An unsecured loan simply means obtaining a loan without the use of collateral.  So when we talk about unsecured credit card debt consolidation we’re talking about consolidating debt with the use of a credit card and no collateral.

In order to do this you must have excellent credit.  This means that you do not carry too high of a limit on each of your individual card(s) and you pay your pills on time.  Without an excellent credit score getting an unsecured credit card for the use of balance transfers will be nearly impossible.

The first thing you need to do in order to put yourself in a good position to be approved is start with a credit card with a lower balance.  Try to move the balance to a card with a lower interest rate or apply for a zero percent interest rate credit card.  Make sure the terms of the card last at least 12 months.  There are many credit card companies that offer 0% rates for the first year.  Pay attention to balance transfer fees.  Most often even with these fees tagged onto a balance transfer if you are moving a balance from a high interest credit card to a low interest credit card you will come out ahead with some of your debt problems.

If you are having problems with your credit score.  I would suggest other options besides using credit cards to consolidate you debt.  There are a few companies like the lending tree that will be able to help you out.  Although, they may not be able to offer you 0% interest rate often you can get a lower rate than your current credit card and the bills are much more manageable when they are consolidated into one payment.

Taking the first step is often the hardest part. The first step you should be taking is to obtain a copy of your credit report and look at your current credit score. This is important because you may think you know how much you owe and who all your creditors are, but until you are sure there is really nothing else you can do. Obtain a copy of your credit report and review it, taking note of all your debt and also watching for any inaccuracies. People who have multiple debts often do not even realize when there are inaccuracies on their credit report. If you do find any, report these right away so you can deal with them and not let them worsen your credit report even more.

Once you are aware of the exact details of your debt, you can start contacting your creditors. Even if it seems as though they call twenty times a day, never wait for them to call you. You never know when they may just send your debt to court to pursue legal action, which could cause the payments to start getting taken from your pay each week. Talk to your creditors and let them know you are in the process of making payment arrangements to get your debt paid off.

They are going to be happy to hear from you and may even be willing to settle. If you have enough money to give them a lump sum immediately, they may be willing to drop the price of your debt.

There was a time when people were willing to owner finance a property over a long term.  In today’s economy, most sellers who will consider owner financed transactions are only willing to carry the note for two to five years.  In the same way, most houses for rent to own only offer a term of one to two years.

For this reason, if you are even considering doing this type of transaction, it is imperative that you begin immediately to do what it is going to take to qualify for a mortgage.  For most people, that means a serious credit restoration effort.

The first thing you should do is get a copy of your current credit report.  You can do this for free at Annualcreditreport.com.  Once you have a copy of your report, make sure you take the time to review it carefully.  Note any errors and derogatory information that needs attention. You should also pay attention to the reason codes that you will find on credit report.  These codes give you the top reasons why your credit score is what it is.  They can give you helpful insight on what you need to pay attention to.

Once you have reviewed your report, it is time to develop a plan of attack.  Are you going to repair your own credit or hire a credit restoration company?  Hiring a company can save you time, but you also may not get results as quick as you could.  Why?  Because credit repair companies generally charge you by the month.  They are not financially motivated to move quickly.

If you have the time and are willing to learn, repairing your own credit can be a good route to go.  Credit restoration involved more than just cleaning up bad credit through disputing.  You also need to focus on debt elimination and developing good new credit.  The reality is that no one can do more for your credit score than you can!

Whatever you decide, you should begin quickly.  There is nothing that will have more impact on your chances of success than credit restoration!

Now, one of your financial goals should be to always pay everything off immediately and not use credit cards if at all possible,  unless an emergency arises.

Furthermore, a low credit score can have an adverse affect when applying for jobs, getting car insurance, or evening renting a car…

So it is important to rebuild your credit?

I think it is, and I have provided some quick tips how you can rebuild your credit in less than a year…

1. Always pay your bills on time.  Make this your top priority. Pay them a week early so that you are SURE that they arrive on time. If you literally do not have enough money to pay them off on time, you need to either find other ways to generate income, or negotiate with your credit card company for a lower payment. For example you can start selling some personal items on Ebay, getting a part time job, or  liquidating some assets.

2. Get a secured credit card and ALWAYS pay it off on time. Charge very small amounts and then pay them off. You can carry a very small balance if you want – $10 or $20 – but NEVER make your monthly payment late. After a year of on time payments, call the creditor, and request to the  card to an unsecured credit card.

3. A Low Debt To Equity Ratio. Make it a priority not to charge more than 25-30% of your available credit. If you have charged more than 30 percent of your credit limit, then you should make it a priority to pay that card down first.  The rational behind that is your credit score goes down when you have less available credit.

So as can you see rebuilding your credit to worthy credit score is definitely attainable and needed. By following the steps above you can rebuild your credit in less than a year.

Credit Score Factors?

Because the FICO credit is the most widely used for calculating a person credit score. So in this article we’re going to focus on how to improve your FICO score. But before we get ahead of ourselves, let’s first take a look at how it’s calculated. FICO calculates your credit score, and they breakdown is determined by the following benchmarks:

35% Payment history 30% Outstanding debt 15% Length of credit history 10% Types of credit in use(revolving or fixed. 10% Recent inquiries on your credit report .

1. PAYMENT HISTORY. This criteria takes your track record into account and accounts for 35% of your score. Thefirst thing any lender wants to know before given credit approval is how timely you’ve been in paying loans in the past. Late payments will automatically drop your score, while a good track record on most of your credit accounts will raise your score.

Also, public record and collection items such as bankruptcies and foreclosures will show up in this section, but if they are more than 7-10 years old they should be removed from you credit. If there not taken off, it shouldn’t cause do too much damage if your’re current payment obligations have been paid on time.

2. Debt Ratio Approximately 30% of your FICO score is based on your debt to equity ratio. When you almost close to hit the credit limit on all, or most, of your accounts, your credit score will take a hit, and be lower. So to a lender, this basically means that you’re over-extended, and may be at risk if more credit is extended to you.

3. LENGTH OF CREDIT HISTORY. 15% of your credit score is based on the lenght of your credit history. FICO tracks the age of your oldest account, your newest account and the average age of all your credit accounts. However, a longer credit history, especially when it shows a steady record of timely payments will increase your credit score.

4. REVOLVING OR INSTALLING ACCOUNTS. 10% of your FICO score is based on what kind of credit accounts you have. FICO looks at your mix of both installment-type and revolving accounts including credit cards, merchant accounts, finance accounts, and mortgage loans. You do not have to have one of each to get the highest score.

5. INQUIRIES AND NEW CREDIT 10% of your FICO score is based here. A credit inquiry is an item on a credit report that shows a business with a “permissible purpose” has previously requested a copy of the credit report. If you have many of these,lenders more think unfavorly because you apply for credit too much. As for new credit, If you only have a few credit accounts and some of them are old and never used, consider buying something small with those to keep them open. Then pay them off in full. This will keep those creditors from closing your accounts and will also make it easier for them to give you new or higher credit if you need it.

If you have opened several credit accounts in a short period of time, it presents a greater credit risk and can lower your score. Lenders frown upon this because they think you are just trying to get lines of credit.Every time you apply for credit, an inquiry is placed on your credit report. This inquiry can temporarily lower your credit score as much as 5 points per inquiry.

How Is YOUR Credit Score?

Generally speaking, if your FICO score is over 700, you should be considered at least a very good credit risk, and you won’t have problems getting a low loan rates.

670 to 699 is still considered good, but some lenders may not offer you the same rate deals as they do to those who have FiCO scores over 700.

630 to 669 is considered a fair credit score, but anything below that is considered poor.

Always remember that your FICO score is based on data in your credit report. So it’s very important to make sure the information in your report is accurate. So, the first order of the day is to get a copy of your credit report.

Having a poor credit record with a history of slow payments can hit you hard in all kinds of places. Obviously, if you buy or refinance a home, you’re likely looking at a higher mortgage rate. Same goes if you need to finance a new or used car. Take a look at Debt-Help-Reviews to get your free report on to raise your credit score.