Sunday, February 22, 2009

Improve your Credit Score

(My Original Blog Post: http://www.wealthyways4you.com/work-from-home/improve-your-credit-score)
by Kay Riter


You should know your credit score and you should strive to get it as high as possible. Your credit must be good if you ever want to get a loan or credit card. You need to know your credit card and continuously work on building it up.

If you don't have excellent credit, you are probably coming from one of two places. Either you have bad credit because you have had a history of not paying your bills on time or you have made some mistakes and not paid off everything entirely, or you have no credit at all. In either of these situations, you might think it will be impossible to get your score up, but it's not. The people who now have excellent credit started somewhere. Everyone starts with no credit and there are many people who have repaired their bad credit.

If you have no credit at all, you will need to start from scratch. Contrary to popular belief, you don't have to apply for 10 credit cards and max them out to build credit cards. You don't even need one credit card. Paying off any kind of loan can help to build your credit.

If you need a loan and have no credit, you can always find a cosigner to help you out. For example, if you want to buy a new car and need a loan, you can find someone to cosign the loan with you. They must be someone you trust and who trusts you. If you don't pay the loan back, the cosigner must pay in order to maintain their good credit. You must pay your bills to build good credit and stay on good terms with your cosigner.

If you don't need a loan or you want to take a less aggressive credit building path, there are other things you can do. If you have a cell phone plan, every time you pay your bill on time, you are building good credit. If you buying a computer or other electronic on credit, each bill you pay will help your credit.

I don't recommend financing something you can afford to pay for now, but financing it and paying it in a month or two can build credit and only cost a little in interest. Pay every bill on time and you can build good credit.

If you have bad credit, you have to improve it the same way. If you haven't been paying bills on time, you must start. This will both stop your credit from spiraling down and reverse it. Pay your bills and your credit will improve.

If you can't pay your bills on time, you need to budget so that you can. If you can't pay your bills on time it means you are living above your means and you need to start cutting out expenses. Cut up your credit cards and pay them off as soon as possible. Credit cards will not help your situation. Credit cards should only be used as a way to build credit as a last resort.

About the Author:


No comments:

Post a Comment