How to Build a Very Good Credit Rating
From bartering in ancient times, to metal coinage, to paper currency, the latest stage and development in the evolution of currency is credit and credit ratings. With increasing ease and usage of the internet, and e-commerce, electronic transfers and so-called “plastic currency” is fast replacing cash.
The way credit works is that it is a record of your spending and borrowing habits, and is used to determine effectively, how trustworthy/dependable you are with a particular transaction, will you be likely to make good on payments, or be unable to pay on time, if indeed at all? Whilst this is a simple mechanism to protect retailers from debt and bad creditors, it can be overly harsh, catching people somewhat unfairly meaning they are unable to buy things, or buy them at such a generous rate. Therefore, it is crucial that you maintain a clean and proactive credit rating. Just as sidenote, no reputation is as bad as a negative reputation, after all, if there is no history or record of your credit transactions, how else will lenders know you are worth the risk and effort?
Bizarre as it may seem, you have to buy credit in order to get your first (crucial) step on the credit rating ladder. Think of it like Ebay with its feedback system, once you establish yourself with small, inconsequential transactions, then the bigger items will be much more accessible. A great place to start is by opening a savings account, this is a huge plus with lenders, and the bank in question may offer you a credit card. If you do get a credit card, make sure to pay off any and all debts and outstanding charges immediately. This will ensure you are not hit with penalty charges, as well as increasing your credit rating “that your a prompt customer”.
Use retailer programs, so for any large purchase, which offers instalments of a fixed amount per month spread over an agreed period of time are a great way of increasing your credit. Just make sure the retailer in question will actually reward you for your work by reporting your loan (or instalment payments) to the major credit bureaus.
For a shortcut, get a co-signer for any loans you take out. This will allow you to take advantage of their credit score, and will also provide the lenders with an extra assurance that should you be unable to pay, then payment can be recovered from the co-signer. Note that this is double-edged sword, whilst you get the benefit of the co-signers good reputation, they will bear the brunt of your bad reputation if you fail to keep up with payments or generally default. If you are going to act as co-signer for someone, be very careful and draw up a clear strategy to avoid getting a bum deal.
Remember you are legally entitled to access your credit report at anytime, and this can give you a clearer idea as to what areas you need to improve upon to increase your flagging credit score.
sam
http://www.articlesbase.com/credit-articles/how-to-build-a-very-good-credit-rating-672648.html
Bankruptcy-how does one get back some credit rating?
A very good friend of mine has just survived 6 years of bankcruptcy, which has been extremely hard for as she is on her own.
Bad untrustworthy business partner being the cause. Through all this she has struggled and managed to keep her property,which at times has made her very depressed doing so.
She works from home for herself,but because of her financial situation hasn’t had an accountant through this period and therefore has no proof of earnings. She really needs to build her credit rating up but can’t get any even with the highest interest companies.
Anyone out there been in the same position, can you help with any tips on how to start getting a life back together. It seems to be a viscious circle.
She would like to get a Credit Card and possibly an un-secured loan,anyone know if that would be possible. As I say she has her own property, but after 6 years struggling to pay the mortgage,needs a little cash to try and get ahead. Any suggestions would really be appreciated.
Have been checked by Experian and all clear.But refused Credit Card by one of the highest interest rateable companies.
i went through bankkruptcy in 2001. your name should be cleared after six years,get a credit report from experian, they should have more details, your best bet is pay funds into your account,each week,and try not to make late payments on your bills because that affects your credit rating,give it six months and should be able to see some results.as long as the bank sees you got funds going into the account regulary you be back on track in no time. hope that would help u. good luck. but you can try the money shop,you can loan money for your items such as jewery hifi tv and laptops.anything considered.
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One of the best ways to re-establish credit is to get a couple or three credit cards or department store accounts (don’t get them at the same time — spread them out by a few weeks). Charge to the cards but pay off the balances each month and make each payment. on schedule. This shows that you are responsible, that you can handle credit, and that you keep your balances low, relative to your card limits.
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I hate to say it,,,, but time my dear Watson time……. depending on the type of bankruptcy it will take 10 to 13 years before it is off your report……
I would suggest pulling all 3 credit reports and verifying that there are no new past due accounts on it……. verifying there isn’t and she still can’t get a credit card with even with a high interest rate…… then the score etc must be low……. I would suggest not to apply for credit as this will lower the score more……. I would suggest getting a secured CC from a bank such as Bank Of America….. etc…. and use only 25% of the available credit-deposit on it and make sure the payments are made on time every time as the bank will report this to the credit report as a CC and not a secured CC, also if she knows any family members with good credit and has credit cards, she can ask if they would put her as an authorized user on the account even if she doesn’t get a card or not….. this is also known as "Piggybacking" this will also help her credit depending on the history of the card holders payments and how long the account has been open……. but from what I have heard that will no longer be possible after September 2007 so act quick…….
Hope this helps and Good Luck to all of you
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