Credit and Debt Loads
If you’ve got several maxed-out credit cards and/or you’re using one credit card to pay another ( have issues with a debt consolidation load), not only are you getting deeper in debt, but this will not result in a better credit score. These patterns on your credit report become transparent to a potential lender who takes a look at your credit. Your best bet is to visit an organization that provides debt consolidation services. If your credit cards are not maxed out, stop using them. Reserve the use of the one with the most credit remaining for dire emergency use only. Call your credit card companies and try to negotiate a more favorable APR. Making payments to credit card companies is best done online or over the phone, because you then have a confirmation number for the transaction. Some unethical companies have been exposed by whistle blowers to deliberately delay a payment’s processing for a day after receipt in the mail, just so they can tack on a late fee. This single tip helps you avoid the late fees and can do much to get you a better credit score. Scrimp and save as much as possible so that you can pay more than the minimum payment on the card with the highest debt and least favorable lending rate. Consider also, that if this describes your situation, debt consolidation might be a good move for you. By the time you’ve cleared up any discrepancies on your credit report information and taken the steps that will best serve your situation, you’re on your way to a much better credit score. You know first hand what a pain, bother and worry it is to get in a financial mess, think about teaching your kids how credit and credit cards work in the real world. They need to understand personal finances. Otherwise, they won’t read the fine print, twelve page disclosure brochure that comes in their statement either. It’s certain they’ll have a better credit score themselves, as a result.
