Get the Skinny on Integrated Credit Management

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Today, it’s difficult for businesses to attain credit lines from their banks. As a result, good credit management and customer cash may be the best options to finance a business’s daily operation, provide working capital and generate profits. What is integrated credit management all about? Integrated credit management is the process of:

  • Analyzing, managing and maximizing the financial risks of operating a business. A business is only profitable when invoices are paid by customers.
  • Maximizing client value by concentrating on the commercial value of the client for a business in terms of profitability and revenue.
  • Implementing financial relations management in alignment with customer relations management and business goals. Good relationships with clients yield a positive effect on payment and client loyalty.
  • Setting up systems, procedures and people in a business via cooperation and communication throughout the whole supply and financial chain. It’s an integrated approach.
  • Utilizing integrated automated solutions in order to disclose information in an efficient and centralized manner. All of a business’s departments can be kept in the loop.

Knowing Your Customers

With an integrated credit management approach, there is always a major focus on knowing your customers, the market and your competitors. What is the relative position of your company in the market? What do customers buy from you? How important are your products to your customers? An integrated credit management approach will help answer these questions and actually define the existence of your business. Without the answers to these questions, it is almost impossible to improve the performance levels of credit management for a business.

Today, automation plays a key role in integrated credit management. However, it’s important that you have a clear idea of how your business runs, so you can define policies and procedures that can be translated to software. The software itself will not ensure success; what your business does with it will. With an integrated approach, customer relations management, query management and credit management are all integrated into one automated system.

If you’re in business and struggling with credit management and would like to know more about these software systems, you can get advice from a non-profit credit counseling agency. A non-profit credit counseling agency has certified financial advisors who are qualified and knowledgeable about business operations and business software. Once you’re assigned an individual advisor, they will carefully review your facility’s operations and assist you with implementing strategies for increased profits, including integrated credit management software.

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Three Factors that Help You Get a Better Loan

If you’re thinking of applying for a mortgage, car loan or other loan, getting the lowest interest rate possible is critical; in fact, even a slightly lower rate can mean tens of thousands of dollars in savings over the life of a mortgage. To get the best rates, you need to understand how lenders evaluate you during the lending process. Here are the top three factors lenders use when evaluating your creditworthiness:

Amount of Credit in Use

Potential lenders will look both at the total amount of credit lines on your account and the percentage that’s being used. In general, you want to keep the amount of credit you’re carrying as low as possible – ideally no more than 20 percent of each card’s total limit. That means that for a card with a $1,000 credit limit, you would ideally want the amount you’re carrying to be at or below $200. In addition to having a healthier credit score, carrying a low monthly balance also means you’ll be paying lots less in interest and reduces the risk of over-limit fees and penalties. If you’re carrying a lot of debt, look into a debt consolidation service to have interest rates reduced so your monthly payments go further.

Payment History

Your payment history is the number one factor most lenders look at first when determining whether or not they’re willing to offer you a loan and when determining the interest rate or terms they’re willing to offer. Payment history also has a huge impact on your credit score: Even a single late payment can cause your score to drop considerably. The good news is that as you begin to establish a good payment history by making all your payments on time every month, your payment history will improve and your score will increase. Enrolling in a credit counseling and debt management program like CreditGuard can help you establish a regular repayment history utilizing monthly payments that you can afford. Credit counseling services make repayment easier by combining payments from all your different unsecured accounts into one sum that you pay only once each month. Combining many payments into one is a big step toward ensuring you pay your bills each month, which in turn goes a long way toward improving your credit history and score.

Length of Credit History

Creditors also look at how long you’ve had loans so they can get a better determination of how you’ll handle credit over the long term. The only way to improve this factor is to keep your credit lines open as long as you can; that means avoiding having lots of late payments or other negative behaviors that can result in credit cards being cancelled by the lender. Many borrowers mistakenly believe that cancelling cards is a path to better credit, but in fact, if you cancel the older cards in your history, you can cause your score to drop substantially. Learning to maintain open lines for a long time depends largely on consistently applying smart financial and credit management habits. Credit counselors can provide the guidance you need to ensure you understand the best financial moves to make to preserve a good credit score.

Keeping an eye on your credit and financial habits is a crucial component in getting the best loan rates. Enrolling in a debt consolidation and credit management service can help ensure you develop the best credit history and score possible.

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Easy Steps to Consolidate Credit Card Debt

stressed by credit card debt

Debt can be one of the most stressful and difficult to manage elements of daily life. When a person is in debt, the debt is always in the back of their mind. A person who is in too much debt hesitates before answering the phone, avoids checking the mail, and constantly feels as though they’re in over their head. But what these people need to know is that there are tools out there right now that can help them out of debt, and help them build a better financial platform for themselves and their family.

Consolidating credit card debt is one of the fastest and easiest ways for an individual to begin taking control over their situation. There are two types of debt from a credit score perspective: good debt and bad debt. Good debt consists of items such as mortgages, car loans, and student loans. These items of debt do need to be paid down, but not as quickly as bad debt. Having some good debt on good terms actually helps your credit score rather than hurts it. Bad debt consists of unsecured debt, such as unsecured loans and credit cards. The majority of debt problems today come from credit card debt, which makes consolidating credit card debt so important.

In order to consolidate credit card debt a borrower must enter into an agreement with their individual creditors by using a loan consolidation service. These creditors are made aware by the service that the borrower is currently trying to take real action to remove their debt. The majority of creditors will then agree to lower their percentage rates as long as the borrower is signing up for this program. The lowering of interest rates will dramatically reduce the borrower’s monthly payments, which makes it easier for them to pay off the balances in a reasonable amount of time.

While the ability to consolidate credit card debt does make managing debt easier, it’s not the only step that someone in debt needs to make. A person in debt also has to look at their monthly spending and identify ways that they can cut down on their expenses and increase the amount of money they put towards either their debt or their savings.

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How Does Credit Card Consolidation Work?

Millions of people are finding themselves in a significant amount of debt.  You keep charging purchases on your credit card and before you know it, you are facing an uncontrollable amount of debt.  Therefore, it is important to find a solution to your financial problems.  If you have a huge amount of unsecured debt, credit card consolidation might be the answer.

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What is Credit Card Consolidation?

Consolidating credit card debt involves putting all of your credit card payments into one affordable monthly payment.  You will have one payment, so your debt is easier to manage.  By consolidating, you will be able to obtain lower interest rates, so you can pay down your debt quicker.  Your monthly payments will be lower, so you can make your payments on time.  You can save thousands of dollars in interest, and you can pay down your debt in less than five years.

Credit Counseling

An experienced credit counselor can help you with debt consolidation.  The counselor will be reliable and dependable, and they will help you eliminate your debt fast.  A credit counselor will help you learn how to manage your money, and they will negotiate with your creditors to come up with an amount you can afford.  They will help put a halt to harassing calls from your creditors, and they will provide you with emotional support.  A credit counselor will offer you a free no obligation consultation.  You will learn how to budget your money, so you will know how to stay out of debt.  Working with a credit counselor is better than a debt consolidation loan, as a loan can lead to more debt.

Benefits of Consolidating your Credit Cards

Debt consolidation can help reduce your interest rate, so you will be paying less money each month.  Because you will be making payments on time, consolidation will keep your credit score from declining drastically.  In addition, you can get out of debt much faster by consolidating.

Credit card consolidation can provide you with a solution to your debt problems.  You can eliminate your debt and you will enjoy a bright financial future.

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Debt Consolidation Saves You Headaches!

debt consolidation headache

Many people who are in debt might have reservations about seeking out help. Our mindset is often that we need to do everything on our own, but that is fallacious thinking that leads to more trouble. Yes, you are responsible for the debts that you incur. However, not seeking out a more payable payment plan would also be less than optimal. If you have multiple lines of credit or unsecured loans, you need a special type of help. The type of help that covers multiple areas of problems for people who are indebted, this help comes from debt consolidation.

Debt consolidation is a program that brings all of your non-secured debts under a single commitment. This consolidation debt payment is proven to be easier to track and manage into your expenses. Instead of several monthly bills to be responsible for remembering, there is only one that you need to worry about.

One large payment is easier to work into when creating a budget for your household, and if you’re having difficulty doing that consolidation services provide financial counselors that are knowledgeable in structuring your finances. They will teach you the skills that are necessary to get your budget in order and quickly learn how to pay off debt. With a proper budget you would be surprised at how much you actually have.

Once you can establish what you need to pay, and the way to pay for it, the next task is simple: persevere. Many people through a debt consolidation program can sheer off months or even years from their original payment. All they did was stick with the plan that they were advised on, and with a bit of a “can do” attitude they finally beat the system that has been sending them into dire financial straits. If you save time, then you also save money. By paying off your debts early, you then save money that you don’t have to pay on interest!

photo credit: aldoaldoz via photopin cc

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Looking for Solutions in Online Debt Consolidation

online debt consolidation

Online debt consolidation is available to anyone who has multiple unsecured loans and is looking to bring them under a single monthly payment. These services bring any credit card charges or any loan without secured collateral into a single payment bundle. A consolidator will talk to you and your creditors, and bring all your balances under the same monthly payment. Consolidators talk to your creditor to reduce your interest, or even reduce late payment penalties.

The primary goal of a consolidator is to find a balance of what pays off your balances quickest and what is best for a client’s short term budget too. The secondary goal of a consolidator is to help prevent future debts from accumulating again. Consolidators have trained professional advisers that teach a wide array of budgeting skills that can help bring your bottom line from red to black. Consolidators often provide a worry free no-obligation credit consultation that will assess your current credit situation and what exactly needs to be done to get you out of debt. The peace of mind that comes when someone is actively helping you with your debt problems is a huge relief for all. Some consolidation services will also provide emotional counseling if the payments are draining that also.

Debt can happen to anyone. Automotive, family and medical emergencies bills accumulate or pop up; student loans and credit cards have their balances too. These debts are not as hard to pay off as you might think, and you may be able to pay off all your debts years before their original completion if they had continued on at the minimum monthly payment.

What needs to be done will vary from person to person, but the basics for consolidation are the same. Online debt consolidation is the easiest, fastest, and the safest way to finish up burdensome balances painlessly. Let a consolidator advise and advocate for you to your creditors for the quickest way to whittle down your unpaid balances.

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