Don't Let the Economy Get to You
With the world
economy devastated by the credit crisis, the risks of bad credit
should be all too apparent. If you're one of the millions of
Americans affected by crisis, you shouldn't feel alone. If you want
to take action to improve your credit, there are simple, easy steps
you can take to improve credit in no time. These steps won't impede
your daily life, and they'll put you at ease about your financial
stability.
Keep a close eye on your credit report
Even if you pay your bills on time, scammers can steal your credit card information and charge your account without your knowledge. It is important to keep a watchful eye on your credit report. All three major credit bureaus (Experian, Equifax, and TransUnion) offer 1 free report per year, and additional reports can be ordered as well. If you see an error, you should contact the credit bureau immediately, and get the mistaken charge removed.
Video:
Understanding Your Credit
Pay your bills on time
Even the slightest lateness can send your credit score dipping. Consider this: every month you pay your bills on time, your credit score goes higher and higher. In as little as a year, your credit rating can skyrocket. Just one missed payment can halt that progress immediately.
Don't open too many accounts too quickly
It's easy to get caught up in the latest credit card and bank offers; there are ads all over the place constantly peddling the latest deal. As a consumer, you must make sure to avoid the hype. Use as few accounts as you can at any time. Opening up lots of accounts too quickly will only hurt your credit. But...
Do open accounts occasionally
The credit bureaus like to see that you can acquire and pay off a debt every so often. If you open a new account, and pay that account’s bills, it shows that you are reliable at paying off debt, and will boost your credit rating quickly.
Video: How to
Raise Your Credit Score FAST
Don't transfer one balance to another
A common mistake people make is paying off one credit card or mortgage bill with another credit card. This practice doesn't reduce your debt or improve your credit. In fact, all it does is increase APR fees. So you're not just delaying payment: you're effectively throwing your money out the window. The only way to avoid paying extra fees is to pay with your bank account.
Keep your credit card balance below 25% of its limit
So say, if your credit line is $4000, aim to spend no more than $1000 on that credit card per month. This practice reduces risks, and indicates that you're being responsible with your finances. When you pay off bills, keeping far away from your credit limit will help improve your credit faster.
Video: How your
credit works (Suze Orman)
Avoid bankruptcy and foreclosure
Even if you’re overwhelmed with debt, bankruptcy and home foreclosure should only be a last resort. It becomes almost impossible to get your credit back to where it should be after you go bankrupt or lose your home.
Get the Help You Need
If you still need help improving your credit score, local credit specialists can help you get your credit score back on track immediately. These consultants come up with strategies specifically tailored to the needs of you and your family. To avoid your worries about wrongful charges, you can also get a credit monitoring service that will automatically alert you of any sudden, drastic charges. This service also provides reports showing you the current status of your credit, and how you can improve it.
Additional Information: