How to re-establish credit history
- Date: 2007-02-09 - Word Count: 584
Share This!
We all know how it's important to have good credit history. Rebuilding credit history takes time, sometimes over 18 months, and hard work. You need to prove good solvency and get positive items on your credit report.
As a consumer you've learned the importance of establishing a good credit rating. The advantages of raising your credit rating influence your budget mediately: you'll be offered better credit card deals with lower interest rate and better rewards.
That's why the first thing you should do is to receive copies of your credit report from each of the three credit bureaus: Equifax, TransUnion, and Experian. Check it over industriously to find out what kind of information it includes. If you disclose any errors, write the credit bureau that provided this report. Even one error removed from your credit report may save you thousands dollars.
If you want to reestablish your credit history you will need credit card not only for buying purpose but also good payment record to improve your credit score. When choosing credit card you should take your needs into account.
A secured credit card is one good way to start rebuilding your credit history. Secured credit system works simply: credit card is secured by customer's deposit account. Customer has to deposit between 100% and 200% of credit. If customer doesn't pay, credit company will take it out of his or her deposit. But it isn't the only option.
You can search through credit cards for bad credit. By all odds damaged credit history will cut your selection of credit cards. But several credit companies feel sympathy for people with poor credit. They provide higher interest rate, fewer features and lower spending limit indeed. You should take into account that if you have credit score about 350, credit company hardly gives you credit limit higher then $300. But all your fees (about $150) would be stricken off your credit limit.
As a result, your factual credit limit would be $150. Therefore, it would be much better to get secured credit card to avoid paying so high fees. When you try to rebuild credit history the most vital moment is to pay bills on time. It concerns not only you credit card bills, you should pay on time all your bills including telephone bill, rent etc. Negative information, such as late payments, judgments against you has a bad influence on your credit score. Late payments subdivide into hard late (more then 60 days) and soft late (about 30 days). Studiously avoid hard late payments. They have deep bad influence on your credit worthiness.
Establishing good credit habits and therefore a good credit reputation will improve your credit worthiness. The good habit is to pay off balance in full each month. This will be reflected in potential lenders offering you lower interest rates and better deals. The main factor in your FICO is how much money you owe on your credit cards. It's important to keep your credit balance about 30% of your credit limit. Strongly apply for credit card that suits to your credit history. If you don't qualify for any credit cards, you can get a secured credit card from your local bank.
If your credit application is denied, follow these tips:
1. Ask the bank or credit company to provide a written explanation why you were turned down.
2. Check with the credit bureau the adverse information to see if it is accurate.
3. Don't apply for new credit card until the reason for the denial has been determined.
As a consumer you've learned the importance of establishing a good credit rating. The advantages of raising your credit rating influence your budget mediately: you'll be offered better credit card deals with lower interest rate and better rewards.
That's why the first thing you should do is to receive copies of your credit report from each of the three credit bureaus: Equifax, TransUnion, and Experian. Check it over industriously to find out what kind of information it includes. If you disclose any errors, write the credit bureau that provided this report. Even one error removed from your credit report may save you thousands dollars.
If you want to reestablish your credit history you will need credit card not only for buying purpose but also good payment record to improve your credit score. When choosing credit card you should take your needs into account.
A secured credit card is one good way to start rebuilding your credit history. Secured credit system works simply: credit card is secured by customer's deposit account. Customer has to deposit between 100% and 200% of credit. If customer doesn't pay, credit company will take it out of his or her deposit. But it isn't the only option.
You can search through credit cards for bad credit. By all odds damaged credit history will cut your selection of credit cards. But several credit companies feel sympathy for people with poor credit. They provide higher interest rate, fewer features and lower spending limit indeed. You should take into account that if you have credit score about 350, credit company hardly gives you credit limit higher then $300. But all your fees (about $150) would be stricken off your credit limit.
As a result, your factual credit limit would be $150. Therefore, it would be much better to get secured credit card to avoid paying so high fees. When you try to rebuild credit history the most vital moment is to pay bills on time. It concerns not only you credit card bills, you should pay on time all your bills including telephone bill, rent etc. Negative information, such as late payments, judgments against you has a bad influence on your credit score. Late payments subdivide into hard late (more then 60 days) and soft late (about 30 days). Studiously avoid hard late payments. They have deep bad influence on your credit worthiness.
Establishing good credit habits and therefore a good credit reputation will improve your credit worthiness. The good habit is to pay off balance in full each month. This will be reflected in potential lenders offering you lower interest rates and better deals. The main factor in your FICO is how much money you owe on your credit cards. It's important to keep your credit balance about 30% of your credit limit. Strongly apply for credit card that suits to your credit history. If you don't qualify for any credit cards, you can get a secured credit card from your local bank.
If your credit application is denied, follow these tips:
1. Ask the bank or credit company to provide a written explanation why you were turned down.
2. Check with the credit bureau the adverse information to see if it is accurate.
3. Don't apply for new credit card until the reason for the denial has been determined.
Related Tags: secured credit card, credit cards for bad credit, better rewards, better credit card deal
Your Article Search Directory : Find in Articles
Recent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are