How Do I Beef Up My Credit In Seven Steps?

Everywhere we turn we are hearing the word “credit.”  It just seems like everybody wants more and more credit.  And those who really need credit cannot get it yet those who don’t need it are able to get tons of it.  This was what Sally and John just couldn’t understand.  Why is it so hard for those who really need credit to get credit?

As I talked with them about how to deal with their foreclosure and turn their situation around I realized there is so much the average person does not know about how to build good credit.  It’s amazing this information is not taught anywhere. 

So I want to share some of the information I share with them about credit with you just briefly.  This post is not going to be long.  But right before I continue I want to point you to my stop foreclosure and start building wealth package.  

Just by signing up with you info at the form to the right you will be able to get some free but powerful information that can change your life.

Let’s face it if you’re facing tough economic times or even trying to stop a foreclosure it helps to know what your credit situation is like.  I have found that sometimes we hide from the truth of our financial situation because we fear it is so bad. 

Many people find it difficult to do simple tasks to even start the fight necessary to stop a foreclosure.  Tasks like writing a hardship letter and request a debt workout strategy because they are consumed with feelings of fear, guilt and shame. 

So let’s look at the whole issue of credit for a moment.  Why is it that those who need credit find it so challenging to get it while those who don’t need it seem to be getting it thrown at them?

Well most likely this is an illusion.  There are certain criteria that creditors look at when deciding who to lend money to and who to avoid like the plague.

It is really quite simple.  Those who meet that criteria get the credit and those who don’t meet that criteria don’t get it.  

With that being said I know somebody is asking the two fold question.  Well how do I know what the criteria is to get good credit?  And how do I ensure that I meet that criteria?

Well these are two really important questions.  There are so many who do not even know what lenders are looking at when determining whether or not someone is a good credit risk. 

Well let me share some simple tips that you can use right now to improve your credit.  First of all you definitely need to know what is on your credit file at all three credit bureaus. 

You can get a copy of your credit file by going to www.myfico.com.  There you can access all the personal information that a lender would view. 

Studies say that many times your personal credit file may contain errors and experts recommend personally keeping track of your score and your credit file to make sure it is up-to-date and accurate. 

So this is definitely an area of your life that deserves constant on going attention.  I am going to write more on that in a few days but just for today I want to share these seven steps you can do to beef up your credit.

1. Do Not File For Bankruptcy If You Can Help It
2. Go to Credit Counseling
3. Pay Your Bills On Time
4. Do Not Close Past Paid-Off Accounts
5. Pay Down All Debts –– Start Charging Less
6. Don’t Carry Balances Greater Than 50% Of Your Credit Limit
7. Pull A Credit Report On Yourself Once a Month

By following these seven simple steps you can greatly enhance your credit score and maintain a healthy credit rating.  The first step I recommend is that you literally run from bankruptcy if you can.  Sometimes when facing financial difficulty we tend to think bankruptcy is a way out.  It is not!

Do you have any idea how long a bankruptcy will stay on your credit bureau report?  They are reported on your credit bureau for up to 10 years. 

Furthermore a bankruptcy is far worse than having deficiencies , bad defaulted loans or current collections filed against you.  Recovery after bankruptcy is far more challenging because it is simply difficult to get credit. 

I strongly encourage people who are faced with financial strain and have bad credit to go to credit counseling.   It might be quite beneficial to spend some time talking with one of the many nonprofit agencies available such as Consumer Credit Counseling Services to set up a debt repayment plan. 

Credit counseling, the way it is done today will probably not damage your credit score.  Seek for someone who will agree to not impact your score in any way.  There are many credit counselors out there who will simply provide vital information and explain how to read, understand and enhance your credit report. 

Paying your bills on time will also work wonders for your credit file right now.  Simply by starting to pay all your bills immediately and on time you begin to create for yourself a better payment history.  You build up a record of faithful, on time payments and this gets reflected on your credit report. 

Over a 3 to 6 month period this simple action can boost your credit score by numerous points.   You will experience a lift you never knew was possible by simply making sure your payment gets in on time. 

The wise old counsel of the day used to be that you should close off old accounts that were not being used.  Currently the advise is that you should do that exact opposite.  Closing your accounts in fact, may often hurt your credit score.  It usually never helps raise your score. 

Credit bureaus these days value the longer and more rich history of a report with old accounts that are paid off.  For them it shows that you have more credit than you really need and that you do indeed pay your bills completely. 

Because lenders like to see consumers have plenty of spare space in there credit borrowing capacity.  Therefore maxing out your credit cards is never a good idea.  So I advise you to pay off as much debt as possible.  This widens the gap between how much you owe and how much you can borrow. 

Well I certainly am a believer in these simple steps to helping to fix your credit.  No it is not an overnight fix but I promise you over time it will build a strong credit picture for you. 

Don’t you wish you had started doing these steps 6 or 12  months ago?  Well if you go ahead and start now you will be happier 6  to 12 months from now and you won’t just be wishing.  If you want additional information I suggest you check out what the Federal Trade Commission says about Credit Repair. 

Good Luck!

The Foreclosure Doctor (Online)