Re-establishing Your Credit Is Not As Hard As You Think
By Mike Wayman
If you find yourself needing to re-establish your credit, it isn’t as difficult as it seems. Following a few simple steps will help you get your credit back on track.
If you don’t have one, get a job and establish a history of work. Order a credit report from each of the credit agencies. Correct and update your information, and submit a 100 word explanation to tell your side of the story. First, pay all your bills on time. Late payments over 30 days affect your credit. Open a savings account and make regular deposits. Open a checking account and don’t bounce any checks or go below the minimum balance. Reduce the number of credit cards that you carry. Avoid bankruptcies, tax liens, and collections. Bankruptcies stay on your credit report for 10 years. Collection accounts and paid tax liens stay on for seven years, and unpaid tax liens stay on forever.
Write to your creditors requesting that they reduce your credit. Ask a family friend or relative to co-sign for a small loan to help you re-establish credit. Make your payments on time. Get a secured credit card, and make your payments on time. And last, get a credit report once a year.
Good Purchases For Your Credit Card
By Mike Wayman
Credit cards are tempting for me, as is the mall. For some reason the second I see a pretty dress or great shoes I think I need to own the specified items. And, possessing a credit card just makes it worse. I know I should leave my credit card at home when I go to the mall. Maybe even put it in the freezer. However, there are some good things to use your credit card for.
First of all, a credit card is a great item for buying things that you actually need. It is important to determine the difference between needs and wants. Many times they are different.
Secondly, when determining whether you “need” that item, keep in mind that you probably do not need to use your credit card for items you cannot afford. You also do not need it for everyday items like food or clothing. Those can be purchased with cash. Basically, look out for the situations that arise when there is a need to pay for something that does not happen everyday. When that happens, put it on your credit card. And, when you charge those items to your card, make sure to pay your monthly payment on time!
