How to Improve Your Credit Score For Your Real Estate Business by Ben Saylors - HTML preview

have bad credit but still need a loan, meeting with a lender face

to face is your best bet because an actual meeting allows a

lender to get an impression of you, and allows you to explain the

problems you have had in the past and the things you are doing

now to make yourself a better credit risk.

When you meet worth a lender in person, you force them to stop

looking at you as a credit score number and make them look at

you as an entire person. This can be a huge advantage for you

(especially if you are personable) and can help you get the loan

your credit score does not completely qualify you for.

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Make Credit Repair Easier on Yourself

Credit repair is no picnic. It requires continual work and effort

to get a good credit score and to improve a bad one. In today’s

busy life, you stand a much better chance of getting a better

credit score if you make it as easy on yourself as possible. In

many cases, people actually have low credit scores not because

of carelessness or indifference, but because hectic lifestyles lead

to oversights and missed credit payments. There are several

things you can do to make good credit almost automatic:

Tip #72: Don’t let a bad credit score make you swear off

purchases you must make

You will make life much harder on yourself if you deny yourself

things you need - such as medical treatments - because your

credit is poor. If you have bad credit, but need money for

something urgent, consider a secured loan or a bad credit loan

with generous terms. Do not let bad credit affect your ability to

stay safe and healthy.

Some people think that getting credit while trying to repair their

FICO score is bad idea. While it is true that you may not get

the best interest rates on the loans you get in the time before

your credit score is improved, getting loans that you need may

simply be too important to put off.

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Tip #73: Make arrangements to pay your bills when you are

on vacation or ill

When we go on vacation, of course we want to get away from it

all, but when we forget to pay our bills while away, we risk

getting dings on our credit that can affect our credit risk rating.

Make it part of your vacation practice to pay bills in advance or

to arrange someone to pay your bills while you are away.

Similarly, while you are ill, arrange to have bills paid so that

bills don’t pile up and so that you don’t get marked as a

“non-payer.” It is frustrating to be trying to improve a credit

score only to suffer a setback over a small oversight.

Tip #74: Consider online banking or telephone banking to

make bill payment easier

If you have trouble getting your payments in on time, consider

online or telephone banking. This simple system is now

available from virtually every bank and can help you pay your

bills in minutes - at any time of the day or night. If you travel a

lot, on line or telephone banking can be a real life-saver as it will

allow you to pay your bills no matter where you are.

Plus, you get instant confirmation of the paid bill and your

payment is counted instantly. You no longer have to worry

about payments getting lost in the mail or getting lost in a

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bureaucratic shuffle - the record of the payment is right on your

bank account statement.

If you lead a busy lifestyle and have several late payments of

bills simply because you can’t quite keep up with the errand of

paying bills, online or telephone banking can be the solution that

can help your credit rating by effectively putting a stop to late or

unpaid bills. With these two very convenient and quick

payment options, there really is no excuse for unpaid accounts.

Tip #75: Simplify your bills

You can often get great discounts by choosing to get several

services from the same company - for example, a package deal

from your phone company can give you internet access, long

distance phone plans, and cable television - all on one bill and

all in one low price. Pooling your insurance into one package

from one insurance provider can have the same effect. Reducing

the number of bills you get can make it easier for you to pay

your bills and so reduces the chances that your credit rating will

be affected by non-paid or late paid bills.

Tip #76: Pay your bills as soon as you get them

If you leave your bills until later, you may forget and end up

being listed as a late payer. Some companies may not report

you to credit bureaus right away, but others report even one

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skipped or late payment, which can show up on your credit

report and affect your credit rating.

Tip #77: Set aside a regular day, time, and place for paying

bills

If you are too busy to pay your bills as they arrive, set aside one

hour each week for paying your bills and ordering your finances.

Have the same place and time set aside each week, so that

paying incoming bills and taking care of your finances becomes

an automatic good habit.

Make sure that the place you set aside is quiet and contain

everything you need - including pens, a calendar, stamps,

envelopes, and your payment information. Making bill paying

automatic in this way can reduce the number of non-payments

and late payments you make on your bills, and reducing these

problems can help improve your credit risk rating.

Tip #78: Record your financial duties on a calendar - just

like all your other appointments

If you mark down when bills are due, when you need to make

payments, and what you need to accomplish to boost your credit

score in a visible place you check often, you are less likely to

overlook important appointments and deadlines.

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Tip #79: Go online

There are a number of online resources that can help you find

credit information and can help you with your credit repair

project:

The FICO web site - www.myfico.com - contains lots of useful

credit repair information and even allows you to order credit

reports and scores.

The credit bureaus (transunion.com, equifax.com and

experian.com) allow you to order credit scores and credit reports

online.

Through the online sites you can also get information on

reporting errors on your credit report. Your bank likely offers

online banking as well, which can make managing your

accounts easier and simpler for you each month.

Most companies - including utility companies and credit card

companies - will now allow you to get your bills right in your

inbox. This is a very handy feature as it allows you to get your

bill right away, it cuts down on the amount of mail you get, and

allows you to get and pay your bill online through online

banking. Plus, many accounting software packages now allow

you to coordinate all your financial information through one

program, which can make taking care of your finances much

more automatic and timely.

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Student Credit Repair

Students are increasingly worried about credit and credit scores -

and for good reason. Student debts are rising and the numbers

of students who leave school with ruined credit scores is rising

as well. Many experts blame larger credit card debts and rising

tuition costs (that lead to larger student loans).

Despite the pressures of today’s student life, though, it is

possible to leave school with a good credit score and in fact to

develop good financial habits that can lead to a lifetime of good

credit ratings. There are a few tips that can make the college

years a credit-booster instead of a credit disaster:

Tip #80: If you are a student, you have a great secret weapon

for credit repair and credit help - your school’s financial aid

office

If you are a college student, your school’s financial aid office

should be one of your first stops at the campus. Few students

visit this office regularly while they are in school, and this is a

mistake. The financial aid office at most universities and

colleges has more than enough information to help you keep

your credit score in tip-top shape.

The financial aid office offers one-on-one financial counseling,

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information about scholarships, tips on budgeting, books on

money, and many more resources. The officers at your

university or college financial aid office can offer you help on

almost any aspect of financial help - including helping you

figure out credit scoring. Plus, many financial aid offices have

workshops that can teach you about dealing with money and

credit, and even offer free tax filing services, services that are

extremely useful.

In fact, the financial aid offices at most colleges and universities

are so useful that you may want to call the school you attended

in the past to ask whether alumni are eligible for any services at

the financial aid office. The resources that you a get for free

from these offices are simply too good to miss.

Tip #81: If you are a student (and especially a student with

student loans), budget carefully

Student loans need to be paid back and are more and more often

for large amounts. Taking out the smallest loans you can and

sticking to a budget can help establish good credit habits that

can help ensure that you have a good credit score when you

leave university. Plus, since student loans are for a limited

amount, you can easily budget because you will know exactly

how much money you will make each month and how much

money you will be spending on student housing, tuition and

other expenses.

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Tip #82: Try to pay for education through means other than

loans

Student loans are becoming a problem for more and more

students. On the one hand, student and college loans can help

students who could otherwise not afford go to college or

university.

On the other hand, though, huge student loans can be a terrible

financial burden after graduation.

While it is true that most college and student loans do not have

to be repaid until after graduation, the time after graduation

usually carries some large financial responsibilities. Many

college graduates want or need a car, a good job, and possibly a

house or home. Each of these things requires a good credit

standing, but too large student loans not only require larger

monthly repayments but also may affect credit scores by

overextending credit.

As tuition fees rise, larger student loans are becoming the norm,

leading to financial hardship down the road for many students.

To avoid this, you should take out the smallest loan you can,

relying on jobs, savings, scholarships, bursaries, and other forms

of financial aid to make up the rest of your tuition and living

expenses. You should rely on loans as a last - not a first -

alternative.

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Student and college loans are an investment in your future since

they can help you get the education you need in order to get a

great and fulfilling career. However, these loans are a serious

and usually long-term financial responsibility. They should not

be undertaken lightly. If you need a loan to pay for college, you

should get the smallest loan you can and should get the best

terms and rates on it possible.

In general, need-based government-subsidized student loans

generally offer the best terms and rates. After that, college and

student loans from private lenders may offer decent rates.

Personal loans and credit cards should only be used when

absolutely necessary to pay for an education, as these tend to

have higher interest rates and require that you start repaying

them right away.

Tip #83: (Almost) never default on a student loan

Many students think that defaulting on a student loan after

graduation is a smart way to get rid of a debt. After all, they no

longer need the money for school and in fact need the money for

settling into a job and new home.

However, defaulting on a student loan is a terrible mistake in

almost all cases, because it affects your credit rating very

negatively. If you have student loans, it is important that you

start repaying them on schedule and that you repay them on

time. Doing so will actually improve your credit score.

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If you are having trouble repaying your student and college

loans, speak to the lenders rather than ignoring the problem.

Most lenders will actually give you a six month grace period

after graduation so that you can find a job and settle into

post-college life before repaying your loans.

If you have several loans, your lenders may be willing to help

you pool them into one larger loan payment that requires smaller

monthly payments. Some lenders will also give a few months

grace in case of unemployment.

Read your loan agreements carefully to find out what your

student loans are like and what is forgiven in them. If you need

to, work out a different payment schedule, seek out refinancing,

or find some other way to repay.

Only default on your student loans as a last resort when you

really have no way of repaying your debts. In that finality, be

prepared for the decision to affect your credit score quote badly

for some time.

Once you default on one loan, it really counts against your credit

rating - especially since as a new graduate you do not have a

long credit history yet. After all, lenders who see that you have

defaulted on one financial responsibility will wonder why you

wouldn’t default on their loan, as well. After defaulting on your

student loan, you may be unable to get credit for some time and

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you will have to work much, much harder to re-establish good

credit.

Tip #84: Save money by taking advantage of student

discounts or student life

One of the advantages of student life is that it is inexpensive.

Student housing or rooms rented with roommates create

inexpensive living, on-campus facilities offer great services at

discount rates, and many businesses offer student-only deals.

Try to take advantage of these offers to make your student

money stretch further so that you have take out the smallest

student loans possible. Look around to find the best

student-deal offers, ranging from travel deals to free tax filing

services, available from your campus and from surrounding

businesses.

Make use of the free services on campus - such as renting

movies for free from the film department or working out in the

school gym - rather than paying for these same services outside

the campus.

Tip #85: Follow the “cash for wants, loans for needs” rule

Many students fall in love with their credit cards. Credit card

companies know this, too, and routinely heavily advertise on

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college campuses, even offering students free food or gifts to fill

out a credit application. While the convenience of credit cards

is tempting, it is a good habit to use credit cards only for major

purchases, saving cash for entertainment, food, clothes, and

other like items. This is because studies have repeatedly shown

that those who pay cash for items routinely spend less than those

charging or using debt cards to pay.

Using only cash for entertainment and other small needs ensures

you won’t spend more than you have to and also ensures that

you won’t up paying for months for something that is long gone.

Tip #86: Make learning about money a priority

Whether you attend information sessions at the financial aid

office, read about money in books, or meet with your bank’s

financial officers, learning how to manage your money is an

important part of school life.

For many students, their time away from home is one of the first

times they are responsible for finances - including bills.

Learning to handle this responsibility well early on in life

ensures that you will enjoy a good credit standing your whole

life. Learning about money will also help you prevent costly

credit mistakes.

Tip #87: Start building credit early - and do it well

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Start building credit early - even before college starts, if you

plan on taking out college loans. Ask your parents to sign over

a bill that you pay on time each month. Get a credit card with a

low limit and a bank account that you balance each month.

Avoid opening several charge cards at once - not only will they

be hard to repay, but having several new accounts when you

have a short credit history will actually cause your credit rating

to drop. Get a part-time job.

Each of these things can help you establish good credit, high in

turn can help you get a good student loan rate. More

importantly, establishing credit early will help ensure that you

have a long (and good) credit history by the time you graduate

from college, which will help you with all your important, large

post-graduation expenses.

Dealing with Debt

Debt is a major factor in your credit score. If you have too

much of it (or none at all) or if you have trouble repaying your

debts on time, your credit score will plummet. Keeping your

debts reasonable and paid, on the other hand, will do more than

almost anything else to improve your credit score. Here are a

few tips that can ensure that your debts actually help you boost

your credit score:

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Tip #88: Consolidate your loans to make repaying them

easier

Having lots of loans and debt is one of the biggest reasons

leading to poor credit ratings. The larger your debts, the worse

your credit rating and the more likely that you will find yourself

with large monthly bills that are difficult to repay.

Consolidating your loans means that you take out one large loan

to repay all your creditors so that you only have one large loan

to repay. While the overall amount of the loan does not change

- if you owed $20 000 to five different companies, you will still

owe $20 000 but to only one lender - but the interest rates and

monthly payments are usually quite smaller and this can help

meeting your debt obligations much easier.

Debt consolidation can be an especially good idea if you have

lots of high-interest debt and lots of bills that are hard to keep

track of. One smaller monthly payment will be easier to

remember and will help make bill time less painful.