Today more than ever your credit score is incredibly important. Whether you have no credit, bad credit, or good credit your credit score is going to play a signification impact on your life.
Strategies for building good credit:
If you don’t have any credit at all you getting need to begin someplace. One way to build credit is to start applying for credit cards or personal loans. Many times you may be declined if you try to do this on your own. But if you have friends or family that are kind enough to help you they may co-sign the application.
What a co-signer does is allows you to use their credit score to build your own credit. Meaning if they have a good credit score you will get a good interest rate no matter what your credit score is.
Once you have opened an account it is incredibly important to you were able to make all the monthly payments. You should make every effort to pay these bills on time. If for any reason you are going to be late, make sure you are never more than 30 days late. Why? Because even though you may be past the due date on your invoice or your bill, your creditors will not report a late payment to the credit bureaus until after his 30 days past its due date.
This means that even though you may be “late” according to your bill, you are only considered late to the credit bureaus when you’re over 30 days late this is one it will affect your credit score negatively.
Also, if you are ever 30 days late and you have a cosigner this will negatively affect your cosigners credit as well.
When looking for possible credit a simple credit card maybe three or credit union or a department store. These credit cards are relatively easy to get a hold of. After about six months of having these cards and remaining in good standing — meaning you have not made any payments more than 30 days late it will be significantly easier to get more credit.
Strategies for repairing bad credit:
If hard times of falling on you and you have bad credit, it’s not the end of the world. It is relatively simple to repair your credit score over a relatively short period of time. The first thing you’ll need to do is obtain a copy of your credit report there are three credit reporting agencies TransUnion, Equifax and Exerion.
You are allowed to obtain one copy of your credit report per year for free. When you review your credit report you should look for things that are not yours. Meaning look all of the debts, and all the balances. Are all of these accounts you yours? Many times people will find that there are items on their credit report negatively affecting their score, that aren’t really their debts. If you are to find something on your credit report that is not yours, you may dispute it with the credit bureaus. If the debt is truly not yours it will get taken off of your credit report and your score will go up.
Once your credit report reflects accurate information, you may begin repairing your credit. The simplest way to begin repairing your credit is to catch up on all of your bills. Make sure that you are not late anymore on your payments. Just one month of all of your payments being Kern will increase your credit score. The longer period of time your current on your bills the higher your score will go. The higher your score is the better interest rates that will be available to you.
Many people find it difficult to pay their bills on time. Many times money just seems too tight to be able to pay everything on time. Unfortunately, there are usually many things in our lives that can be cut back to help us save money. Oftentimes these things are inconvenient but may be necessary. Daily cups of coffee, going to the movies, driving when we could walk, expensive meals out, these are all things that we do not necessarily need but we want. If we can cut these things out oftentimes we will be able to pay more for bills on time.
Finally, if we’ve done everything we can to cut back but we are still not paying our bills on time we are still negatively affecting our credit. We may have to look into other options. Some of these options include: credit counseling, debt consolidation, and bankruptcy. If we are truly overextended our bills and nothing that we can do to help us pay these bills on time these may be one of our only options.
Strategies for maintaining and building on your good credit:
If you already have a good credit score it is important that you maintain it, and even grow it. Almost always your credit score can become better, and more credit options will be available to you.
If you do not do so already, you should aim to pay off all of your credit cards on a monthly basis. If paying them off is not feasible, you should aim to pay them down to less than 50% of your available balance.
The more available balances you have available to you. The better your credit score will become as long as you use your credit wisely, and regularly.