This article will give you tips and suggestions on how you can work with the credit bureaus and your creditors to improve your score.
The costs of bad credit are enormous, but even the worst credit record can be turned around with some time and a serious focus on good credit behavior. Bad credit makes it harder to qualify for home loans, credit cards and car loans. When you do qualify, then you pay substantially more in interest payments and premiums than someone with good credit. Sticking your head in the sand is not a solution. The only way back is to dig yourself out of your self-imposed hole with a strong commitment to change. Your first step is to get a copy of your credit report and understand the status of your accounts. If your accounts show inaccurate information then dispute it. If it is correct, then get to work on turning it around.
If you have bad credit, you can improve your credit by using prepaid credit cards. These are not a great way to build credit, as they cost money to purchase. So in essence, you are paying more for a product than if you paid in cash, but good credit can be important if you have an expensive loan for your car or home, and end up saving you money.
If you have a lot of debts or liabilities in your name, those don’t go away when you pass away. Your family will still be responsible, which is why you need to invest in life insurance to protect them. A life insurance policy will pay out enough money for them to cover your expenses at the time of your death.
Ask a family member or a close friend if they will add you to onto their credit card account as an authorized user. This account should be a couple of years old, should have nearly flawless payment history, and should have a balance that is low. You will inherit the history of the account on your credit as if you have always been on that card.
An important tip to consider when working to repair your credit, is to check with a family member or friend first, when borrowing money to pay off debt. While this might take more courage to do, in the long run it will be more beneficial to you, as you will be paying money to a person you know, instead of a corporation.
An important tip to consider when working to repair your credit is to consult with friends and family who have gone through the same thing. Different people learn in different ways, but normally if you get advice from somebody you can trust and relate to, it will be fruitful.
Having good credit is important for securing new loans, lines of credit, and for determining the interest rate that you pay on the loans that you do get. Follow the tips given here for cleaning up your credit and you can have a better score and a better life.