Consumer Credit Help - Credit Repair

There are two main reasons why people have a low credit score; Firstly they haven't had the time or opportunity in their financial dealings to build a credit profile, this is a bit like Catch 22, how can you obtain a mortgage, credit card or a loan to build a positive credit score if you need a positive credit score to get the mortgage or loan in the first place!

Secondly, where people have found themselves in financial difficulties and perhaps failed to make repayments on time or had legal judgments made against them for non-payment or late payment of installments, the credit agencies are made aware of this and adjust the person's credit rating accordingly.

Mortgage and loan companies access the credit agency register and use the credit score to determine if they think that the proposed borrower is a 'good bet'. Of course a low credit score means that you either don't get the loan you want or, if you do, you pay a premium rate of interest in return.

In today's economic climate the situation is exacerbated because of the increased reluctance of lenders to part with their money to even the most creditworthy individuals. And this doesn't just stop at individuals, the financial institutions are even reluctant to lend amongst themselves, as evidenced by the interbank lending rates being significantly higher than the bank base rates. In the light of this, the ability to receive the most appropriate consumer credit help becomes even more important.

There are three routes you can choose from to help resolve this problem: using Attorneys, using Credit Repair Clinics or doing it for yourself. Using either of the first two can be expensive and arguably it's not in their interest to be as time conscious as you would be, but to a degree they do know the techniques needed to get a solution of sorts.

However, the problem in doing this for yourself is knowing where to access good information, quickly, that can be trusted to work. There are a number of good practices that you can initiate immediately which will either improve, or equally as important, not further damage your credit rating.

These include the following:

• Ensure your credit record is correct: Get hold of your credit report and ensure it's accurate. An error on your report can lead to you being declined unnecessarily. If you do find something wrong your lender will tell you which credit reference agency has been used so you can contact them to ask for the record to be corrected.
• Timing Applications Correctly: Be aware that details of loan applications are left on your credit records and so don't make lots of applications in a short space of time - space these out and note that things like mobile phones and car insurance applications can count also. Ask for a 'quotation search' rather than a 'credit search' so it wont be recorded, but note, not all lenders will comply so if it's unlikely you'll actually go for the product, don't bother applying.
• You score better when you're earning: If you suspect you may be separated from your job, apply beforehand.
• To obtain a credit score: If you can't get credit you can start gaining a positive credit score by obtaining very high interest credit cards. Use these over the next 6-12 months, spending a little each month and repaying them each month so that there's no interest cost. After this you'll have built a credit history which will allow you to apply for more competitively priced products.
• Keep up payments: This is an obvious one but at least look to make the minimum payments on your financial products otherwise it will adversely impact your ratings, potentially for years to come.
• Don't bury your head in the sand: If you are in trouble, contact your lender to discuss options - they'd rather help you than have you default.
• Cancel unused credit cards: Ironically access to too much credit, even if unused, can be a problem so cancel any unused cards.
  
  And Finally
  
• Be honest: Whatever you do, don't be dishonest in completing application forms, for a start it's an offence and in any case information that can't be corroborated is likely to be discounted for credit scoring purposes anyway.

How the Credit Crisis Might Help American Manufacturers

It’s hard to believe that the banking crisis can be good for anyone, but the credit crunch is starting to help some American companies at the expense of their foreign competitors.

Most people assume that manufacturers in places like China always have an advantage over their counterparts in the United States because of cheap labor, cheap real estate and less regulation. But there are other factors that influence manufacturing competitiveness, including the availability of inexpensive short-term bank loans.

Abundant and cheap bank loans are needed for Asian manufacturers to finance many of the goods consumed in the United States. Products made in Asia have a long “supply chain,” which means that manufactured goods spend a long time being warehoused, going through ports and customs and being shipped from plants in Asia to buyers in the United States. Before imported goods are paid for, and while they are making their way to United States customers, Asian manufacturers need cash to pay their bills. Bank financing provides the cash needed to pay bills and is critical for Asian manufacturers to export to the United States. If bank financing either isn’t available or is very expensive, then many products in the Asian supply chain can’t be shipped to the United States.

On the other hand, goods produced in the United States and shipped directly to buyers have short supply chains. Products manufactured and consumed in the United States don’t spend a lot of time in transit and can be delivered quickly. As a result, many United States suppliers require a lot less bank financing than their Asian competitors.

Also, long supply chains tend to require high levels of warehoused inventory near the customer. The inability to produce special-order goods for immediate delivery creates the need to warehouse extra inventory rather than manufacture on an as-needed basis. Again, long supply chains require higher inventory levels than short supply chains and therefore greater amounts of inventory financing.

Over the last 18 months Chinese manufacturers have suffered through high inflation, an appreciatingcurrency and new labor and environmental laws. The credit crunch is their newest and toughest challenge. The dimensions of the problem for Chinese and other Asian manufacturers have become apparent only in the last 45 days, and the potential for American suppliers to retake market share is only beginning to be realized. Last week’s economic statistics don’t yet reflect shifting competitiveness in favor of United States manufacturers. In fact, both the Institute for Supply Chain Management Report on Business (for October 2008) and the Census Bureau report of new orders for manufactured goods (for September 2008) showed material and growing softness in the United States manufacturing sector. But the full impact of the credit crisis hit the global economy only in mid-September. The lack of bank financing is beginning to depress Asian production slated for delivery in the United States in December and beyond.

It’s true that American manufacturers may find their products harder to sell in export markets because of the recent appreciation of the dollar, also stemming from the credit crisis and flight to the dollar and yen. But pockets of increased demand for domestic manufacturing, which is replacing Asian production, are beginning to build and will have the effect of muting an otherwise bleak manufacturing outlook.

As the Obama administration takes office, it needs to closely examine whether or not banking rescue assistance is being used to support domestic manufacturing and jobs or to bail out long supply chains of foreign competitors. If bailout package funds are used to finance long supply chains for imported goods, the government will be indirectly subsidizing foreign manufacturers at the expense of domestic companies. The bailout bill could turn one of the few “silver linings” of the credit crisis into a dark cloud if policy makers are not careful.