This Article is About
credit score
credit card balance
credit worthiness
part time job
getting out of debt
5 steps
Repair Credit Score - 5 Steps To A Healthy Credit Score
Join 1000's of Authors at StreetArticles Today!

Repair Credit Score  -  5 Steps to A Healthy Credit Score

Good credit management practices that can help raise your credit score over time depends on how consistently you paying your bill on time, you keep your credit card balance low and apply for or open new accounts only as needed.

Today we are going to learn 5 steps to a Healthy Credit Score.

Step 1

Get your credit report and review it:

Your Credit report is information that is stored in computers about your personal credit worthiness and debt repayment history. Review your credit report at least once a year.

It is your job to make sure all information on your credit report is accurate and complete before you apply for loan, credit card or buying a home.

Step 2

Get Out of Debt:

Getting out of debt is not a simple task because it takes practices and determination.

Debt in America has become the number one disease that causing so many people to loose their home, car repossessions, and finally lead to bad credit.

Simple learning budget techniques or taking a budget class can help you get out of debt and prevent you from getting in a similar incident in the future.

Some examples for getting out of debt are:

  1. Stop spending and save more
  2. Develop a monthly spending plan
  3. Make a list of all your debts
  4. Make choices that will help you get out of debt.

Step 3

SAVE SAVE SAVE:

This is the opposite of what we will normally do.

We’re so used to spend more and save less. You don’t need to start saving a big chunk of money. The most important thing is getting in to the habit of saving a minimum of $20.00 a month is a big step toward getting out of debt and consequently lead to a healthier credit score.

Some tips for saving are:

  1. Buy only what you need
  2. Don’t shop when hungry
  3. Make a list and stick to it when going to shopping
  4. Don’t shopping when angry or depressed
  5. Don’t take the kids along when shopping

Step 4

Invest in what you know:

This can be by applying for a part time job, or turn your hobby in to cash, and garage sale. If making payment on your home is becoming difficult, maybe you should consider moving in to less expensive home. Remember that having a house can be a big asset however it can be a total misfortune when you can pay for it.

Step 5

Make every effort to maintain a high Credit Score:

This is the key to have a Healthy Credit Score. I know sometime people feel overwhelmed with credit report process.

Maintaining a high credit score take a long time to occur following this guideline it will improve over time.

  1. Review your credit report at least one or twice a year from each credit bureau
  2. Evaluate your credit report carefully
  3. Dispute any negative item with the credit agency and document it
  4. Pay you bill always on time
  5. Don't allow any creditors pull your credit unless it necessary
  6. Delete any inquiries you may have on your credit report
  7. Make a plan to pay down all your credit card debt

Higher credit scores can help you qualify for low refinance rates on your mortgage and reduced rates on credit cards.

Having a credit repair guide allow you go through the process easily, especially if you have little or no idea on how to have a Healthy Credit Score.


Street Talk

No comments present
You May Also Like
What Does My Credit Score Mean?
OK, you’ve done your homework and obtained your credit report and FICO credit scores from the three major credit bureaus (Equifax, Experian, and TransUnion). You have all the data on your credit history and the three-digit credit score numbers. So what does it all mean? Let’s discuss how creditors view…
By: Ron Estel in  Finance  >  Credit   Jan 09, 2012  
0
  Likes: 6

Fix Your Credit Score - I Have My Credit Report What Next?
Once you obtain your credit report you will able to add, correct and delete any information which is incorrect, incomplete, remove negative account that are out of date or the result of identity theft, according to FACTA law. If you have a hard time understanding your credit report. Instruction and…
By:  in  Finance  >  Credit Tips   Mar 06, 2012  
0
  Likes: 2

Restoring Your Credit Report And Rebuild Your Credit Score
It can take three to 12 months to restore your bad credit. However the time you spend restoring your credit it is well worth it and the benefits you reap are priceless. Since the applying for loans have become everyday more difficult to obtain not to mention credit cards. If…
By:  in  Finance  >  Credit   Apr 18, 2012  
0
  Likes: 1

How to Fix My Bad Credit Score the Easy Way
Did you know that 1 in 4 credit reports contains errors or omissions? And if it goes undetected can hurt you financially. Think about this for a moment. If the studies are correct and statistics say that they are then that means 1 in 4 people have a bankruptcy that…
By: Jackie Anderson in  Finance  >  Credit   Jan 05, 2012  
0
  Likes: 2

Companies to Use to Check Your Credit Score
Knowing your credit score may come in handy for a lot of different reasons. Whether you’re trying to get a loan, or you’re trying to land a new job your credit score could affect it in either a negative or positive way. It is advised, that everyone check their credit…
By: Pammy Ewell in  Insurance  >  Personal Property   Oct 13, 2012  
2
  Likes: 2

Positive Credit Score - Understanding Your Credit Score
Having a Positive Credit Score is the most important thing you should strive to accomplish. So many people don’t know what a credit score is and how this affects greatly when buying a home, applying for credit card or renting an apartment. Credit score is what lenders, landlords, and utility…
By:  in  Finance  >  Credit Counseling   Mar 05, 2012  
0
  Likes: 2

The New Dating Question Mark: What is Your Credit Score?
When people start dating someone new, they ask questions so that personality can be assessed and chemistry can be discovered. Sometimes opposites attract and make a love match. Sometimes people are almost mirror images of one another. The questions are usually light in the early going and then move to…
By: amie nogrady in  Relationships  >  Dating   Dec 30, 2012  
0
  Likes: 0

What Is A Credit Score?
Before we can answer the question, "What is a credit score?" and work toward learning how to improve credit scores, we must first define a few credit terms and understand their meanings from a creditor’s perspective. Credit is defined as the provision of money, goods, or services with the expectation…
By: Ron Estel in  Finance  >  Credit   Jan 16, 2012  
0
  Likes: 2

How Credit Score Rating is Measured
In most cases, the details of the credit score rating scale used by the most credit bureaus are closely guarded trade secrets. The secrets are shrouded within the guidelines of the companies that have built the scoring credit score rating scale. Let me however say that, the best known and…
By: Yvonne Kelsinger in  Finance  >  Credit   Dec 30, 2010  
0
  Likes: 2

Credit Score And Sacramento Homes For Sale
Keep in mind that credit scores play a very important role when you are in the process of finding a house and lot in Sacramento region. You need to have a good credit rating if you want local banks to allow you to get a loan which you will be…
By: David Yaffee in  Real Estate  >  Buying   Jul 12, 2012  
0
  Likes: 1

How To Earn Swag Bucks
Call me addicted, but I just really like Swagbucks. What is Swagbucks you all may ask. Well, it's actually quite easy. First of all, my suggestion is to plainly check out the website. See what it's all about. I'm going to tell you how you can use it to your…
By: Eric15 in  Home Based Business  >  Network Marketing   Sep 20, 2013  
1
  Likes: 1

How To Raise Your Credit Score With These Simple But Effective Credit Tips
Many people across the nation share the problem of a negative credit score. Many of those people are seeking easy ways to increase their score so that they can qualify for better rates and bigger loans. This article is full of ways that you can improve your credit score easily.…
By: Darin Sewell in  Finance  >  Credit Tips   Nov 17, 2011  
0
  Likes: 1

These 3 Things Will Raise Your Credit Score
What is credit management? In short, checking your credit report at least every couple of months. By doing so, you are in essence monitoring the activities that determine what your credit score is and will be. And, consequently, how you are able to move through this world financially. The way…
By: Scott Oberholser in  Finance  >  Credit Tips   Sep 26, 2011  
0
  Likes: 2

How to Fix A Bad Credit Rating
Why credit is so important? I'll tell you why. Whether you want to buy your first house or whether you want to buy the house of your dreams you will need to be financially sound as you go through your life. In order to create a structure a strong financial…
By: Jackie Anderson in  Finance  >  Credit   Jan 08, 2012  
1
  Likes: 2

Facts About Declaring Yourself Bankrupt
You may ask, “why should you give thoughts to declaring yourself bankrupt?" The point is that people often end up in bankruptcy because they are not able to pay their debts. As a result, people find relief in filing for bankruptcy as it helps them get rid of their debt,…
By: Scott Newman in  Finance  >  Bankruptcy Personal   Dec 29, 2010  
0
  Likes: 0

Article Views: 2002    Report this Article