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[C1268]Credit Report Without A Credit Card

by Gregory Ellis, Gre

It's a beautiful day and you are driving home looking forward to a nice quiet evening, when suddenly you spot steam blowing out from under your hood. You pull over to the curb, open the hood and discover that your radiator has a huge leak in it. Not only do you have to pay to have your car towed to the repair shop, but it's going to cost several hundred dollars to replace the radiator. What do you do?

Unfortunately, things like this occur to all of us, and at completely unpredictable moments. The only thing we can say with any certainty is that "unexpected things will happen," things that will change your plans or possibly even your life.

Dealing with unexpected changes would be much easier if we only had plenty of cash on hand. To someone with a million dollars sitting in the bank, a busted radiator is a mere inconvenience. To a poor working person with $20 to last until payday, a busted radiator can be a devastating experience.

Of course, there are also good unexpected events as well. Suppose you are looking at a new $250 CD player for your car and a friend tells you that a store in town is having a "one-day sale" with that exact CD player for just $125. Again, to a poor working person with $20 to last until payday, that could be a devastating experience.

Can you prepare for emergencies so you don't find yourself in a bind when they occur? Sure you can, to an extent. It is always a good idea to put away some money in savings for emergencies, but the fact remains that you cannot prepare for everything. One never knows how much money might be needed at any point in the future, and one never knows how hard and how fast the emergencies will hit.

Without savings, many persons in need of quick cash turns to credit cards. This source can give them the cash they need, but if they make only the minimum monthly payment on the credit card it places them in a state of permanent debt to the credit card company. This is what's called a debt spiral. Banks and big lending institutions use this spiral tactic as a money making scheme. Have you ever wondered why they are so eager to upgrade your credit amount all the time? It's certainly not for your benefit.

There is an alternative solution for fast money without the long term backlash. Loan companies specializing in payday loans can process a loan application quickly and easily online, depositing your money directly into your bank account. Provided you do your research and choose a company that doesn't part-take in rollover loans (where they keep upgrading your credit limit) it can be a responsible way of lending. Despite the interest fee seeming quite high, if you relate it back to the ongoing charges you will incur form a credit card it can end up being substantially cheaper. A new product launched by some payday loan companies is a card to instantly access cash advances. It works just like a credit card minus the long term debt and ongoing fees. When unexpected things happen in your life, put away those credit cards and leave your hard-earned savings accounts untouched.

I have seen credit reports get littered with collections, charge offs, foreclosures, late payments, and just a total disregard for obligations during a divorce. We all know divorce can be a bad experience for anyone that is going through it. There are times where everything is paid on time as well, but the divorce attorney does not know what will affect your credit report in the long run if the divorce decree is not drawn up properly. Here is what you need to know!

Get debts that are not your obligation per Divorce Decree out of your name:

During the process of drawing up the divorce decree make sure you get obligations out of your name that is no longer your responsibility. Make sure that in the decree it clearly states that the other party is responsible for getting obligations out of your name.

Examples:

1. Mortgages; get them refinanced or sold.
2. Credit cards that are joint accounts
3. Land that are joint accounts
4. Car notes that are joint accounts
5. Any obligations that is joint, that is no longer your responsibility per decree.

This is a huge problem out there, getting divorce decrees drawn up properly. Let's assume it's done the wrong way, and the person that is responsible for paying the obligation is late on a payment or two. This particular account is a joint account with your social attached to it. This means the obligations reports to the credit report in your name as well. You now have 2 late payments on your credit report, and you credit score just dropped 50 to 100 points. I am sure you can see why it's important to get this process done correctly. Maybe there is a house that is in both of your names, and you are in the market to buy another house. Unfortunately the attorney did not put in the divorce decree to either sell the old house or refinance it out of your name. The mortgage is a FHA loan, and you only qualify for a FHA loan. Guess what, you cannot have two FHA loans. Now you cannot buy a house. I am sure now you can see the importance of getting a good divorce attorney, and how they need to prepare your divorce decree properly. I see this problem all the time.

Conclusion:

I see this all the time, make sure your credit report is not affect as a result of a divorce. Matters could get worse if you don't have obligations drawn up correctly during this unfortunate process.

Article Source : How Do Credit Cards Work

About Author

Both Gregory Ellis & Mike Clover are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Gregory Ellis has sinced written about articles on various topics from Debt Reductions, Finances and Phone Bills. Greg Ellis co-founder of , Australia's preferred short term lender, shares his insights on money matters. Founded in 2005 Payday Online has helped thousa. Gregory Ellis's top article generates over 8100 views. to your Favourites.

Mike Clover has sinced written about articles on various topics from Free Credit Report Score, Marketing Campaign and Free Credit Report Score. About the Author: Mike Clover is the owner of .. Mike Clover's top article generates over 49500 views. to your Favourites.