Consolidate Debts Fast

Not everyone knows how to maintain or keep their credit score looking good. In fact, many people make some really simple mistakes that negatively impact their credit scores. Here’s some things that can lower your credit score.

1. Closing your oldest credit card.

This is a big no-no. Your oldest credit card has your longest payment history and therefore affects your overall score the most of all cards you hold. When looking to get rid of excess cards, get rid of the newest ones first.

2. Too many local store credit cards.

Local cards are easy to come by and that means that many of us open a lot of them too quickly which negatively impacts your credit. Creditors do not want to see a lot of credit lines opened in a short period of time.

3. Carrying too high a balance.

Contrary to popular belief, carrying a balance can be a bad thing, especially if you’re over the 48% mark. Your goal should be to keep all credit cards and lines below 25-30% of their maximum allowable amounts.

4. Shopping for credit

Even though it can be a good idea, too many inquires to your credit in a short period of time is bad. This is why you should make sure you’re going to be approved and going with that company before you let them check your credit.

5. Late payments

Alright we all know that late payments can affect our credit, but did you know it can drop your score as much as 100 points!

6. Not using your proper name

This may seem like an obvious one, but not using your full legal name may mean that your information ends up on someone else’s credit, or their credit problems can land on yours. This can also be a common problem for parents and children whose names are similar or the same.

7.Too many home loans.

It can be tempting to refinance whenever better terms are available, but doing so can negatively impact your score and make you lose out on other credit options.

8 Having financing companies on your credit report.

Having some of the bad credit type lenders on your report can negatively impact your credit. Try and get it removed from your report, unless it is one of your oldest credit carrying accounts.

Credit problems can arise for anyone. But knowing some of these common things that can injure your credit score can help you avoid them. Be wise, your credit plays a very important role in your life.

Hearing that your future or potential employer is doing a credit check can be a scary thing. Some of us have less than perfect credit, but are more than good enough for the job we are applying for. But we worry that the less than perfect credit may impact our ability to get that position. So what is it that you employer is looking for when they do a credit check?

As strange as it may seem, looking at your credit report shows your employer a lot of different things. It’s not just a case of them looking at the score. They are looking at the finer details of your credit report, the items that can tell them the type of employee you could potentially be.

Your trustworthiness. Looking at how often you default on accounts can show your employer how trustworthy you are. If you are frequently changing cell phone companies due to outstanding balances, the employer may not want to hire you.

Defaulting on your accounts also shows them that you can not be relied on. If you cannot be reliable in paying your outstanding debts, what makes them think you will be a reliable employee.

Another thing that is often on your report is your addresses for the last 3-5 years. If you’ve moved around a lot, the employer may look past you, as they don’t know how long you’ll stick around.

They also use your credit report as a way to ensure that the SSN that you provided is the correct one for you. This can protect them.

They will also get to see your income debt ratio. Some employers, especially those that deal with cash, will not hire someone with a high debt to income ratio, it’s just too risky for them.

A potential employer may also decline you if you have a bad credit history as this shows a lack of responsibility.

As you can see your credit report can tell a potential employer quite a bit about you. And some of those things may make them think twice before hiring you. Some of them may even cause you to be declined for the position all together.

This is why being responsible with your credit and debt is extremely important and can impact your life in more ways than you may think of initially. Responsibility is key. Treat your credit nicely, and it will treat you to many things in life. Mistreat it and you may find it comes back to bite you.

With New Years upon us, many are busy making their resolutions and they are of the typical kind, losing weight, getting a new job, increasing finances, getting out of debt. The resolution that many people really need to be making is getting out of debt and improving my credit score.

Improving your credit score should be a major goal for all of us, after all, our credit score can affect so many parts of our lives. Credit can affect our chances at getting a home, getting a car, getting a loan and even continuing with our education. Poor credit can affect your entire life, without you even realizing it.

How do you improve your credit score then?

Tip 1

Pay your bills on time. This may seem like a really simple tip, but it can make a big difference. You pay your bills every month, but did you realize how much it can affect your credit score or report? Think about it, monthly bills have the chance to affect your credit not just on a one time basis, but up to twelve times in any given year. Simply paying your bills on time can make the needed points you need for that big purchase.

Tip 2

Avoid holding excessive credit. Having too much in credit can actually be detrimental, as can having too little. If you have too many credit lines out, it may make it so you cannot take out the one you really need, like a student loan or even a mortgage. On the other hand, having too little can be a problem too. It may reflect poorly on you, in that creditors may be unsure how you will react with more credit.

Tip 3

Pay down your debts. Having a high debt to income ratio can play negatively on your credit as well. Do what you can to consolidate some of your debts and lower what you owe. Your credit will thank you for it.

Tip 4

Expand your credit types. Carrying multiple types of credit shows creditor and potential creditors that you can use any form of credit wisely, and not just credit cards or mortgages. Make sure that your credit doesn’t drop though as a result. Ensure that every bill you have is paid on time and it won’t be long till they creditors no longer view you as a risk.

Make your New Years resolution one that really counts. Use this new year to start raising your score and making your life easier, by giving you access to the credit you really need.

Most people in North America are in some sort of debt. Many live on credit, and with the current economy things are only getting worse, but this doesn’t mean you have to ruin your credit. In fact, you may find that sometimes the things that are affecting your credit are not even your own doing. Some statistics show that there is close to 50% errors on most credit reports, and these errors could be costing you your financial life!

How do you fix credit problems that aren’t really yours?

The first step is to contact the three credit agencies and file a dispute. If there is something on your report that shouldn’t be there the sooner you correct it, the less the damage will be. You can fully reverse the damage in some cases, but it other cases it may be to late.

This brings us to the second step, keep a careful eye on your credit. You are allowed to get free reports yearly from the credit agencies, get yours and make sure there are no errors. This also includes your credit card statements and your bank statements. Simply errors on these statements can make a big difference on your credit standing. Making sure that they are all correct is vital. An ounce of prevention is really worth a pound of cure when it comes to your credit report and score. Arm yourself with knowledge and you’ll be that much more ready to combat negative items on your reports.

Find something not quite right on your reports, file a fraud report. Contact your credit card issuers and let them know if there has been unauthorized activity on your account. Keeping a close eye on your finances will go a long way to keeping your credit score intact.

Keep records of everything. Find a charge that should not be there? Make sure you keep track of everyone you speak to on the matter. Keep a list of all you talk to, what you talked about and the time and date the conversation took place. Being overly prepared in the worst case scenario is always a better choice than not being prepared at all.

One of the most basic ways to protect your credit score and reports is with a proper education and with due diligence on all your reports and bank and credit card statements. Keeping a close eye on your financial matters can mean the difference between a good credit score and financial ruin.

Sometimes getting outside help to help us deal with our credit and debt problems seem like the only way we will ever get a head or even stabilize our credit, and for some it may very well be exactly what we need. But before you spend hundreds of dollars to get help from a credit and debt consolidation company you should keep the following in mind.

You may be able to deal with the debt and credit issues on your own. If you take a step back and actually budget out your life, you may find it much simpler to deal with your credit issues. And this way you save the money you would’ve spent seeking outside help. Remember, only you know how you got into the situation, so who better to help you get out of it.

Consider whether or not it will really benefit you. Do you already know what you need to do, just haven’t done it as of yet? Then you don’t need someone outside telling you what to do, you simply need to put your mind to fixing your problems. On the other hand, if you have no idea where to even start you may want to seek outside help, just remember no matter what, they can’t do anything to help repair your credit without you taking part in it.

Determine if the savings that they will get you is really worth it. Is saving how ever much on your debt issues really going to help you? Or is it going to be exceeded by the costs of the credit counseling? If getting help is going to cost you more than they will save you on your current debts, getting help is only going to make your situation worse, instead of better.

So you’ve decided to go ahead and get help, now what? Well the first step is to decide who you will be getting help from. Be wary of those who promise to reduce your monthly payments as well as how long you will be repaying your debts. You can do one or the other, not both. Also be wary of those who tell you they can fix your credit overnight. It took years to do, it will take time to undo. Those that promise otherwise are simply scams.

When all is said and done, you need to remember you are the one that got yourself into your current credit and debt issues, and you may very well be the only one who can get you out of it. Knowing before you ask for help can save you time and money. Don’t seek counseling if it’s not really going to help. You need to be the one to take control of your own financial future, or you will simply be due to repeat your own past mistakes.