Some credit repair strategies take time. Others require a precise knowledge of the law. But there are others that can be implemented quickly and easily by anyone. If you want to boost your scores there is nothing from stopping you from taking action today. Here are our all time favorite quick and easy credit repair strategies for everyone!
Pay Down Your Balances
Once upon a time it was enough to make your payments on time. This is no longer the case. The FICO credit scoring model is designed to predict the risk of lending money, and it places great weight on your credit card balances. If you run up your balances your credit score will be lowered as a warning to lenders that you may be a risky loan candidate. Depending on the overall content of your credit report your card balances can swing your scores by as much as 150 points.
Avoid Store Cards and Consumer Debt
Store cards and consumer debt, like furniture store loans, are of no positive value for your credit scores and may be a big negative depending on the age of the account and your balance. The FICO scoring model has a built-in bias against this type of debt; it is typically expensive and may come with risky terms like a delayed repayment plan. There may be worthwhile discounts offered with this type of debt, but while you are working on your credit repair plan it is best to steer clear.
No Credit? Get Secured Cards
If you do not have open accounts you will not reach your credit score goal. Many people starting a credit repair program find themselves in this position. Removing errors from your credit report will lift the weight that is holding down your scores. But this is not enough. You must have positive credit to get the increase you want. If you can not get regular credit cards get secured cards. They are the perfect credit repair tool. If you are rebuilding your credit from scratch two secured cards could be worth 100 points within six months.
Try Authorized Credit Cards
If you have a friend or family member willing to help you get your credit repair effort started they could add you to one of their credit cards as an authorized user. This is not a long term alternative to building good credit of your own, but it can provide a wonderful score boost and help you get on your feet. The donor card must have an excellent payment history, be at least two years old, and have a reasonably low balance relative to the limit. When it shows up on your report you will inherit the score benefit of the card.
Time Your Credit Activity Right
All new credit activity, with the exception of authorized credit cards, will lower your scores initially. You may need to open new credit cards for your credit repair program, but be aware that the first few months they show up on your report your scores will drop. This is true of everything from inquiries to mortgages. The reason is simple. The FICO scoring model sees new accounts as untested debt and inquiries as a looming threat. If you are planning an important purchase in the future think of your credit today.
When in Doubt, Reach Out!
You are not alone. If you are confused, or just too busy to focus on improving your credit pick up the phone and call a reputable credit repair service. A professional credit repair service will examine your reports, identify your strengths, deficiencies, and score optimization opportunities. Your credit is too important to ignore. Become proactive and you will reach your goals before you know it! Good luck.
Jim Kemish is the president and founder of Sky Blue Credit Repair, a leading credit repair service. Sky Blue Credit has been dedicated to providing intelligent customized credit solutions since 1989.
Things You Need To Know About Real Estate Investing
A good investor is someone who is really understands what they are putting their hard-earned money into. Don't be someone who just blindly follows someone who says that it is a good investment. That is the quickest way to lose everything. Below you will find a good article that will teach you how to spot a good investment. Continue on for good ideas and tips about investment.
Make sure that you create a game plan for what you desire to accomplish. Figure out how much time the process will take and if it will be worth your while. When you have developed a plan, meet with the necessary parties to discuss the deal that you want to achieve.
When buying real estate as an investment, it's good practice to have a dependable and affordable handyman working for you. Otherwise, your extra cash will be depleted by high repair expenses. A dependable handyman will also come in handy for after-hours tenant emergencies.
Consider building up a real estate rental portfolio that can continue to provide you with consistent profit for retirement purposes. While purchasing homes to sell for profit is still possible, it is less of a reality in today's world than it has been in the past. Building up rental income by purchasing the right properties is trending vs flipping homes due to the current housing market.
Do a little research on the government of a city before you buy real estate in that area. There should be a website online that was made for that city. With a little research, you can get information about city planning that may affect property prices. A city that is growing might be a great investment.
Get your funding in check prior to scouting homes. You are wasting time if you don't know where the finances will come from. In fact, the delay after you've found the perfect home can be the difference between you getting the home and not! The best properties will always have a line of interested investors.
Always be prepared to calculate before you make an investment in real estate. Calculate your lending costs, any repairs and updating that may need to be done as well as how long you might be left holding the property. While the selling price may look good, there are numerous other factors to consider before buying.
Stay away from investment property that is priced too high or too low. If you put too much money in, it's harder to make a decent profit. And a price that's too low can signify hidden issues. It may cost you a ton just to get it to a good selling place. Look for a mid-range price property in decent condition with relatively low maintenance.
Don't purchase an investment property based only on tax laws alone. Tax codes are constantly changing, so it is important that there is more value to your property as opposed to just the lower taxes. Invest in a property because you see it turning a good profit even years from now when the taxes may increase.
Realize that real estate investing can be a tough business. There is always risk and negotiation skills and patience are demanded. While a few properties may make money back quickly and with no pressure, many times the business of real estate is stressful and cut-throat, so prepare yourself.
Sit down and make a detailed plan for yourself. Being successful with real estate investment requires time and resolve and considerable planning. Sit down and chart out your goals. What do you hope to accomplish? Make sure that your finances and your schedule can accommodate everything you have in mind.
Patience is key when you're looking to buy a property that is within your spending limit. You may want to stretch your finances, but you should avoid it. Try expanding your search for property to increase your odds of finding something worthwhile.