Rebuilding your Credit
Posted on August 14, 2007 by Ching under Family, Life, Sponsored Post.
After I wrote that article yesterday I got to thinking and realized that I had more to say on the subject, especially on the topic of debt and getting out from under it. Lets say for example that you have paid off everything. Your credit cards are all gone and you have told yourself that you will never get another credit card again. This is a mistake. Its not the credit cards that were the problem, it was your self control. Now that you have paid off all your debt and you see the error of your ways and how bad it can get then hopefully you have learned your lesson and you now have better self control. So, you will need at least one credit card in your possession to rebuild your credit and keep a good standing with the companies that track your credit record for things like mortgages and auto loans. Its important to not only have that credit card but to use it from time to time to make purchases. If you just had a few credit cards and you don’t want to take out a loan to pay off everything or you don’t want to use a consolidation company because it might ruin your credit record then you can find a company that will allow you to do balance transfers of your other credit cards. This will bring all the little balances under one payment and one interest rate. This will allow you to pay off the amount quicker and not get nickeled and dimed to death. These are all smart ways to rebuild your credit and keep from getting into trouble.Be sure that you do your research, compare credit cards to insure that you are getting the best intrest rates, options available and freedome of use that you desire. Take it from someone that used to have 12 credit cards and was over 30k in debt. I am now debt free and have one credit card that I use to make small purchases. I also make sure to check my credit record every year to insure that everything is good and I have no outstanding debt that I am not aware of (this would usually indicate fraud). Also, when you get to the point that you have the single credit card and you are making the small purchases, you need to make sure that you are paying off the card as soon as (or even before if you can) get the bill. this way you are not paying those outrageous interest payments. Just some helpful advise from someone thats been there.
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