Monthly Archives: June 2013

10 RELIABLE TIPS TO REPAIR YOUR CREDIT

A bad credit record affects many aspects of one’s life like the inability to qualify for a home or vehicle finance. In many countries, a bad credit record affects your chances of employment. The good news is that a bad credit record does not have to be the end of your world, there are some things you can do to repair your record, yes it may take some time to clear it, but it can be done.

ARRANGE A PAYMENT PLAN WITH YOUR CREDITORS:

* If you are unable to continue with your monthly installments, call each of your creditors and make a payment plan.

*The payment plan you make must be suitable for both you and the creditors in that you must be able to see a decrease in your outstanding debt after payment.

CREATE A BUDGET:

*Buy your monthly groceries using a grocery list and stick to it.

*Pay all your household necessities, and see how much is left after payment, then pay all your other outstanding debt.

* A budget disciplines you to curb your spending and to ensure that you spend on necessities instead of luxurious.

TRY TO GET A CONSOLIDATION LOAN:

*A consolidation loan is a large amount of cash that you can borrow either from the bank or legitimate micro lenders, you use this loan to pay all your other outstanding debts.

* Then focus on paying back just that loan.

KEEP ONLY ONE CREDIT CARD:

*There is no need to have 10 credit cards because chances are you will be tempted to use them all.

*Use only one credit card and only for emergencies.

MAKE A FOLLOW UP WITH THE CREDIT BUREAU AND KNOW WHERE YOU STAND: 

*You may find that you repaid an outstanding debt in full, but you are still listed as a bad payer.

*Keep track of why you have bad credit and as soon as the debt has been fulfilled, make sure you make a follow up to have that account removed under you.

PAY MORE THAN THE STIPULATED INSTALMENT:

*If your instalment is $10, try to pay $12. Paying a higher instalment rate will ensure faster payment of your debt, and it will reduce your interest rate.

DECLINE GRACE PERIODS:

*Creditors will tell you that you can take a break from paying your installments at certain periods of the year, don’t do that. It is a bad financial decision.

PAY YOUR BILLS ON TIME:

*Late payments are the one thing that show up on people’s credit profiles, and that makes you a bad payer, pay your bills as per the agreed date.

DON’T APPLY FOR DEBT REVIEW:

*Debt review ensures that your creditors don’t take legal action against you, but going on debt review reflects on your credit profile for years to come.

AVOID EXCESSIVE CREDIT CHECKS:

*Every time someone or a company checks for your credit score, it lowers your credit rating, so twice a year is more than sufficient.

Contact the HMRC helpline to help you with your tax report. You will never have a clear credit record if you are owing on your tax.

How Credit Tips Solves Your Financial Issues

Everyone needs essential credit tips to manage their finances and ensure their cash flow is running smoothly. As you will be told when you contact income support, the following are essential tips that should be kept in mind when you not only want to manage your finances but also when you want to boost your credit worthiness.

Monitor your credit report

You need to be watchful over your credit report so that you can easily take note of any discrepancy or incompatibility between your records and the actual situation on the ground and appropriately have them dealt with within reasonable time limits so that your history is not marred with unnecessary blemishes that often hurt your finances in the long run. You are also able to notice any pending bills that have not been footed and quickly attend to them so that they do not drag over a long period of time, efficiently giving you a dire financial history.

Beware of errors

There are usually erroneous representations in some credit reports which can be dealt with promptly if you are especially keen on what is being recorded by the credit agencies. These include timely made payments being reflected to have been paid late or not paid at all, paid off loans and debts that have not yet been cleared in the credit report with a good example being student loans, and even having the details of an account that you do not own reflected in your account. All these and more are common errors that often occur when the credit reports are being generated. Once spotted, the company that is involved should contact the credit agencies on your behalf and report the dissimilarity in records so that the matter is swiftly corrected.

Pay off credit cards

Most credit cards often take a huge chunk of money off your earnings due to the high interest rates that are usually charged. It is therefore not out of the question to find yourself deep in debt. This can go on to ruin your credit history by making you pay astonishingly high rates especially when servicing loans. You should therefore make effort to pay off credit cards then start building a good credit history by acquiring a secured credit card.

Borrow wisely

Borrowing wisely simply means borrowing what you are able to pay. This also means that you pay off all pending loans and mortgages so that you have a clean slate in a short time. Failure to do this, you will have to grapple with increased penalties and interest rates which may hinder you from getting another loan in future.

Uphold good credit history

Once you have started on building up your credit history afresh, maintain good credit records. This will ensure that your good credit history is sustained hence showing consistency in money matters. This will give you a better chance at securing a loan at any loaning agency since your history will be impeccable and unstained over a long period of time.
Using these credit tips, you can solve all your financial woes and generally live a stress free life with regards to finances.