REPAIRING YOUR CREDIT
Ever missed or delayed a payment on your house, car or even tuition because of a bad credit? Don’t despair! Here is the ultimate step by step guide on how to get your credit back up in time for you to get a new home.
DITCH THE CREDIT REPAIR COMPANIES
A credit repair company will only drive of your bills with their charges and expensive advice such as taking a debt consolidation loan. Rather find ways of clearing off old loans and before stipulated deadline.
This will boost your credit score and put you on the road for refinancing as soon as possible.
BE ON TIME, PAY EARLY
Automate all your credit card payment systems and make sure to pay for all services on time. This makes the process faster and easier and can set up a payment scheduling system for you.
DEMAND A CREDIT REPORT
There are many companies who provide free credit reports on a monthly, sometimes annual basis. Carefully and in a detailed fashion study your credit reports looking out for mistakes and mismatches that could be corrected within the time frame of a month.
After you have identified the disparity file a report for correction and ensure that it reflects in your new credit report.
START FROM SCRATCH WITH A SECURED CREDIT CARD
Go to a bank and request a secured card with a fixed deposit rate of about $400 converted to a credit card.
Don’t pile bills on the card until it hits its limit, use the available credit while ensuring at all times the availability of at least 50% of the credit at all times.
STAY OFF PREPAID CARDS
As enticing as the realtors make them look, prepaid cards might just lure you to your untimely credit death.
They charge exorbitant interest rates and service charge leaving you paying almost twice for your spending on these cards.
What’s more? They don’t indicate your transactions with pre-paid cards on your credit report which makes it hard to track and audit your spending.
LEVERAGE ON A FRIEND
Building your credit again can be done by becoming an authorized user on your family or friends credit card.
You must acquire their consent and notify their credit card company that you have decided to leave, for better.
This will cause their near excellent credit report, especially on their mortgage payment to appear on your credit report thereby improving your own credit score.
DON’T LET GO OF YOUR OLD ACCOUNT, YET
What this does is that it hurts your credit score and discredits you. While you strive to start afresh with a new account, pay off your old debts individually and systematically.
LEARN AND FORGE AHEAD
Granted certain mistakes or deliberate action caused your credit score to spiral down, there is still hope for redemption.
Maintain just one or two credit cards in your account; this involves overlooking temptation and shredding all applications that come in your mail.
Watch out that you don’t run your cards to their limits and never ever miss a mortgage payment.