Save For College: Getting Started

Here you sit looking for information about saving for college for your child.  Close your eyes and think for a moment about how you will feel on the day that your child comes to you with a white envelop in hand, from the school that they have been dreaming about going to for years.  With acceptance letter in hand, you may be overwhelmed, wondering just where the time went.  You may be proud and exciting.  You may be dreading the cost of what that school is going to be.

If you wish to provide your child with the education that they are so looking forward to, you must take into consideration the college savings that you have taken the time to build.  If you haven’t done so just yet, there are several key things that you will want to think about before getting started.  What’s important is that you do get started!

Here are some tips for you to take into consideration.

• Financial aid is out there, but it may be limited.  In addition, loan programs are costly to your child in the long run.  Therefore, it is time to begin thinking about your child’s education now, long before they need it.
• Savings accounts, certificates of deposit, annuities, and taxable investment accounts are options for saving that you have.  Of course, the more security and the higher the interest rate is, the better.
• Consider Section 529 College Savings.  This is a program designed by the government to provide you with the ability to save without taxes hindering you.  Another option is the Coverdell education savings account.
• Take a few minutes to find a college actual cost calculator on the web.  These will help you by allowing you to see what the actual cost of college will be for your child once he or she gets there.  This is dependant on their age and the type of school you would hope they would attend.  It can be a true eye opener.

Learning as much as you can about college savings can help you to really find the right solution for you and for your child.  While it may take some time for you to figure out the right way for you to go, learning about your options is essential and it can be the very best route to take.

The Easiest Way to Remove Bad Items from Your Credit Report

Did you know that it's possible to remove bad items from your credit report? Any inaccurate item showing up on your credit report that's damaging your credit can be removed, otherwise you have the right to sue the credit agency.

Here's how to remove bad items from your credit report.

==> Get a Report from All Three Agencies

The first step is to get a credit report from all three credit reporting agencies. You can get your report once a year for free from annualcreditreport.com.

Look through each and every one of your accounts carefully. Is there anything you don't recognize? Anything that's overstated or understated?

Highlight any suspicious accounts. Note the account numbers and descriptions.

Some bad items will appear on just one agency's report, while other errors will appear on all your credit reports.

==> Beginning the Dispute Process

Look for the dispute address of the credit agency you want to contact. It's usually on their website.

Also look at their expected response times and policies for removing items.

Usually, you can expect a response within 30 days. If you don't get a response within 30 days, you may be eligible for a lawsuit, or the item may have to legally be dropped.

Find a few sample dispute letters online and modify the letters to suit your own purposes. Usually the letter needs to illustrate exactly why you believe the account is erroneous and needs to list the exact account numbers and descriptions.

Be sure to also be clear about what you want them to do. For example, if the account exists but isn't actually delinquent, let them know that you want them to update the status to "Never Delinquent" rather than remove the item.

==> The Next Steps

One of three things will happen once you've sent in your dispute letter:

1. They respond and remove the item. In this case, no further action needs to be taken.

2. They respond and say that the item is not an error. They need to also provide documentation stating why this is the case, including the actual credit filing by the creditor.

Look over the filing. Was this account opened by you? If not, you may have an identity theft issue on your hands. If it was, but is being incorrectly reported, you need to contact the creditor directly to work out the issue.

3. They don't respond. In this case, you have certain rights, including at times the right to have the items removed or the right to a lawsuit. Consult a lawyer for specific rights in this case.

The whole process of disputing a report item should take no more than three hours. Those three hours could result in your ability to open credit cards, your ability to buy a home or your ability to buy a car at much better rates.

Is It Possible to Repair Bad Credit on Your Own?

Often times people feel as if they have no choice but to either wait for their credit to improve on its own, or seek professional help. But is it possible to do it yourself?

The answer is a resounding "yes!" Not only can you do it yourself, it's often better for your credit to do it yourself than to get professional help.

A professional might charge you $200 an item to get it off your credit report. From all three reporting agencies, that's $600. If you applied that $600 to paying down a high balance account instead, that's often a much better use of your money than hiring a professional.

What does the process of repairing your credit report on your own look like?

==> Start by Figuring Out Exactly What Needs to Be Done

Start by going through your credit report and writing down all the different items that you need to dispute.

Disputing incorrect entries is easier than you might expect. Credit rating agencies are legally bound to research each and every single claim of inaccuracy.

Go through the credit report from each reporting agency and note each inaccurate account.

==> Contact the Agencies

The best way to contact an agency is through the mail. Letters of dispute can be tracked using certified mail. Make sure you keep records of every letter you send in case you have to take further action in the future.

Mail the agency with a listing of all inaccuracies and request that they either be removed or they provide proof that the item is correct.

You should receive a response within about 30 days.

Note that sometimes reporting agencies will remove your item in 30 days and put it back in the report if they receive the proof later. If that's the case, they'll need to send you the proof and a letter informing you that the item was placed back on your report.

If you don't get a written notice, you're legally eligible for $1,000 from the reporting agency.

==> Cost versus Benefits of Doing It Yourself

As discussed earlier, it's much cheaper to do it yourself than to hire a professional. The money saved can be used to pay down debts, further improving your credit.

However, there are a few things that you have to take into account when you're disputing credit report items on your own.

First of all are the time requirements. You need to carefully research every disputed item to ensure that it truly is incorrect. Then you need to provide any documentation you can and keep tabs on everything.

Also, you should consider the amount of energy it takes to go through this process. Simply trying to hold all the pieces in your mind takes a lot of concentration; and for many people it can be stressful.

Should you do it on your own? It depends on whether you'd rather have the time or have the money. If you can spare the time and would rather do it yourself, it's absolutely a viable method and thousands of people do it every year.

Learn to Recognize Bad Credit Loan Scams

If you have below average credit, there are people out to get you. Unscrupulous scammers know that people with bad credit often need loans and use the opportunity to extract both money and personal information.

How do these kinds of scams work and how can you avoid them? Let's take a look.

==> How a Bad Credit Loan Scam Works

The scammer first comes into contact with you via email, phone or through a website.

Usually they have some sort of promise where they guarantee that you'll be approved for a loan, no matter what your credit looks like. (That should be your first red flag - no real lender guarantees loans without seeing your credit.)

They'll then ask for your personal information, including social security, address, birth dates and account numbers, in order to process your loan.

Finally, they'll usually ask for an "advance fee" which needs to be paid in order to process your loan.

Of course, once the fee is paid, no real money is ever wired to your account. The fee is forfeit, but the scam doesn't end there.

Your personal information is often then sold to third parties, who in turn use your information to write bad checks, open unauthorized credit card accounts or commit all kinds of other fraudulent activities.

In other words, falling for one of these scams will not only cost you money, but possibly result in a stolen identity.

==> How to Recognize and Avoid These Scams

The first step to recognizing a scammer is to always, always, always research the lender before giving any personal information.

Use the Better Business Bureau's website to look up any business you're considering. If you see any scam reports, avoid it. Also look them up on RipoffReport.

Never pay upfront for a loan of any sort. That applies for personal loans, bad credit loans and payday loans. In the USA and in Canada, it's illegal for lenders to ask for a fee upfront, so if they do you know you're dealing with a scammer.

Finally, only work with websites you trust and know. Never do business with a company you've never heard of, especially if they reached out to you first via email. Real lenders will never, ever send out unsolicited emails.

With just a bit of background information and a careful mentality, you can avoid getting scammed. It's unfortunate that there are people out there preying on people just when they can least afford the financial hit, but such scams all too common.

You now know how these scammers work, as well as a few tell-tale signs that'll allow you to spot these scams a mile away.

How Long Does It Take for Each Item to Disappear?

If you have negative items on your credit report, how long does it really take for them to disappear? Knowing how long certain items stay can make a big difference on how you plan to improve your credit in the long run.

Here's everything you need to know about when items disappear from your credit report.

==> The 24-Month Rule

The first thing to realize is that 70% of your credit score is calculated from your last 24 months of credit history.

In other words, even if credit card defaults are reported for seven years, if you start building up your credit now you'll still have a good chance of getting a credit card in two years.

You don't have to wait for an item to completely fall off your credit report before its level of damage can be minimized.

==> When the "Fall Off" Clock Starts Ticking

There's often a bit of confusion that surrounds when exactly the clock starts ticking for something to leave your credit report.

There are two things creditors look at for gauging recency of credit report items: Date of Last Activity (DOLA) and Date of Last Delinquency (DOLD).

The clock for when something should leave your credit report starts at the DOLD. In other words, the date when you're first delinquent on a payment is when the clock should start ticking.

Making a payment on that account will increase your DOLA, bringing it up to the current date. However, your DOLD will remain as the old date. In other words, making a payment to a delinquent account will not "reset" the time it takes to fall off your credit report.

==> How Long Different Items Stay on Your Credit Report

In general, items on your credit report will fall off after seven years. That applies to both installment loans (e.g. car loans) and revolving credit (e.g. credit cards).

There are a few exceptions, however.

• Tax liens will stay on your credit report for seven years after the debt is paid.
• Bankruptcy will stay on your credit report for ten years.
• Any application for a credit account of $50,000 or more can stay on your credit report for an indefinite amount of time.

It's also important to note that government-backed student loans and lawsuit judgments have different rules. The statute of limitations can increase the length of time a lawsuit judgment stays on your record. Student loans can also be reported for longer periods of time, depending on guarantor actions.

As a good rule of thumb, however, most items will stay on your credit report for seven years after the date you were first delinquent. If you find an item on your credit report that has passed that date and not been removed, contact the credit agency.