while the actual “work” will take very little of your time, it is vital that you have good information on “how” to go about it. This is the bad news; 9 out of 10 courses on restoring your credit will do nothing more than lead you into a snake pit. This is because they provide you with out-dated “Boiler Plate” dispute letters which are rarely effective. These are nothing more than form letters and… quite frankly (more bad news) the Credit Bureaus and Creditors will laugh at you if you try to use them.

While I agree with the Federal Trade Commission (FTC) that “Anything a Credit Repair Clinic can do for you legally, you can do for yourself at little or not cost”… the key element you need for success is the latest inside techniques and procedures to get the results you want. These involve strategies known as “Proof of Contract”, “Constructive Notice”, “Challenge of Procedure” or “Restrictive Endorsement” and many others.

All these terms may “sound” impressive but they are really quite simple. In the end, it is nothing more than a method of communication which exercises your consumer protection rights, gets the results you want and raises your credit score. Even more impressive, once you learn how simple it can be by doing it for yourself, you will find there is a fortune to be made doing it for others! Either way, it all starts by requesting a free copy of your credit report by visiting: www.AnnualCreditReport.com.

Jay Peters is the founder of Consumer Publishing Group which publishes the Credit Secrets Bible (in print since 1994). To receive Free Credit Tips including “How to Bullet-Proof Yourself From Identity Theft For FREE!”

The Credit Secrets Bible
Only $67