Is your credit score giving you nightmares? Do not worry you can improve it in no time following five special tips. Anyone can do this without any external help from counselors or credit repair companies. You can get out of debt and have a great credit score at the same time.
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. |