Is It Legal To Become An Authorized User?

Over time, bad credit can become a huge problem. Debts tend to accumulate and, with bad credit, it is hard to get certain jobs, decent loan offers and low interest rates on mortgage or insurance. It is a negative cycle that can only be overcome through a combination of economic discipline, good financial advise and credit education. But Art Gulle creator of "The Credit Journey" Credit Repair Course and author of "5 Ways To Buy The Right Foreclosure With Wrong Credit" says that such a difficult path cannot exist without some shortcuts. Holes in the legal and financial system have permitted the rise of other alternative methods to curate or recover a bad credit score. These methods are legal shortcuts that can help pave the path to economical stability and growth. However, there is one big problem with them. Legal shortcuts are surrounded by law, but not regulated by it, and some risks are involved. This is why many credit experts are constantly reminding people of the potential problems that could arise from employing such methods. One of the most talked about and used in many cases is improving credit scores by signing on as an Authorized User on another persons credit card that holds good reporting status.

To become an authorized user on someone’s credit card, the owner of the card must start the approval process (which can be a simple phone call) before the credit company would authorize an additional card. Being an authorized user usually comes with all the advantages and none of the disadvantages. A credit score is instantaneously risen when someone who has a card with a good reporting history  authorizes another person to attach to their account. If the owner of the cards keeps an excellent paying status, then the authorized user continues to experience the same advantage. This method can keep going until the authorized user has a credit score high enough to start getting better jobs and loans, and lower rates and interest.  In addition, approving an authorized user with bad credit does not affect the original user’s credit. Unfortunately, this method has somewhat of a dark side. If you do not get this card from the authorized user immediately, they could use the card anytime they desire and will have no responsibility for the payments of the card. This makes an authorized user an extremely risky relationships and full caution is recommended.

Being an authorized user is considered to be a morally ambiguous method to boost someone’s credit score, but it is legally accessible, and it has rescued many people from difficult and seemingly unsolvable economic situations.

Of course, all this sounds great put on paper, but the credit system is still complex and can be hard to understand completely. This is why many people have dedicated their life to help potential buyers to better their credit scores and gain access to all the financial benefits. Such is the case of Art Gulle, author of the celebrated book “Act Like a Homeowner, Think Like an Investor.” Art Gulle has had his share of experiences with credit. Living through up and downs while facing the many challenges that come with managing personal credit, Gulle learned all the inside methods to managing personal credit and has used this knowledge to help many people over the past 14 years. His latest project is hosting “The Credit Journey” Credit Repair Class, where you can learn about a wide range of useful tools and techniques to help repair your credit report. You can contact him by visiting www.TheCreditJourney.com

What happens if an account is "charged off" by a lender?

Art Gulle author of "Act Like A Homeowner, Think Like An Investor and "5 Ways To Buy The Right Foreclosure With The Wrong Credit" will host credit repair classes at the Riverdale Center in Riverdale Ga. Falling behind on a bill can be serious business, particularly if your bill is sent to a collection agency. A bill that is sent to collections, or is “charged off”, can make it very difficult to borrow money for essentials such as a home or car.  However, there are constructive ways to approach a charge off that can (over time) reestablish your credit.

   A charge off remains on a credit report for seven years, however after that time federal law requires that credit reporting agencies (Experian, TransUnion, and Equifax) must remove these items from your credit report. The Fair Credit Reporting Act (FCRA) protects consumers, creditors, and credit reporting agencies

   When it comes to dealing with bill collectors, it is important to remember that each state has a different statute of limitations when it comes to how long an agency can take legal action to collect a debt. Typically this time period is not more than five years, however you can check with your states Office of the State Attorney General. After this statute of limitations has expired, a collection agency can no longer chase you down for that debt.

   Certainly, these first two options point to steps you can take if you are unable to pay your bill. This begs the question, when is it a good idea to pay a debt?  Becky House of American Financial Solutions says that there is a lot to think about when it comes to paying old debts.

   The first thing to consider is that paying old debts, even after they have been written off, can bolster your credibility with lenders. Paying these old bills can increase your credit, making it easier for you to purchase a home or car should you need to.  However, it is important to note that paying on old debts will not erase the old debt from your credit report or necessarily boost your score. Luckily, Rod Griffin who is the Director of Public Education with Experian reminds us that your actual credit score is not everything. Doing everything you can to bolster your credibility with lenders is critical as they are looking for a complete financial picture of who you are.

   Even if you’re not thinking of applying for a loan, improving your credit score can help you in many other ways. Professional property management companies look at credit scores when considering whether or not they want to lease to you. After all, a lease is just a different type of loan. There are also some employers who consider credit score when going through the screening process as a way to determine how reliable you will be as an employee.

   There are certainly options when it comes to paying off charged off debts. Speaking with a credit repair counselor use to be your best option. However, the smarter choice is to stop the cycle and the long drawn out monthly fee and learn what the credit repair counselors may not tell you. "The Credit Journey" credit repair classes will  give you a better idea of what may be in your best interest to pay off the debt, settle with a collection company for a lesser amount. or start an aggressive dispute process. For more information go to: http://www.TheCreditJourney.com