Bad Credit into Good Credit

[lopez]

Hai,

I am Lopez.

Turn Bad Credit into Good Credit in Five Steps

1. Reduce your monthly debt load. While conservative institutions refuse to lend money to borrowers with bad credit, there are many companies eager to help--for a price. You'll pay a higher interest rate than a top-shelf borrower, but a debt consolidation loan may be appropriate for reducing your monthly payments and re-establishing good credit.

2. Make your payments. Do whatever you have to do to make your payments. Pay your bills online, have them automatically deducted from your checking account, or mail them ten days early. There is nothing you can do to change your past. However, lenders give more weight to your recent payment history than to what happened years ago. You need to be perfect for at least a year or two to begin putting your bad credit history behind you.

3. Use credit for convenience only. Get rid of all but two or three credit cards. Use them for small purchases only and pay them in full each month. This demonstrates that you can manage credit wisely and gives you something good to show future lenders.

4. Start saving. Your monthly obligations should be lower after you pay off your cards with an appropriate debt consolidation mortgage loan. Don't let the extra money burn a hole in your pocket! Put that money into savings. Some employers allow for a set amount to be deducted from your paycheck each week and deposited into a savings account for you. Keep it up until you have at least two months of expenses as an emergency fund; six months is even better.

5. Protect yourself. Many people end up with bad credit because of unforeseen circumstances. You can hedge your bets for an emergency by obtaining liability, medical, or disability insurance.

Overcoming bad habits or bad luck isn't easy. However, with the right tools, a little discipline, and a little time, you can gain control over your finances. Start today! You'll sleep better tonight, and your future will be brighter tomorrow.

[andrew39]

Hi,

Good suggestion given by you. I was also surfing about useful sites on this topic and found a good one debtxfactor.com which provides good support.
I

[mcmillena]

I just think Credit is a little over rated, it is false that you need good credit to become rich, I think all you need is a plan and smart investment, if you pay a car by cash it would save you a whole lot of interest. Imagine what you can do with that interest. credit is a tool for credit card companies to rip you off some more. and remember all those get rich quick schemes are all fake 100%. If it was that easy to make money everyone would be doing it.

[mcmillena]

Just stay away from debt, that is why America is in a financial crisis right now. Everyone spends more than they earn. what is the logic in that.

[kittypooh]

Yeah..there was also useful sites on this topic where you can found a good..just try to surf the net about credit card

[CSK001]

Hi,
Thanks for this useful information. I'm a new one in this forum. I must appreciate the tools provided by you. Please keep updating me in this regard.

CSK

[kathy]

Some would agree that you don't need credit to obtain wealth. I happen to be one who knows that having credit makes it easier to achieve the goal of obtaining wealth.

I started building my wealth the hard way...without credit and it was difficult but possible. When I decided to address my credit and repair it, things became much easier to use certain tools to build wealth faster.

Your credit matters more NOW than EVER.

[homer21]

I agree, we have the control over our finances. These steps will keep us out of debt as well and will make our life worth living.

[Greg Orlando]

Thanks for such a sharing really need this type of information at present economic situation.

[bigdeal]

This is a good one, i am sure your tips is going to work as great resource for all those who had got bad credit. Now they can improve it by following tips and keep it in regular practice.