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How To Build Up Your Credit

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					Title:
How To Build Up Your Credit

Word Count:
631

Summary:
There are many effective ways to build credit. In order to keep creditors
from bothering you, and in order for you to get a loan with a reasonable
interest rate, you need to learn how to build your credit. The best place
to start is to not buy things that you don’t need. If you always make
impulse buys, you will find yourself in deeper debt very quickly. And if
you have no credit history at all, you must keep that in mind.

Building good credit if you have bad credit

If...


Keywords:
credit repair,debt help,credit counseling


Article Body:
There are many effective ways to build credit. In order to keep creditors
from bothering you, and in order for you to get a loan with a reasonable
interest rate, you need to learn how to build your credit. The best place
to start is to not buy things that you don’t need. If you always make
impulse buys, you will find yourself in deeper debt very quickly. And if
you have no credit history at all, you must keep that in mind.

Building good credit if you have bad credit

If you have bad credit, consult one of the many books available written
by qualified financial advisors in order to get started on the right
path. You can find books like these at your local library. In these books
you will find checklists and step-by-step advice that will help you turn
your credit around. There are also guides available at the library that
can instruct those in debt on how to write letters to their creditors.
Letters are probably a more effective avenue to take rather than
communicating by phone, since most creditors will not be sympathetic to
your situation.

Another value of the written communication is that if you should end up
in court, the written documentation will be easier to submit. Verbal
commitments can be easily denied without written documentation. Any
documentation that is relevant to your credit issues should be stored in
a secured place. Make copies of any communication with credit agencies
(both to and from you), and keep it under lock and key. If you notice any
errors on your bills or credit, be sure to contact the correct agencies
and dispute and resolve the charges right away.

If you have used your credit card to purchase an item or service and the
item you bought was defective, you DO NOT have to make payment on the
charges. You do need to dispute the charges with the service provider
that sold you the product. If the proprietor does not exchange the item
or reimburse you for it, you have the right to deny payment. Once you
have disputed the charges with the proprietor it is then your
responsibility to contact your credit card company to dispute the charge.

If you have bad credit and have a credit card, you can use the card to
repay your other debts and then make monthly payments on the credit card.
Ironically, you are getting out of debt while remaining in debt. In other
words, if you use your credit cards to pay other debts, your debt on your
credit card will continue to increase. Since credit cards charge
significant interest rates, your debt will continue to increase unless
you can make significant monthly payments.

No Credit, No problem?

If you think that you do not need credit at all, that is simply not the
case.

In today’s world, in order to make many major purchases, it is often a
requirement that you have at least one major line of credit. Most lenders
will not consider lending money or give credit to someone that has no
established credit history. We are expected to establish a credit history
when we are young, and if we do not lenders often wonder why, which makes
you look like a high risk.

They have no way of knowing your payment record, or if you are able to
pay off the debt at all. There are several reasons that lenders will
refuse you a loan if you have not established a credit history. The best
way to establish good credit is to have a credit card, make your monthly
payments on time, and keep your spending under control. Good credit means
managing your money each month and paying your bills on time.

				
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posted:1/26/2011
language:English
pages:2
Description: Credit
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