How To Build Good Credit

October 12, 2010 by  
Filed under Credit Basics, Free Debt & Credit Tips

If you want to build good credit, there are some steps you need to take. The first thing you will want to do is check you credit report just to verify there are no reporting errors to start with. This can happen if someone is using your identification or sometimes  there are just flat out errors. Opening up a savings or checking account should be high on your list. This is a very basic building block many people over-look. Another important step is to get an understanding of how credit scores actually work. The basics of course are, do you pay your bills on time and what is your available credit.

To help you build good credit you may also piggy back off of another persons good credit rating. This is simply done by getting them to co-sign for you. Just be sure to make good on this as you wont be the only person to get hurt. Another step to building good credit is to apply while your still in college. Even though you must be extremely careful with this, the fact is it’s still one of the best times to apply for credit.

Applying for secured credit cards and store credit cards are another example of ways to build good credit. These are not difficult to get and will definitely put you on the right track. And don’t forget, no more then 2 when you get started. When using these, please start off by doing so lightly. By paying-off balances every month you will certainly be on your way. Then you can simply charge a another few small items and repeat the process

And finally, to build good credit you will need to have gotten some type of an installment loan. These include auto loans, personal loans,and mortgage loans etc. You can always start off with a small loan, maybe a personal loan from a credit union with a short duration period of which to pay it back. And if you do these things and pay your bills on time, you would have learned that this is how you build good credit.

Steps To Fix And Repair Bad Credit

October 4, 2010 by  
Filed under Credit Basics, Free Debt & Credit Tips

In order to fix and repair bad credit properly, there are some very specific actions you need to take.  Just remember this is not a sprint, so take your time and whatever steps you need to do, it’s more important that their done properly, rather then being done quickly. Some of these procedures will be easy and painless, while others will involve changing our habits and behavior.

If your going to fix and repair bad credit right way, you must begin by getting a copy of your credit report. For a few dollars, you can get a copy from any of the top 3 reporting agencies. Once you receive this, go through it very carefully and make sure there are no errors. After you have completed this step and you are satisfied with the results, you will then need to go through your credit report again, but this time to verify what exactly is being reported on you. Once this is done and you are satisfied with the outcome, you can then go through it one more time, checking for any omissions that you want added to your records. Legally, you can add information to your report if you believe it’s going to increase your score. And now for the final step using our credit report. We need to talk to the creditors we rightfully owe and begin making payment arrangements, then we need to talk to the creditors we don’t owe and make sure the errors are removed from our credit report. Remember, if were going to repair your bad credit effectively, all these steps must be completed with 100% accuracy.

Now it’s time to move on to the next phase of our fix and repair credit strategy. We are now going to get control of our finances. To do this, we will begin by ceasing any use of our credit cards. Unless it’s an extreme emergency, using them in the foreseeable future is out of the question. Common sense will tell you, it is impossible to fix and repair credit while your constantly driving yourself deeper and deeper into debt. Now that we understand each other, we can move onto the final stage.

We need to put together a budget plan and stick to it. We can begin by listing all of our monthly income vs. our monthly expenses. First, list your expenses that are a constant. Such as payment arrangements you previously made with old creditors, mortgage, utilities, phone etc. Now we can figure out a budget for our miscellaneous expenses such as clothing, transportation, leisure etc. When you complete these steps, you will have implemented a complete fix and repair credit strategy, that given a little time, will not only begin to restore your credit, but will also improve the overall quality of your life.

Building Credit-From The Basic Foundation To Starting Over

September 22, 2010 by  
Filed under Credit Basics, Free Debt & Credit Tips

Building credit, whether your just starting out or starting over, can be an emotional adventure at times. From the initial excitement of our very first credit card, to the disappointment and frustration of when we were turned down, it always seems to be like a roller-coaster ride filled with highs and lows and ups and downs. Its for this reason that we all should be well informed and come prepared with a good sound basic strategy behind us that will help keep us even keeled as we begin this process.

Building Credit-From The Beginning

When initially building our profile, we sometimes do things that at the time seemed to be OK, only to find out later that is was not only a poor decision, but it also turned out to hurt all of our credit building efforts and strategies we worked so hard at. We were surprised to find out that while we believed we was increasing our score by getting that extra card, we were actually over-extending ourselves, thus decreasing our our own credit rating due to our ignorance and are lack of knowledge in this area. Yes, you can have too much debt at one time(especially in the beginning). Even though it’s hard to imagine that since you were awarded that extra piece of plastic without even trying to get it, when used improperly(improperly meaning excessive and foolish usage thus putting you in to much debt to soon, to actually canceling the card altogether as this to can hurt you) it will damage your credit rating. You need to remember when you are first building credit, it’s best to go slowly and methodically so you don’t make any foolish mistakes that will turn out to hurt all of your credit building efforts down the road. By taking this approach you will build a strong history with a high rating that will go a long way towards helping you achieve all your personal and financial goals.

Credit Building-Starting Over

Rebuilding credit can be a bit more challenging if you someday find yourself in that bad situation where you must start all over again for one reason or another. After going through some type of misfortune in our life, whether it be by our own doing or for some reasons totally beyond our control, we can sometimes find ourselves needing a complete makeover. Unfortunately however, there are no do-overs with our credit history. What happens to our credit score can stay with us for a long time. Your bad debts can follow you for up to 10 years if not properly handled. That’s why it is sometimes so hard to begin again. Even if you pay off your bad debts, your history could still be listed in a negative manner, which in turn will continue to hurt your credit score for a long time.

Building Credit-Educating Yourself For Either Situation

Whether your just building credit for the first time, or your rebuilding your history after some tough personal situation you were in, you really need to educate yourself with the whole process. If your just building credit and trying to establish a positive history, you should at the very least be familiar with some basic credit building strategies. If you need to rebuild your history, then you need to be well informed of all your options and who is the best qualified individual or organization that can properly assist you and your needs in order to achieve this as quickly as possible.

Tips On How To Fix Bad Loan Credit

September 7, 2010 by  
Filed under Credit Basics, Free Debt & Credit Tips

Having bad loan credit is nothing to make light of nor should you let this problem linger.  There is nothing more embarrassing than being turned down for a loan. You have your hopes up when you walk into a bank and within minutes, your dreams of a new house or car are gone. Most of us have had bad credit at one time or another and if you haven’t, consider yourself lucky. With today’s economy, it gets harder and harder for us to make ends meet. If you are one of the many that have bad loan credit remember, it’s not too late to fix it.

You can start by finding out why you didn’t get the loan in the first place. You can ask the lender the reason you were turned down, and request any suggestions they may have for you regarding  how you can begin to fix your bad loan credit. You can also inquire as to any insights they may have for any specific actions you should be taking in your immediate future so this does not continue to hold you back as you work to rectify this situation. Keep in mind, that no matter what they may tell you, or any suggestions they may give you on how to fix your bad loan credit, there will be certain things you must do on your own so please be prepared.

The first step you need to do is immediately request a copy of your credit report. Since your application was denied due to having bad loan credit, there will be no charge for this.  Upon receiving your report, there will be some very specific actions you will need to do if your going to fix your bad loan credit and begin to get your credit rating back in order.

When you have your report, go through it very carefully noting any mistakes (creditors listed you don’t owe), omissions (anything not listed on your report that could potentially help your score), and any creditors you do in fact owe and need to make payment arrangements with. Once this is completed, contact all necessary parties so that all issues get taken care of. If this step can not be done solely by you, then begin researching for outside help (a good credit service  company can provide this for you).

Next it’s time to show the world that you are indeed in charge of your finances once again. You can do this by simply putting together a well organized, extremely thought out budget plan that can easily be read and understood by anyone who you should happen to show it to.

Now go back to your lender who previously turned you down because of your bad loan credit with all your accomplishments. Even though your credit issues have not yet been fully put behind you, that’s OK. Go over in detail with them the results of your findings with your credit report whether its good, bad or ugly. Let them know of any mistakes that were corrected in your favor, of any omissions that have since been added, and any creditors that you have made payment arrangements with in order for you to fulfill  obligations  that you may have with them.

Now you can show them your budget that you have prepared. What this will do is prove to them that yes, you may have had bad loan credit when you entered into there establishment, but your sure as heck not going to leave there with it. Not only will you have proved that you are indeed serious about fixing and repairing your bad loan credit once and for all, but you are as credit worthy as the next person and do deserve that loan you were looking for.

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