5 Ways To Get the Upper Hand When Dealing With A Debt Collector

Collectors generally seem unforgiving and absolutely unwilling to hold a civil conversation. This all makes it very difficult to make any progress (let alone get the upper hand) during one of these calls. Nonetheless, it’s been my experience that when you equip yourself with the correct tools, controlling the outcome of a collection call can be very easy.

1. Collectors are trained to toy with your emotions for a very specific reason.

Do you ever wonder why collectors act so merciless about your situation and further, why they seem to go out of their way to embarrass and degrade you? The answer is simple, yet often overlooked. Collectors are specifically trained that the fastest way to get a person to pay is to exhibit behavior of such disgust and ruthlessness that the person simply says, “I cannot deal with this human anymore, I will pay them just to go away!”. If you keep this mind, these tactics will become transparent and ineffective.

2. Asking to speak to a manager will get you nowhere.

It’s important to realize that a “manager” at a collection agency (at least the ones that they’ll ever let you speak you), are not really there to make sure their collectors are treating customers fairly. Rather, the managers are there to make sure the collectors are getting you to pay –because, of course, that’s how they get paid. If anything, the manager will treat you even worse. Also, why do you think they are manager? Likely, they are running the show because they are very good at getting you to pay and as we have already discussed, this usually means behaving very erratic. Don’t waste your time with a manager.

3. Never make a deal without getting it in writing.

If you have been a longtime reader of this blog, you have heard this a million times. Yet, when the time comes, still some people tend to get flustered and agree to a payment plan over the phone. What do you think happens when you do this? Most of the time they will clean out your bank account and you will find there is nothing you can do because they will simply say, “Well, you owed the money”. You can’t sue them because you have no proof. Again, any agreements should be made in writing before you give a collector access to your bank account.

4. Debt collectors are more willing to negotiate on older debts

The next time a collector contacts you regarding a 10 year old debt, don’t be afraid to offer them a settlement of pennies on the dollar. Many collection agencies purchase old debts from various companies after the company has written off the debt. Therefore, even if the settlement amount may seem small, keep in mind that as long as the collection agency makes a return on their investment, they will be happy.

5. Collectors do not care about your situation

It’s difficult to make smart money decisions when you are emotionally tied to the situation. Collectors know this when they call you a “deadbeat”. You must detach your emotions from the situation and consider it in the same way collectors do: this is just a business transaction.

visit : www.cibilconsultants.com
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Effect of credit score on cost of borrowing !!

If you want to qualify for the most competitive loan and credit card rates then you need a good credit score. What’s more, you need it to stay that way. 

• How lenders decide whether to lend to you ?

Banks and credit card companies use a variety of different information to give you a credit score, which determines whether they will lend to you and at what interest rate.
Credit scoring works by awarding points based on the information you provide on your application form.The lender may already have about you, based on previous accounts you have with them, and on your credit report.

• You’ll also get a better credit score if you:

own your own home and/or have lived at the same address for at least a year ,have a good credit history by repaying other credit agreements on time, for example your credit card, auto loan, gold loan, personal loan , overdraft , Cash credit facility, Consumer loan  or Housing  loan.Have evidence of stability – for example you are employed rather than self-employed, you’ve lived at the same address, worked for the same company and had the same bank account for a long time are not connected financially, through your mortgage or joint bank account, to people with a bad credit score.

• How a poor credit score affects your ability to borrow ?

A poor credit score can mean you’re  rejected with any credit facility or loan or  charged higher interest rates, given a smaller credit limit. A lenders or banks or NBFC doesn't have to give you the interest rate they are advertising or that you see in best buy tables on comparison websites.  You may be offered an interest rate that’s higher – this is what’s called your personal APR. 

For more details visit www.cibilconsultants.com
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Errors on your CIBIL credit report that can cost you dearly.

An error does not become a mistake until you refuse to correct it. Errors in your CIBIL credit report can become costly mistakes if you do not catch them in time. So next time you get your CIBIL report, do not just see the score and tuck it away. Read it carefully and check if the data is correct.

Your credit information is collected by every bank where you have a relation, be it a savings account, a current account, a credit card or a loan. The bank keeps track of the length of your account, its usage, your payment track record and other data.

It is likely that one or more of these financial institutions may hold incorrect or outdated data on your banking /credit records. The data that the financial institutions hold is passed on to the credit information companies. The credit information companies simply enters this data into the records they hold about you and if your data has errors, and your CIBIL report will be faulty.

Here are some of the common errors that you must scan for in your CIBIL report.

1. Your personal information

Your credit report contains your personal information like your name, address, date of birth etc. While it may seem trivial, personal information being correct means your record cannot be mistaken for someone else.

2. Some of your records are missing

Timely payments on your current loans and credit cards will boost your credit score. Make sure that all your loan accounts are reflected in your CIBIL credit report as if good accounts if not reflected in credit report may bring down your credit score.

3. Your report shows incorrect credit limits

It is possible that your credit card issuer has increased your credit limit and not informed the credit bureau. A lower credit limit would mean that your account will show a high credit utilisation ratio. A high credit utilisation ratio impacts your CIBIL score negatively.

4. Your records are not updated

It is possible that you have paid off an outstanding loan or cleared a delayed payment over 3 months but your CIBIL report records still show it as outstanding in spite of the time it may take the bank normally to make changes in the records. This will have an adverse effect on your CIBIL score. 

for more details visit www.cibilconsultants.com

Policy changes by credit agencies !!

The nation’s three major credit agencies have agreed to change their policies as part of a settlement with the state of New York. The changes affect credit dispute processes and medical debt reporting.

This settlement will have a nationwide impact for consumers. Read on to learn more about the changes.

Credit Disputes

Under the terms of the settlement, the credit reporting agencies – Equifax, Experian and TransUnion – will be overhauling the way they handle dispute resolution.

Up to this point, when consumers filed disputes regarding information on their credit report, the dispute was converted to a three-digit code that was sent to the credit lender. The information typically wasn't changed if the lender said that information was accurate.

The new agreement will require credit reporting agencies to hire independent staff to investigate the merit of credit disputes. They’re required to investigate the complaints even if the creditor says the information is correct.

A 2012 study by the FTC found that one in five consumers had an error that was corrected by a credit reporting agency after it was disputed on at least one of their three credit reports. A follow-up report done in 2015 found that most consumers who reported errors still felt that some part of the disputed information was incorrect.

Your credit is involved in so many transactions, including qualifying for a mortgage, and getting approved for credit cards and car loans. Some companies even check your credit during the job application process. It’s important to know what your credit report says about yo
you can get your credit report from cibilconsultants.com and can even help you start the dispute process.

Medical Debts

According to a 2014 report by the Consumer Financial Protection Bureau, half of all bills that go to collections are medical bills.

Medical bills are often a complex case. Doctors will report the bills as being unpaid while consumers are dealing with their insurance company to try to get payment or reimbursement. For this reason, in August 2014, FICO, the nation’s largest provider of credit scores, announced that it would start weighing medical debt less heavily.

The new agreement takes things a couple of steps further. Credit monitoring agencies can’t put medical debt on a credit report until it’s gone unpaid for at least 180 days. If the bill is paid by the insurance company, the debt must be removed from the credit report no matter how old it is.

Credit disputes and medical debt reporting processes have changed quite a bit. Still have questions?
visit www.cibilconsultants.com

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build your credit in college life !!

Having a good credit score coming out of college can make your future a lot smoother. Most students forget that post-college life even exists, let alone that important life decisions, like buying a car and getting a home loan, are in their near future. Credit influences everything from your interest rate on loans to your insurance payments – and even the kind of job you can get. If you’d like to start your future off right, here are some ways to build your credit while you’re still attending college. 

Open a Credit Card

The most effective way to grow your credit history is to open a credit card. When you do this, however, it’s important that you find the card that’s right for you and your purchasing behavior. 

Student Credit Cards

Student cards can be very generous and forgiving on the amount of income you make, and they have low credit requirements for easy qualification. Do research on what you’re signing up for, though. Make sure you’re aware of annual fees, interest rate changes and billing policies. You can use a cosigner to qualify for this card (parent cosigners can help you get approved due to their established credit).

• • If you’re a minor, this is a good option due to the Credit CARD act of 2009, which prevents those under the age of 21 from opening a credit card without a cosigner.
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I recommend opening a student credit card through your school’s credit union if your school offers this option. Typically, student credit union cards have low limits, which is good if you’re planning to use your card for small, infrequent purchases. Having a student credit union card also allows you to take advantage of student benefits such as free ATMs on campus, great mobile banking apps and fun, campus-sponsored events.

Retail Credit Cards

Retail cards are historically known for having higher interest rates, but if you choose the right store card and use it responsibly, it could be the right option for you. Opening a retail card at a store you frequent could lead to store perks. Having a card through a big chain store like Target, which carries everything from bathroom cleaner to purses and produce, will lead to more savings on essential, inevitable purchases. 

Make Small, Occasional Purchases

When opening up a credit card, it can be easy to let the “unlimited possibilities” go straight to your head. Make sure to keep your feet on the ground and the purchases infrequent. On the other hand, be aware that credit card companies will cancel cards due to inactivity, so try to make just enough purchases per month to meet your credit requirement and only that. You should treat your credit card as if it’s a debit card so that you are never spending money that you don’t have and you’re able to pay off your bill at the end of each month. 

Pay Bills on Time

When I first lived on my own at school and had a bill in my name, I was shocked to find out that my very overdue cable bill was affecting my credit score and my future. Even though you and your roommates are all responsible for the payment of a bill, if it’s in your name, it’s important to take responsibility for paying that bill on time; in the end, it only will affect you. Come up with a good system to make sure money is collected before you submit the payment if you’re uncomfortable fronting money for others. 

Don’t Leave Balances

At the end of every month, you technically only have to pay off the minimum on your credit card bill – but that doesn’t mean you should. As a student with not much of an income, leaving a balance on your credit card bill will lead to a never-ending high balance. Having a continually high balance will take a toll on your credit over time. That’s why it’s important to only spend what you can pay off. Be responsible and make sure you’re always aware of your expenses. Every month, pay your credit card bill on time and in full.

Protect and monitor your credit at www.cibilconsultants.com with a CAR.

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Types of Credit !!

When your credit score is figured, one of the factors is the types of credit accounts you have.

As you manage your credit, it’s important to understand the difference between installment accounts and revolving accounts. Not only can this be helpful knowledge as you manage your credit, but it can also be useful for your finances.

Installment Credit

An installment account is one that involves a regular payment. These types of loans have a set start point and end point. If you want to borrow more, you have to apply for another loan.

Installment credit is an important aspect of your credit score because it shows that you can maintain a payment over time. Examples of installment loans are car loans, mortgages, and student loans. Some personal loans and P2P loans are also installment loans.

A major installment loan, like a mortgage, can be especially helpful to your credit situation. If you can make a mortgage payment each month, it shows creditors that you are responsible, and that you have the finances to handle payments long-term. This is why a regular, on-time mortgage payment is so important to your credit.

Revolving Credit

On the other hand, revolving credit is marked by the ability to continue to borrow from a line of credit. A good example of a revolving account is a credit card. You have a credit limit, and as long as you keep making payments on the card, you have credit available to you. Another example of revolving credit is a home equity line of credit. You can borrow up to a certain amount, based on the equity in your home, and you don’t have to apply for another loan in order to borrow more – as long as you make regular payments that free up more room.

Revolving credit is an important part of your overall credit history as well. Revolving credit shows that you can manage your finances in a way that is sustainable. Revolving credit is a big part of the credit utilization portion of your credit score. If you carry high balances, maxing out your revolving accounts, it can drag on your credit score.

Having a good mix of revolving accounts and installment accounts is an important part of a good credit score. When you have both types of accounts, it shows that you are capable of managing your money on different levels, and it reflects well in your credit history.

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BOUNCE UP FROM YOUR FINANCIAL STRUGGLES WITH EASY STEPS !!

LIVE A HASSLE FREE LIFE !

No one is immune to a financial crisis. This type of instability can be caused by a wide range of factors, and individuals often don’t have control over whether or not they are affected. Job loss, divorce, natural disasters, accidents, economic downturn, theft and other horrors can turn a once-comfortable financial situation into a fiscal nightmare. Many times this results in a severely damaged credit score for those individuals involved. As Freddie Mac notes, credit repair is not an overnight fix — it’s something that takes months, even years to achieve. But with time and diligence, anyone can take their bleak financial situation and turn it around. Here are four strategies to help you bounce back.

Pay Your Bills On Time Every Month

Paying your bills is one of the easiest ways to build back your credit score over time. Not paying bills on time is also one of the quickest ways to damage your score, so prompt bill payment should be a high priority. If you do have bills you don’t think you can pay on time, contact the creditor directly to see if a payment plan or other arrangement can be made. They can usually make accommodations.Whatever you do, don’t simply ignore these bills — that’s the quickest way to land a negative mark on your credit history.

Minimize Your Debt

The amount of debt you carry has a huge impact on your credit score. Even worse, the bills created by this debt increase your monthly expenses and put greater strain on your finances. When you’re looking to improve your finances, the best thing you can do is pay off debt: get back on track with monthly payments, make extra payments when possible, and reduce the amount of loans you’re paying back. Avoid only paying the minimum required, as those will keep you just ahead of interest charges.

Even if new obligations arise, seek out ways to address these issues without digging a deeper financial hole. For example, if you need a new car but are leery of taking on another auto loan, seek out a leasing option that you can use only until you gain greater financial stability. 

Examine Your Credit Report

Financial strife will inevitably lead to an increase in action on your credit report. While this information may be accurate, you will need to obtain a your credit report and check for any errors that may be causing undue damage to your report. As Consumer Finance notes, any errors can be easily disputed with the credit reporting bureau, and if you are able to successfully make your case the revisions could produce significant improvements in your score virtually overnight.

Create a Financial Plan

Once you have stabilized your financial situation, it’s vital to have a plan of action moving forward. With effective financial planning in place, you can save money over time and build up a nest egg that will protect you if and when financial crisis strikes in the future. Good financial plan will compare all of the expenses you face to your income. With these numbers in mind, you can set a daily budget and create flexibility that allows you to put a little money away every month — even if the savings are modest.

Money counts !!