Santa Ana, CA – Financial Crossroads, a leading debt resolution company based in Santa Ana, California, is offering tips and information for credit consumers who are struggling to have “life after debt” and recover from their negative credit situations, which include account charge-offs, bankruptcies, foreclosures and other adverse credit scenarios.

“People need to know that there are still options after their credit is damaged and there are some things that can be immediately done to rebuild their credit scores,” said Liz Baker, founder of Financial Crossroads, California.

With credit card defaults reaching record levels, more and more consumers are finding themselves in the position of not being able to keep up with their credit card payments, significantly affecting their credit scores in the process.

Some tips that Financial Crossroads are offering to help consumers include:

1. Negotiate payment terms with existing creditors.  Unless you file for bankruptcy and have your debt discharged, creditors can potentially harass you for years to come. It is not a good idea to ignore your debt, but rather negotiate terms and conditions to manageable levels. Financial Crossroads can assist consumers in dealing with their creditors on payment terms and debt settlement options.

2. Acquire a secured credit card.  Obtaining a credit card backed by your own funds will allow you to demonstrate payment responsibility to your new creditor, as well as others, which can increase your credit score in the process. After time, your new creditor may lift the restrictions, allowing you to have a traditional line of credit. However, Financial Crossroads says to be cautious of adding any new credit, so you do not replicate the problem that led to damaged credit in the first place.

3. Utilize the Payment Reporting Bill Credit (PRBC) Report.  The PRBC is a consumer reporting agency and credit bureau that collects payment information according to the Fair Credit Reporting Act. It offers consumers a way to build their credit files and demonstrate credit responsibility. The PRBC offers a report and score that can supplement your scores from the “Big 3” bureaus (Experian, Equifax and Trans Union).

Financial Crossroads also is noting that consumers can take common sense and responsible measures to ensure their credit is restored in a reasonable amount of time, allowing them enjoy financial freedom in the years to come.

For more information and tips from Financial Crossroads, California, visit http://www.financialcrossroads.com/blog  or call 1-888-912-3328 for more information on the company’s services.

About Financial Crossroads, California

Located in Santa Ana, California, Financial Crossroads is a member of The Association of Settlement Companies (TASC) and offers solutions and programs to Americans looking to get out of debt. With its main offices in California, Financial Crossroads uses a multi-faceted approach to assist clients to become free from credit card companies and other unsecured debtors in a relatively short period of time.

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Financial Crossroads is a member in good standing of the The Association of Settlement Companies (TASC).  Sound good, but what does that mean?

Founded in 2005, TASC is a non-profit organization that is the standard bearer in the debt settlement industry.  TASC helps companies like Financial Crossroads stay compliant on a wide range of debt settlement issues and even perform secret “spot shopping” on its members to ensure compliance and best business practices are being conducted.

You may view Financial Crossroads’ TASC disclosure form here:

Below are the top 5 components that make up a FICO score.  In no particular order, they are:

• Payment History. One of the most important factors in a credit score is whether or not bills are paid on time. Payments 30 days past due are typically reported to all three bureaus and will negatively impact a score.
• Revolving Debt Balances. Another important factor is the amount owed on revolving debt. Balances at or near credit limits will have a negative impact on one’s score.
• Length of Credit History. Consumers with new or recent credit profiles will be affected. This is one factor that is out of the control of consumers and Baker noted that maintaining a satisfactory credit history over a prolonged period of time is the only solution to improving this scoring component.
• Types of Credit in Use. Excessive revolving debt (credit cards or other unsecured lines of credit) will typically have a negative impact on one’s score. Baker recommends no more than two open revolving debt accounts at a time.
• Inquiries. Although a minor component to the overall score, excessive “hard inquires” on your credit profile will begin to drag down a score.