Weekly Financial Advice #2 You Can Fix Your Poor Credit

MoneyGuy101 · Post by **MoneyGuy101** » Thu Jan 04, 2007 1:33 pm

Hi all---Here is My Tip of the Week----This week, the focus is on poor or damaged credit ratings... Best of luck and Enjoy!

Tips on how to get started now.

You will not be able to build good credit overnight. It will take discipline and persistence on your part to change your credit for the better. After you have fixed and improved your credit rating in the eyes of lenders, you will notice more opportunities offered to you to borrow money at more desireable terms than when your credit was bad. Just because you have bad credit does not mean that you can not borrow money or get a loan, it just means that less opportunities will be available. The funds you can get will come at a greater cost in terms of higher interest rates and more stringent repayment terms.

Many banks and lending companies are less likely to make loans to people with bad credit. Therefore, it only makes sense that you strive to improve your creditworthiness in order to convince potential lenders that you are a good credit risk. Once you have improved your credit history and track record you will be have better opportunities to buy a car, finance a personal loan, or buy a house. If you have already been trying to financed for any large purchases, then you may have noticed the hurdles you've been put through trying to get approved.

Fixing your credit rating may be as easy as getting any inaccurate statements off of your credit report. Therefore it is important to frequently check yours to see if everything on it is correct. If you do find inaccuracies immediately contact the credit bureau and work with them to get them corrected and off of your credit report.

For others, fixing or repairing their credit rating may be a lot more involved and complicated. Start by getting your personal budget balanced. You should not be spending more each month than what you bring in each month. If you are, then get that straightened out immediately. Cut out all unnecessary spending and charging. It is critical that you get your budget and debt repayment plan balanced, while making all debt payments on time. Not making on time payments each month increases the late payment fees you will have to pay, bring about increased interest rates and continue to negatively your credit rating. Once you start making and continue to make your monthly debt payments on time, you should see your credit score start to rise.

If you find that you can not do this on your own, there are many companies that can provide debt consolidation services.

So in essence to improve your credit:

* Create and live by a personal budget that balances your monthly income with your monthly expenses.

* Create a plan to save money and pay off your credit cards and debt.

* Use credit wisely.

* Pay your bills on time every month.

Once you have put all of these tips into action and your credit score begins to improve, you should see your borrowing opportunities improve as well. But remember, good credit habits must be worked at every day, so do not give up and make it a lifetime habit.

The Money Guy

Post by **spot** » Thu Jan 04, 2007 2:34 pm

Thank you MoneyGuy, that all sounds well informed. I hope there's people here, or visitors in future, who find it useful.

MoneyGuy101 · Post by **MoneyGuy101** » Thu Jan 04, 2007 3:30 pm

No problem, I will do a new topic every week. Just something fun, and helpful... I don't know much about anything else other than sports, so I thought I'd share some tips with the group...

Hope you find it helpful, if not maybe next weeks Tips will be more usefull for you! Thanks for taking the time to reply to my post!!

Jon Davidson

The Money Guy

K.Snyder · Post by **K.Snyder** » Fri Jan 19, 2007 3:33 pm

Was wondering if there was a site that gives a free credit report without having to divulge credit card information or setting up a free trial...

My sister would like to know her credit score, but she doesn't have a credit card, and she doesn't want to pay for it...

RedGlitter · Post by **RedGlitter** » Fri Jan 19, 2007 3:47 pm

Hi Money Guy,

Can you give a little info about paying to have your credit "restored?" My friend is planning on doing this and I wonder if it's possible/legal/a ripoff??

MoneyGuy101 · Post by **MoneyGuy101** » Wed Jan 24, 2007 1:21 pm

K.Snyder;522283 wrote: Was wondering if there was a site that gives a free credit report without having to divulge credit card information or setting up a free trial...

My sister would like to know her credit score, but she doesn't have a credit card, and she doesn't want to pay for it...

I asked around and I dont know of any sites that do this---I am sure there are some out there, just may take some time to find

sorry couldnt help

K.Snyder · Post by **K.Snyder** » Wed Jan 24, 2007 3:03 pm

MoneyGuy101;528643 wrote: I asked around and I dont know of any sites that do this---I am sure there are some out there, just may take some time to find

sorry couldnt help

Just adds to the fact that "nothings ever free"...

MoneyGuy101 · Post by **MoneyGuy101** » Wed Jan 24, 2007 3:43 pm

K.Snyder;528779 wrote: Just adds to the fact that "nothings ever free"...

one place that you may want to check is worldfinancialguide.com

go to credit, and there are hundreds of free articles, ---there are a few things left that are free

The Money Guy

MoneyGuy101 · Post by **MoneyGuy101** » Wed Jan 24, 2007 3:50 pm

RedGlitter;522298 wrote: Hi Money Guy,

Can you give a little info about paying to have your credit "restored?" My friend is planning on doing this and I wonder if it's possible/legal/a ripoff??

Having your credit restored is legal, as far as the "rip off" well I guess that depends on the situation...

For example if you have a very low credit score and you get a car loan, chances are your finance rate will be 19-22%.. Where as if you had your credit "restored" and were able to get a normal rate of 6-8% you would save over $3000 in finance charges in just 60 months....

I think you should do the math and figure how much you would save in the long run vs how much it would cost to go through the credit restoration process

Go to worldfinancialguide.com and click on credit, there are thousands of free articles there that may help you or your friend without spending any money...

Anyway, thanks for your question, I dont know a ton about restoration, but I think if the situation is right, it could be a good route to take

but check out that site, I think you'll find some intresting tips to read about

The Money Guy

MoneyGuy101 · Post by **MoneyGuy101** » Wed Jan 24, 2007 4:48 pm

Pinky;528940 wrote: What would I do? I've never had a credit card. My debit card gets me in enough bother!

good for you! Credit cards are never good

The Money Guy