Friday, August 31, 2012

An Online Cash Advance Does Not Discriminate Against Poor Credit

Pay for a cash advance is one expense, but to pay to look at your credit score is outrageous. There are many web sites which will provide access to credit scores after the credit card information has been processed. It sounds like a good deal until you forget to cancel your membership. It may take months before you remember and until then, you will have paid the fees for a service you do not use.

Many websites have names similar to the actual free site the credit bureaus offer. A consumer, who is not educated on the free site, would not know better and move forward with entering credit card information. These companies are hoping for that to happen and that you will forget to cancel your membership. It will give you access to your credit scores as promised, but the free site provided by the credit bureaus will as well.

A credit score is a guide not a guarantee or promise. The online cash advance industry knows that credit scores represent many years of managing money. it does not reflect on what is happening now which is exactly what the cash advance industry is looking for.

Each of the three credit bureaus offer one free credit score check every twelve months. If you stagger them (one every four months), you can check your report three times a year by rotating which one you pull. People put so much emphasis on credit reports that the whole picture gets overlooked.

Credit scores vary. Pull all three reports and you will find yourself with three different scores. your scores can be affected by errors, identity theft and if you had to go through a bad time. The reports are made by the creditors each month and they stay on your credit for seven years. If you had a period of time in your life where money was tight, got divorced or lost your job, future creditors will be seeing the aftermath without knowing the cause. Unfortunately, your story is not attached to the report so when a creditor looks at your history and sees unpaid debt or multiple late notices they will tend to think you are not credit worthy.

This is one reason so many people have turned to applying for cash advances and other short-term money options. Because these loans are no credit check and provide fast cash, those with a poor credit history can still find relief with struggling budgets. As horrible as these loans can be for some financial situations, they tend to get overused as the one of the only options available.

Financial vulnerability has promoted the short-term loan industry into the forefront. Applications for cash advances online and payday loans as well have increased in the past few years. Responsible lenders would not promote their loans to those who cannot afford to pay it back or to use them towards outstanding debt.

Monday, August 13, 2012

Steps to Take If Sued by a Credit Card Company

When you sign up for a credit card, you agree that it is your responsibility to pay for your balances each month. Consequently, you accept that the card issuer or the company has the right to sue you in case you don't follow the agreement. Credit cards are merely a way to pay for purchases; thus, they are not free money. Once you stop making payments, the card issuer may take legal steps to get back what they rightfully own.

If your creditor has taken legal action against you, doing the following steps may help:

Step 1: Evaluate

Some lawsuits are incorrectly filed. If you did not incur the charges made against you, you can file a dispute. This usually happens when you are a victim of identity theft. Most people are not even aware that their identity is being utilized by other persons. If this is what happened to you, you can contact the card issuer, the Federal Trade Commission, and the law enforcement to formally report the incident.

Step 2: Respond

If the charge against you is accurate, you may have to explain yourself to the creditor. One of the first things that card companies do is inform you that they have decided to sue you. When you receive the notification, you should acknowledge it by responding to the letter. The biggest mistake here is to think that the lawsuit will simply go away if you ignore it.

Step 3: Seek Help

You can hire a lawyer if you believe that you cannot face the situation alone. It is understandable that you may not have enough money to pay for the legal counsel. Fortunately, there are free attorneys that can aid you during such situations. Your lawyer can even provide assistance so you can make the right decisions regarding your current financial state.

Step 4: Educate Yourself

Even if you are sued by your creditor, you still have your rights against harassment and lawsuits. According to the Fair Debt Collection Practices Act or FDCPA, the creditor does not have the right to pursue you in the form of threats and even foul words.

Step 5: Appear

Don't ever miss a hearing. The judge may automatically side with the creditor if you don't show up when summoned.

Step 6: Negotiate

You can minimize the damage if you get to talk to your creditor. Believe it or not, card companies are actually more interested in the repayment than the lawsuit. You or your lawyer can negotiate with the creditor. You can offer a payment schedule and a monthly amount that you are comfortable with. If successful, you need to abide by the payment structure; otherwise, the company may resume the lawsuit if you miss repayments once again.

When a credit card company sues you for non-repayment, this does not mean that you will be arrested for it. However, a judgment may be performed against you, which will stay in your credit report for about seven years. This is where you can be arrested, specifically if you violate the judgment.