Stop Making Foolish Credit Score Mistakes!

Many people make many mistakes when trying to improve their credit score. This article will guide you in the right direction so you can quickly improve your credit score and fix your credit if you have any errors.

#1 – Don’t Throw Away Old Credit Cards

One of the biggest mistakes people make when trying to fix their credit report, or improve their credit score is getting rid of credit cards. Let’s get this straight! You need a credit card in order to improve your credit score.

It is actually very simple, the only way you can improve your credit score is by using credit. Meaning if you don’t have any credit cards, improving your credit score will be very hard.

If for some reason you want to get rid of your credit cards because you are in debt, consider contacting a debt management company, such as Lower My Bills, which will help you with paying off your debts.

#2 – Make sure your paying what you need to, on time!

Banks want to see that your spending money – YES, that’s the truth. However they also want to see that you can pay your bills on time. When you manage to do both you are rewarded with lower rates, when it comes to insurance, car payments, loans etc. As a matter of fact you will be able to save about $500/Month if you manage to raise your credit score.

Here’s the big Catch!

Banks want you to use credit and spend money, but they don’t tell you how much! Meaning, you can set your own budget, and pay it on time. I recommend a free service called Mint that helps you do just that.

Mint actually helps you visualize your spending habits and shows you places to save. All you need to do is work with a lower budget for a few months and you’ll see your credit score sky rocket.

“But its too hard”

That’s what you might think, but you are wrong. You need to understand that when you are dealing with credit cards you are more inclined to make impulse buys. Meaning you’d buy things that you don’t really need.

With Mint you can see where you’re spending and make a financial educational decision!

#3 – I have more to share with you, in the close future. I’d like for you to digest this information first and take action. If you want specific information to be covered, or you have any question whatsoever,  just leave a comment below.

American Credit Card Debt

How many Americans are estimated to owe the credit card?

I am also tons of credit card debt and I know I am not alone, so I'm just curious about how many Americans are in credit card debt and approx. How much of that is actually collected by collection agencies? What if the collection agencies can not charge anything for the debtor?

Gema responded well to your question. What I do not understand is why so many people in this type of debt? I learned several years ago not to spend more on credit cards in one months then you can afford to pay in full. I can use 3 credit cards for almost everything I buy every month due to the repayment of money that offer prizes, but always pay in full before the due dates, so you never pay interest and get cash each year to make other people's money for free. If people use credit cards correctly this problem would not exist.

Car Loans For People With Bad Credit

Where I can get a home loan for the first time with bad credit and little or no down payment?

My husband makes good money and we trying to restore our credit making payments on a car. Most things in our credit reports Credit cards are old had only low limits and medical bills. We live in a mobile home at this time that is supposed to be a purchase for the program, but closed the lender and sold to another company and say they know nothing about it. The value of the loan on behalf of my husband's sister, but we make all payments and even pay taxes every year in it. We also have insurance for him. I do not know if a home lender consider this information when trying to Appy for a mortgage? We have also considered maybe owner financing homes, but we want to live in a rural area and having a surface and I do not know if many people selling their homes like this in these areas? I hope someone can help me.

I am a mortgage specialist. I specialize in helping people with credit challenges. What are you calling "very Bad Credit? What are your credit card results? Payments are being made in the mortgage not being applied to your credit file because his name is not on the mortgage. If you are making payments on time, then you are giving your husband a good sister because credit payments are applied and recorded on your credit bureau. This situation is too complex for us to discuss here. Please contact me at as soon as possible.

10 000 Credit Card Debt

I have 10,000 of credit card debt. Should I use some of my IRA retirement money to pay this debt?

NO! You could end up paying 40% of that money in taxes and fines. So I would have to take out about $ 15,000 for $ 10,000 to pay the debt. The remainder will in taxes. Not to mention the fact that you lose all that compound interest earning $ 10,000 over the years. What prevents most People of the debt that keep spending more money than they do. They look at the "monthly payments" rather than the total loan debt are leading. People have to stop spending now and focus on being debt free. Please do not use a debt consolidation or reduction of the company. It is not free, lower their payments by increasing the amount of time until you are debt free, and you'll have a hit on your credit score. Or negotiate their debt down after telling should not pay for a time to add another hit to their credit score. Student loans are the only debt they can garnish your wages for non-payment, without to court first. Just list them on a piece of paper or a spreadsheet and follow the plan. If you work the plan, the plan of work for you. A. A sale garage and sell anything you no longer need or want. B. Get a temporary part-time work, if you have one, get another. Here's a plan that can help. If you work the plan, the plan of work for you: 1. Make a budget. Make the budget a week before they are paid. A budget is not a punishment! It is a tool that will free you having to worry about money again. Put everything in your budget. Especially those annual accounts, half-yearly, quarterly or vehicle registration, insurance, etc. Give every dollar that is going to bring home the name of where it goes. Add an emergency fund "category to your budget and save up to $ 25 until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If possible, establish a direct transfer to an account savings for emergency fund. In this way it moves automatically and you do not even have to worry about it. You have to cut expenses and live on less than you earn. 2.First catch up with you all the debts and make no payments later. Stop using your credit cards immediately. Do not take more debt. Credit Cards are like quicksand only the death is much slower. Make a list of all your debts in order of higher interest rate to lowest interest. Use cash only for spending from now. 3.Pay the minimum in all its debts and then put your extra money to pay the highest interest first. After obtaining a bore fruit, who put the money paid on debt # 1 (the minimum payment and extra payment) towards debt # 2. That will pay debt # 2 off faster. When that is paid, it becomes three payments of card # 3 and that one will be repaid fairly quickly. For example: To start: Debt # 1 (plus interest): minimum payment + debt additional payment # 2 (average interest): minimum payment Debt # 3 (lowest interest): minimum payment Debt # 1: paid the debt # 2: minimum payment Debt # 1 + minimum payment Debt # 2 additional payment + Debt # 3: minimum payment Debt # 1: pay debt # 2: paid the debt # 3: The minimum payment Card # 1 + minimum payment Debt # 2 + minimum payment Debt # 3 + additional payment. In this way, you get all your fruit, on time and pay less interest. It will also help rebuild your credit because you no longer have any late payments. This works no matter how many different debts you can have. 4. After getting all his debts paid off, add to your emergency fund until you have 6-12 months of income saved. Put the money in an emergency fund of funds money market in a liquid or Bank of America-CD without risk so if you need the money can be done without penalty. 5a. When you have your emergency fund instead, add a category for "fun" budget. Save for a holiday, vacation, a big screen, or dinners out, any goal you want. Remember to enjoy your life. 5b. When you have your emergency fund in place, start saving for retirement. Join the 401 (k) plan work and contribute to the maximum. Your employer probably matches at least part of their contribution, why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for retirement now, you probably will retire a millionaire. 5c. When you have your emergency fund in place, start Save for your next vehicle. Only buy cars, or other things that depreciate, with cash. Save up to a better car. Thus instead earning interest to pay the interest. You can do it and is not as difficult as you think. Just follow the plan.

1 800 Credit Card Debt

How I can get out of debt?

I am a former student and apart from my student loan I have also a lot of debt. I have discovered 3 where I 1400 and 1500 in 1250 and two credit cards and 800 pounds 400. the only good thing is that all of them without interest. reducing overdrafts 500 a year and just switched my keep credit balances. I have just gotten a job earning 20,000 a year. What is the best way to pay my bills?

if you really have so little debt and a living wage should be able to pay this off in about 6 months if they are frugal with their money and pay as much as I can (and more). No leave, no takeaways, and maximum payments. you will be surprised that disappears quickly ohow

Poor Credit Mortgage Loans

No Doc, Bad Credit, first time homebuyer mortgage purchase?

I want to buy a single family home in Louisiana to 165,000. I have never filed for bankruptcy. But I have a bad credit score, student loans and I am self-employed. That's the trouble. The good thing is that I have money in the bank for payment. I could do 20% but rather 10%. You could also get my parents to co-sign, but prefer not to. Is there any way for me to get a mortgage? My plan is to fix the place and try to sell it. And if does not sell I was going to move in. But it's in an area of high demand for what I believe that will sell. So I'm looking for a mortgage that has no penalties for early payment. Any ideas?

Do not lose hope if you are looking to buy a home. There are many different ways to finance a home now, almost anyone with any type of credit can go into a home, regardless of the situation credit. Of course, some will cost more money in the long term, but a home is still one of the best investments you can make, so that in many cases, worthwhile, especially for the first year of ownership. You must shop around and ask different lenders what kind of programs they have, and if they can help. Try to find a lender that specializes in bad credit mortgages. You can find some bad mortgage lenders that appear on this page were: