Home > Credit Repair >
Bad Credit Repair > Struggling to Make the Bad Credit Good
Struggling to Make the Bad Credit Good |
|
Some people with bad credit feel that gimmicks are necessary to re-establish credit. Therefore they resort to tactics like forming a corporation, which is impractical, and faking social security number, which is illegal. It isn't necessary to go to these lengths for good credit. Simply knowing consumer laws and a bit of commitment and persistence will suffice.
A good credit score means thousands of dollars in savings in interest payments by availing the lowest interest rate possible. Bad credit proves a headache for buying a car, home or even renting an apartment. My low credit score prompted me to get my finances in order and avoid paying high interest rates. I put in a lot of time in consumer laws, credit report reviews and analysis of all the information in my credit report. I assumed that not all the information on my credit report was accurate. Reading all the laws in the Fair Credit Reporting Act made me discover that the information in my credit file was actually incorrect. I cleaned up my credit file, increased my score by 100 points and starting consulting family and friends. My husband, an auto sales consultant, referred customers facing difficulty in purchasing a car owing to bad credit to me. A Freddie Mac study proved demoralizing in estimating 48% of African Americans with bad credit. But it prompted us to come up with Crystallized Credit Resolution Services, with a published Do-It-Yourself Credit Repair Kit. The intention was to assist clients in increasing credit score to enable them to qualify for the lowest interest possible for purchasing appliances, automobiles and homes. Some ways to get rid of bad credit have been listed below. 1. Pay bills on time: apart from being a good habit, it proves critical that you make timely payments around the time you apply for a loan. The reason for this is that a late payment missed in the last few months will result in far lower score than a solitary payment five years back. 2. Rectify mistakes. Reports from all three credit bureaus require review for accuracy a couple of months before applying for a loan. The Crystallized Do-It-Yourself Kit makes disputes easier with dozens of sample letters to select. It gives you some of the key factors required in your FICO score. 3. Reduce credit card balances. It is usually better to keep balances below 30% of your credit limit. This is a crucial factor in your FICO score, and is also known as the one-third rule. 4. Make a budget. Planning where to spend and how to save is important. It also helps get you ready for purchasing a home. In applying for a mortgage loan, the lender will ask you your income amount and expenses, meaning they'll calculate your income-to-debt ratio. 5. Start new credit. With at least one or two revolving accounts being used properly, your credit score improves. Revolving accounts involve major credit cards like Visa and Master Card, department store cards (JC Penny's, Sears) or a jewelry account card. Be aware that they won't be easy to get and you may probably have to go for a secured credit card with a minimum deposit. Choose the card with the lowest interest rates. Jewelry accounts require putting down cash but get you started in the right direction. A credit score under 600 is not likely to gain approval for a department store credit card and may instead lead to an inquiry that will lower your credit score by two points. Thus inquiries should remain at a minimum of two per year. 6. Think of credit cards as convenience instead of extended spending. By all means, use the credit cards but making sure you pay the entire balance every month, if not more than the minimum. Also never max out your credit cards. The credit card is to rebuild your credit so don't ruin your credit further. Every time you buy something with your credit card, ask yourself first, if it will be worth the interest to be paid later. 7. Start a bank account. Developing good credit requires a stable bank account with checking and savings. Strangely you actually get more points just for having both. Managing bank accounts is an indication to creditors that you are capable of managing money, thus preventing overdrafts. Don't forget that the damage wasn't done overnight, which means cleaning up bad credit will take time. Be patient and follow the instructions to be on the right track. In case of negative marks on your credit report that cannot be removed, a few years later it will have less impact due to the new credit history you are building up. |
|
| ------------------------ |
|---|
|
|
| ------------------------ |
|---|
|
|
|
|
| ------------------------ |
|---|
|
| ------------------------ |
|---|
Custom Search
|
| ------------------------ |
|---|
|
|
| ------------------------ |
|---|
Consumer Alerts | About | Bookmark Us | Contact | Espanol | Privacy Statement | Copyright | Terms & Conditions | Financial Widgets | SiteMap
Copyright © 2006 Credit Loan, LLC. 235 APOLLO BEACH BLVD, STE 218 Apollo Beach, Florida 33572 All rights reserved.
Disclaimer: The content provided on CreditLoan.com is for informational purposes only; do not make any financial decisions based on its content. Financial decisions are personal, based on an individual's situation. Consult with a financial professional before making any financial decisions. CreditLoan.com is not liable for your financial actions.
