Debt Relief - Building A Better Credit History
You need good credit for a number of debt related issues, such as getting loans and credit with attractive payment terms, whether it's high limit credit cards with a low interest rate, or a low interest rate for your car or mortgage, both of which can save you thousands of dollars over the life of your loan, as well as lower monthly payments.
So how do you go about improving your credit history? In the simplest terms, you get small amounts of new credit and repay the debt on time. A good example of this is to get a new Visa or MasterCard and use it for buying all the goods and services you buy anyway, and paying off the monthly bill on time. You do NOT use the credit card for things you do not need or do not already have the cash for. When buying with the credit card, you need to take that cash and put is aside so that you are sure to have it when your credit card bill arrives.
Another option, if you can do it, is to borrow a small amount of money from your bank and then pay off the loan according to the bank's loan terms.
Both of these options will add recent and positive credit information to your credit history. When it comes to your debt and credit history, the most recent information is considered a more accurate portrait of whether or not you are likely to pay back a debt on time. So, while new postive information about your debt repayments will have more weight near the top of your credit history, this also reduces the impact of your negative credit history, by pushing it down the list.
As you move forward, these techniques will help to improve your overall credit history and credit score.
One reason your credit history is so important is that if you let it get too bad, you won't even be able to qualify for a credit card at all, let alone one with a low interest rate. You'll also have trouble borrowing money from a bank for any reason, whether it be for a new car, a mortgage, a small business loan or just a small personal loan.
Other problems that may arise from a poor credit history is that it could complicate a job search. More and more employers check your credit history and use it to help determine your viability and attractiveness for hiring.
You may not be able to qualify for a lease from any landlord, you may not be able to take any position that involves getting security clearance, and life insurance companies will charge you higher premiums.
As a parting piece of advice, please avoid companies that promise to give you a new credit history. That's credit fraud and will hurt you in the long run, not help you with your debt relief.
Related Tags: debt consolidation, credit score, debt relief, credit history, debt tips, get out of debt
Learn more about how to use credit repair tips with Freddie Johnson's free articles on debt relief, debt consolidation, debt management and credit repair tips at http://www.mydebtconsolidationtips.com
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