IF you are attempting to build your credit there are innumerable strategies we can look
at to help you get started. If you have no credit, bad credit or good credit,
building credit is determining since regardless of your situation, you don't want
to go down.
Strategies for Building Credit:
If you don't have any credit at all, you will need to start somewhere. One
clever move for building credit is to apply for a credit-card or a personal loan
and ask your family members or friends to co-sign the application. As soon as you have
opened an account, insure you meet all monthly obligations, since if you miss
any payments at all your co-signer is responsible. If you don't have a credit
history, you might want to opt for credit-cards issued by gas stations, or else
open an account with a department store. These cards are relatively easy to get
hold of, and it helps you to build credit. After you established some line of
credit, make your payments faithfully and after about six months you will be
entitled to more credit.
It is not recommended, but if you have a personal loan
and still paying after six months, you might want to take out a loan to repay
this loan and start payment on the other loan. I recommend this since it can
free the co-signer from responsibility. Never take out more than you need when
applying for a loan and always check the interest rates and upfront fees to
Bad Credit Strategy
If you have bad credit and want to restore or build your credit, you must first
start by sending for copies of your credit-reports. The reports are free once
per year and can be obtained by Experian, Equifax, andTransUnion.
After you have
reviewed your reports insure no activities are listed against you that is not
your own. If you notice any actions on your report immediately write the three
bureaus and ask for an investigation. As soon as you have disputed your report, the
next step is knocking down each account til your credit is clear. If you are
having a hard time with money, you might want to knock out the secured debts first and
then work through the un secured debts. It may take some time but you will see
results after your debts are paid in full.
A great clever move for those of us in
debt is to save money each month and apply it to our dues. If you are spending
money, for entertainment give it up for now and become debt free. Many things in
life are freely given and often fun and exciting. Remember when you make
sacrifices something gainful always returns. Another clever move is
pulling out all your resources. If you have capabilities, you might want to open a
small business and use those capabilities to the fullest.
You will make money and
build your credit. Killing innumerable birds with one stone is the saying that works
best when you learn what it means. It is also wise to cut back on expenses when
you owe are your credit is bad. If you are spending money you don't have, it is
only sending you backwards. There are innumerable strategies for getting back on your
feet again. One great clever move is to avoid missing car payments.