Debts are baleful and should be paid off as early as possible. You should try to take control of your debt before it takes control of your finances. Getting into debt is actually easier than coming out of it. Paying off your debts isn’t an easy process and involves lots of strategies and patience. Debt hurts your credit and so you should pay off debt to repair your credit.

Tips on paying off your debts

The strategies that you should follow:

* You should take control of your debts the moment you notice that your finances are going haywire. Prepare a realistic budget by jotting down your total income as well as all kinds of expenditures, fixed and varying. Prioritize your expenses so that you can manage your cash accordingly.

* Most of the people fail to realize that you will have to pay the money at some point of time while using credit cards to buy items. So, understand that you will have to pay up sooner or later. Use cash to buy things instead of credit cards to avoid expending more.

* Build an emergency fund which can help in emergency situations. You can do that by saving money from your everyday expenses if you practice frugal living. Put this money into the emergency fund. If you face problems later in making payments on your credit accounts, you will be able to use this money to pay off the debts.

* You should also try to minimize the usage of your credit cards. If you have availed of enough credit already, don’t apply for a new one.

* If you have the ability, make more than minimum payments each month on your accounts. If you do this, you are not only paying for the interest rate but your principal balance is also getting reduced. Also, creditors tend to increase the interest rate if you tend to carry high balance on your cards, thereby hurting your credit. So, pay down the balance by making more than minimum payments.

If you are facing problems in making the monthly payments, try to talk to your creditors. Convince them that you are in financial hardship and request them to work out a repayment plan according to your affordability. However, if quite an amount of time has passed after you have missed payments on any accounts, first check with the Statute of Limitations (SOL) on the account. SOL is the time period within which you can be sued by the creditor for non-payments of dues. So, if the SOL has expired you can dispute the item off your credit report to improve your credit. The creditor won’t be able to sue you for non-payment of the debt.

Debt Settlement Negotiation: How It Works

It has been observed that nearly one-third of the 1.5 million bankruptcies that were reported last ear were on recent credit. Historically it has been noted that certain consumers live off credit. They borrow from one creditor to pay the other. This of course is a flawed process as it eventually comes unstuck. The debt settlement negotiation process can take as little as one year or might last up to three years. The process for debt settlement involves informing your creditors that you are dealing with a debt settlement company and that all debt settlement negotiations must flow though that channel. There is also a wait owing to the fact that creditors need to make up their minds with regard to whether or not they will accept the offer.

During this time consumers are needed to sign a contract with the Debt Settlement service giving them “Limited Power Of Attorney” to act on your behalf. Typically, during the process for debt settlement you will need to deposit funds, on a monthly basis into a “settlement account” and this is used to meet creditor obligations.

Debt Settlement Company: Advantages of Debt Settlement Negotiation

If your debt is spiraling out of control, you probably need to employ a debt settlement company for debt settlement purposes. Listed below are few advantages of debt settlement:

• With debt settlement, the entire debt can be satisfied without actually paying the entire amount.
• Debt settlement usually absolves you of any adverse comments on your credit report.
• Debts which have been resolved through the debt settlement process with a debt settlement service are no longer subject o collection agencies or legal actions.

Debt Settlement Negotiation: Disadvantages

While debt settlement negotiation has its upside, the process for debt settlement has certain negative aspects too. The flip side of debt settlement is as follows:

• Debts which have been settled by using a debt settlement service appear as settled debt on your credit report as opposed to being paid in full.
• In certain situations collectors may on sell the remainder of the debt owed by you to another collection agency if you do not have something in writing from the previous collection agency.
• Usually any savings on the debt owed is considered as revenue and is reported to the IRS.
• Only if consumers have a negative networth can they avoid taxation. Collection agencies must submit a 1099-C form to the IRS for any debt forgiven which is over $600

Debt Settlement Negotation: Impact On Your Credit Report

It is a fact that you will experience a bit of a negative impact on your credit report with a debt settlement negotiation service. However it must be kept in mind that this is far better than having to declare yourself bankrupt and facing the long term implications of a negatively impacted credit report. Typically with debt settlement or a Third Party Assisted (TPA) debt settlement service, you can get rid of your debt obligations in as much as 36 months. On the other hand if you were to declare yourself bankrupt you would not only negatively impact your credit score by about 240-280 points but would also have a public record of your bankruptcy and would have it sit on your credit report for over 7 years.

Hence it is essential that consumers understand fully the implications of a debt settlement service and their importance as a credit repair service. While debt settlement has a number of advantages it also has a down side. Before making a decision consumers should seek legal advice as to the best option available and suited to their current situation. It is of essence that consumers take the necessary precautions to ensure that they maintain a healthy credit report as far as possible.

References:

1. High-fee debt settlement – Consumer Reports
2. Debt Settlement – Debt Consolidation Care

Refinance Your Mortgage For Better Credit Report

Consumers are sometimes misled and often believe that bankruptcy is a whole new start. While this is true, one should remember that declaring yourself bankrupt, comes with a lot of repercussions and bankruptcy affects credit reports as stated below:

• For starters, your FICO score gets affected negatively by anywhere between 240-280 points owing to the fact that bankruptcy is a matter of public record.
• Secondly clients who have been declared bankrupt find it very difficult to obtain credit and even if they do it is at a much higher interest rate.

Hence in light of these facts a mortgage refinance might just be the saving grace and one of the best alternatives to bankruptcy.

Alternatives To Filing Bankruptcy

Bankruptcy is not the only solution to manage mounting debt and there are some alternatives to filing bankruptcy that will not affect your credit report as badly. Listed below are a few alternatives to bankruptcy:

1. Refinance A Mortgage To A Lower Rate: If you are still in a product or with a lender offering a higher interest rate than the market place, it might be time to shop around and look for a lower interest rate for a mortgage refinance. A lower interest rate means lower repayments.
2. Mortgage Loan Refinance And Debt Consolidation: If you have more than one property and are struggling to keep up with your repayments, a mortgage loan refinance and debt consolidation might be a good idea. Consolidate your two separate mortgages into one facility and make one repayment on them. This usually also enables customers to make lower repayments owing to the single facility being larger and is an excellent bankruptcy alternative.
3. Line of Credit: This is a very powerful mortgage tool. This is much the same as using a checking account. The client is granted an overall account limit and can draw down from the mortgage loan as and when required. You only pay interest on the drawn down amount or the used amount.
4. Obtaining Cash Out: This type of a mortgage refinance will allow you to use the lazy equity in your mortgage loan. The diagram explains what lazy equity is.In this example the consumer can get a loan of up to 80% of the property value, i.e. 480,000 without having to pay Mortgage Insurance. Hence the client can use the additional 30,000 as per the client’s discretion. People often use the cash out component to pay off bills, credit cards and to create buffers in their mortgage account.

Using a mortgage refinance is a great alternative to bankruptcy as a well managed mortgage loan improves your credit report rather than the damage bankruptcy causes. However, there is one more alternative to bankrtupcy as well:

• Filing For A Chapter 7 or Chapter 13: Clients can sometimes file for a chapter 7 which is commonly known as liquidation as alternative to bankruptcy. This does not disqualify a client from obtaining a mortgage refinance as long as 2 years have passed since the client was discharged of the bankruptcy. On the other hand if the client files for a chapter 13, he/she can still obtain a mortgage refinance as long as the payments in relation to the mortgage and the bankruptcy have been made on time.

In a changing credit environment, consumers can no loner rely on the “one size fits all” principle. It is essential that clients reassess their situations and are full aware of all bankruptcy laws before making a decision. As as an alternative to bankrtupcy, one can refinance mortgages out of their present financial institutions and on to cheaper rates and solutions. This could be the ideal alternative to bankruptcy and helping you maintain a blemish free credit report.

Reference:

1. Could Mortgage Refinance Help You Get Out Of Debt? – Legal Helpers

Debt Consolidation Vs. Debt Management  For Better Credit Rating

A debt consolidation plan, to improve credit rating, consists of taking out a new all inclusive loan to pay off several existing loans in order to make payments more feasible. An example would be taking out a second home mortgage or a home equity line to pay off say an existing mortgage, a vehicle loan and a student loan. However, you must remember that the debt consolidation plan does not reduce your initial balance, it just consolidates it.

A debt management plan is usually devised by debt management services who negotiate the loan terms with your creditors and attempt to reduce your interest rates and payments. However, if you apply for a new credit line later, you might have some trouble. In most cases, using a debt management plan is treated the same as filing for chapter 13 bankruptcy. Creditors become wary of lending more money to you as they perceive you to be overburdened already. While the debt management plan might help you lower your debt, it comes at a price.

Debt Consolidation Loan To Improve FICO Credit Rating

A debt consolidation loan does nothing to harm or improve your FICO credit rating in the short run as the credit agencies look at your entire credit line as a whole which remains unaffected.  However, if you make payments on this new loan consistently then eventually the debt consolidation plan will help you improve your credit rating. Besides improving your FICO credit rating score, a debt consolidation loan reduces the number of payments you need to make and groups them into one single payment. Thus it becomes easier to keep track of and make the payments on time.

Debt Management Without Debt Consolidation Loan

Debt management is possible without having to apply for a debt consolidation loan. In such a case, a debt settlement might be reached with the creditors in order to decrease your debt. It may reduce your Interest rates, minimum monthly payments and future late fees. In some cases this leads to a major setback to your credit rating score but unlike a debt consolidation plan or loan, you do not take on further debt to do so. It eventually helps you to pay off your debt much faster and pay lesser than you owe currently.

Improve Credit Rating Score With Debt Settlement

A debt settlement or debt consolidation plan can be beneficial to one in many ways in order to improve your FICO credit rating score. The main aim of these service providers is to help you lead a debt free life eventually. A Debt settlement/Debt consolidation plan could help you rebuild your credit rating score by:

• Decreasing interest rates drastically for the balance owed
• Eliminating future late fees
• Creating one easy payment making it easier to keep track of
• Paying off your debt faster.

Even though Debt Consolidation/Debt Management  plans come with their pros and cons, if chosen correctly they might prove beneficial to you to become debt free and eventually improve your credit rating and create a good credit report.

Get Free Credit Report – Quick Consumer Credit Guide

Every US citizen is entitled to free copy of their annual credit report from each of the three credit bureaus. This can be done in three ways:

1.      ONLINE: Visit the website www.AnnualCreditReport.com. Please be aware that this is the only authorized website through which consumers can access their credit report for free and others are likely to be “free” credit report scams.

2.      PHONE: You can call the hotline at 1-877-322-8228. However please bear in mind that free annual credit report requests over the phone take about 15 days to process.

3.      MAIL : If you wish to order your credit ratings history by mail, complete the Annual Credit Report request brochure and mail it to Annual Credit Report Request Service, PO BOX 105281, Atlanta GA 30348-5281

Please remember that consumers are entitled to only one free credit report each year and each additional request incurs a charge of about $10.00. In addition to this, please also keep in mind that approaching a consumer credit agency directly will also incur a charge.

Order Free Consumer Credit Report – Advantages

Even though it is free, many consumers do not order their free consumer credit report because they believe it is pointless. However, regularly checking one’s credit rating history has several advantages, some of which are:

• Credit Report Errors: Viewing your free annual credit report regularly will allow you to pick up on any discrepancies and credit report errors that might have crept in to your credit report such as:- Payments not being credited to your accounts
  - Incorrect defaults shown on your account
  - Credit applications or enquires not applied for
  - Incorrect bank judgments and defaults, etc

• Viewing your own Credit Ratings Score: Obtaining your own credit ratings history enables you to view your own credit score and thereby see your credit standing

• Identity Theft : Viewing your annual credit report frequently could protect you against identity theft. Identity theft has been growing at an alarming rate in the country and it might be a good idea to ensure that you are not a victim. In fact, identity theft victims legally qualify for free credit reports at any time of the year.

Adverse Circumstances – Obtain Free Consumer Credit Ratings History

Apart from identity theft, certain other adverse circumstances qualify a consumer for a free credit report which can help them view and if necessary, improve their consumer credit history.

• Negative Outcomes: If you have been denied credit or employment based on adverse comments in your credit ratings report, you can obtain a free credit report within 60 days of receiving notice of the action.

• Unemployment: In case of unemployment, consumers are entitled to a free credit report within 60 days from the date that they lose their job. Under these circumstances you are only allowed one per year.

It is recommended that consumers review their credit reports quarterly or half-yearly as it has been found almost a quarter of all consumer credit ratings reports contain errors. By regularly obtaining and viewing your free annual credit report, you can prevent and rectify errors in your credit ratings history to improve your personal credit ratings history and maintain a healthy credit standing.

Credit Card Accounts To Build Good Credit

Having credit card accounts is not necessarily a bad idea if you use them wisely. To build good credit, you must have a credit history and often applicants with no history on their credit scoring report find it hard to get new credit or loans. For this reason, credit card balance can be useful and help to build good credit. Even if you are in the low income bracket, you might be able to get a low credit limit credit card. However, only apply for a new credit card account if you can afford the repayments or it will just end up damaging your credit scoring report.

Close Credit Card Accounts For Credit Card Balance Transfer?

If you have a credit card balance with Bank A and Bank B comes along and offers you better interest rates, it seems the only logical thing to do would be to close your credit card account with Bank A and transfer your credit card balance to Bank B’s credit card immediately. But before you do that, consider what that means for your credit scoring report.

When moving from one credit card account to another, if the credit line on both accounts is the same, your “debt percentage” stays the same. Your debt percentage is the amount of money you owe in proportion with your credit line. So if you have a $5000 credit line on your credit card account and have used $2500 of it, your debt percentage is 50%. Credit card balance transfer from one account to another with the same credit line does not decrease your debt percentage at all. If your new account has a lower credit line, this increases your debt percentage.

Leave Credit Card Accounts Open For High Credit Score

Transferring your credit card balance to a new account makes sense when you can save money on interest but do it the smart way. If your credit card account with Bank A has been open for 5 years and you have only just opened a new credit card account with Bank B; Bank A is a valuable asset on your credit scoring report. Even if you do not use the account, leave it open. This gives you a larger credit line (Bank A + Bank B) but since the amount of money you owe remains the same, your debt percentage decreases and this is a good way of maintaining a high credit score. If you close your account with Bank A, your well-established credit scoring report history is deleted and you start afresh and this will affect your high credit score.

Build Your Credit With New Credit Card Accounts

Each time you apply for new credit, your credit scoring report rating falls slightly however if used wisely, new credit card accounts can help to build your credit. Here are some tips:

• To build your credit score, your new credit card balance should decrease your debt percentage so think hard before applying.
• Only apply for credit card accounts that you can afford to repay and really need.
• Applying for  too much new credit and too often will negatively impact your credit scoring report and you definitely do not want that.
• Credit card balance transfers to new credit card accounts with lower interest rates will save you money but consider the implications on your credit scoring report and act accordingly.
• If you transfer your credit card balance to a new account, leave the unused old account open for a few years to maintain a high credit score on your credit scoring report. This will help build your credit rating until you have established a repayment history on your new account.

The Fair Credit Reporting Act (FCRA) For Consumer Credit Worthiness

The FCRA and the Fair Debt Collections Practices Act together form the basis of the American consumer credit system. Enforced by the Federal Trade Commission in 1970, the Fair Credit Report Act is federal law and grants consumers certain rights to protect them from unfair credit reporting methods.

Consumer Reporting Agencies And Credit Report Errors

The credit reporting act governs all consumer reporting agencies in the country, which includes the three major credit bureaus and other specialty agencies that report rental, check writing and medical histories. Credit report errors made by these consumer reporting agencies often affect a consumer’s credit standing and without the credit reporting act rights, the consumer would have no way of fighting back against unfair credit reporting methods.

The FCRA – Credit Reporting Act Rights

As per the Federal Trade Commission’s Fair Credit Reporting Act, every consumer has the right to dispute inaccurate credit reports. Therefore, in order to help a consumer regain their credit standing, they have certain credit reporting act rights. Some of the major consumer rights are:

• The right to know what is included in your credit file. Since 2005, every consumer has the right to request a free consumer credit worthiness report from consumer reporting agencies annually.
• If an entry in your consumer report is used to take action against you such as being denied further credit or employment, the Fair Credit Reporting Act entitles you to obtain the details of the consumer reporting agency that provided the information.
• To determine your credit standing, you may request a credit score from one of the consumer reporting agencies. However, a fee will be charged for this.
• As per the FCRA, a credit report error can be disputed by a consumer at any time. In order to comply with fair and accurate credit reporting standards, consumer reporting agencies are required to investigate the issue when a consumer claims credit report errors.
• If credit report errors are found to be true, consumer reporting agencies are required to immediately delete the information from the consumer’s report and re-establish their credit worthiness.
• Credit bureaus and other agencies are required to correct inaccurate credit reports and always use up-to-date and verified information to determine a consumer’s credit standing.
• The FCRA explicitly specifies those who might need access to a consumer report; i.e. creditors, insurers, landlords etc. Consumer reporting agencies may provide information only to these and protect your credit report from all others.
• The Fair Credit Reporting Act instructs consumer reporting agencies that they must seek a consumer’s permission before providing credit reports to employers.
• Consumers have the right to limit and eliminate pre-screened credit offers.
• If a credit reporting agency is found guilty of unfair credit reporting methods or a user of the credit report information does not comply with the Federal Trade Commission requirements, the Fair Credit Reporting Act Rights allows a consumer to sue for damages.
• The Fair Credit Report Act has special provisions for victims of identity theft.

Some states have incorporated the FCRA while others have their own credit reporting act – each giving a consumer the right to fair and accurate credit reporting and protecting them from unfair credit reporting methods and credit report errors.

James Marland was having issues with his credit report and decided to seek advice from a credit repair company. However, after weighing the costs and pros and cons of a credit repair service, he decided to help himself instead and fix his own credit report.

James’ story puts into perspective the question “Are credit repair services actually needed?” or is credit restoration possible without help from them?

Credit Repair Services – Why They Are Needed

Credit repair services find their place in today’s complex environment owing to the fact that there is a lot of negotiation involved with third parties in order to repair your credit report.

Credit repair companies are usually adept at this and hence know all the channels. In order to avoid the constant hassling of creditors and finance companies, many people opt for these credit repair services. However, with a little organization, you can do this yourself too.

Expensive Credit Repair Help

A lot of people nowadays are seeking credit repair help from credit repair services, however these companies can be expensive. This is not to say that credit help agencies don’t help. They are useful for those who can’t find the time in the day or could do without the hassle. However, you can undertake your own credit restoration too, provided you are willing to invest the time and energy in to it. However, if you would still like a credit repair company to handle it for you; be prepared for the bill.

Credit Restoration – You Can Do It Without A Credit Repair Service

With the easy availability of information and other useful resources available these days, there is no reason why an individual can’t repair their own credit report. Moreover it is also your right under the Fair Credit Reporting Act (FCRA). Repairing your credit report would include getting rid of:

• Overdue Accounts
• Defaults
• Judgments
• Clearouts
• Crossed/linked files etc.

Benefits Of Improving Your Poor Credit Rating

By improving your poor credit rating, you can enjoy benefits such as:

• It removes any negative listings that may have appeared on your credit report
• An improved credit report leads to lower interest rates
• It reduces upfront payments
• Owing to lower interest rates it also reduces your repayments and saves you thousands in higher repayments

Do It Yourself Credit Repair Help

If you are willing to make a bit of an effort to improve your poor credit rating, your credit restoration process does not require you to employ a credit repair company.

1. Obtain a copy of your credit report.
2. If you do notice any errors in your credit report, report them to the proper agencies or bureaus and obtain a copy of written communication.
3. Seek credit advice from your finance providers in case you feel that you might be struggling.
4. If you have fallen behind on payments, make a budget of your expenses and income to figure out how much extra you can contribute towards those repayments in order to catch up.
5. Try and make your payments on time and stay on top of them.

However, at the end of day if you are still struggling, you can always use credit repair services for assistance. Just be careful and avoid the scams promising credit restoration but not really providing any credit repair help.

Alison had a credit card with a credit institution. Although Alison had been very regular with her payments, owing to a system error, her payments were not recorded and were being credited to another account. Her account showed defaults for over two and half months. Alison was completely unaware of this, till she applied for a mortgage. Her application was rejected owing to her repayment history.

She eventually took this up with her credit card company and had the issue resolved, but was unaware that the credit card company had not informed the credit bureau and these listings stay on your report for a five year period.

Credit Report Error Examples

Alison’s credit report error story is not an isolated one. Some common examples of credit errors are:

• Payments not credited to your accounts.
• Default interest wrongly charged to your accounts.
• Incorrect account set-ups there by causing payments to come out early and placing your account in arrears.
• You do not have any dealings with the lender listed.
• The listing on your credit report was over 5 years ago.
• The same credit default has been recorded multiple times.
• The debt default listed had nothing to do with you and you have not acquired the debt.

These are just some examples of the kind of credit errors that may creep into your credit report.

Improve Your Score with Correct Information

In addition to the five elements such as payment history, balances owed, new credit applied for, types of credit and length of credit history, your credit report also records the following:

1.       Your name (including previously used names)

2.       Your address (including previous addresses)

3.       Court judgments.

4.       Dishonored cheques.

5.       Bankruptcy orders etc.

To improve your score the first thing you must do is ensure all the information on your credit report is absolutely accurate. Also it is important to know what is included in your score and which companies report to credit bureaus before you wage a battle with creditors and credit bureaus because sometimes what might seem like a credit error to you might actually be a rent default you had forgotten about.

Credit Report Repair – Get Rid of a Credit Error

The next issue is to solve any credit report errors that might have occurred on your score. Follow some of the steps below to improve your score and repair your credit report.

• Obtain a copy of your credit report regularly (as often as six months if need be) to ensure that no unwanted listings and credit errors have occurred.
• In the event that there is a listing that has wrongly appeared on your credit report, get in touch with your credit provider disputing the credit error and question the credit report error immediately.
• In certain cases the credit provider might have an external resolution system and in that case you might to file a credit error complaint with them to improve your score.
• Finally if none of the other avenues work, talk to the appropriate credit bureau and raise the issue with them by lodging a formal complaint about credit report errors and how it is affecting your score.
• The Federal Trade Commission regularly handles complaints about credit errors so you could complain to them to restore your score.
• Be prepared to fight a legal battle if necessary. This is your credit report and you should not take credit errors lying down. If a creditor will not fix a credit report error, inform them you are willing to hand over the matter for your solicitors to manage.
• If you are unable to repair your credit report alone, seek advice from a credit repair company but be careful as there are several scams out there.

For poor credit rating customers, getting a good credit interest rate is becoming a bigger problem during the recession. One fact to remember is that your individual FICO credit score has a directly proportional relation to the credit interest rate that will be offered to you (i.e. the better your FICO score the better the credit interest rate).

Getting the Best Interest Rate For Poor Credit Rating Consumers

Every consumer wants to get the best interest rate but for poor credit rating consumers, sometimes this becomes hard. It is therefore important to understand how much your FICO credit score affects your credit interest rates.

Every credit contract contains a certain element of risk within it. There is the risk that the customer will not repay the contract. In order to compensate this risk, lenders/financial institutions charge a higher credit interest rate to customers with a low FICO score. The philosophy behind this is that, clients with bad credit and lower FICO credit scores tend to carry a default risk.

FICO scores usually range from about 500-850, needless to say 850 being the best and 500 the worst. The chart below shows the relative credit interest rates you might be charged on a basic mortgage corresponding to your FICO credit score.

Bad FICO Credit Scores, High Credit Interest Rates

In the wake of the global financial crisis financial institutions are tightening credit policies like never before. They are lending less money even to those consumers who have good FICO credit scores making it harder for poor credit rating consumers to get the best interest rates. Financial institutions are now looking at things like default percentages corresponding to your FICO credit score. For example an accepted industry statistic is that consumers with a credit score of 750-760 usually have a default / arrears rate of 0.18%-0.20%. On the other hand for poor credit rating consumers with a FICO score of 540 or below the chances of a default are significantly higher as they stack up at nearly 20% or in other words nearly one out of five consumers with bad credit are likely to default on their payments. This is known as the risk rate and since consumers with bad credit are likely to have a higher risk rate, they usually end up paying higher credit interest rates as well.

Best Interest For Poor Credit Rating Consumers

Therefore, in order to improve your FICO credit score and become eligible for better credit interest rates you could take some of the following steps:

• Make sure you keep up with your credit contract repayments and make them on time.

• Get credit only if you need it and make sure that you do not accept any and every credit card limit increase that is offered to you.

• Keep you credit card and store card balances low as this can hugely affect you FICO credit score.

• Try and reestablish your credit worthiness if you are a poor credit rating consumer. Catch up on your missed payments and defaulted accounts, should you have any. Reestablishing your FICO credit score can go a long way in getting you the best credit interest rate possible.

A few simple steps can help vastly improve your FICO credit score and translate to getting you a better credit interest rate which in turn will save you a lot of dollars as far as far as repayments are concerned. When you start improving your FICO credit score, you automatically become a less risky customer and this will enable you to get the best interest rates on any credit contract.