Monthly Archives: October 2008

Author : Stephen Chua

Although no consumers know the mathematical formula that credit bureaus used to calculate your credit score, it does not mean you will be at the mercy of these credit bureaus

There are some actions that you can take to improve credit score One of them is paying your bills on time This is absurdly simple but it works very well Yet many people do not pay attention to it

When you think about it, it is common sense When you pay your bills on time, your credit report will contain these records When lenders review your credit reports, they will notice that you are very responsible with your personal finance and likely to be low risk to them

Lenders such as banks and credit card companies want to give you money to spend But they want to make sure that you can pay them back If you pay your bills on time, your credit report will provide the proofs that the lenders need to approve your loan or credit application

The lenders are taking a risk for giving money to you to spend and they know that there is always a chance that you will default on your repayment However, if you pay all your bills on time, the odds are good that you will also make payments on a new debt on time, Just by looking at your payment history, the lenders can assume that your risk of default is low or high This step alone is enough to give your credit score a boost

Paying your bills on time also has another advantage There is no late fee penalty Financial institutions and service providers will charge you a fee if you do not pay your bill on time In the event you miss paying your tax, you can get yourself into legal troubles as well

Late fees and other financial penalties can make paying your bills off harder and they are unnecessary expenses Whenever possible, set up automatic payments procedure for your bill payments so that you will not forget

If you already have problems making your payments on time in the past, you will need start paying your bills promptly right away It will probably take you a number of months of repaying your bills on time to improve your credit score but the effort will be well worth it when you see your credit score rebounds!

If you want to know more ways to improve your credit score, check out this credit improvement resource at NetCreditGuides.com. For more useful credit tips, drop by http://www.NetCreditGuides.com/blog and receive a free gift too. Continue reading →

Author : Stephen Chua

Many people have poor credit score but only a small percentage of them actually sit down and devise a plan to fix their credit problem Do nothing and that is exactly what you get Nothing!

If you have poor credit score, don’t blame anyone Instead, take the responsibility now and develop an action plan Here are a few steps you can take right away:

1 Identify the causes

First of all, you need to identify where your problems lie Order your credit reports from each of the three major credit bureaus Read each report and note down all the negative records These include late payments, unpaid bills, too much debt and so forth In addition, look for erroneous records such as misspelling of your name and address You should be able to see what your problems are after reading your reports

2 Identify possible solutions

Once you understand what your problems are, you can start researching for possible solutions Some problems are quite easy to fix These include erroneous records such as misspelled name or invalid social security number You can write in or call up the credit bureaus and ask them to fix the errors

If you notice your debt is too big to manage, you may want to pay down your debt as soon as possible Fixing a debt problem required more time and effort You may have to find a second job or other source of income to reduce the debt Cutting down unnecessary expenses will greatly help too

For each problem you identify, you should come up with at least one possible solution

3 Take action immediately

Once you identify the causes and solutions, devise an action plan immediately For each possible solution, put in a deadline and a reward Whenever you complete the task before the deadline, reward yourself for a job well done The reward should not cost you too much money

If you have problem working out a plan, you can seek professional help from non-profit credit counseling organizations They have experienced staffs who can work with you to help you develop a personalized strategy that expressly addresses your credit problems

Your credit score is important to your financial health, so it is worth your efforts to try and get it fix as quickly as possible As you put your plan into action, you will inevitably face some setbacks or interruptions Try your best to stay focus and continue to work on the plan Fine tune your efforts based on the results you received Your credit score will bound to go up as you continue to work your plan

If you want to know how to fix credit score yourself, check out this credit improvement resource at NetCreditGuides.com. For more useful credit tips, drop by http://www.NetCreditGuides.com/blog and receive a free gift too. Continue reading →