How to Build Credit in 5 Simple Steps

3 minutes of reading / Personal Credit / 01/02/2019

How to Build Credit in 5 Simple Steps

A healthy credit score can make life much easier and enjoyable. Unfortunately, many people don't realize how important a credit score is to getting the things they want most out of life. Like a new car or a their dream home. Missing a payment on a credit card or allowing a bill to go to collection can have long lasting effects on a credit report. Negative marks on a credit report can cost several points and when it comes to a credit score. Every point counts. It is time for everyone to learn how to build credit again and achieve those dreams that they had years ago.

Here are Ebony's 5 tips to rebuilding credit:

1st Tips

-Make a conscious effort to pay all bill on time every month, even if it is only the minimum balance. If it's impossible way to make the payment, call the creditor and ask for an extension. A five to 10 day extension may be granted if a promise to pay is given usually with a checking account number or debit card number.

2nd Tips

-When thinking about how to build credit, consider opening a secured credit card to begin the rebuilding process. Charge only what can be paid off within a month or two. Avoid charging more than 30 percent of the total credit line in a single month. Meaning, if the card has a $300 credit line, do not charge more than $90 in a single month. Fees and interest must be considered.

3rd Tips

-Do not apply for numerous new accounts within a short period of time. Every hard inquiry negatively impacts a credit score. Creditors view it as a bit of a sign of desperation and will hesitate granting a new credit line. Stick with the current cards presently open and work at establishing a positive payment history.

4th Tips

-When rebuilding credit, it is important to stay informed of any changes on a credit report. A credit report should be pulled every six months to check for any negative marks as well as movement on the credit score. Ideally, if a person pays each of their accounts on time every month and does not have any negative remarks reported, the credit score should start climbing upwards. If there are unwarranted negative marks, take immediate action to have them removed.

5th Tips

-After 12 months of paying bills on time and carefully managing open credit lines, it is a good time to apply for an unsecured credit card. Try working with the company who holds the secured credit card. Make the call and ask to be switched to an unsecured card. If it isn't possible, only apply for one card through another bank.

It is possible to recover from past credit mistakes. For those who want to know how to build credit, follow these five simple steps and remember patience is of utmost important. Good things do come to those who wait. A damaged credit score does not have to be permanent. A little diligence and patience is all that is needed to begin the rebuilding process.

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5 Easy Ways To Find Home Loans for Bad Credit

2 minutes of reading / Personal Credit / 01/02/2019

5 Easy Ways To Find Home Loans for Bad Credit

For those who dream of owning a home, but have less than perfect credit to Find Home Loans, there are still options. There are several creditors who offer home loans for bad credit. While these loans do not typically have prime interest rates, the loans make it possible for everybody to fulfill the American dream of owning a home. Once a person's credit has been built up, refinancing is always an option. Here are 5 tips for finding a home loan with a fair to good credit score that doesn't qualify for prime rates.

· It is crucial every person checks their credit score before applying for any loan. Taking the time to dispute discrepancies on a report is an excellent way to add a few points to a credit score, which will ultimately increase the chance of being approved for a loan.

· Check around and research any bank or agency that offers home loans for bad credit. There are too many shady companies willing to charge a small fortune in fees to those who feel they cannot get a loan any other way. Check with the Better Business Bureau, the internet and friends and family members who have dealt with a particular bank.

· Check with local and state agencies that specialize in home loans for those who would not otherwise qualify for a standard loan. FHA loans are an option as well as loans for homes that are in rural areas.

· Make a concerted effort to come up with a substantial down payment. Many lenders will underwrite home loans for bad credit with a 20 percent down payment. Borrowed down payments are acceptable. However, the money needs to sit in the bank for at least three months.

· Check with a credit union. Local credit unions are more apt to lend to their account holders who are looking to buy a home in the area.

While shopping around for a loan, it is imperative a person makes a concerted effort to increase an existing score. Every point helps. Learn more about what needs to be done in order to do this. If it is proving difficult to obtain a loan in most markets, it wouldn't hurt to ask a trusted friend or relative to cosign the loan.

Find Home Loans for bad credit are out there and many banks provide them. It just takes a little dedication and these five tips to find the best loan possible.

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Credit Cards For Bad Credit: 5 Things You Should Know

3 minutes of reading / Personal Credit / 01/02/2019

Credit Cards For Bad Credit: 5 Things You Should Know

People who have bad rating are likely hoping to rebuild their credit score. There are many different reasons for damaged credit, but there is always a way to rebound. One of the best ways to begin the rebuilding process is to open a new loan line. Fortunately, there are credit cards for bad credit. Although these cards may look good on the surface, it is important to do some investigating before applying for one of these cards or accepting any offers. People with scores below 550 are likely to have very limited options. Almost all banks will require some kind of deposit or monthly fee before granting a credit line.

5 Things You Should Know

1st Thing

-Before applying for any card, get informed. It is important everybody knows their credit score. Do not be bullied into high interest rates, ridiculous monthly fees or a steep deposit. Those who know their credit score will be able to bargain for a better rate.

2nd Thing

-Only take a card that will report payment history to the major credit bureaus. This is crucial to the reestablishing of one's credit score. Regular payments are one of the fastest ways to rebuild poor credit as well as establishing a solid credit history. However, if the bank does not report the payments the credit line will not help the credit score.

3rd thing

-Once a credit line has been accepted, it is important to keep the balance low. Credit scores are negatively impacted by cards that have high balances. It is something referred to as debt ratio. Future lenders will be less likely to lend to those who have credit cards near the limits.

4th Thing

-After a person has had one of the credit cards for bad credit for at least a year and all payments have been made on time, it is time to apply for another card. Apply for a card that is not secured and has a lower interest rate. Keep in mind; the best interest rates are reserved for scores above 700. It may take a little time to get there, but with a dedicated approach to rebuilding a credit score, it can be done.

5th thing

-Weigh the options presented carefully. Look for a good balance of monthly fees and interest rates. Do not be fooled by a low interest rate and a high monthly fee or vice versa. Avoid cards that charge high interest rates and exorbitant monthly fees or annual fees. Often times cards will be offered with a low credit limit that is ate up the first month with an annual fee and a high interest.

Each person will have to choose the right credit card based on their own needs and current credit scores. Credit companies are naturally a little leery about extending credit to somebody who doesn't have a proven track record. It isn't anything personal, it is just business. By using these tips, a person will be able to make an informed decision about what credit cards for bad credit will work for them.

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