There are several ways that we can build credit. If you are
tired of collectors hounding you, or if you are frustrated that
no one will loan you money because you never had credit, it is
time to learn how to build your credit. First, and foremost
never purchase items you do not need. If you 'want', do not let
your wants wear you down and get you deeper in debt. If you are
searching to build credit and have no history at all, make sure
you have your priorities in order.
Bad Credit Building Credit
If you have, bad credit get a DO-IT-YOURSELF-Kit and gets the
balls rolling. You can go to your public library and get books
that will guide you through the steps of repairing your credit.
Most libraries allow you to copy and print forms that you must
fill out and then send to your credits.
There are systematic guides at your local library that has the
tools for instructor debtors how to write letters to creditors.
Letters are probably better than phoning creditors, since some
creditors could care less about your situation and may threaten
you. Another good reason for writing letters is that (copy in
writing) is more valuable in a courtroom than a conversation on
the phone. If something is said or an agreement is reached and
the creditor later denies his or her claims then you can
present this to any courtroom and they will listen to you
first. Any documents that pertain to your credit history should
be stored in a safe area. If you send letters to your creditors
keep a copy of each letter sent and store it in a safe area. If
you notice any errors on your bills or credit, reports make sure
that you contact the appropriate professionals and dispute the
charges immediately. If you have credit cards and used the card
to purchase an item or use a service and this person sold you a
defected item or else provided bad service, you DO NOT have to
make payment toward the charges. You do however have to dispute
the charges with the services or stores that sold you the
product or service. If the sources refuse to give you an item
usable, or else reimburse you for a service or product you have
the right to deny payment.
Once you have disputed the charges with the sources you will
then contact your card provider and let them know what
occurred. If you are lucky enough to have a credit card with
bad credit, use the card to repay your debts and then meet the
monthly installments on the credit card each month. Ironically,
you are getting out of debt while going in debt deeper. It is a
solution when all else false. In other words, if you use the
card to pay your debts each month and then payoff your credit
cards the following month and then turnaround and uses the card
to pay that month bills..
Now you see where I am going. Credit cards have interest rates
so the bills each month on the card will increase.
No, Credit.No Problem
I do not need a credit line or credit card; I pay all my bills
each month with money. Is this you? Well then, you have the
obvious answer, but what if.
In today's world, we are moving into an era that requires us to
have at least one major credit card. When you phone any business
where you have debts, they will first ask you to pay with a
credit card. If you go apply for a job, apartment, mortgage,
car loan, or any other credit line you most likely will get a
rejection notice in the mail. Most lenders will not give credit
to anyone that has no credit history. The reason is that we are
expected to establish a credit line when we are teens, and if
we do not the lenders are often suspicious. The lenders do not
have an idea and can only base their judgments of you on
assumptions. Can I assume this person will make monthly
payments on time? Has this person taken for granted a loan from
a friend or family member in the past and there are no records
available for me to see if it is true? There are many reasons
that lenders will refuse you a loan if you do not have a credit
history. The best solution is starting up a line of credit now,
pay off your dues on time and avoid making purchases on items
you do not really need. Staying out of debt means regulating
your money each month and paying your bills on time.
About The Author: Son Ngo is the editor at
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