Despite the obvious fact that it's us taxpayers who are ultimately going to pay for this rescue plan, it's also objectively clear that making a project of getting a better credit score goes on our short list of things to do. It can take quite a while to clean up a credit report. Know, too, that there's a good likelihood you'll come across an item or two which doesn't even belong to you. Emergencies can arise, requiring a loan. Your car gives up the ghost. You need a new roof and it's raining. That sort of thing.
Your first step is to get a current copy of your credit report. Everyone is entitled to one free report each year. You can obtain it online or at the Credit Bureau office. Look it over carefully to be sure all of the information listed is accurate. Be sure every item belongs to you.
Should you have a dispute with any entry that appears on your credit report, address each item immediately, as it may take some time to correct.
If you've got several maxed-out credit cards and/or you're using one credit card to pay another, not only are you getting deeper in debt, but this will not result in a better credit score. These patterns on your credit report become transparent to a potential lender who takes a look at your credit. Your best bet is to visit an organization that provides debt consolidation services.
If your credit cards are not maxed out, stop using them. Reserve the use of the one with the most credit remaining for dire emergency use only.
Call your credit card companies and try to negotiate a more favorable APR. Making payments to credit card companies is best done online or over the phone, because you then have a confirmation number for the transaction. Some unethical companies have been exposed by whistle blowers to deliberately delay a payment's processing for a day after receipt in the mail, just so they can tack on a late fee. This single tip helps you avoid the late fees and can do much to get you a better credit score.
Scrimp and save as much as possible so that you can pay more than the minimum payment on the card with the highest debt and least favorable lending rate. Consider also, that if this describes your situation, debt consolidation might be a good move for you.
By the time you've cleared up any discrepancies on your credit report information and taken the steps that will best serve your situation, you're on your way to a much better credit score.
You know first hand what a pain, bother and worry it is to get in a financial mess, think about teaching your kids how credit and credit cards work in the real world. They need to understand personal finances. Otherwise, they won't read the fine print, twelve page disclosure brochure that comes in their statement either. It's certain they'll have a better credit score themselves, as a result.
Peter Bassett works for an online finance company. Check out these excellent Mutual Fund Comparison resources or the more specific Fidelity Mutual Funds.
沒有留言:
張貼留言