24 January 2014
Credit Problems Got You Down And Need Better Credit
Mary is an average American. She works to pay the bills and her credit score is just like that of millions of people across the United States, mediocre. She would like to boost her credit and repair the damage that was done during her younger credit years. She has looked into all the different options including credit counseling, opening another credit card and even considering working with companies that promise to quickly fix her credit score. She does not want to be in debt the rest of her life, but at the same time, she would really like to re-establish her credit rating. How can she accomplish this?
If you are in the same boat as Mary, there are solutions to your debt problems. It is not as difficult as one would think to re-establish credit. However, it will take some work on your part to do it correctly. It is important that you understand that repairing credit or building credit is not a quick process. You should never trust anyone that says they can build or repair your credit quickly. You also want to make sure that you don't accrue additional debt as you go through the process of diminishing your debt.
When trying to re-establish credit one thing to focus on is your history. While this might seem like a difficult task, it really isn't. You can establish credit by opening up a bank account and acquiring a debit card. Debit card transactions aren't reported to credit reporting agencies however. While a bank account and debit card are a starting point to establishing credit, it can be a painstakingly slow process. To increase the process, you will need to open up a credit card account. It is your open credit card accounts that are reported to the credit bureaus and what will help you to re-establish your credit if properly managed.
If you don't think that you qualify for a credit card, not to worry, there are hundreds of credit card companies out there that want your business. In fact, there are so many websites and companies out there that offer easy qualify credit cards or cards you fill with your own money. These are cards that anyone with good or bad credit can apply for to start establishing or re-establishing their credit.
Buyer beware however, it is important that if you are going to apply for a credit card, online or elsewhere, you will need to read all of the fine print. Make sure that you know of any fees that you will be responsible for as well as the interest rate that you will be responsible for paying. With so many choices out there, you should be able to find something that has a low interest rate, no annual fee and no other fees attached to opening the account.
On a final note, if you are going to make purchases via credit card, make sure that you are able to pay them off on time. As a good rule of thumb, use your credit card in place of the cash that you have on hand to spend. Then take that cash and send it to the credit card company to pay off what you just purchased. You will establish good credit by paying off your account in full with every purchase, while practicing solid financial habits that will help you in the long-term. All of these tips will help you to avoid credit problems, but if you do get behind and need a way to get out of debt, cash advances or payday loans online may be a good option to look into, but use all loans responsibly and read everything before signing.