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[ad_1] Getting a credit card is like taking a step toward financial adulthood. It brings you into the world of building credit and paying bills, which almost everyone has to deal with at some point, so it can help to get started as soon as possible. But the “firsts” of adulthood aren’t always easy, and that includes getting your first credit card. A Credit.com reader recently asked where to start: Hi, I am 18 years of age, I have no credit history, and I have low income. I’m wanting to get my own place, and would love some help finding a good credit card to build my credit that will accept my low income. There are three main things that will affect whether or not someone like our commenter could get a credit card: the person’s age, the fact that they have no credit and the amount of money they make. Get Your Free Credit Score & Monitoring Plus Weekly Updates From Our 50+ Experts Get It Now Privacy Policy 1. Can You Get a Credit Card at 18? Let’s start with age. Per the Credit CARD Act of 2009, consumers younger than 21 must have proof of independent income or a co-signer in order to get a credit card. It makes sense: If you’re going to get a credit card, you need to be able to show that you can pay your balance. Why Would I Want to Have a Credit Card at 18? Having a credit card at 18 can help you to start building your credit early. It also allows you to make purchases that may require a credit card, such as a car rental. 2. Do You Make Enough Money? That brings us to income. Since this commenter referenced wanting to live independently, it seems unlikely that they’d opt for a co-signer. That means this person would need to provide proof of their income. We don’t know exactly what our commenter means by “my low income” — even if it’s not a lot, it isn’t necessarily a credit card deal-breaker. You could always try to ask a credit card issuer what sort of income they’re looking for among card applicants, but you may not get an adequate answer, given that there’s more that goes into getting approved for a credit card than income. 3. Consider Becoming an Authorized User If you’re wondering how to get a credit card at 18, becoming an authorized user may be your best solution. An authorized user has permission from the cardholder to use their account to make credit card purchases. Typically, you receive a credit card with your name on it, but there might be limitations as to how much you can spend. If the credit card company reports authorized users to the credit bureaus and the cardholder makes on-time payments, this option could help boost your credit. As an authorized user, you’re not directly responsible for making monthly credit card payments. Instead, you should make a payment agreement with the cardholder to ensure your bills are paid on time. 4. Get a Secured Credit Card At 18, it’s likely you have little to no credit history. This factor could prevent you from obtaining a traditional credit card. Despite your lack of credit history, you could qualify for a secured credit card. This type of card requires you to pay a cash security deposit to open the account. For example, you might need to pay a cash security deposit of $500 to open a credit card with a $500 credit limit. With secured credit cards, monthly payments are typically reported to credit reporting agencies. In many cases, you can increase your credit limit without an additional cash security deposit after several months of making on-time payments.   Get a Student Credit Card If you’re a college student, you may qualify for a student credit card. These cards are specifically for full- and part-time students at higher education colleges or universities. Credit requirements are typically lower for student credit cards, especially when it comes to the length of credit history. If you have little to no credit, you may have a better chance of securing a student credit card than a traditional credit card. Keep in mind that credit card companies must still adhere to the regulations of the Credit CARD Act of 2009. So, you still need to have a cosigner, have proof of income or meet other requirements for a student credit card. Find a Credit Card 5. Ask Someone to Cosign for You Another option for obtaining a credit card at 18 is asking someone you trust to be a cosigner on the account. This method can help if your cosigner has a good credit score. Both you and the cosigner are responsible for making payments. How to apply for a credit card at 18 with a cosigner? Unfortunately, none of the major credit card companies allow for cosigners. If you can’t find a credit card you like that allows for a cosigner, you could opt for a joint credit card account. With this type of account, both parties remain responsible for making payments, but it’s likely your cosigner will be listed as the primary cardholder on the account. Tips to Help You Manage Your Card Obtaining your first credit card can be exciting, but it also comes with great responsibility. How you handle your credit card purchases and payments can impact your credit score for years to come. It’s important to set up good practices now to protect your future finances. Set Up Automatic Payments Setting up automatic payments is a great way to ensure your bills are paid on time. You can use your credit card to pay your bills and then pay your credit card bill by the due date. This process can help you build a strong payment history, which accounts for 35% of your credit score. Build a Budget The best way to avoid overspending is to build a budget. Start by tracking your spending for a month and

[ad_1] Quick answer box A money market account is an interest-earning savings account, with some features of a checking account. Saving money is the best way to prepare for unexpected life events and take control of your finances. But where is the best place to save your money? If you’ve been researching different savings accounts, you may have wondered, “What is a money market account?” at some point. As of March 2023, interest rates for money market accounts are up to 4.45%,which is higher than normal. Keep reading for a money market account definition, its benefits, and how it stacks up to other kinds of accounts. In This Piece: What Is a Money Market Account? How Does a Money Market Account Work? Benefits of Money Market Accounts Money Market Account vs. Other Accounts Money Market Account FAQ What Is a Money Market Account? A money market account (MMA) is a type of savings account that earns interest at a bank or credit union. They are sometimes called money market deposit accounts (MMDAs). MMA interest rates are usually higher than regular savings accounts and have some features of a checking account, like debit card and check-writing privileges, though there are more restrictions. How Does a Money Market Account Work? Money market accounts pay more competitive interest rates than a traditional savings account, with more access to your money than a high-yield savings account. They may also require a larger minimum deposit and balance than a traditional savings account. As a hybrid between a savings and checking account, money market accounts have some unique features. Interest: The interest rate offered by MMAs is typically higher than regular savings accounts. It is a variable rate, meaning it changes as the market changes. Access to your money: Some MMAs come with a debit card and/or checks that you can use to make limited purchases. Minimum balance: Money market accounts may have a required minimum balance, ranging from $0-$25,000. Each bank has different requirements, and they may scale for getting certain APYs. Although money market accounts have some features of a checking account, they aren’t meant to be used as a replacement for a traditional checking account. This is because money market accounts often limit you to six transactions per month. This includes withdrawals or payments by check, debit card, draft, or electronic transfer. However, you can usually make an unlimited number of transactions in person or by ATM, mail, messenger, or telephone check. Benefits of Money Market Accounts Money market accounts are great for short-term savings goals, like an emergency fund. You’ll earn a higher interest rate than standard savings accounts while still being able to easily access your money if needed. However, this type of account comes with its own set of restrictions. If you’re considering opening a money market account, consider these pros and cons. Pros of Money Market Accounts: Higher interest rates than traditional savings accounts Safe place to keep money with insurance up to $250,000 per account owner More access to your money than other savings accounts with debit card and check features Cons of Money Market Accounts: Lower interest rates than other accounts like high-yield savings accounts or CDs Requires a higher minimum deposit and balance than traditional savings accounts Monthly limit on number of transactions Remember that every financial situation is different, and while a money market account may work well for one person, it may not be a good fit for another. Money Market Account vs. Other Accounts Money market account features overlap with different types of savings and checking accounts. The differences between these accounts may be important depending on your financial goals. If you’re not sure if a money market account is best for you, see how they compare to other accounts. Standard Savings Accounts Interest type: Variable Higher interest rates: No Insured: Yes Debit card/checks available: No Minimum deposit/balance: Yes The biggest difference between money market accounts and traditional savings accounts is access to a debit card and checks with an MMA. Money market accounts also generally offer a higher interest rate than savings accounts. In February 2023, the average interest rate for an MMA was 0.48% and 0.35% for a traditional savings account, according to the Federal Deposit Insurance Corporation (FDIC). However, some banks like Discover and Ally are offering up to 3.4% on their MMAs. The difference is not always that substantial, as MMA interest rates vary with the market. If you find that the interest rate for an MMA isn’t that much higher than your standard savings account, it may not be worth the higher minimum deposit and balance requirements. High-yield Savings Accounts Interest type: Variable Higher interest rates: Yes Insured: Yes Debit card/checks available: No Minimum deposit/balance: Yes Money market accounts and high-yield savings accounts are very similar. Both offer higher interest rates than standard savings accounts and are insured. In March 2023, MMA and high-yield savings account interest rates were comparable. One main difference is the addition of debit cards and checkbooks with an MMA, allowing you more access to your money than a high-yield savings account. If you’re torn between the two options, make sure to compare interest rates, minimum deposit and balance requirements, potential fees, and transaction limits. Checking Accounts Interest type: Variable (or none) Higher interest rates: No Insured: Yes Debit card/checks available: Yes (unlimited) Minimum deposit/balance: Yes While money market accounts have some features of checking accounts, they aren’t meant to replace a checking account. You still need a checking account for daily expenses, since MMAs are usually capped at six transactions per month. Additionally, most checking accounts don’t earn interest, and if they do it’s a very low rate. These accounts work best when used together—one can’t replace the other. Certificates of Deposit (CD) Interest type: Fixed Higher interest rates: Yes Insured: Yes Debit card/checks available: No Minimum deposit/balance: Yes A certificate of deposit (CD) and a money market account are both insured savings accounts that earn higher interest rates than standard savings

[ad_1] Bank failures have made headlines recently, and it’s natural to wonder whether your money is safe in the bank. Silicon Valley Bank and Signature Bank both went under in recent weeks, while Credit Suisse and First Republic Bank have faced threats of failure. As interest rates remain high, additional banks could struggle, leaving consumers to … Is Your Money Safe in the Bank? Read More » Bank failures have made headlines recently, and it’s natural to wonder whether your money is safe in the bank. You can take 4 steps to ensure your deposits are secure. The post Is Your Money Safe in the Bank? appeared first on ScoreSense. [ad_2]

[ad_1] The views and opinions expressed in this article are those of the author only and are not endorsed by Credit.com. Credit.com does not provide, or endorse, any investment advice. In 2022, virtually all asset classes saw their prices plummet, leaving investors with nowhere to hide. However, real estate offered some much-needed solace for some. According to Morningstar, investor confidence in real estate soared to unprecedented heights in 2022, and it’s easy to see why. Between January 2020 and September 2022, the median sale price for existing and new homes in the U.S. rose more than 43% as rental prices increased 11%. Over the past year, home sellers enjoyed a 45% increase on their investment returns from 2020 and a 71% increase from 2019. Unfortunately, one thing that may be restraining some investors from tapping into the benefits of real estate investments is debt. However, bad credit doesn’t necessarily bar investors from the real estate market.  There are some alternatives for ultra-savvy investors who know where to look for safe but lucrative investments. Of course, anyone who has ever even considered buying a home or vehicle knows how important credit scores are.  In fact, bad credit can prevent some people from purchasing a home for themselves. That’s because it’s virtually impossible to secure a traditional mortgage with a bad credit score, meaning anything below 620. In today’s interest-rate environment, even those with a credit score below 720 may not be able to afford a traditional mortgage because of the hefty interest payments.  However, buying a home for investment purposes is entirely different in the eyes of creditors. While it’s much easier to get a traditional home loan if you have good credit, investors have plenty of other options for investing in real estate. 1. A Hard Money Loan or Private Lender For example, those intent on purchasing an investment property might consider getting a hard money loan instead of a traditional mortgage. Hard money loans are considered a last resort, and they’re only available to investors trying to fund an investment property. People who are trying to buy a home to live in can’t get a hard money loan. Hard money lenders look far beyond someone’s credit score and typically provide funds fast. Most of the time, hard money lenders only care whether the deal on offer is an attractive one. If the value of the home is right for the money, these lenders are likely to bite, using the property as collateral for the loan.  They still have to earn money on this kind of deal if they have to take the property due to non-payment, which is why the value of the property versus the amount borrowed is so critical. Private money lenders are another option similar to hard money lenders. While hard money lenders tend to be real estate professionals, private money lenders are anyone with money to invest. 2. Real Estate Investment Trusts Investors who want to invest in real estate but don’t necessarily want all the risk and work associated with it may want to consider buying into real estate investment trusts. REITs own and manage properties, and those that are publicly traded offer the added benefit of attractive dividend yields.  Publicly traded REITs are required to pay 90% of their taxable income to shareholders, generally via dividends. As a result, they offer a solid income stream without the extra work associated with being a landlord.  Even people with bad credit can easily invest in publicly traded REITs via an online stock brokerage account. 3. House Hacking If buying an income property is at one end of the spectrum in terms of physical involvement and REITs are on the other, house hacking falls somewhere in the middle. With house hacking, you’re simply renting out a room or other portion of the home you already live in.  This strategy may require zero investment upfront, depending on the state of the property and whether any improvements or modifications are necessary. House hacking can be used to reduce your living expenses or as the first step toward having an active real estate investment portfolio. House hacking can be as simple as renting out a room in your home or taking on roommates. On the other hand, it can also be as complex as building an extra suite onto your home or even purchasing a multi-family home. House hacking can also involve purchasing an older home in need of repairs and updates and living in it while you renovate it. So, you can sell it for more than what you put into it. 4. Crowdfunding The rise of crowdfunding has also created new opportunities for would-be real estate investors with bad credit. Some crowdfunded real estate investments are only for accredited investors, but others may be open to investors with bad credit.  Low account minimums are making it easier than ever before for investors with bad credit to secure a slice of the real estate pie for themselves. Crowdfunded real estate options are typically available online and may cover anything from a shopping mall or other large building to a group of apartment buildings or other properties.  As with any online investment options investors are advised to do their due diligence before investing in any of them. 5. Seller Financing Finally, some investors may be able to purchase an investment property via seller financing. This option is only available on properties that are fully owned by the seller with no lien. Sellers who need cash quickly also won’t be willing to finance your purchase of their property. When sellers finance someone’s purchase of their property, they act as the bank, essentially providing a mortgage to the purchaser. Credit isn’t usually a factor in seller financing, and the closing costs are usually low. However, you will be subject to the terms set by the seller, who may or may not offer flexibility.  Seller financing can also be attractive for sellers. It gives them a steady income stream instead of

[ad_1] Many people use the terms ATM card and debit card interchangeably, but these aren’t actually the same thing. To understand whether an ATM card is also a debit card, you have to know a bit about the history of these cards and what they’re used for. We’ve got the details on ATM cards vs. debit cards below. Find out the difference and get answers to some common debit and ATM questions. What Is the Difference Between ATM and Debit Cards? ATM and debit cards look quite similar. They resemble credit cards and typically have bars you can swipe. They may also have secure chips. However, they aren’t the same and don’t serve the same purpose. If the question is which came first, the ATM or debit card, the answer is ATM card. According to a report from the World Economic Forum, the patent for an early cash dispenser was filed back in 1960. ATMs became operational later that decade, along with automated teller machine cards—ATM cards. The first official debit card didn’t debut until 1972. It was called the ATM account debit card from City National Bank of Cleveland. ATM cards were originally designed to do one thing. Instead of going to the bank to get money, you could take cash out of your checking account via a machine. These machines were connected by regional networks. While the cards were issued by banks, they could be used to withdraw money anywhere there was a machine for a potential fee. As such, ATM cards are cards that are only used to interact at ATMs. Debit cards, on the other hand, have a wider function. In the past, ATM networks began looking for new revenue streams. They started creating relationships with retailers and eventually joined forces with the credit card networks to create what we now know as debit cards. Debit cards can be used like credit cards at checkouts in person and online. Most banks also issue debit cards that can act as ATM cards. However, an ATM-only card can’t act as a debit card. Debit cards have Mastercard or Visa logos on them, indicating which network they run on. ATM cards don’t have these logos. A Credit Card for Nearly Every Level of Credit Earn rewards, transfer balances, and explore cards with the best terms for you. Find Your Card Now Privacy Policy Pros and Cons of an ATM Card Some banks will still issue an ATM-only card if an account holder asks for one. These cards can only be used at automatic teller machines. Pros of ATM cards include: You can get cash at any machine, creating flexibility for money management. You can’t swipe the card to pay for goods and services, which can help reduce impulse purchases. They may be a good tool to go along with a cash envelope budget system. The main disadvantage of an ATM card is its limitation. You can’t use it to pay for goods and services. If you don’t have another payment method in your wallet, this can lead to you having to find an ATM and get cash anytime you want to purchase something. Pros and Cons of a Debit Card Most checking accounts come with the option for a debit card, and some banks issue one automatically. You can also get prepaid debit cards. Pros of debit cards include: Flexibility, as you can use your card at ATMs and pay for goods and services with it anywhere Visa or Mastercard is accepted You may be able to swipe your debit card as a credit card for added protection Options for managing your budget, as you can set limits on your debit card or get a prepaid debit card that limits how much you can spend They’re a common and recognized financial tool that won’t raise eyebrows when you use them The biggest con of a debit card is that it’s tied to your bank account. This can lead to impulse spending that brings your account balance low, even if you didn’t budget for the spending. You may also find your debit card is limited by daily or individual purchase amounts.  FAQS Can you use ATM cards at all ATMs? Yes, you can generally use an ATM card at any automatic teller machine. This means you don’t have to look for an ATM that’s associated with your financial institution.  Are there fees for using different ATM cards at different brand ATMs? Yes, there are fees for using ATM cards that aren’t associated with your financial institution or bank. Your bank might charge a fee for this activity, and you may also pay a fee to the ATM company. What happens when an ATM transaction fails? ATM transactions can fail for a few reasons. When they do, the machine notifies you of the failure and the reason. Some common reasons include: You don’t have enough money in your account to cover the withdrawal. The machine experienced a malfunction and couldn’t complete the process. You entered an incorrect PIN. Your card couldn’t be read by the ATM reader. In cases where a technical malfunction or incorrect PIN entry caused the transaction to fail, you may be able to try again. Are there any limits to how much can be withdrawn with debit and ATM cards? Yes, banks set limitations on how much can be withdrawn with debit and ATM cards. There may be a limitation on how much you can withdraw in a single transaction. Daily limitations also usually exist. For example, your bank may only allow you to withdraw $300 at a time or $1,000 in a single day. No standards exist for these limitations—each financial institution decides for itself.  Which Is Right for You? Ultimately, you have to decide whether an ATM or debit card is right for you. Take into account your own budget and the way you spend money. You should also consider what financial habits you need support for and which type of card would help. The

[ad_1] Is your poor credit history preventing you from obtaining your financial goals, such as getting a credit card, buying a car, or purchasing a home? If so, there are steps you can take right now to improve your credit score in as little as three months. This article provides actionable steps you can take today to start on the path to rebuilding your credit. In This Piece How Quickly Can You Improve Your Credit? 1. Pay Off the Debt You Can 2. Minimize Your Credit Utilization 3. Keep an Eye on Your Credit Report 4. Consider Applying for a New Line of Credit 5. Keep on Top of Your Finances What to Do if You Don’t Have Credit How Quickly Can You Improve Your Credit? The exact amount of time it can take to repair your credit score depends on several factors, such as your current credit score, the amount of debt you owe, your ability to repay your debt, and your overall credit history. Despite this, you can start making improvements in as little as three months. Below is a look at five things you can do to improve your credit score, along with tips to keep in mind. 1. Pay Off the Debt You Can Start by paying off as much debt as possible. There are several strategies you can use to pay down your debt, including the debt avalanche method, the snowball method, and a debt consolidation loan. No matter which method you use, the faster you can pay down some of your debt, the sooner your credit can start to improve. Keep in mind that it could take your creditors up to 30 days to report payments to the credit bureaus and another 30 days for the credit bureaus to post these payments to your account. 2. Minimize Your Credit Utilization Your credit utilization ratio accounts for up to 30% of your overall credit score. This ratio compares the amount of credit you have available with the amount of credit you’ve used. It’s recommended to keep this ratio below 30%. If you’re having trouble hitting this number, here are some things you can do. Ask for a Higher Credit Limit If your credit utilization ratio is above 30%, you can ask your credit card company to increase your credit card limit. This strategy will increase the amount of credit you have available, which can help lower your credit utilization ratio. Use as Little Credit as Possible Instead of using your credit card to make multiple or large purchases, consider using another method to pay. The less you have charged to your credit card, the better your credit utilization ratio will be. Taking these steps to decrease your credit utilization rate could start to improve your credit in as little as 60 days. 3. Keep an Eye on Your Credit Report According to a recent study, 34% of Americans found at least one mistake on their credit report. Just one credit card error could damage your credit score. This is why it’s so important to keep an eye on your credit report. You can request a free credit report from all three major credit reporting agencies, Experian, Equifax, and TransUnion, at annualcreditreport.com. Obtaining your credit report is just the first step; you also want to perform the following tasks. Check Your Report for Errors Carefully review your credit report to make sure all the information listed is correct, including your personal information and account details. Make a list of any incorrect information and any accounts or personal information that’s missing.   Dispute Inaccurate Information The best way to remove incorrect information on your credit report is to file a dispute with the credit reporting agency. Write a dispute letter that clearly explains what inaccurate information is listed on your credit report and why it’s incorrect. Submit this letter, along with any supporting documents, to the credit bureaus listing the error. Typically, the credit reporting agencies have up to 30 days to investigate your dispute and another 5 days to let you know their decision. Ask if Lenders Will Remove Paid-Off Items From Your Report Many lenders report past-due accounts to credit reporting agencies to entice customers to pay their debts. Once you pay your debt off, the lender may be willing to remove this debt from your credit report. Contact your lender directly to make this request. It could take days, weeks, or months to receive a clear answer from your lender. If they do agree to remove this debt, it could take up to 60 days to reflect on your credit report. How to Add Your Utility Bills to Your Credit Report Typically, utility companies don’t report on-time payments to the credit bureaus. You can, however, work with a reporting service company, such as Credit.com’s ExtraCredit service, to make sure these payments along with your rent payments are listed on your credit report. This step can help prove you have a strong payment history. Once you sign up for a credit reporting service, you can expect to see these payments on your credit report within 60 days. 4. Consider Applying for a New Line of Credit Having a mix of different types of credit accounts, such as revolving credit accounts and fixed-payment accounts, makes up to 10% of your credit score. If you want to boost your credit score, it’s important to have a nice mix of different accounts. Below is a look at some types of credit accounts you may qualify for even if you don’t have good credit. Are Credit Builder Loans Right for You? As the name suggests, credit builder loans are designed to help you build credit. This type of loan is different from traditional loans, as you don’t have access to the money until you make all your payments. Obtaining a credit builder loan can be a great way to save money while building your credit because these lenders often report loan payments to the credit bureaus. Types of

[ad_1] Under ideal circumstances, rental properties are safe, affordable, and comfortable to live in. Unfortunately, things don’t always go as planned. If you feel unsafe in your home, or if you get into financial difficulty and can’t afford the rent on your apartment, you might decide to move. Breaking a lease might feel like uncharted territory. How do you start? Is it even allowed? We’ve got you covered, and we’ll give you a few tips on how to get out of a lease. Just a quick note before we start—while we’ll give you some suggestions that could help, we aren’t giving you legal advice. If you need help working through the details of your lease or you’re worried about being taken to court, consult an attorney. In This Piece What Happens If You Break a Lease? Common Reasons to Break a Lease How Can You Get Out of a Lease Early? Legal Protections for Ending a Lease Early Tips for Getting Out of a Lease Breaking a Car Lease Can Breaking a Lease Hurt My Credit? What Happens If You Break a Lease? Honestly, it’s hard to definitively say what will happen if you break your lease agreement. It depends on a few things—your landlord, your lease, etc. Worst case scenario, your landlord might take legal action against you. Or you may have to pay a penalty fee. Before you consider breaking your lease, read it carefully to figure out what your options are. Leases vary by state—and sometimes city or municipal area—so there isn’t a one-size-fits-all document. Make sure you have a thorough understanding of your lease before you make your move. Common Reasons to Break a Lease It isn’t uncommon to break a lease early—in fact, people do it pretty often. Here are some of the top reasons leases end prematurely: You’re an active-duty member of the military. Deployed military members often have to break their leases early. Thankfully, landlords are usually understanding under these circumstances. Your rental unit isn’t habitable. Black mold, inadequate waste disposal, and running water issues can interfere with your health. Generally, it’s your landlord’s responsibility, known as warranty of habitability, to perform routine maintenance and keep your space habitable. If your home is unfit to live in, you may be able to break your lease early. Your landlord enters your home illegally. Generally, landlords can’t enter their tenant’s space without a legal reason—and plenty of notice. If your landlord comes into your home without warning, or they allow other people to do so, you may have grounds to break your lease. You’re a domestic violence victim. If you need to escape domestic violence, don’t hesitate to move—whether your partner lives with you or not. It’s important to protect yourself, so seek help as soon as possible. You can’t pay your rent. Family emergencies, the COVID-19 pandemic, medical bills, and life changes all affect your financial health. If you struggle to pay your rent each month, you may need to break your lease and find a more affordable property. What Are the Consequences of Breaking Your Lease? Even if you find out how to get out of an apartment lease early, you could face a variety of consequences for doing so. These consequences are based on your lease as well as state and local laws, and the most common consequences you could face are listed below: Fees. Depending on the terms of your lease, you may need to pay an early termination fee to end your lease early. Typically, this fee is equivalent to 2 months’ rent. In some cases, the property owner may agree to use your security deposit to cover these fees, although they’re not required to do so. Going to court. If you break your lease early and fail to continue paying rent after you move out, the property owner could sue you in small claims court. Depending on the judge’s ruling, you might be required to pay monthly rent payments until the end of your lease plus court fees. However, property owners have to do due diligence to try to find new tenants. If the judge issues an order, this will be open to the public, and future landlords could see it. Difficult time renting again. Finding a new rental could take weeks or even months. It’s important that you don’t end your lease until you find a new one. If other landlords know you broke your lease early, it could make it more difficult to find a new rental. Your credit score. Breaking a lease without paying your rent could impact your credit score. If your landlord reports your late payments to the credit bureaus or uses a collection agency to recoup their money, it could show up on your credit report. This can negatively impact your credit score and make it harder to get approved for a new rental or loan. How Can You Get Out of a Lease Early? Getting out of a lease isn’t always easy, but most of the time, it can be done. Here are seven ways you can maximize your chances of breaking a lease early. 1. Read Your Lease If you plan to leave your rental property early, do read your lease before packing up. Focus on the fine print, because that’s where penalties, caveats, and procedures for early termination usually live. Typically, leases protect the landlord more than the tenant. You may need to provide your landlord with compensation, for instance, if you move out early. If your landlord isn’t maintaining the property properly, you may be able to break your lease without incurring any penalties. Put your concerns in writing and keep a copy on record in case your landlord tries to take legal action against you. Tip: In most states, landlords can’t lease your old apartment to someone new and charge you rent as well. If you can find someone to take over your lease on the same terms, you might be able to move on fairly quickly. You

[ad_1] You have a right to an accurate and fair credit report. But people make honest mistakes, and sometimes the information on your credit reports isn’t right. That’s why there’s a process for TransUnion, Equifax, and Experian disputes. But what happens if your credit dispute is denied? You definitely have options, so keep reading to learn more. In This Piece What Is a Credit Dispute? Can Disputing a Collection or Credit Hurt You? How Many Items Can You Dispute at Once? What to Do If Your Credit Dispute Is Denied How Many Times Can You Dispute a Collection or Inaccurate Credit Item? What Is a Credit Dispute? A credit dispute can refer to a few things. For the purpose of this article, we’re mostly concerned with disputing inaccurate information that appears on your credit reports. However, you might also dispute collections by asking for validation of a debt before you move forward with negotiating or fighting a collection attempt. When it comes to disputing inaccurate information in your credit report, you’re supported by the law. The Fair Credit Reporting Act requires credit bureaus like TransUnion, Equifax, and Experian to provide fair and accurate credit reporting. They also have to provide ways for consumers to seek to correct inaccurate information they might find in their credit reports. When you submit a dispute, the credit reporting agency must investigate the items in question–usually within 30 days of receiving your communication. Once the investigation is complete, the credit bureau has 5 days to make any appropriate changes to your file and notify you of those results. The Fair Debt Collection Practices Act provides some support for a consumer disputing a collection. Under the FDCPA, a collection agency must provide you with information that verifies the debt, including the total amount due and the original creditor. If you receive a collections notice and aren’t sure the debt is yours because you can’t identify it, you can send a debt validation letter to request this information.  Can Disputing a Collection or Credit Item Hurt You? The act of asserting your rights under laws like the FCRA or FDCPA doesn’t, of itself, hurt your credit. However, the outcome of these actions might change your credit score or what you owe. For example, if you dispute a negative item on your credit report, that doesn’t in itself have any bearing on your credit score. However, if the item is removed from your credit report as a result of your TransUnion, Equifax, or Experian dispute, your credit score based on that report may increase. Likewise, if you ask for validation of a collection item and the agency can’t prove the debt, you may not actually owe it. You can dispute the information on your credit report in that case, using the lack of validation documents as part of your reasoning. If the collection is removed from your credit report, your score will likely go up. How Many Items Can You Dispute at Once? You can dispute as many items as you want. However, for an increased chance at positive outcomes, you may want to follow some best practices: Address one item at a time. Misunderstandings, typos and confusion between line items or accounts are potential reasons for credit report errors. Keep those issues out of your dispute by addressing one error at a time. The credit bureaus offer some options for disputing information online. If you use this option, open up a new “ticket”or dispute for each individual error. If you’re sending a letter to dispute things in writing, consider sending separate letters for each dispute.  Limit disputes within short periods of time. While there’s no limit on disputes, if you send a dozen in the same week or month, you run the risk that credit reporting agencies might see you as someone who’s frivolous with disputes. Make sure all your disputes are grounded in facts and that you provide documentation to back them up. Avoid sending many “try and see” disputes that you don’t think you have a good case for but want to gamble on anyway. Keep disputes to a number you can reasonably follow up on. You may need to follow up on a dispute, sending additional information or arguing your case if the credit bureau denies your dispute. If you only have the bandwidth to properly manage a single dispute at a time, choose the one with the biggest potential for benefits and work your way slowly through the others when you can. You might also work with a credit repair organization to handle all the details for you. What to Do If Your Credit Dispute Is Denied You may wonder what happens if your TransUnion, Equifax, or Experian dispute is denied. You can keep submitting disputes to try to get the information corrected. However, you shouldn’t simply submit a carbon copy of the same dispute you already tried. If the credit bureau already denied that one, they’re likely to deny a subsequent attempt that doesn’t add any additional information. Instead, do more research or come up with better documentation that proves your case. Then submit another dispute with that new information. You can also submit another dispute with a different reason. For example, you may have disputed an account on your credit report as being something you don’t owe. If the creditor submitted documentation proving that you did, indeed, own the account and owe on it, you could change your dispute to demonstrate that the amount reported as owed is incorrect. Obviously, you should only do this if you have evidence and truly believe you don’t owe the amount reported. In another example, you may have disputed that an item is incorrect but lost. However, if it’s still appearing on your credit report past the allowed time, you could try again and argue that the item should have aged off your report. How Many Times Can You Dispute a Collection or Inaccurate Credit Item? There’s no limit to how many times a consumer

[ad_1] Your credit score is one of the most important numbers you have. It can determine interest rates on your loans or you even qualify for it. A lower-than-average score can make it difficult to purchase a new car, buy a home, or start a business. If your current FICO score is lower than you want, a credit repair company may be able to help. But is credit repair worth it, and can it really help repair your credit? This guide gets to the truth about credit repair to help you determine if this is the right option for you or not. Is Credit Repair Legit? With so many stories running around about credit repair scams, it can be difficult to tell if these companies are legitimate or not. The truth is that there are bad companies out there masquerading as credit repair agencies that have scammed consumers. However, there are plenty of legitimate companies that can help you through the credit repair process. The trick is to know the difference. 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Take some time to research any credit repair company you’re considering by reading a number of online reviews. Typically, you can easily spot companies with a history of scamming their customers. Cancellation policy. Reputable credit repair companies often include a cancellation policy. For example, you may have three days to change your mind and cancel your services. Does Credit Repair Raise Your Credit Score? One of the most common complaints regarding credit repair agencies is that they focus on repairing your credit report and not on your credit score. While technically this is true, the details on your credit report directly impact your credit score. The reality is that no credit repair agency has the power to change your credit score. What they can do is help you take steps to remove as many negative issues on your credit report as possible and provide advice for improving your score. Will My Credit Score Improve Immediately? Chances are your credit score didn’t appear overnight. Likewise, it will take time to repair any damages. For instance, if you find an error on your credit report, the credit reporting agencies have at least 30 days to respond to your dispute. It’s likely to take longer for the removal of this error to impact your overall credit score. In many cases, a person shouldn’t expect to notice changes to their credit report for at least the first six months. Does Credit Repair Work? Depending on your specific situation, credit repair services can help. For example, if you have any errors on your credit report that are negatively impacting your score, a credit repair company may be able to help you identify and remove this information. Reputable credit repair companies also review your credit reports and provide tips for improving your score. Get a Free Credit Consultation Today! Call 888-586-1898 Visit LexingtonLaw.com Are Credit Report Errors Common? According to a recent study, one-third of all Americans claim to have one or more errors on their credit report. These errors can range from wrong personal information to incorrect debt claims. A credit repair agency can help you examine your credit reports from all three credit reporting agencies, Equifax, TransUnion, and Experian. Can Credit Repair Companies Fix Mistakes on My Credit Report? While no credit repair company can guarantee its ability to fix mistakes on your credit report, it can help you file a dispute. These companies submit credit dispute letters to all relevant agencies on your behalf. Credit reporting agencies typically have 30 days to either substantiate their claims or remove them from your credit report. Can Credit Repair Companies Remove Negative Items? Credit repair companies don’t have the power to remove negative items from your credit report. What they can do is help you file a dispute to remove any incorrect information or claims on your credit report. Some credit repair companies can also work with your lenders to negotiate a repayment plan on your behalf. For example, through negotiations, the credit repair company may be able to entice a lender to reduce a portion of the interest to lower your overall bill. Additionally, many reputable credit repair companies provide tips for improving your credit report. These companies can also work with you to develop a strategy that may help you repair, restore or rebuild your credit over time. Is Credit Repair Worth It? Depending on your specific situation, working with a credit repair agency may be worth it. While some people attempt DIY credit repair, this process can be very time-consuming. You can avoid this hassle by working with a credit repair company. If you’re willing to put in the time and research, you may be able to handle the process yourself. However, a credit repair company can handle many tasks for you. The benefits you might receive from an improved credit score, such as better interest rates and lower auto insurance premiums, can more than pay for these services over time.Your credit reports impact so many areas of your life — where you work, where you live, what