Part 4: Establishing Good Credit
--------------------------------------------------
So you don’t have any credit to speak of, but you have big plans for the future. Maybe you’re a fresh college graduate or a young person eager to buy your first new car.
If you have never had to use credit before, first of all BRAVO! Of course, it’s best to pay cash for the things you need so that you don’t have to worry about credit card payments, loan payments, or interest rates.
But if you’re young, the chances of you needing credit in the future are very real. Someday you might want to buy a house. Perhaps you’ll want to buy a new car.
Chances are pretty good that you won’t have the cash outright to buy these high ticket items which mean you’ll need credit. Plus, it’s always good to have a little credit since many utility companies will look at your credit to turn on your power bill, for example, without a deposit of some type.
One great way to start establishing credit is to apply for a store credit card (Sears, JC Penney, etc.). Once you get the card, make a few small purchases and pay them off completely. Do this a few times over the course of a year and you’ll find yourself with some established credit with an excellent payment history. DO NOT go overboard and buy more than what you can pay for, though.
You can also apply for a secured credit card. These cards ask that you place a certain amount of money in your account for which you will receive a charge card. Then you can make purchases up to the amount of money that is in your account. Credit reporting agencies treat these cards just like regular credit cards and look to them as a responsible way for you to establish a good credit history.
You will have to have a checking account to establish credit. This lends to your credibility with lenders and shows that you are able to manage your money effectively.
When applying for a credit card of any type, be sure to ask if they report to any of the credit reporting agencies. As we’ve said before, they are not required to do so, and if they don’t, having one of these cards or loans won’t do you a lick of good even if you do make your payments on time.
For more information about credit, and The Fix My Credit Guide,please refer to my website: http:www.mygoodcreditmatters.com
Take Care,
Alphonso Smith
Good Credit Does Matter
Showing posts with label credit report. Show all posts
Showing posts with label credit report. Show all posts
Friday, June 10, 2011
Lesson 5-Ecourse
In this ecourse you'll learn all about:
Part 1: First Things First – Your Credit Report
Part 2: FICO and You
Part 3: Next Things Next – Finding Your Score
Part 4: Establishing Good Credit
Part 5: Repairing Your Credit Score
Part 6: Identity Theft and Your Credit
Part 7: Raising Your Credit Score
That being said... Lets get started shall we :)
==================================================
Part 5: Repairing Your Credit Score
--------------------------------------------------
Don’t despair if you find yourself with a less than desirable credit score and credit history. You are human and can make mistakes. It’s natural. The key to this is recognize that your spending habits are out of control, your credit has been damaged, and then vow to never get yourself back in the same situation after you have gotten your credit repaired.
First, get your credit report. Get one from all three agencies. You get one free and then you’ll probably have to pay around $10 a piece for the other two. It’s important to get reports from all three agencies so that you have a full picture of your credit history.
Some companies only report to one agency. Some report to all three. But if you are committed to repairing your credit, you need all three so that you don’t miss anything.
Then go over those credit reports carefully. See the section above on how to read these credit reports. Check to see that there are no errors such as a bill you’ve paid but that is still being shown as owed.
People at credit bureaus are human too and make mistakes just like you and I. If you don’t call attention to these mistakes, no one else will. We’ll cover correcting those mistakes a little bit later.
The next part involves pulling out those accounts that are delinquent and making a re-payment plan. Unless you are declaring bankruptcy, you’ll still need to pay your debts and doing so can go a long way towards improving your credit history. Creditors will see that you are doing the best you can to get back on your feet and this improves your credibility.
If all the bills are too overwhelming for you to consider paying back at once, just concentrate on one at a time. Break them into pieces, contact the company and let them know you are trying to come up with a repayment plan and if there’s anything they can do to help you out.
These companies really just want their money in the long run, so they are going to be willing to help you. Once that company is paid off, move on to the next one until everyone is paid off.
For more information about credit, please refer to my website: http://www.mygoodcreditmatters.com/
Take Care,
Alphonso Smith
Good Credit Matters
Part 1: First Things First – Your Credit Report
Part 2: FICO and You
Part 3: Next Things Next – Finding Your Score
Part 4: Establishing Good Credit
Part 5: Repairing Your Credit Score
Part 6: Identity Theft and Your Credit
Part 7: Raising Your Credit Score
That being said... Lets get started shall we :)
==================================================
Part 5: Repairing Your Credit Score
--------------------------------------------------
Don’t despair if you find yourself with a less than desirable credit score and credit history. You are human and can make mistakes. It’s natural. The key to this is recognize that your spending habits are out of control, your credit has been damaged, and then vow to never get yourself back in the same situation after you have gotten your credit repaired.
First, get your credit report. Get one from all three agencies. You get one free and then you’ll probably have to pay around $10 a piece for the other two. It’s important to get reports from all three agencies so that you have a full picture of your credit history.
Some companies only report to one agency. Some report to all three. But if you are committed to repairing your credit, you need all three so that you don’t miss anything.
Then go over those credit reports carefully. See the section above on how to read these credit reports. Check to see that there are no errors such as a bill you’ve paid but that is still being shown as owed.
People at credit bureaus are human too and make mistakes just like you and I. If you don’t call attention to these mistakes, no one else will. We’ll cover correcting those mistakes a little bit later.
The next part involves pulling out those accounts that are delinquent and making a re-payment plan. Unless you are declaring bankruptcy, you’ll still need to pay your debts and doing so can go a long way towards improving your credit history. Creditors will see that you are doing the best you can to get back on your feet and this improves your credibility.
If all the bills are too overwhelming for you to consider paying back at once, just concentrate on one at a time. Break them into pieces, contact the company and let them know you are trying to come up with a repayment plan and if there’s anything they can do to help you out.
These companies really just want their money in the long run, so they are going to be willing to help you. Once that company is paid off, move on to the next one until everyone is paid off.
For more information about credit, please refer to my website: http://www.mygoodcreditmatters.com/
Take Care,
Alphonso Smith
Good Credit Matters
Lesson 7- Ecourse
Thank you for subscribing to my credit
ecourse! In this ecourse you'll learn all about:
Part 1: First Things First – Your Credit Report
Part 2: FICO and You
Part 3: Next Things Next – Finding Your Score
Part 4: Establishing Good Credit
Part 5: Repairing Your Credit Score
Part 6: Identity Theft and Your Credit
Part 7: Raising Your Credit Score
That being said... Lets get started shall we :)
==================================================
Part 7: Raising Your Credit Score
--------------------------------------------------
Let’s say you want to buy a house but your credit score is somewhere around 675 instead of 720 which will get you the best rate on a home loan. If you want to raise your credit score quickly, there are some steps you can take that can guarantee a great home loan or any other credit line for that matter.
The mantra for getting a great score is pay your bills on time, keep account balances low, and take out new credit only when you need it. People who do that faithfully have very high scores. It usually means you're being conservative and cautious about credit.
It's not a toy and it shouldn't be a hobby.
That's good advice, to be sure, but these actions take a long time. What if you're house hunting and you just need a few extra points to bump you over the line to the great rates? As we’ve said before, the first place to start is with your credit report. Check it over and find out what your credit score is right now.
You will want to concentrate mostly on correcting any errors by taking the steps we’ve outlined above. Look for errors such as accounts that aren't yours, late payments that were actually paid on time, debts you paid off that are shown as outstanding, or old debts that shouldn't be reported any longer. Negatives are supposed to be deleted after seven years, with the exception of bankruptcies, which can stay for as long as 10 years.
After repairing errors, the fastest route to a better score is paying down balances on credit cards. There's really no silver bullet, but over 60 day’s time, it is possible to increase your score 20 points by paying down your credit lines.
Had a few late payments in your past? If you find yourself in some financial difficulties, you can protect your score by making sure your payments don't go 60 days past due. Some lenders don't report 30 days past due, but they all report 60 days past due.
Even if you've paid your bills late in the past, you can improve your credit score by paying every bill on time from now on. Forget about grace periods. If you want to have a really good record with the credit agencies, pay your debt before it's due and keep your balances low.
For more information about credit and The Fix My Credit Guide, please refer to my website:
http://www.debt-creditrepair750.com
Take Care,
Alphonso Smith
Good Credit Does Matters
ecourse! In this ecourse you'll learn all about:
Part 1: First Things First – Your Credit Report
Part 2: FICO and You
Part 3: Next Things Next – Finding Your Score
Part 4: Establishing Good Credit
Part 5: Repairing Your Credit Score
Part 6: Identity Theft and Your Credit
Part 7: Raising Your Credit Score
That being said... Lets get started shall we :)
==================================================
Part 7: Raising Your Credit Score
--------------------------------------------------
Let’s say you want to buy a house but your credit score is somewhere around 675 instead of 720 which will get you the best rate on a home loan. If you want to raise your credit score quickly, there are some steps you can take that can guarantee a great home loan or any other credit line for that matter.
The mantra for getting a great score is pay your bills on time, keep account balances low, and take out new credit only when you need it. People who do that faithfully have very high scores. It usually means you're being conservative and cautious about credit.
It's not a toy and it shouldn't be a hobby.
That's good advice, to be sure, but these actions take a long time. What if you're house hunting and you just need a few extra points to bump you over the line to the great rates? As we’ve said before, the first place to start is with your credit report. Check it over and find out what your credit score is right now.
You will want to concentrate mostly on correcting any errors by taking the steps we’ve outlined above. Look for errors such as accounts that aren't yours, late payments that were actually paid on time, debts you paid off that are shown as outstanding, or old debts that shouldn't be reported any longer. Negatives are supposed to be deleted after seven years, with the exception of bankruptcies, which can stay for as long as 10 years.
After repairing errors, the fastest route to a better score is paying down balances on credit cards. There's really no silver bullet, but over 60 day’s time, it is possible to increase your score 20 points by paying down your credit lines.
Had a few late payments in your past? If you find yourself in some financial difficulties, you can protect your score by making sure your payments don't go 60 days past due. Some lenders don't report 30 days past due, but they all report 60 days past due.
Even if you've paid your bills late in the past, you can improve your credit score by paying every bill on time from now on. Forget about grace periods. If you want to have a really good record with the credit agencies, pay your debt before it's due and keep your balances low.
For more information about credit and The Fix My Credit Guide, please refer to my website:
http://www.debt-creditrepair750.com
Take Care,
Alphonso Smith
Good Credit Does Matters
Thursday, March 24, 2011
College students are running up an alarmingly large amount of credit card debt these days and it is only increasing with the passage of time. The average undergraduate student carries $2,500 in credit card debt and by the time they graduate from college, they are beginning their new lives in the "real world" with debt that they can't pay.
And the worse part about college students having so much credit card debt is that it takes so long to pay it off. Even if they are able to make the minimum payments, by sticking to minimum payments it would take a student more than 12 years and $1,115 in interest to pay off a $1,000 bill on a card with an 18 percent annual rate. If students fall behind in their payments, they get slammed with high late fees. And it's easy for things to get out of hand.
Armed with the right information, many students are able to establish credit and steer clear of card debt. Even though college students do carry credit card debt, 54 percent of college students pay off their credit card balances every month. Most tend to be responsible and use the card wisely.However, some of them aren't and they're getting into trouble.
If a person makes it through 18 years of life without any financial wherewithal, it's very difficult to change their behavior and that's why it's so important that parents speak to their children about money management. To keep a college student out of credit card debt, the key is teaching students money management skills before handing them a credit card.
Parents should beware of putting their college student on their own credit cars as an authorized user as the same debt can pile up under the parents' names and cause some serious credit problems.
When it comes to credit repair when you have found yourself in a bad credit situation, self-help might be the best route for you to go. It seems we are bombarded daily and often with companies who claim that they can help you repair your credit for a small fee and you won't have to worry about it at all.
The truth is that self help credit repair is not only possible, but really the way to go.
After you get your credit reports, the next self help step is to go through those reports and check to see that the information is accurate. Most of the time, there are going to be errors of some type. These errors can vary from a past due account that has been paid off to a debt that wasn't yours in the first place.
If you find errors, you need to contact the credit reporting agency both by phone and in writing. You'll be asked to provide proof of the error and then they, in turn are required to notify you in writing of their decision to either remove it from your credit report or leave it due to insufficient proof. Be diligent in this endeavor.
An acomplished self help credit repair program entails being aggressive when it comes to your information and the accuracy of that information.
Another part of a self help credit repair program includes the development of a long-term plan that will help you keep your credit use under control and a plan for not getting into credit problems again. Sure, credit counselors can help you do this, but why pay the money and take the chance that you are dealing with a less than reputable company?
Do a little research and you'll find that there is plenty of information available on the Internet as well as software programs that can help you with your self help credit repair program. Repairing your credit yourself requires a commitment on your behalf, but in the long run, you'll be pleased with the results and knowing that you did it yourself!
And the worse part about college students having so much credit card debt is that it takes so long to pay it off. Even if they are able to make the minimum payments, by sticking to minimum payments it would take a student more than 12 years and $1,115 in interest to pay off a $1,000 bill on a card with an 18 percent annual rate. If students fall behind in their payments, they get slammed with high late fees. And it's easy for things to get out of hand.
Armed with the right information, many students are able to establish credit and steer clear of card debt. Even though college students do carry credit card debt, 54 percent of college students pay off their credit card balances every month. Most tend to be responsible and use the card wisely.However, some of them aren't and they're getting into trouble.
If a person makes it through 18 years of life without any financial wherewithal, it's very difficult to change their behavior and that's why it's so important that parents speak to their children about money management. To keep a college student out of credit card debt, the key is teaching students money management skills before handing them a credit card.
Parents should beware of putting their college student on their own credit cars as an authorized user as the same debt can pile up under the parents' names and cause some serious credit problems.
When it comes to credit repair when you have found yourself in a bad credit situation, self-help might be the best route for you to go. It seems we are bombarded daily and often with companies who claim that they can help you repair your credit for a small fee and you won't have to worry about it at all.
The truth is that self help credit repair is not only possible, but really the way to go.
After you get your credit reports, the next self help step is to go through those reports and check to see that the information is accurate. Most of the time, there are going to be errors of some type. These errors can vary from a past due account that has been paid off to a debt that wasn't yours in the first place.
If you find errors, you need to contact the credit reporting agency both by phone and in writing. You'll be asked to provide proof of the error and then they, in turn are required to notify you in writing of their decision to either remove it from your credit report or leave it due to insufficient proof. Be diligent in this endeavor.
An acomplished self help credit repair program entails being aggressive when it comes to your information and the accuracy of that information.
Another part of a self help credit repair program includes the development of a long-term plan that will help you keep your credit use under control and a plan for not getting into credit problems again. Sure, credit counselors can help you do this, but why pay the money and take the chance that you are dealing with a less than reputable company?
Do a little research and you'll find that there is plenty of information available on the Internet as well as software programs that can help you with your self help credit repair program. Repairing your credit yourself requires a commitment on your behalf, but in the long run, you'll be pleased with the results and knowing that you did it yourself!
Friday, April 11, 2008
Get your CREDIT REPORT
It’s important to get your credit report to see the condition of your credit and to see what is going on and who is looking at your information. If you find mistakes, you can have them corrected. You should obtain your credit report at least twice a year, no less than once. It is realistic and to your advantage to get a copy of your report before applying for credit, a job, a mortgage, an apartment or insurance. The advantage is that there will be no surprises and you have a chance to clear up items that will hinder you in the process. The Fair Credit Reporting Act says that you are entitled to a copy of your credit report as often as you wish to request it. If you are a Massachusetts resident, you are entitled to one free copy of your credit report once a year, from each agency. For residents in some other states, the fee is about $10.00 per report. If you have been denied credit based on information in your credit report, you can receive a free copy of your report if you make the request within 60 days, regardless what state you live in. You can get a free credit report if you are unemployed and will be looking for a job within 60 days, you can also get a free credit report if you are on public assistance, or your report is inaccurate because of fraud. If you request your report from the internet, you will be charged a fee, regardless of your situation.
There are three major credit bureaus: Equifax, Experian, and Trans Union. It’s recommended that you contact them directly by telephone or online for easy ordering instructions. You should obtain at least one report from each agency. The information from each one may be slightly different.
The credit reports will differ in format slightly, but the will contain the same type of information as follows:
Identifying Information: Your full name, including middle name and if Jr., 1st, 2nd or 3rd.., any aliases. Your social security number, address, employment and your martial status is part of this identifying information.
Public Record Information: Judgments, tax liens, bankruptcies, foreclosures, court ordered child support, or any other items that have gone through the court system.
Account Information: Creditors with whom you have accounts, how much you owe each creditor, the most you have owed on each account, your credit limits, and your repayment history.
Inquiries: The name of any company or individual who has viewed your credit report and the date they viewed it.
There are three major credit bureaus: Equifax, Experian, and Trans Union. It’s recommended that you contact them directly by telephone or online for easy ordering instructions. You should obtain at least one report from each agency. The information from each one may be slightly different.
The credit reports will differ in format slightly, but the will contain the same type of information as follows:
Identifying Information: Your full name, including middle name and if Jr., 1st, 2nd or 3rd.., any aliases. Your social security number, address, employment and your martial status is part of this identifying information.
Public Record Information: Judgments, tax liens, bankruptcies, foreclosures, court ordered child support, or any other items that have gone through the court system.
Account Information: Creditors with whom you have accounts, how much you owe each creditor, the most you have owed on each account, your credit limits, and your repayment history.
Inquiries: The name of any company or individual who has viewed your credit report and the date they viewed it.
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