Ten Steps To Building A Good Credit History

Are you thinking of buying a house? Do you want to buy a new car to replace that old wreck? Trying to get insurance on you home, auto, or life? In each of these situations, what’s on your credit report will determine if you can get a loan or insurance and what rates you’ll have to pay.

If you’re trying to build or repair your credit history, you have a daunting but not impossible task in front of you. Lots of people have been where you are and today they have good credit. With time, discipline, hard work, and by taking the proper steps, you’ll be able to build a good credit history too.

To build or rebuild your credit history you need to take certain steps:

Develop a budget and live by it. Whether your building credit for the first time or rebuilding credit, you need to know how much money you have coming in each month and how you’re spending it.

Start by listing your income from all sources. Next list all fixed expenses (rent, mortgage, car payments…). Finally list all of your variable expenses (entertainment, recreation, clothing…) no matter how small they are. Writing down and tracking your expenses will help you to understand your spending patterns and you’ll be able to see where you can save money by making lifestyle changes.

Open a checking account and use it responsibly. Lenders want to know that you have a relationship with a financial institution and that you have a checking account available to pay your bills. Don’t overdraw your bank account; in addition to possible damaging your credit record, you’ll be charged fees.

Pay your current bills on-time and pay them in full. Paying your bill on-time puts positive information on your credit record. Late payments or missed payments count against you.

Review your credit report annually. Contact Equifax, Experian, and Trans Union to get copies of your credit report. You should get a copy of your credit report from all three reporting agencies because some creditors don’t report to all three agencies. If you’re a member of a credit union, check to see if your credit union offers discounted credit report ordering for its members.

Fix any errors on your credit report. If you find errors on your credit report, contact the credit reporting agency and the creditor (in writing) to get the errors fixed. Check your credit report to make sure that negative information like late payments, delinquencies, liens, and judgments against you have been removed after 7 years; bankruptcies should be removed after ten years.

For more information on how to dispute errors on your credit report, visit the Federal Trade Commission website at: http://www.ftc.gov/bcp/conline/pubs/credit/crdtdis.htm.

Apply for a credit card. If you’re rebuilding your credit history, consider applying for a secured credit card. To get a secured credit card, you’ll need to deposit funds with the credit card issuer and your credit limit is usually equal to the amount you deposit. A secured card can be used the same way as an unsecured card and your timely payments will help to improve your credit history.

Apply for a department store or gasoline card. These cards are usually easier to get than major credit cards and they come with smaller credit limits.

Establish an account at a credit union and take a loan out on it. This is a secured loan. You’ll have to pay interest on the loan, but if your payments are reported to the credit bureaus, the small interest fees will be worth the positive information that is added to your credit record.

Don’t max out your credit cards. Maxing out your credit cards can hurt your credit score. Try not to use more than 30% of the credit you have available to you. Part of your credit score measures the amount of credit that your have available to you and how much you’re using. The more credit you’re using, the more negative impact on your credit score.

If you get into trouble with your credit, get help. Don’t wait until creditors send your accounts to debt collectors. If you can’t make a payment contact the creditor and make arrangements to make the payment. If you feel that you’re over your head in debt get help from a debt counselor.

You can contact Equifax, Experian, and Trans Union at:

Equifax: http://www.equifax.com/

Experian: http://www.experian.com/

Trans Union: http://www.tuc.com/

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About Drahcir Semaj

Drahcir Semaj is a freelance writer. You can contact him at drahcir@drahcirsemaj.com. Or visit his website at http://www.drahcirsemaj.com


And here is another random article you might be interested in...

Don't Discount Offline Business Opportunities

So many people automatically think of Internet businesses first now days. Why? Because they're relatively cheap and quick to set up. What many don't seem to realize though, is that are still some golden opportunities in the offline world too. One such business can be started for less than $50, and can start earning you cash from the first day.

So, what is this business? Vending machines. Now before you shrug this off as being too expensive, let's look at a few facts.

1. Not all vending machines are big and expensive. The first image that comes to mind with the term "vending machine" is a large cola or snack machine. But that's not the only type there is.

As a matter of fact, smaller vending machines are more common... they're just not often thought of as a vending machine.

Think about your local grocery or discount store for a moment. Besides the cola machines, can you think of other vending machines that might be in place? If you're a parent, you might have already guessed: bubble gum, candy, and trinket machines.

They're small yes, but they draw cash and a lot of customers. They usually sell themselves. Kids can't resist them, and even my grown adult husband has been known to put money into them for himself occasionally too.

2. Small vending machines open more opportunities for you. Due to the size of these smaller machines, they can be placed in many more places than a cola or snack machine can. Just a small list of examples includes:

  • Grocery stores
  • Discount stores
  • Department stores
  • Convenience stores
  • Specialty shops
  • Barber or Beauty shops
  • Indoor swap meets/flea markets
  • Doctor or dentist offices
  • Pharmacies

And even government buildings such as the DMV, City Hall, or the local social services office.

3. Placing small vending machines like this is not difficult. In fact, it can be made much easier by simply offering the storeowner or manager a percentage of money earned.

4. You can specialize in a business like this. One specialty that comes to mind is to place your vending machines in health related establishments - health food stores, vitamin shops, doctor or dentist offices, etc.

Then, instead of putting regular candy into your machines, you could offer sugar-free treats instead. With the raging epidemic of diabetes and obesity in the U.S. right now, couldn't you imagine how popular a sugar-free vending machine might be? Especially with doctors and health related establishments?

You could also offer mixed nuts, granola bites, or any other combination of healthier snack alternatives.

5. You can grow this business as slowly or quickly as you'd like. Small vending machines can be purchased for less than $50, and most of the small snack or "gum" machines are less than $100. By starting with one inexpensive machine and a decent location, you can make up your investment in just a few short weeks... or less!

If you re-invested your earnings by purchasing just one new machine each month, you'd have 12 by the end of the year. And they'd be fully paid for too! So everything earned is yours to keep.

So, whether you want a little additional income each week, part-time supplemental income, or full-time business income - take a look at vending machines. Once they're in place, there's very little work on your part... but an ongoing stream of income for you to enjoy.

To get you started today, here's a great resource for finding inexpensive vending machines online. I think they might actually be the cheapest vending machine source I've ever seen. -- Vans Vending - http://www.vansvending.com

Kathy Burns-Millyard

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About Kathy Burns-Millyard

Written by Kathy Burns-Milyard, a professional copywriter for vansvending.
vansvending.com
info@vansvending.com