YOUR CREDIT RATING IS CRITICAL (part two)
USE YOUR CREDIT WELL:
If you are in the process of trying to improve your credit score,
rebuilding after a disaster, you need to be particularly careful.
PAY BILLS ON TIME:
The biggest chunk of your credit score is likely to be your payment
history. Become religious about making sure all your bills are paid on
time, all the time.
USE THE CREDIT YOU HAVE:
Make a few small purchases every month using your plastic-but no more than you can pay off each month.
KEEP YOUR BALANCES LOW:
Somebody who has good credit can occasionally afford to run up a big
balance on a credit card, but not you. You shouldn't use more than 30%
of the limits you have. Keep track of your purchases in a check book
register or just check your balances frequently on line. These cards are
not an excuse for you to carry debt. The plastic you have now is meant
to help rehabilitate your beaten-up credit.
PACE YOURSELF:
It's never a good idea to apply for a bunch of new credit in a short
period of time, especially when you are trying to rebuild a score. Wait
about six months between applications for credit, and don't apply for
cards just to see if you'll be accepted.
DON'T COMMIT THE BIGGEST CREDIT REPAIR MISTAKES:
Fixing your credit can be a long, involved process, with many
opportunities to make a mistake. The three biggest mistakes to avoid
are:
1. Hiring a "fly by night" firm. You can pretty much assume it's a
scam if the company guarantees results in advance, want's to charge you a
big up-
front fee, or suggest that you create a new credit report by
using a different social security number or taxpayer I.D. number. Look
for a legitimate
law firm.
2. Failing to get everything in writing. The phone is not your
friend. If you must have a phone conversation, make copious notes. You
are better off
conducting credit repair in writing.
3. Reviving the Statute of Limitations. States have different rules
about how long a creditor can sue you over a debt, with most limiting
the period
to 3 to 6 years. Making a payment on an old debt, or even
acknowledging that you owe it, can revive the statute and leave you
vulnerable to a
lawsuit. Make sure you know the rules of your state, when dealing with old debts.
For all your real estate and insurance needs, and helpful
hints, contact LEGACY REALTY GROUP, "The New Star in Town", Edison, New
Jersey
