How To Clean Up Your Credit Report

Whether you are trying to buy a house, a car or get a personal loan, your credit is the first thing that the lender will look at. You can clean up negative information on your file, yourself. Here's how...


Things You'll Need
A copy of your credit report from all three credit bureaus (Experian, TransUnion and Equifax).
Persistence
Patience



Step One
Get a copy of your credit report from the 3 credit bureaus; Experian, TransUnion and Equifax. You can obtain a free report from each credit bureau once a year at annualcreditreport.com. You may also get a copy if negative information has been recently added or you had an application for credit denied.

Step Two
If you find any inaccurate information on your report, you may dispute it, either online or by writing a letter to the credit bureau that provided the report. If you have any proof of the inaccuracy you should send it along with the dispute letter.

Step Three
Once you have disputed the negative information, the credit bureau will contact the creditor regarding your claim and the credit company has 30 to 45 days to provide the requested information or the negative item has to be removed from you credit file.

Step Four
Negative items on your credit report may also be removed even if they are correct. If you have otherwise maintained good standing with the creditor that reported the information, you can write to them and request that they remove the item from your credit report.

Tips & Warnings

• There are companies that offer credit repair services, for those who don't want to go through the process of disputing their credit reports themselves.



• Whether or not your credit report needs to be disputed, you should monitor your credit reports from all three bureaus.



• If you are the victim of identity theft, you can write to the credit bureaus and request that a fraud alert be placed on your credit report.



• A fraud alert does not change your credit rating! You will have to verify your identity whenerver you apply for new credit, making the online credit application process more timely.



• Collection items will remain on on your credit report 7 years. Bankruptcy remains on your credit report for a 10 years.

*Provided courtesy of eHow by Sounique.

Pros and cons of paying down a mortgage

Q: I’m considering making extra payments on my mortgage. I like the idea of not being in debt. What do you think of this idea?

A: Paying off your mortgage quicker may make sense. This financial move isn’t as clear as paying off high-interest consumer debt because mortgage interest rates are generally lower and the interest is generally tax-deductible. When used properly, debt can help you accomplish your financial goals and make you more money in the long run.

Whether paying down debt sooner makes sense for you depends on a number of factors, including your other investment options and goals. Financially, what matters in deciding whether to pay down your mortgage faster is your mortgage interest rate versus your investments’ rates of return.

Suppose you have a fixed-rate mortgage at an interest rate of 6 percent. To come out ahead financially, if you’re making investments instead of paying down your mortgage more quickly, your investments need to produce an average annual rate of return before taxes of 6 percent.

While mortgage interest is usually tax-deductible, remember that you must also pay taxes on investments held outside retirement accounts. While you can purchase tax-free investments, such as municipal bonds, over the long haul, these investments won’t typically earn a higher rate of return than the cost of the mortgage.

And don’t assume that those mortgage interest deductions are that great. You automatically qualify for the so-called standard deduction on your federal tax return. If you have no mortgage interest deductions — or less than you used to — you may not be missing out on as much of a write-off as you think.

Paying off your mortgage faster has no tax benefit. Putting additional money into a retirement plan, however, can immediately reduce your federal and state income tax burden.

In order for you to have a reasonable chance of earning more on your investments than it’s costing you to borrow on a mortgage, you must be aggressive with your investments. Notwithstanding their horrendous slide in 2008-09, stocks have produced annual average rates of return of about 9 percent to 10 percent.

Paying down a mortgage ties up more of your capital, reducing your ability to make other attractive investments. Some people feel uncomfortable paying off debt more quickly if it diminishes their savings and investments. You probably don’t want to pay down debt if it depletes your financial safety cushion. Make sure that you have access — through a money-market fund or other sources, a family member, for example — to at least three months’ living expenses.

*Provided courtesy of Eric Tyson, author of "Let’s Get Real About Money!" and "Investing for Dummies''

Spring-Cleaning? 8 Major Hot Spots You Shouldn't Miss

Get a jump on spring-cleaning this year by focusing on these essentials.

Ready to give your home a top-to-bottom buffing? Start by focusing your efforts on the big pieces and on the places that make the most difference to you: furnishings, appliances, and carpeting. Once you've covered these major tasks, you'll have your home spring-cleaned in no time.

1. Make doormats welcoming. Shake 'em, wash 'em, swat 'em with a broom. Give them the toughest cleaning they can take. They're your front line against tracked-in dirt -- so keep them clean enough to function at peak efficiency.

2. Clean carpets and upholstery. Fabrics that have absorbed a winter's worth of dirt, body oil, and germs will need a deep cleaning to get them ready for another year of wear -- and for that close inspection by your relaxing guests.

When you're shampooing carpets or cleaning or cleaning upholstery with a rented carpet cleaner, practice first in an unobtrusive area to make sure you have the knack of the machine and that the treatment won't discolor fabrics or cause dyes to run. Save time by moving furniture just slightly -- not out of the room or against the wall, as the old rules dictated -- and place the legs of each piece back on top of small wax paper squares after shampooing. The wax paper will protect your carpet and keep the furniture legs from getting wet as the carpet dries. Open the windows to speed the drying process, which can take a day or more. If you're not the furniture-shifting and machine-renting type, make it easy on yourself. Call in a professional carpet and upholstery cleaner to do the work and take the morning off.

3. Finish your floors. To protect the floors in your kitchen from another year of wear and tear, wax or apply a sealer following label directions. The simplest method: Use a combination wash-and-wax floor cleaner. Don't feel guilty about saving time!No-wax floors don't need a polishing treatment, but an occasional makeover will keep them looking fresher -- and add a protective buffer that could help them last longer. Use a floor cleaner that cleans, shines, or both. It's best to follow label directions for proper use of each product. If you have wood floors, move furniture and rugs aside, then apply a wood cleaner and either liquid or paste polish to clean and add a new wax coating.

4. Wash walls, cabinets, baseboards, and woodwork. The walls may not look as if they need a bath -- after all, dust and soot fall to the floor, right? Most of it does, but just enough clings to vertical surfaces to warrant a seasonal or preholiday bath. Use a sponge and hand dishwashing detergent, washing the surface in sections. A sponge mop makes it easier to reach higher spots. Use two buckets: one for dishwashing detergent solution and another for wringing your sponge. Dry the walls and woodwork with a clean cloth.

5. Vacuum with intelligence. The old rules mandated that you go through the labor-intensive task of dragging every stick of furniture off the carpet, just so the vacuum cleaner could cover every nook and cranny. The new rules will save you time, and you'll still get the corner-to-corner cleaning done: Simply move those big items a little to the left or to the right. Vacuum the area previously occupied by the furniture and then move it back into place.

6. Clean ceiling fixtures. Remove dust and dirt from ceiling fans and air-conditioner vents with a cloth and a vacuum with a soft nozzle attachment.

7. Clean your light fixtures. A few minutes with a stepladder, all-purpose cleaner, a sponge, and a polish cloth will give new light to your life. If your home has skylights or tall ceilings, consider investing in a stepladder and extended-reach dust-and-dirt-removal tools, all of which are available at your local hardware store and at home -- and janitorial -- supply stores.

8. Check your coils. You should clean the refrigerator's condenser coil, usually found behind the toe grille, with a long-handled bottle brush and a vacuum cleaner with an attachment hose to remove dust and lint. Built-up dust can shut down the unit by causing it to overheat.

To remove dust from coils attached to the hard-to-reach back side of the fridge, carefully pull the refrigerator out several feet (newer models roll on casters) and vacuum thoroughly; finish by sweeping or vacuuming the floor area you've revealed. Expect to rediscover coins, bottle caps, and twist ties that you and the cat knocked over the past year.

*Provided courtesy of Reader'sDigest.com

5 best money-saving tips

TIP NO. 1: Clip coupons! Sure, it sounds old school, but you’d be surprised how many people skip it these days. Every Sunday, take a few minutes to scour the newspaper for coupons. You’ll find savings on everything from household cleaning staples to breakfast cereal.

TIP NO. 2: Cruise the clearance racks regularly. If you make it a habit to check out the bargain-bin areas (even at the grocery store), you’ll be less likely to miss out on the stuff you actually want when it goes on sale. Note: they often put clearance merchandise at the back of the store, so you have to pass the full-priced items first. Just keep moving!

TIP NO. 3: Don’t pay full price for seasonal items. Bathing suits and Christmas decorations don’t tend to go out of style year in and out, so wait until the end of the season to stock up, when they’re discounted―sometimes by as much as 90 percent!

Learn How to Feed Your Family for Less at Real Simple.

TIP NO. 4: Resist the good deals that aren’t really good deals. When you see those two-for-$5 signs, you may not actually need two of that item…ever. Find out if you do actually have to buy in multiples to get the savings; sometimes stores use this tactic to trick you into getting more than you need, when the items are actually the same price per unit.

TIP NO. 5: Put your storage space to work. When you come across a bargain on something like a generic birthday gift or a case of good wine, go for it. As long as you know it’s an item you’ll want down the road, it makes sense to buy it now. Besides, when an occasion arises, it’s so much less stressful to “shop” your own home.

*Provided Courtesy of Real Life Magazine