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Following the Path to Great Credit
Less and less Americans are saving their money than ever before
in the face of a recession and a slowdown of income growth, according
to U.S. Commerce Department figures. October experienced wage drops
of 1.7 percent, following a 1.2 percent drop in September, the federal
agency reported earlier this month.
Here
are some tips to build better credit:
 Get
a checking account in your own name, keep it balanced and don't
bounce checks.
Apply
for a credit card account or other installment loan, such as a car
loan, to establish credit.
Make
payments on time. This means payment has been received by the credit
agency on the date that it's due. If the due date is the 15th of
the month, the borrower doesn't have until the 15th to mail the
check. The payment must have been received at the credit agency
by the 15th.
Many
credit cards and credit accounts disclose, in the small print, that
it will take up to seven days for payment to arrive at their office
and be processed. Using that advice, this means payment should be
in the mail by the 8th of the month for it to arrive and be credited
on time. Interested in Free Debt Consolidation?
click
here
Another
mistake consumers make with the mortgage payment in particular,
involves the wordage on the payment coupon (which is due the 1st
of the month) that goes something like this: "If paid after
the 15th, the amount due is $...." The erroneous assumption
by some consumers is that the bank really doesn't count it late
until after their penalty date stipulated on the payment stub. Not
true. If the due date is the 1st, then it's the 1st.
Payments
are "late" for credit reporting purposes when they are
30 days overdue. Thus it's possible to have an item which does not
show up on a credit report and yet is late and leads to penalties,
fees, and other problems. The bottom line: Always pay bills in full
and on time.
To
get credit, many times you have to already have some in your possession.
Two to four credit cards is a good thing in the world of credit
management. More or less is not so good.
Having
too much "extra" credit that is not in use, can also have
negative effects. Lenders count even unused credit has a potential
debt, since it is available to you to use at anytime.
Keeping
a consistent payment schedule will let current and future lenders
know you are trustworthy. This can be done by automatic electronic
funds transfers (EFT) through your bank. Many time lenders will
provide a lower interest rate if you elect this plan.
Keep
your debt ratios between 20 and 30 percent. This means you want
to keep your consumer debt less than 30 percent of your monthly
income. (MSN.com has a great Debt Evaluation Calculator).
If
you can't establish credit because you haven't had credit before,
be sure to pay your household bills on time (i.e., phone, electric,
gas, etc.) which can be used in a credit application to show you
are trustworthy.
Take
a look at your credit
report annually. You should think of your credit report
as a resume showing how well you have paid your bills and used financial
tools such as credit cards and checks.
 Click here
for your free
credit report and find out today if
your personal credit report contains mistakes!
Bill Problems?
You can reduce your monthly payments by 50%! Take advantage of a
free
consultation today.
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