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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

732.744.0400.