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Five Tips To Build Your Credit Today
By Suzanne Lamoutte
If you¡¯ve recently paid off a lot of debt, you may be wondering where to go
from here. Maybe you went through a divorce and got stuck with a lot of
high interest credit card debt, or got behind on your payments after a job
layoff. Whatever the reason, you fell behind with your payments, your
credit report suffered for it, and now you¡¯re ready to get back on track.
Luckily, it¡¯s a lot easier to re-build your credit than it was to get out of debt!
Here are some tips that will have your credit report sparkling in no time!
First, you should expect to spend about a year rebuilding your credit. I can
hear some of you groaning¡ªafter all it took a few years to get out of debt,
right? Yes, but you must understand things from a lender¡¯s point of
view¡ªthey need to see proof that you are serious about keeping up your
credit history.
You will need to establish some sort of credit, so that you can show your
future creditors that you can be trusted. If you¡¯ve had serious credit
mistakes in your past, that may mean getting a secured credit card. These
types of credit cards are secured by a bank balance, which will equal the
spending limit on the card. The point of them is to build credit when no one
else will issue you a card.
If you can apply for a low interest rate card, you should get one and use it
for the sole purpose of rebuilding your credit.
Another credit reporting building method is to apply for a personal loan, and
then pay it according to the terms I¡¯ve outlined below.
The biggest thing you can do to rebuild you credit is to pay your payments
on time. That means that you can¡¯t be late¡ªnot even once. If you are
mailing in your payments, be sure to give it plenty of time to not only reach
the destination, but also clear the proper processing channels. If you think
that you¡¯ve cut it too short, overnight it. Nothing should stop you from
getting those payments in on time! Remember that even one late payment
can make a difference of whether or not you get that car or home loan!
You should also shoot to pay more than your minimum payments every
month. Ideally, you would pay off your credit card every month, but if you
can¡¯t do that, then do pay more than the minimum. For example, if your
minimum payment was $25 per month, try to pay at least $35. This will
accomplish two things. First, it will make you look better in future lender¡¯s
eyes, and secondly, because by doing so, you will paying more toward your
principle balance every month, (as opposed to interest), and that will reduce
the overall amount that you¡¯ll have to pay.
Do all of these things will patience and determination, and you¡¯ll soon find
yourself with a credit rating that you can be proud of!
http://www.aboutdebtrelief-help.com
About the Author
We all need help at some point with overwhelming debt. Being informed with the right things to help us makes a big difference. http://www.aboutdebtrelief-help.com
Article Source: http://www.simplysearch4it.com/article/16651.html
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| Some other articles by Suzanne Lamoutte | |
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