Most of us don’t talk about money, finances, credit, debt….Young people especially go into the real world blind about these issues. They have had it easy or difficult growing up financially. Some kids use their parents credit cards or are even issued one. Some don’t have anything above the necessities. Then some “EARN” an allowance and are taught to spend conservatively. I think all of us have a responsibility to steer them in the right direction.

It is necessary to establish credit. Choose, for example a reputable credit card company. Often this can be obtained through the credit union or bank where an account has been active. Carefully read all of the disclosure. Pay close attention to the interest, grace periods and penalties. Most importantly, spend the way you always have and absolutely no more. Charge one or two of the usual expenses and be sure to pay the bill on time. This creates the needed credit and good score to buy bigger things.

Credit is a good thing in some ways. But as we all know it is more often a problem. One problem is people lose control of spending. I think there’s something psychological that makes it easier to sign a piece of paper than to write a check or whip out the cash. One is your money, the other doesn’t seem to be. The worst part of being up to your eyeballs in debt is that it snowballs quickly and usually hopelessly. There are debt reduction programs and free consultation services and unfortunately bancruptcy. But it’s easier not to get there. Another problem is bad credit on the report that’s incorrect. Amazingly this happens very often and consumers aren’t usually aware of it until they apply for something. It pays to check about once a year. If something is in error it’s usually not difficult to get it corrected.

I had a young man (19) come to see me yesterday. He said he wanted to buy a house and no one would pay attention to him. What a sad statement. He has belonged to his credit union for years. He has rented a house for a year and paid the utilities. He’s a certified mechanic who took first place in the state. He has worked in the same field for several years. That’s more stability than I’ve seen in some forty year old people. John went to the credit union and spoke to someone in the mortgage department. I’m fairly confident it went well and I will find him a good property and a good deal because I know him and I’m proud of him. I think he was hesitant to talk to me because his mom and I are best friends. I wish the other people had treated him with the respect this young man deserves.

Suzie is a certified residential appraiser, licensed real estate broker and an expert author with twenty years experience in the business. Other professionals in the field have contributed as well. http://www.freewebs.com/realestatenews

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Boosting Credit Scores isn’t always an overnight process. Although, with some focused effort it shouldn’t take too long.

In this article, you will discover a few secrets that you can implement immediately to begin helping your credit score move up.

TIP #1- One of the fastest ways to see your scores go up is to pay down your credit balances.

Most credit scores look at whether or not your credit is “maxed out.” People are scored higher when they use a smaller percentage of their available credit.

It is advised to never use more than 50 percent of your limit on any card. In other words, it is better to have 4 credit cards with a limit of $5,000 on each card, and only owe a balance of $2,500 on each, than to have 2 credit cards “maxed out” at $5,000 a piece.

TIP #2- Paying your bills on time is obviously going to have a huge impact on your score, because is accounts for the largest part of your score.

So, Pay your bills on time! Even 6-12 months of good on-time payments, will have a positive impact.

On the other hand, missing payments, or only paying the minimum payment due each month on your accounts, will typically lower your score.

TIP #3 - Take care of your collections. “Un-paid” or “active” collections are worse than “paid” or “settled” collections.

In many cases you should be able to negotiate a “pay-off settlement” at fraction of your total collection owed. In addition, as you pay them off, you should always ask for all of your “bad” remarks to be removed from the report, or at least that they will report them as paid in full.

TIP #4- Stop asking for more credit. You need to be cautious of having too much recent credit activity on your report at any given time.

When you are applying for more credit, whether you actually get the credit or not, your scores tend to slide down. This is because lenders see it as “risky” when you are searching out more credit.

So, just say no to credit card offers. Don’t accept the application at the retail store when they ask you to apply for their in store account. Don’t cosign for anyone. Just sit still.

TIP #5- Don’t just use one card for all of your credit activities.

Using a couple of cards casually is far better than only using one of your cards for everything and having another card which gets no use or activity at all.

Furthermore, make sure you have several types of accounts. Having some diversity is good here. Car loans, a mortgage payment, credit cards, or even installment plans show the lenders your ability to handle different “types” of accounts, equally as well.

TIP #6- Add stability to your credit file

Longevity is the key. You need to be consistent and you need to continue to use your credit and pay your bills responsibly.

It won’t do you any good to pay off all your debts, settle all of your accounts, and just start paying cash for everything in life.

If you do that, then the lenders won’t have anything to base a score on and you will find yourself not-financable there too.

You NEED some positive and consistent activity on your report in order for it to be scored, and in order that your score will continue shooting upward as time goes on.

BONUS TIP - What about Fixing mistakes that might be on your report:

This is a detailed topic that is covered in great depth in other reports I have authored, so by no means is this a thorough conversation here. But lets touch on a couple of quick tips here and get you started.

There are specific procedures for you to get rid of mistakes on your credit report. Under the “Fair Credit Reporting Act”, a credit bureau MUST resolve your dispute or problem, typically within 30 days of receiving your notice.

STEP ONE - Examine your reports carefully. You are looking for what is accurate and what is not accurate.

If the negative information in your report is accurate, then obviously it belongs there. It will remain there until time and good habits eventually erase the mistakes you have made.

In this case, while you can’t delete the “bad-but-accurate” stuff, you can submit a 100-word statement that explains the reasons or the situation causing the “bad stuff” on your report. This won’t affect your score plus or minus, but it will let the lenders read your point of view as they look at your negative data.

STEP TWO - When you do find a mistake, you will need to fill out a form that should come with the report. You are now going to “Dispute The Mistake”.

Clearly identify each mistake in your report and explain clearly why it’s not accurately being reported. Be sure to include your full name, your middle name, address, date of birth and Social Security number. Make certain to identify whether you are a junior or senior (Jr./Sr.).

It is best to send photo copies of any documents, paperwork, or pictures which support or validate your case.

Document EVERYTHING!

In fact, I would recommend that you have your mail sent with a “certified return receipt” for verification that the package has been delivered and received.

The credit bureau MUST investigate any relevant dispute within 30 days of receiving your letter. Any item that is not verified as accurate by a creditor is then removed.

Boosting your credit scores needs to be an essential part of your financial plan, so, be patient. Seek out professional council if needed. Stick with it and don’t give up. And ultimately, Prosper With Excellent Credit Scores.

Bio -
Dan Ostler is the owner of LeaseOptionHomeBuying.com. Dan is an author, speaker, business owner, investor, and one of the nations leading Lease Option Consultants. He has been offering housing solutions and consulting advice to families with credit issues in all parts of the country for the past 8 years, and welcomes all visitors to his website for tons of **FREE** Information.

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Debt is a way of life for many Americans. We owe money on our homes, our cars, our possessions (from furniture to clothes), and our education. Many Americans are so mired in debt they aren’t even sure just how much they owe and to whom — even worse they sometimes don’t even remember just what caused their debt.

Some debt is good for you. For example, what you owe on your home can provide a nice way to balance out your income tax. A little debt is not a bad thing either as making regular payments to various creditors helps build your credit rating which makes it easier for you to obtain loans at good rates. However the truth is that most Americans have more than a little debt — and many owe far too much money and are already, or soon will be, in financial trouble as a result.

Finding yourself owing a lot of money is not the end of the road and you can stop your cycle of debt by taking four positive steps to break the cycle.

First, attack your high-cost debts. This likely includes credit cards where you may be paying high minimum payments and high interest rates. Pay off the balances on credit cards carrying the highest interest rates first. Continue making your minimum payments for lower-interest cards but concentrate on paying off the highest interest. When the high-cost cards are paid off then work to eliminate the balances on your other cards.

Second, reach out to your creditors. If you are going to be late or have difficulty paying your minimum payments then contact the credit card company. Even if you can make all your payments in a timely fashion there are two benefits you can reap from contacting the card issuer. First, you may be able to negotiate lower rates or more favorable terms. Second, they might be able to recommend alternatives that can minimize damage to your credit rating.

Third, consolidate your debts as much as possible. You can accomplish this a number of ways. One possibility is simply transferring balances from one credit card to another with a lower rate, but be aware of transfer fees before choosing this option. Another possibility, if you own your own home, is to take out a home-equity loan or line of credit which should have a lower interest rate than most credit cards can offer as well as offering tax deductions. Finally, you can also consider a secured loan offering the value in another form of property, your vehicle for example.

Fourth, don’t sacrifice your retirement savings. Obviously paying off your debt should be a high financial priority but cutting what you save for retirement to do so may not be the wisest course — especially if that becomes a long term habit or if you are losing out on your employer’s matching funds as a result. Perhaps you may be able to borrow against (or from) your retirement funds at a lower interest rate which will allow you to continue to save for retirement while also getting out from under your debt.

While owing money may well be the American way it can also be a tremendous burden to bear. You can shed the weight of your load or at least trim it down to a more manageable level by taking these four steps.

Deanna Mascle shares more tips about living with debt at her blog Answers About Debt at http://AnswersAboutDebt.com

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