Start improving your credit!

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Times are tough, there’s no doubt about that. We’re all tired of hearing it too… so what’s going on? Whether or not you can discuss in detail the matters of which we are up against, the most important lesson to learn is that… there is a lesson here! This eHow article is geared towards helping you improve your credit. Now more than ever we are learning that it is imperative to have good credit. This will enable you to do many things as your life goes on, such as purchase a car, even a house someday. It is no easy task, but here are a few, very crucial pointers that will help you.

PAY ON TIME! 30% of your credit score is based on your diligence of making your payments on time. That’s a big number! That’s more than ¼ of your credit score right there! Rule number one is probably the most simple and easy to comprehend, but something many people lack. It is very important to maintain a pattern and practice of “bill paying.” Set time each week, or month to plan out your budget for the month. No matter HOW you pay your bills, get your statements together and make a conscious effort to pay everything on time and in full. This will help you immensely!

Keep your balances low! I work as a loan officer, and one of the main objectives we look at is your credit card balance. Not only will having high balances lower your chances of approval, it lowers your credit score. High balances raise a lot of questions, and it makes it appear as if you live off your credit cards. Not good. If you want to prove that you are financially sufficient, you must be able to demonstrate that you can live off of the money you have. My suggestion; Use a credit card for gas, or for groceries, and pay it off at the end of the month. This will enable you to show that you can pay your bills on time, and use them responsibly. This is a very obvious statement, but don’t exceed your limits either! This will hurt you just as bad as not paying your bills!

No credit is good credit. WRONG! No credit is good credit if you are 18 years old and still living off of mama and papa! Why would someone lend you money when you have not yet proved that you can handle credit? It takes time to build your credit, and it’s not always easy. One of the best ways to start off, especially when you turn 18, is a secured loan with your bank or credit union. They will lend you money, and use the money you have on deposit as collateral. Pay the loan back (make sure the note is at least a year) and this will start you off in the right direction for credit building!

Don’t get frustrated! Life isn’t about money, and money isn’t life. The fact… we must all enjoy life the best way that we can. Money is just obstacle that we must overcome. Learning to be happy without material goods will help you. Life goes on, no matter how rough it gets!

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