Free Credit Repair Advice

byMannyM

464 followers

11 years ago

Free Credit Repair Advice-Analyzing and Understanding Credit

Free Credit Repair Advice-Damaging your credit only means hurting yourself. Image Courtesy of bplanet from FreeDigitalPhotos.net

Understanding how credit works and your current credit worthiness is one crucial step toward achieving financial control. Credit is a powerful tool for some, yet a deadly trap for others, the only difference is knowing exactly how credit works and using to your advantage. Sadly, a large portion of consumers are suffering the consequences of poor credit management.

If you are contemplating finding free information about debt consultation/debt relief, you don't need to feel alone According to Bill Fay, from Debt.org, "The modern-day credit card — which entered the scene in the late 1950's — has meant financial disaster for many individuals and families." In the United States consumer debt is getting closer to $12 trillion dollars and the number continues to rise, which begs the question, Why is our government not doing more to educate our consumers about this issue?.

Did you know that the average American consumer owns an average of 3 to 5 cards and that the average household carries over $10,000 of credit card debt? If you want to succeed and take control of your life it is imperative that you get out of debt. Fortunately, there are many good programs out there to help you get debt relief.

Credit Management Tip

Learning to manage your credit is a lot easier than most people think and you can use it to your advantage. In order to take charge of your finances you must have a tight grip of your credit as well. If you follow some of the advice I have to offer you can improve your credit quite a few points higher than it is right now.

One of the most important things nobody ever tells you is that whenever you have open credit lines, especially on credit cards, you should do your best to keep each line of credit no more than 30% of its value.

For instance, if you have a $300.00 dollar credit card then you don't want to charge more than $90.00 dollars to the card. The information can be a little technical, but I will do my best to break it down to you to the best of my ability. Each card has its own billing cycle and every month the lender reports to the credit bureau.

What this means for you is that as long as you plan it accordingly you can manage around it if you need to go above it, just remember to bring the balance at or below the mark. Let's say is the second week of the cycle and you purchased $150 dollars worth of groceries, but you don't get paid for another week, which brings you to the third week and that means you will need to pay $60 to bring the balance to $90 otherwise it may impact your credit score.

In order to balance your finances and achieving financial success one must have a solid credit record. A powerful tool if used properly or a crippling blow if miss-managed. Image Courtesy of vectorolie at FreeDigitalPhotos.net

If you are in a credit building phase you absolutely need to do your best to stick to this schedule and you will see a significant jump on your score within a few months.

No Credit, No Problem

If you don't have a credit card and would like to begin working on your credit it is possible, but it comes at a cost. Depending on your credit score and your credit history will dictate which bank is going to be willing to lend to you or send you a letter of credit denial. Luckily for you companies such as Capital One and Wells Fargo offer secured credit cards. In case you didn't know there are two types of credit cards the commonly used unsecured cards which are credit cards provided by the lender with a predetermined amount of credit based on your income and credit history among a few other things.

The second card is a secured card, which means you open the card, but you have to provide the lending company a security deposit to establish a credit line. Usually the minimum security deposit is $200 dollars and the maximum is whatever you are willing to put down for a line. If you put $500 then that will be your limit.

The reason they ask you for this is as a form of good faith in case you decide not to pay then the company can recover its losses. However, companies such as Capital One have programs where you can place the minimum deposit and if you meet certain criteria such as paying on time every month and use the card responsibly the company will raise the credit without any additional deposit. In a pinch this is about your only option and if you think about it you have nothing to lose.

The only thing you have to shop around for the best card because not every company works the same and some companies do not raise the credit line, so whatever you do make sure you find a company which does the following:

1. Reports to all major credit bureaus
2. APR is competitive
3. Offers a low or no annual fee
4. Company is willing to raise the limit based on creditworthiness
5. The card is a Visa or MasterCard
6. The lender is well known
7. The Card has decent reviews from previous customers
8. The Company offers Online banking or has an app (This is optional but it will help you manage your payments easier and faster)

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