Getting a mortgage is a very stressful event in a person’s life. It is usually by far the largest loan a person will get in their life, and getting a mortgage you can afford, with interest rates that will not cut you down, can be very difficult depending on your credit rating. The question most people will ask themselves is “How is my credit score affecting my potential interest rate?”
While many people ask themselves this question, most do not truly understand how their credit score affects their mortgage interest rate. All it takes is a small percentage increase on your interest rate and you pay thousands more. For example if you have a mortgage worth $350,000 and you pay seven percent in interest, you will pay an total interest payment of $24,500. However, if that interest rate is only three percent more at ten percent, then the interest payment you make in total is $35,000. That is an increase of $10,500 on what you pay throughout the life of that mortgage. All it took was a three percent increase on your interest rate.
So, how does your credit score affect your interest rate? If you have excellent credit of 760 to 850 on your FICO score, you will pay about 5.780 percent in interest based on 2007 interest rates. If your score is 700 to 759, you will pay 6.002 percent, and from 660 to 699 you will pay 6.286 percent. If you have the average FICO score, which is 620 to 659, you will pay 7.096 percent. Naturally, as you fall lower on the credit score scale, the amount you pay in interest will increase. If you are at 580 to 619, which is a fair credit score, you will pay 8.583 percent, while 500 to 579 will cause you to pay 9.494 percent.
It would be pointless to look at a credit score below 500 because there is virtually no way to get a mortgage with a credit score that is that low.This shows the importance of making sure your credit score is very good, rather than fair by using credit repair services. If your credit score is 760, then on that mortgage above you will pay $20,230. However, if you are only 260 points lower at 500, then you will pay $33,229. That is a difference of just under $13,000 and all it takes is a few missed payments on your credit card, a collection notice and having too many credit cards.Your mortgage rate is tied directly with your credit score. The lower your score is, the higher the interest rate will be. As a result, you want to make sure that you have very good credit before you try and get a mortgage. Even getting your credit report sent to you can help because it will give you an idea of what interest payments you will be making. Nothing would be worse than being surprised by the interest rate, and then struggling to pay it down the road. No one wants foreclosure, so be smart before you get your mortgage in order to avoid complications later.
If you or anyone else that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com or email drjen@creditrepairbydrjen.com
Sunday, November 9, 2008
Thursday, November 6, 2008
How do foreclosures affect your credit score?
Right now, millions of people are going through the pain of foreclosure as the sub-prime mortgage crisis sweeps across the United States. As a result, those millions of people will learn first hand what can happen to their credit score when a foreclosure is put on it.
When a foreclosure happens, it means that the homeowner can no longer make payments on their loan. The property is then seized and sold. The owner of the property receives no money for this sale, and all the money goes to paying off the mortgage for the bank, with whatever is left over going to the bank. This will all happen after about six months of missed payments and a Notice of Default to the homeowner. After three months more of not paying, the sale date for the foreclosure is set and the house is up for sale due to foreclosure.
Everybody knows just how bad a bankruptcy can be for your credit score, but what about if you suffer a foreclosure? First, a foreclosure will stay on your credit report for seven years, while a bankruptcy will be on it for as much as ten years. In regards to your FICO score, it will plummet about 100 to 200 points. This means that if you have great credit at 700, you will most likely fall to about 500. However, if you had perfect credit of 850, you will fall to average credit of 650. It may seem that you can still get credit if your score is at 650 and the foreclosure may not be that bad, but it is. When you apply for credit, credit holders will see the big evil word 'Foreclosure' on your credit report. That means for the next few years, there will be no way you will get credit as many lenders will fear you could default on your loan to them, as you did with your mortgage loan.
Foreclosure is a very difficult situation to be in, but thankfully it is not the end of the world. As many people know, credit is ever changing and it is not set in stone. Therefore, over the seven years that you have to deal with a foreclosure on your credit report, you will be able to slowly repair your credit. To do this, you need to make sure you pay back your bills and credit card payments as you get them. You should slowly try and apply for credit as you go through the years, and you should even go to debt counselling as it will look good on your credit report.
Do not fear that everything is over when you go through a foreclosure. Millions of people have gone through the same thing and millions more will go through it as well. All you can do is dig your feet in, work hard to get through it and learn from the mistake of foreclosure and ensure it never happens to you again. Repairing your credit is at an all time importance and something that you can do yourself. Everything is determined by your credit score, so be alert, be prepare and fix your credit today.
If you or anyone that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com or email drjen@creditrepairbydrjen.com
When a foreclosure happens, it means that the homeowner can no longer make payments on their loan. The property is then seized and sold. The owner of the property receives no money for this sale, and all the money goes to paying off the mortgage for the bank, with whatever is left over going to the bank. This will all happen after about six months of missed payments and a Notice of Default to the homeowner. After three months more of not paying, the sale date for the foreclosure is set and the house is up for sale due to foreclosure.
Everybody knows just how bad a bankruptcy can be for your credit score, but what about if you suffer a foreclosure? First, a foreclosure will stay on your credit report for seven years, while a bankruptcy will be on it for as much as ten years. In regards to your FICO score, it will plummet about 100 to 200 points. This means that if you have great credit at 700, you will most likely fall to about 500. However, if you had perfect credit of 850, you will fall to average credit of 650. It may seem that you can still get credit if your score is at 650 and the foreclosure may not be that bad, but it is. When you apply for credit, credit holders will see the big evil word 'Foreclosure' on your credit report. That means for the next few years, there will be no way you will get credit as many lenders will fear you could default on your loan to them, as you did with your mortgage loan.
Foreclosure is a very difficult situation to be in, but thankfully it is not the end of the world. As many people know, credit is ever changing and it is not set in stone. Therefore, over the seven years that you have to deal with a foreclosure on your credit report, you will be able to slowly repair your credit. To do this, you need to make sure you pay back your bills and credit card payments as you get them. You should slowly try and apply for credit as you go through the years, and you should even go to debt counselling as it will look good on your credit report.
Do not fear that everything is over when you go through a foreclosure. Millions of people have gone through the same thing and millions more will go through it as well. All you can do is dig your feet in, work hard to get through it and learn from the mistake of foreclosure and ensure it never happens to you again. Repairing your credit is at an all time importance and something that you can do yourself. Everything is determined by your credit score, so be alert, be prepare and fix your credit today.
If you or anyone that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com or email drjen@creditrepairbydrjen.com
Monday, November 3, 2008
Do you understand your FICO score?
Nothing has a bigger effect on whether or not you can get a loan, how much interest you pay and how credit will affect your life, than the FICO score. Fair Isaac Credit Organization (FICO) is the leading credit report company in the United States, and the number they assign your credit dictates your future.
The scores range between 300 and 850. The lower the number you have, the worse your credit is. If you have a score of 300, your credit is classified as completely abysmal. There is no way you can get any type of credit, and even if you somehow did, your interest rate would be so high you could never afford to pay it back. However, on the flip side if you have a credit score of 850, then you would have no problem at all getting credit. Your credit rating would allow you to have a lower interest rate, easier terms for your loan and you will have to put up much less collateral.
The reason that FICO is used so extensively is that it uses a system that takes into consideration much of your credit history so that companies can quickly and easily see where you lie compared with everyone else. If you have a score of 700, then you are just above average and companies will be more inclined to giving you credit. However, if you have a score of 500, then you are 150 points below the average and you will be unlikely to get the loan, or the loan terms that you had been hoping for.
Understanding how your FICO score is determined will give you a much better chance of repairing your credit. FICO places 30 percent of an emphasis on the amount of money you owe. This also takes into account your outstanding debt, including your mortgage, credit cards and auto loans. The length of your credit history has a 15 percent stake on your FICO report. The longer you have been using credit, the better the FICO score will be.
Ten percent of the value of your FICO score is put on the loans you have had and the mix of your credit. If you have had car loans, credit cards and mortgages, then your credit score will be better. Another ten percent of the score looks at whether or not you have sought credit in the past year. The more credit you try and get, the lower your score will be. Lastly, a full 35 percent of your credit score will be based on your payment history. This is why it is so important to pay your bills. If you don't pay your bills, then you will have a lower credit score.Your credit score has a huge affect on what kind of credit you can get. If your credit score is low, below 600, then your chances with the loan will be smaller. However, if the score is over 700, you will be able to get any loan you want.With that being said, it is so important to understand and recognize yor FICO score and keep working on improving it by making smart financial decisions with your credit.
If you or anyone that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com or email drjen@creditrepair.com
The scores range between 300 and 850. The lower the number you have, the worse your credit is. If you have a score of 300, your credit is classified as completely abysmal. There is no way you can get any type of credit, and even if you somehow did, your interest rate would be so high you could never afford to pay it back. However, on the flip side if you have a credit score of 850, then you would have no problem at all getting credit. Your credit rating would allow you to have a lower interest rate, easier terms for your loan and you will have to put up much less collateral.
The reason that FICO is used so extensively is that it uses a system that takes into consideration much of your credit history so that companies can quickly and easily see where you lie compared with everyone else. If you have a score of 700, then you are just above average and companies will be more inclined to giving you credit. However, if you have a score of 500, then you are 150 points below the average and you will be unlikely to get the loan, or the loan terms that you had been hoping for.
Understanding how your FICO score is determined will give you a much better chance of repairing your credit. FICO places 30 percent of an emphasis on the amount of money you owe. This also takes into account your outstanding debt, including your mortgage, credit cards and auto loans. The length of your credit history has a 15 percent stake on your FICO report. The longer you have been using credit, the better the FICO score will be.
Ten percent of the value of your FICO score is put on the loans you have had and the mix of your credit. If you have had car loans, credit cards and mortgages, then your credit score will be better. Another ten percent of the score looks at whether or not you have sought credit in the past year. The more credit you try and get, the lower your score will be. Lastly, a full 35 percent of your credit score will be based on your payment history. This is why it is so important to pay your bills. If you don't pay your bills, then you will have a lower credit score.Your credit score has a huge affect on what kind of credit you can get. If your credit score is low, below 600, then your chances with the loan will be smaller. However, if the score is over 700, you will be able to get any loan you want.With that being said, it is so important to understand and recognize yor FICO score and keep working on improving it by making smart financial decisions with your credit.
If you or anyone that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com or email drjen@creditrepair.com
Thursday, October 30, 2008
Do you find credit relief with debt consolidation?
When your credit becomes difficult to manage, it can be tempting to simply declare bankruptcy and hope that everything works out down the road; however, this is the exact wrong thing to do, and as a credit holder it is up to you to honor your debts. Not to mention that bankruptcy can literally destroy your credit for years, lowering it by as much as 200 points and keeping you from getting a home, car or any type of loan for as little as seven years, or as much as ten years. Bankruptcy is not a good solution and will stay on your credit for up to twelve years, keeping you from getting the good interest rates you were hoping for.
There is a solution to all of this and it comes in the form of debt consolidation. When a person has a lot of debt, it can become overwhelming to manage it all and that is what usually leads to someone losing their head in a mountain of debt. For example, if someone has four credit cards, one loan, two car loans and a mortgage, that means that there are eight different payments they have to make. It can be a lot to keep on top of, and many fall apart as their debts get more complex. Debt consolidation can be just the solution a person in debt is looking for.
What is debt consolidation? A debt consolidation program will take all your debts, and put them together into one easy package. The way this is done is through a larger loan through the debt consolidation company. For example, if you owe $11,000 on the credit cards, $23,000 on the loan, $38,000 on the cars and $120,000 on the home, then the debt consolidation company will make a loan for the amount of $192,000. This loan pays off all the other loans so they get off your back. Then, you make monthly payments to the debt consolidation company to pay off the $192,000 loan that they have on you.
Debt consolidation is a great solution for anyone who has a lot of trouble managing their credit and want to start over without a bankruptcy. It should be noted, however, that debt consolidation is not perfect and if you take this route you will pay more than if you paid off the debts yourself. If you pay six percent interest on your debt consolidation loan, then that means you will pay $11,520 in interest on the loan, though it is unlikely your home would be included in this loan so you actually would pay much less in your interest payment.
Debt consolidation is a great idea for anyone who has a mountain of debt but is losing focus on it because of the number of bills that they have. Debt consolidation companies will work out the best payment schedule for your income bracket, and they will help you repair your credit and get back on track. As a result, many have chosen debt consolidation over bankruptcy and have never regretted their decision.
If you or anyone that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com or email drjen@creditrepairbydrjen.com
There is a solution to all of this and it comes in the form of debt consolidation. When a person has a lot of debt, it can become overwhelming to manage it all and that is what usually leads to someone losing their head in a mountain of debt. For example, if someone has four credit cards, one loan, two car loans and a mortgage, that means that there are eight different payments they have to make. It can be a lot to keep on top of, and many fall apart as their debts get more complex. Debt consolidation can be just the solution a person in debt is looking for.
What is debt consolidation? A debt consolidation program will take all your debts, and put them together into one easy package. The way this is done is through a larger loan through the debt consolidation company. For example, if you owe $11,000 on the credit cards, $23,000 on the loan, $38,000 on the cars and $120,000 on the home, then the debt consolidation company will make a loan for the amount of $192,000. This loan pays off all the other loans so they get off your back. Then, you make monthly payments to the debt consolidation company to pay off the $192,000 loan that they have on you.
Debt consolidation is a great solution for anyone who has a lot of trouble managing their credit and want to start over without a bankruptcy. It should be noted, however, that debt consolidation is not perfect and if you take this route you will pay more than if you paid off the debts yourself. If you pay six percent interest on your debt consolidation loan, then that means you will pay $11,520 in interest on the loan, though it is unlikely your home would be included in this loan so you actually would pay much less in your interest payment.
Debt consolidation is a great idea for anyone who has a mountain of debt but is losing focus on it because of the number of bills that they have. Debt consolidation companies will work out the best payment schedule for your income bracket, and they will help you repair your credit and get back on track. As a result, many have chosen debt consolidation over bankruptcy and have never regretted their decision.
If you or anyone that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com or email drjen@creditrepairbydrjen.com
Monday, October 27, 2008
Do your Credit Cards Affect Your Credit Score?
Nearly everyone over the age of 20 has at least one credit card. For some, getting a credit card is a process to adulthood, but sadly many people do not realize the full effects that credit cards can have on their credit score.
Credit cards are incredibly important to establishing your credit, but if you use them unwisely, they can destroy your credit almost as fast as a bankruptcy. The first thing you need to remember with your credit card is that it is important to pay everything back as quickly as you can. If you do not have the money to make a full payment, then you should at least make minimum payments on your credit card as this will keep your credit from falling and interest from adding up.
Second, in terms of how many credit cards you should have, it is important to understand the magic rule of two and three. One credit card is often too little to sustain good credit because you will not have enough credit to raise your credit score. However, anything over three for credit cards and you will be hurting your credit by looking like a compulsive borrower. Your credit card total should be two or three, no more and no less. If you are attempting to establish your credit and worry about getting a large credit card from one of the big companies like VISA or MasterCard, then you can get a credit card from a department store. They are very easy to get, they can help establish and repair your credit, and even if you buy nothing the cards will show up as established credit on your credit report.
Lastly, but possibly the most important point is that you should never, under any circumstances, use cash advances. Cash advances are horrible for your credit; in fact, it is even worse than not paying your credit card for months on end. The reason is that when you buy something on your credit card, the interest rate is usually about 10 to 12 percent. However, when you take money out on a cash advance, you can pay as much as 25 to 40 percent interest on that. Minimum payments will rise, you will fall behind and your credit score will sink like a stone in water.
Having a credit card is not a right, it is a privilege. Unfortunately, too many people do not realize how important it is to manage their credit cards properly so that they do not damage their credit score. However, if your credit score is low, then you can repair it by always paying your credit card bills, or at least making minimum payments, having two or three credit cards, and never using the cash advance option on your credit card. By following these tips, you can fix your credit and maintain good credit for years to come without the worry of falling into a debt spiral that slowly pulls you down into the deep and dark waters of debt.
If you or anyone else that you know would like more information on this post, feel free to visit http://www.creditrepairbydrjen.com or email drjen@creditrepairbydrjen.com
Credit cards are incredibly important to establishing your credit, but if you use them unwisely, they can destroy your credit almost as fast as a bankruptcy. The first thing you need to remember with your credit card is that it is important to pay everything back as quickly as you can. If you do not have the money to make a full payment, then you should at least make minimum payments on your credit card as this will keep your credit from falling and interest from adding up.
Second, in terms of how many credit cards you should have, it is important to understand the magic rule of two and three. One credit card is often too little to sustain good credit because you will not have enough credit to raise your credit score. However, anything over three for credit cards and you will be hurting your credit by looking like a compulsive borrower. Your credit card total should be two or three, no more and no less. If you are attempting to establish your credit and worry about getting a large credit card from one of the big companies like VISA or MasterCard, then you can get a credit card from a department store. They are very easy to get, they can help establish and repair your credit, and even if you buy nothing the cards will show up as established credit on your credit report.
Lastly, but possibly the most important point is that you should never, under any circumstances, use cash advances. Cash advances are horrible for your credit; in fact, it is even worse than not paying your credit card for months on end. The reason is that when you buy something on your credit card, the interest rate is usually about 10 to 12 percent. However, when you take money out on a cash advance, you can pay as much as 25 to 40 percent interest on that. Minimum payments will rise, you will fall behind and your credit score will sink like a stone in water.
Having a credit card is not a right, it is a privilege. Unfortunately, too many people do not realize how important it is to manage their credit cards properly so that they do not damage their credit score. However, if your credit score is low, then you can repair it by always paying your credit card bills, or at least making minimum payments, having two or three credit cards, and never using the cash advance option on your credit card. By following these tips, you can fix your credit and maintain good credit for years to come without the worry of falling into a debt spiral that slowly pulls you down into the deep and dark waters of debt.
If you or anyone else that you know would like more information on this post, feel free to visit http://www.creditrepairbydrjen.com or email drjen@creditrepairbydrjen.com
Sunday, October 19, 2008
Getting control of your credit and finaces.
In the United States, millions of people are finding themselves in debt. People are now suffering with more debt than they can handle and it’s causing many to attempt a drastic action; bankruptcy. Many see bankruptcy as a win-win solution for them. They wipe all their debt clean and, in only seven years, they are able to get perfect credit again when the bankruptcy is taken off their record; however, what many people do not realize is that it can stay on your credit score for as much as twelve years.
Getting control of your credit and your finances comes down to one thing; budgeting. Having a budget is one of the most important things you can do for yourself, and your family, because it will give you the ability to look at what you spend and how much you can save. The first task in putting together your budget is to look at your expenses in fine detail. This is an important first step because it will really open your eyes to how much you spend. Many people think nothing of buying a $4.50 latte every single day because they do not see the complete sum of that purchase. It may only be $4.50 a day, but multiplied through the month it comes to $135. That $135 could easily be used for credit card payments, bill payments or to put in savings, instead of buying a latte a day.
The second step in creating your budget and getting control of your finances and credit comes in setting limits for yourself. If you do not set realistic limits, you will be doomed to fail on your budget. Set limits that are attainable and realistic and do not be overly generous with yourself. When you are putting the budget together, you may be tempted to put aside $140 for your lattes, but is it really necessary? Of course, you should make sure you put some money aside if you can for fun items like a movie or going out for dinner once or twice a month.
The third step is to continually review your budget. During the winter you may be paying $100 per month in heating which you will need to budget for, but you won’t be paying that in the summer, so why budget for it then? Adjust your budget to reflect the changing circumstances, otherwise it will get out of date and you will have trouble sticking to it.
Lastly, stick to your budget. Your budget is highly important and it is the best bet you have to turning your finances around and improving your credit score. If you do not stick to it, then there is no reason to even do up a budget. By making sure the budget is something you think about at all times, you will find success in controlling your finances. At this point, you will wonder how you ever lived without a budget and why more people do not use this great financial tool to help, or keep, themselves out of debt.
If you or anyone that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com or email jennifer@jenniferbaxt.com
Getting control of your credit and your finances comes down to one thing; budgeting. Having a budget is one of the most important things you can do for yourself, and your family, because it will give you the ability to look at what you spend and how much you can save. The first task in putting together your budget is to look at your expenses in fine detail. This is an important first step because it will really open your eyes to how much you spend. Many people think nothing of buying a $4.50 latte every single day because they do not see the complete sum of that purchase. It may only be $4.50 a day, but multiplied through the month it comes to $135. That $135 could easily be used for credit card payments, bill payments or to put in savings, instead of buying a latte a day.
The second step in creating your budget and getting control of your finances and credit comes in setting limits for yourself. If you do not set realistic limits, you will be doomed to fail on your budget. Set limits that are attainable and realistic and do not be overly generous with yourself. When you are putting the budget together, you may be tempted to put aside $140 for your lattes, but is it really necessary? Of course, you should make sure you put some money aside if you can for fun items like a movie or going out for dinner once or twice a month.
The third step is to continually review your budget. During the winter you may be paying $100 per month in heating which you will need to budget for, but you won’t be paying that in the summer, so why budget for it then? Adjust your budget to reflect the changing circumstances, otherwise it will get out of date and you will have trouble sticking to it.
Lastly, stick to your budget. Your budget is highly important and it is the best bet you have to turning your finances around and improving your credit score. If you do not stick to it, then there is no reason to even do up a budget. By making sure the budget is something you think about at all times, you will find success in controlling your finances. At this point, you will wonder how you ever lived without a budget and why more people do not use this great financial tool to help, or keep, themselves out of debt.
If you or anyone that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com or email jennifer@jenniferbaxt.com
Saturday, October 18, 2008
How do you handle credit repair in a crisis?
These days, people are finding that their once solid credit rating has fallen faster than the stock market, and they are in danger of spending the next few years dealing with high interest rates and credit rejections. Millions have been foreclosed on, gone bankrupt or fallen behind on their bills during these tough economic times, and they are looking for a way out.
Your credit is not written in stone. Your FICO credit rating can change based on how seriously you take the task of repairing it. While you may have a FICO score of 500 right now, through hard work you can get that credit rating back up to 650 or higher in no time. In fact, repairing your credit is a step-by-step process that can be made very easy when you know how to do it.
First, you need to cut out all the expenses you don’t need. Renting a movie or going out to dinner a few times a week may be nice, but it’s unnecessary. Instead, save that money and put it into a savings account so that you can build a float that will help you pay your bills. Why are paying your bills important? For the simple reason that one missed payment can lower your credit rating significantly. Paying your bills is incredibly important, which brings us to our second point of credit repair.
Second, pay your bills on time with as much as you can. When you pay your bills on time, your credit rating will improve because you are showing a payment history where you make regular payments on time and for how much you owe. It can be hard to pay your bills of course, but that is where minimum payments come in. By making minimum payments on your bills and credit card, you can keep the interest from piling up. Even making minimum payments on your credit card will help improve your credit rating. That being said, you cannot rely on minimum payments forever. You will have to continue to save your money in order to pay everything off.
Third, limit your credit cards to two. Having one credit card can hurt your credit score because it will look like you are inexperienced with credit, while having four credit cards will make you look like a compulsive borrower. Therefore, limit your cards to two or three and make sure you always make at least the minimum payments on all of your cards every month. The worst thing you can do for yourself is to fall behind on credit card payments.
Lastly, you should always know what your credit rating is. This means getting your credit score report on a regular basis and finding out what your score is. When you know your score, you know what kind of interest rates you will get on loans, whether you will get a loan and what kind of terms you will have on it. People don’t realize that applying for credit and not getting it can also hurt your credit score. Only apply when you know your credit score is good enough. Checking your credit report will also allow you to look for errors that may be on the report. This is very common and as many as 75 percent of all reports have errors on them.
It may seem like you are drowning in debt and your credit rating is falling faster than you can repair it, but by taking the time to sit back, look at what you owe and begin repairing it in a concise fashion, you should be alright.
If you or anyone that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com or email jennifer@jenniferbaxt.com
Your credit is not written in stone. Your FICO credit rating can change based on how seriously you take the task of repairing it. While you may have a FICO score of 500 right now, through hard work you can get that credit rating back up to 650 or higher in no time. In fact, repairing your credit is a step-by-step process that can be made very easy when you know how to do it.
First, you need to cut out all the expenses you don’t need. Renting a movie or going out to dinner a few times a week may be nice, but it’s unnecessary. Instead, save that money and put it into a savings account so that you can build a float that will help you pay your bills. Why are paying your bills important? For the simple reason that one missed payment can lower your credit rating significantly. Paying your bills is incredibly important, which brings us to our second point of credit repair.
Second, pay your bills on time with as much as you can. When you pay your bills on time, your credit rating will improve because you are showing a payment history where you make regular payments on time and for how much you owe. It can be hard to pay your bills of course, but that is where minimum payments come in. By making minimum payments on your bills and credit card, you can keep the interest from piling up. Even making minimum payments on your credit card will help improve your credit rating. That being said, you cannot rely on minimum payments forever. You will have to continue to save your money in order to pay everything off.
Third, limit your credit cards to two. Having one credit card can hurt your credit score because it will look like you are inexperienced with credit, while having four credit cards will make you look like a compulsive borrower. Therefore, limit your cards to two or three and make sure you always make at least the minimum payments on all of your cards every month. The worst thing you can do for yourself is to fall behind on credit card payments.
Lastly, you should always know what your credit rating is. This means getting your credit score report on a regular basis and finding out what your score is. When you know your score, you know what kind of interest rates you will get on loans, whether you will get a loan and what kind of terms you will have on it. People don’t realize that applying for credit and not getting it can also hurt your credit score. Only apply when you know your credit score is good enough. Checking your credit report will also allow you to look for errors that may be on the report. This is very common and as many as 75 percent of all reports have errors on them.
It may seem like you are drowning in debt and your credit rating is falling faster than you can repair it, but by taking the time to sit back, look at what you owe and begin repairing it in a concise fashion, you should be alright.
If you or anyone that you know would like more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com or email jennifer@jenniferbaxt.com
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