|
|
Additional
Resources
|
|
Choosing Between Credit Card Rewards Or Low Interest
By Michael D. Strauss
When you look at the many different credit cards that are available, you will note that in many cases the rewards cards have a higher interest rate and even annual fee than those without rewards. Read more...
|
|
|
|
Below, you'll find extensive
information on leading credit articles and products to help
you on your way to success.
Building And Keeping Good Credit
All homeowners have at least one thing in common, besides being responsible for all their home's repairs. They all had to build good in order to get a mortgage.
A good score means that you have shown that you can pay back borrowed money on the terms laid out by the loan. Bad means you have missed payments, or owe more than ten percent of your balance. If you have never had a loan or used a card, your record is clear. If you want a mortgage, or a loan for any other large purchase, you will need to start small and prove that you are capable of repaying loaned money.
One of the first steps to getting good standing is to have active checking and savings accounts. While most people do have bank accounts, there is the rare exception. But you won't begin to build without at least one bank account.
The next step would be to obtain a card. Many lending companies do not want to give a card to someone who has no established yet, but some will. Shop around. Consider a department store or gas station account. These are a great way to start small.
If you have had a student loan, it is imperative that you make your monthly payments once you have finished school, or promptly apply for any type of payment relief program if you are eligible. Too many people just ignore their bills if they can't afford them, and this is the worst thing you can do to your score.
Once you have a card of some kind, the key to building good
is to pay your bills on time. However, making your minimum monthly payment isn't always enough, especially if you are continuing to use the card. Try to keep your balance at no more than ten percent of the total amount that you are eligible for (that is, the maximum amount the company will loan you). Also, try not to use more than thirty percent of your maximum. For example, if your card's maximum is $10,000, don't use more than $3,000, and if you do, be sure to pay back $2,000 of it as soon as possible, ideally when your next bill comes. If you are continuously maxing out your card, and only paying back a fraction, it shows the company that you have irresponsible spending habits. Sure, they make plenty of money off of the interest you incur, but your score goes way down.
If you make late payments, it goes on your score, and can take up to seven years to be removed. So even if you can't pay back the amount that would keep your balance below ten percent, at least pay them the minimum amount that is stated on your bill.
Ideally, you will have a card that you use only for your regular purchases, with a goal of building good credit. This would mean you pay for groceries and utility bills on your card, then pay it all off each month. As soon as you begin to use a card for extra purchases that are above and beyond your monthly income, you begin a negative spiral. However, it is possible to get out of it fairly easily if you keep the amount small, but diligence will be needed. Also, keep in mind that the longer a balance sits on your card, the more you end up paying in the long run.
If you are having trouble obtaining any sort of card, see if a family member is willing to add your name to their account. Spouses frequently have joint cards, and if one of them has a good score, and the other has neutral credit, one benefits from the other's standing. Similarly, if you can't get a loan, including a mortgage, many lending institutions will consider you if you can get a co-signer, that is, someone with a better score than you who agrees to take responsibility should you default on your payments. But whatever you do, don't let this happen, or you'll be dragging down someone you care about's financial standing along with yours.
 
Additional
Resources
Buying A Dream House
By Leah Dean-5496
Now a day owning own home is probably the one biggest thing couples work for today. Renting out a home has many advantages but still the thoughts of "one man's ceiling is another man's floor" do not Read more...
|
Additional
Resources
Home Equity Loans Bad Credit: Your House Is The Solution Of Your Problems Now
By Steve c clark
You may be getting it difficult to fetch some funds from the market due to your bad credit and need to pull out some cash from your home equity. Regardless of why you need the money, whether it is to Read more...
|
I strive to provide only quality articles, so
if there is a specific topic related to credit that
you would like me to cover, please contact me at any time.
And again, thank you to those contributing
daily to my credit website.
|
|
