Monday, March 24, 2014

Rebuilding your credit

                When it comes to rebuilding your credit you are looking to do anything you can to up the score. That may mean finding the money to pay off some creditors that have become delinquent. You will need to find a way to come up with the money. You might have to take a second job to find that extra money. You may be able to save it up, but I promise you it is necessary to find a way to pay off delinquent debts.

                You may feel that they were wrong and you don’t owe them any money. You may feel like you were cheated, but the bottom line is that unless you can find a lawyer that will fix the issue you need to pay it off. This is going to raise your credit once it is reported that this has been paid. Paying off your debt is a big step in raising your credit score. Many banks don’t want to deal with someone who has delinquent account or has a poor payment history.

                Did you know that a good payment history is considered only good at 100%? Did you know that missing just one payment can shoot you all the way down to an F in terms of credit score for payment history.  That is only the case if you don’t have much in terms of a payment history, but even if you had 1000 months history and missed one payment you would be near a B. So when it comes to making payments make sure that you are taking that seriously.

                One thing you can do to boost your payment history is take out a couple credit cards. This is risky if you are not careful, but if you can handle having credit cards without maxing them out this is the way to go. Many credit cards have a 0% APR for the first 9 months or so. You can take advantage of low introductory rates and help to fix your credit.  Make sure that if you use this method you keep your credit utilization around or below 30% because it has a big impact on your credit score.

                 Raising your credit is a big step in life and it will save you a ton of money. Improving your credit is something that can result in being able to buy your first home. It can be hard to get financed for a home if you have poor credit. This is why this blog is here to help people who want to establish good credit and pay less in the future.

                Make sure you don’t take every loan you are offered. As you begin to repair your credit you are going to find that the mail man is bringing you more and more loan offers.  Make sure that you read the small print and don’t you dare agree to any loans of 20% or more. Actually, if you are smart you won’t agree to anything over 15% because that is a straight out rip off. Once we get your credit in good standing, you won’t be paying over 10% ever again!

                So go out and see what offers you can find on a decent credit card. I have had some luck in the past with capital one. If you use sharebuilder.com to buy and sell stocks you might have a good chance to get approved with capital one. When my credit was in the tank I still bought stocks and when I finally started trying to get credit cards they approved me. I have no way of proving that it was due to having the stock portfolio, but other credit card companies wouldn’t approve me at the time. Now thanks to the help of having the new cards my credit is much better.


                Please make sure that improving your credit is a serious plan to you.  You will need to practice self control on your spending. It really doesn’t matter how much money you make, all that matters is how you handle your money. You need to save up as much as you can so that you can keep on paying all those cards off. You need to make more then the minimum payment every money. You CAN pay it all the way off, it will not hurt your credit rating. Just make sure that you are using it every month so you can keep on making payments. 

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