You Are Five Steps Away From Having A Great Credit Score Again

It Looks Like Magic But It Is Not

1.Dispute negative remarks on credit report – TransUnion, Equiax and Experian are three separate places form where you could ask for a free report. That means you could get one every four months. Use this power to check carefully for any clutter on your report and if you find any dispute it without delay. As per the law when any remark is disputed, the issuing company would have to investigate into the matter and uphold their point with proof that is to be submitted within 30 days. Many companies do not like to dispute because it involves too much money and effort which makes it cost-ineffective. When the dispute stays uncontested for 30 days, the credit bureau would be bound to remove it.

2.Play hard ball – are you flattened by debts? Approach the lender organization and offer to re-negotiate the terms and conditions so you could be able to pay them back. You would be surprised how many banks/lending organizations are open to such negotiations. Today, when the competition is so fierce, no financial institutions likes to develop non-performing assets. Hence, you could have better loan terms and conditions for the asking. Do not be afraid to bargain hard. After all, every penny you save is one penny earned.

3.Draw A Budget And Stay Within It – most of the people who find themselves in a financial mess do not budget for their expenses. Budgeting is the first step towards financial discipline. You need to sit down and write down the following:

a.all the basic expenses you have per month. This is the expense that is non-negotiable
b.add to it about 10% of your total income for charity. In case you want to give less, it is okay – just put it in the budget
c.add to it about 10-20% for saving; this money could be invested in bonds, shares, saving certificates, insurance, saving plans, etc.
d.add another 5% for entertainment and eating outside

Once the budget is drawn up, two things would be clear to you – (i) where the money is going, and (ii) what are your income drains. As soon as you check these, your financial problems would be over.

4.Use credit card to your advantage – normally whenever you use your credit card and not pay the bills in full, you would be taking a loan at minimum 3% interest per month – which is huge. Use the credit card to your advantage – use it only when you can pay the bill in full on presentation. Regular payment enhances your credit score and you still enjoy credit about a little more than a month.

5.Pay your bills regularly – the credit bureaus assign high scores to those who pay their bills on time. Ensure that all your payments are done before the due date.

Apply all of these tips and within one year you would be as good as new – your credit score would be next to prefect and you can start afresh.

Bad Credit Can Be Repaired – Check Out And Find Out How

Repair Your Credit – Start In Earnest From Today

You need, first of all, to take charge of the situation and plug any income drains. Stick to the basics for a while so you could get out of the bad credit bracket. You too, can have an excellent credit score. Check out how:

1.Bankruptcy is not a solution – many people find it easy to throw in the towel. It is true it is very stressful to manage when you are under pressure from creditors to pay bills when money is not sufficient. However, bankruptcy means you credit score is marred for at least 10 years – sometimes more. This type of relief would actually kill you.

2.Try to find ways to pay off debts – take hand loans, use debt consolidation services, increase your income, use your souses credit cards – look into the different avenues you have to pay off the debt. Paying off the debt would be great for your score.

3.Keep a close eye on what goes on in your credit report – there are three companies that offer free credit reports (one every year) – TransUnion, Experian (or TRW) and Equifax. Always check and dispute anything that you find inaccurate. Ensure that what you contested is supported or removed from the report after 30 days from your complaint.

4.Pay bills regularly – do not default in payment of bills. Ensure that you always have the bills cleared before the due date. Paying regularly and paying on time are two very important indicators that credit bureaus check and monitor. Your credit score improves greatly if these two aspects are okay.

5.Start saving – besides the fact that saving is a great habit that would always see you through bad times, it is also one of the main factors that the credit bureau (and lending organizations) would look at when you apply for any loan. The more savings you have the better would your score become.

6.Avoid scams – there are many companies on the Internet which claim to improve your credit score overnight. There is no such thing possible within the existing legal boundaries. You should definitely ignore anything that seems weird and illegal. Scammers count on your desperation and use it as a weapon to attract and cheat you.

7.Keep paid-off accounts open – it is good you paid off your old credit card accounts. However, continue to have these open and activated as that would be counted as your credit limit. The higher your credit limit, the better for you.