YourEasyCreditFix.com

Posts Tagged ‘debt reduction’

When your credit scores are low, it is can hurt you in every area of your life. It makes it more difficult – even impossible – to get home loans, student loans, and car loans. It makes it more difficult to borrow money in an emergency.

Now, your goal should be to pay everything off immediately and not use credit if at all possible,  but sometimes credit is necessary.

Furthermore, bad credit can prevent you from getting hired at certain jobs, from renting a car, even from getting a cell phone.

So it is important to rebuild your credit.

To do this:

Pay your bills on time. Make this your top priority. Pay them a week early so that you are SURE that they arrive on time. If you literally do not have enough money to pay them off on time, you need to either take on a part time job for extra money,  sell possessions, liquidate assets, or negotiate with your credit card company.

Get a secured credit card and ALWAYS pay it off on time. Charge very small amounts and then pay them off. You can carry a very small balance if you want – $10 or $20 – but NEVER make your monthly payment late. After a year of always paying off on time, apply to change it to an unsecured credit card.

Make it a priority not to charge more than 30 percent of your available credit. If you have charged more than 30 percent, make it a priority to pay that down first. Your credit rating goes down when you have less available credit.