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Tips on Bad Credit

04:47:52 AM Thursday, July 12, 2007

Once again getting the best credit card deals!

Have you ever really wanted something? I mean deep down really wanted it; whether it was a car, a house or an expensive piece of merchandise-you wanted it! If you have then you are like most people in the United States or the United Kingdom who wished they could have something… only to find out it is just beyond their reach!

Expensive things like mentioned above can only be purchased with abnormal amounts of cash, or with excellent credit. Excellent credit may seem like it would be easier to access than a huge sum of cash, and it is- but only if you have patience and can work for it!

While credit is not an absolute must in the world, it is sure an easier place to get by if you have an acceptable credit score. Many people believe that it is too late to begin working on cleaning up their credit but the great thing is, you can always fix a poor credit score, it is never too late! Here are a few steps on how to get from bad credit to good credit in a hurry!

The beginning of fixing your credit is an exciting time, daunting but exciting. It may seem like an impossible task. You may feel doomed to a life of secured credit cards and credit cards that come attached with everything but a low APR but as long as you can have patience and diligence you can have excellent credit.

Whether your credit issues have come from something you couldn’t control (unemployment, disability, ECT) or something that was your fault (impulse shopping, poor financial management, ECT) you’ll have to build from the bottom up. The worse your credit the longer it will take before you will start getting the best credit card applications in the mail. The top credit card deals are often reserved for those with better credit so you’ll have to work your way back up there!

If you have a list of minor infractions on your credit report, such as missed payments or late payments then it may only take a few months to clear up your credit report. On the other hand, if you have a history of bankruptcies, foreclosures and court appearances it could take over seven years to clean up your credit! It will all depend on what kind of history you have and what your current credit score is.

After you have realized that you do in fact have a credit problem and you know why you have one, it is time to pull out a copy of your credit report. You can do this by visiting any of the three national credit bureaus: Trans-Union, Equifax or Experian.

Either of these three bureaus will be able to tell you your current credit score as well as a detailed report of your finances over at least the last two years of your life, if not the last seven! If you find any inaccurate information (as nearly 80 percent of people do!) you should report it immediately since inaccurate info will most likely lead to a lowered credit score.

If you do find any negative information that doesn’t look like it has any correlation to your activities it could mean that you are a victim of identity theft, which is actually quite common. The best thing you can do is catch it early and report it quickly. Call your credit card companies immediately and write a brief (200 words or less) summary of what happened to your creditors and you should get things worked out.

Now, so far you have figured out that you have a credit problem, seen where it was coming from and even checked your credit report to ensure that everything is accurate. You are in the best possible situation to start a re-growing period for your credit.

Soon you will be getting the no fee, low APR, instant approval, rewards credit cards and there won’t be anyone to stop you! However, now it is also the most difficult part of your ‘plan.’ You have to buckle down and commit yourself to budgeting wisely and spending only within your means, while paying off any debts that you currently own.

You can begin by figuring out a good repayment schedule. Don’t expect to pay everything back within two months if you are way backed up in debt. Give it time and figure out a realistic payment plan. Involve the help of your creditors or a credit counseling agency if you need to.

Once your plan is set up, do everything you can to make your payments on time! This is the most important part of rebuilding your credit, paying on time! Paying all of your bills on time shows a financial responsibility, something you may not have had in the past.

After you feel that you have put yourself on a good track, and feel as if you are gaining financial trust with your lenders, it may be time to apply online for a credit card. While no, you probably won’t get the best credit cards right away with the frequent flier miles, you can get a good secured credit card that works like a debit card. These bank credit cards are similar to debit cards in that they work off of money that you have already deposited.

This makes it impossible to spend what you don’t have! If this doesn’t work out you can look to get a credit card through a trusted friend or family member that is co-signed. This means that if anything goes wrong, they will be liable to cover you payments. Either credit card, secured or co-signed, will build your own credit score higher or soon you will be able to obtain an unsecured credit card.

Once you can get your hands on a real credit card you can really accelerate the way your credit builds its way up. Just remember that the most important thing is to pay your bills on time and in full if possible. While there are no real tricks of the trade when it comes to building your credit score back up, it is always possible to improve, even if it seems as if you are in a difficult position. It shouldn’t take much time before lenders start realizing you are a good client, one who shows the responsibility to pay back debts in a timely manner.

Another helpful tip to improve your credit quickly: Have the bills in your name. If you can try and have your rent, phone bills, utilities, cable and any other bills you use in your name.