Menifee Short Sales InfoWhat Can I Do?Be on time. Before you worry about cleaning up what happened yesterday, get right with today and focus on your current bill-paying performance. Pay on time, and pay more than the required minimum payment each month on outstanding credit balances. Pay Off Existing High Credit Balances. Chances are if you have bad credit, you probably also have some accounts with large amounts of debt. Instead of applying for more credit, do your best to pay down any large balances to levels below 50% of the total credit line. Doing so will increase your overall available credit percentage and amount, which is one important factor in credit scoring. If you’re in a money crunch stop spending. Do your best to budget as best you can and to limit your monthly liabilities. If you’re in credit disarray, you’re going to have to make sacrifices. Shrink your credit ratio. The credit-scoring process looks at the ratio of your debt to the total amount of available credit you have, so add up your credit limits to see where you stand. Your long-term goal is to get rid of all your debt, but a good, short-term target is to shrink your ratio to less than 50 percent. Then 40, then 30, and so on. Pay off a card, but don't close it. Because of the aforementioned credit ratios, reducing your available credit hurts your score. If you have a $3,000 balance on one card with a $5,000 maximum and no balance on a card with a $10,000 maximum, closing the unused card suddenly makes your credit ratio skyrocket from a benign 20 percent to a troubling 60 percent. Resist the urge to close an account when you've paid it off; lock the card in a drawer instead. Paying down balances takes a little longer to work (depending on how much you pay off and how often your lender reports to credit bureaus), so you may see results in a few weeks or a few months; if you continue to pay bills on time, keep balances low, and apply for new credit sparingly, you will continue to raise your score to a high plateau. Credit building takes a lot of time. Time, in fact is one of the factors that goes into credit scoring, so big changes overnight are not likely. If you want to improve your credit score, you need to think like a lender. Who would you lend money to? People with a lot of history paying down large amounts of debt, or people who have paid a debt just once or twice? These important factors in determining your fico score should help you make informed credit choices in the future, and ensure you have the best scores when it comes time to get an auto loan or a mortgage. The savings could be huge if you manage your credit score wisely. There are advantages and disadvantages to using a debit card. The main advantage to using a debit card is that a consumer can only spend that they have in their bank account. This allows the consumer to avoid accruing any debt and paying any finance charges. A disadvantage seen with some debit cards is that they don’t offer the same rights most credit card companies include in their contracts. Important measures such as buyer protection, fraud protection, hassle-free returns, error resolution, and more. All things considered, a debit card is a useful addition to your financial profile, and should be used in place of credit where applicable. It’s wise to carry a debit card in case you need cash, or if a merchant doesn't’t accept credit, which is the case at certain low-cost gas stations and other institutions. It's also wise to back up a debit card with a credit card issued by the same bank. The credit card can act as overdraft protection in an instance when you spend more than what’s available in your bank account. It’s usually free, and offered by most banks as a way to avoid unnecessary fees that arise when you’re overdrawn. Also keep in mind that your debit card likely won’t be reported to the credit bureaus, so you won’t be successfully building your credit history unless you secure a line of credit found with a typical credit card. |
SO CAL HOMES REALTY
(951) 821-8211 Harold Sharpe is the owner of Harold Sharpe is a
Licensed Harold Sharpe is a Harold Sharpe specializes in Selling Houses, and Finding homes for people. So Cal Homes Realty is the Real Estate Brokerage to assist you in Buying or Selling a House. Feel Free to call Harold at (951) 821-8211 Monday - Sunday 9am - 7pm |
