Credit Issues: The Good And the Bad » Building Good Credit http://Credit-Blog.net Mon, 19 Jul 2010 16:04:52 +0000 en hourly 1 http://wordpress.org/?v=3.0.4 Fix My Credit – part 2 http://Credit-Blog.net/building-good-credit/fix-my-credit-part-2/ http://Credit-Blog.net/building-good-credit/fix-my-credit-part-2/#comments Mon, 19 Jul 2010 15:51:55 +0000 Credit Issues Admin http://Credit-Blog.net/?p=780 Let’s say you bring home four thousand dollars a month. That’s a pretty good income to a lot of people, but it’s not going to buy you six cars and a mansion. There just isn’t enough cash flow there. There are some expenses that are unavoidable, (and taxes are one, which is why we said “bring home;” it’s income after taxes) such as insurance (although you should insure yourself for most things) food, clothing, utilities, you get the idea. Let’s assume that these types of basic needs expenses should consume no more than 30% or so of your income, and the smaller that percentage is, the better. So in our example, that would mean that we need to budget no more than around $1,200.00 a month for all of those things, leaving us with $2,800.00 for everything else.

We still don’t have a car or a house yet, or any furniture for that matter, so let’s see where the rest of it goes. Very few lenders will allow someone to borrow more than about 48% of their income to buy a house, which means your payment can’t be higher than $1,920.00 dollars. But my goodness, that’s a LOT of house. Are you sure you need that much house? If you max out your borrowing power for your house you have $800.00 left over to buy furniture, go out to eat, go to a movie, vacation, oh – and get a car.

But you want a nice car (or three) to go in that nice big garage you’ve got. So you lease, or go to a bunch of “sales” and end up with $750.00 a month in car payments. But you’ve still got insurance and gas to pay for, but only fifty dollars a month to spend. And you still don’t have that big screen TV you want or a couch to watch it on. So you tighten your belt for a month or two and then get a credit card and trade another $250.00 a month of your cash flow to get the house all gussied up. And then, you decide that you need a vacation.

It’s obvious that you are already bankrupt. You have more expenses than you can pay for with your income. And the only way out of the situation is to get some of your cash flow back to deal with the rising mountain of debt. The problem is that all of your cash flow is committed to someone else’s pocket. You don’t have a dime. You’ve got lots of stuff, but it belongs to other people. Your cash flow has become their cash flow. It’s not long before you’re missing payment, defaulting on some of the small loans – and before you know it you’re credit is a train wreck and you don’t have any idea how to fix it.

You may be one of those folks who never made much money at all. I know I was for the longest time. I never had a chance to build a good credit history because I always spent more than I earned trying to have more stuff than I could afford. I never had good credit and lost it, I never had good credit at all – that is, until I got really protective about the cash flow I did have.

I know what some of you are thinking. All I need is more income and everything will be ok. Wrong. You are spending every dime and more right now, more dimes will just fly right out the window after them. You have to change your habits before you can fix your credit, until you do that, more income will just make your problems worse. But you can fix your bad credit, all it takes is a little downsizing and some time.

]]> http://Credit-Blog.net/building-good-credit/fix-my-credit-part-2/feed/ 0 Fixing Bad Credit (article series) – part 1 http://Credit-Blog.net/building-good-credit/fixing-bad-credit-article-series-part-1/ http://Credit-Blog.net/building-good-credit/fixing-bad-credit-article-series-part-1/#comments Mon, 19 Jul 2010 15:42:10 +0000 Credit Issues Admin http://Credit-Blog.net/?p=776 Some things are harder to do than others. It’s pretty easy to fall down when you begin to surf for the first time, for instance. It’s not hard to keep from falling down walking across the street – at least, not if you’re older than about three. Unfortunately, most people enter their adult lives completely unprepared from a financial standpoint and end up having to go through the process of learning to surf through the currents and massive waves in the ocean of money issues that await them. Falling down is pretty normal in that case, and unfortunately fixing bad credit is a little bit tougher than just getting wet and crawling back up on your board again.

Odd analogies aside, it’s not going to be easy to fix your bad credit history. the key word there is history. It took you some time to get into the mess you’re in, it’s going to take you some time to get out again. Actually, fixing bad credit isn’t really hard, not like scaling mount Everest hard, but it is going to take something that very few people seem to take the time to develop – discipline.

Discipline involves making some decisions about your lifestyle and money habits over a period of time. It involves patience and persistence. Wow, there are a lot of big words that sound like your grandad, I know, but there really isn’t any other way around it. Part of the reason your parents and grandparents harped on those things is that they knew you would figure out the easy stuff, like falling in love, but that subjects and issues like discipline were going to need some reinforcement. So what exactly does financial discipline mean?

Well, the pursuit of discipline is the same no matter what you apply it toward. Discipline in fitness means exercising consistently and eating right every day for years at a time. You have to concentrate and practice to get good at it. And that means you’re going to have to make some choices before hand, and then learn to stick with those choices for days and weeks and months and years – and decades. A lifetime in fact. But if you really want to fix your bad credit, you’re going to have to change the way you think about and deal with money starting right now, and moving forward for the rest of your life. Every single day is a chance to not only fix bad credit, but gain true financial freedom from credit.

A certain amount of credit may seem necessary, but that’s not entirely true either. Credit is the process by which you give away part of your cash flow over a period of time to someone else, in exchange for a lump of cash now. The only kind of credit that might be required, and only because of the way families operate these days, is house credit. Everything else is just a waste. You need to think about your cash flow in an entirely different way before you can begin to make good financial decisions.

]]> http://Credit-Blog.net/building-good-credit/fixing-bad-credit-article-series-part-1/feed/ 0 Building Good Credit http://Credit-Blog.net/building-good-credit/building-good-credit/ http://Credit-Blog.net/building-good-credit/building-good-credit/#comments Wed, 30 Dec 2009 12:26:19 +0000 Credit Issues Admin http://Credit-Blog.net/catch-all/building-good-credit/ OhioAttorneyGeneral asked:

“Building good credit” from Dublin Coffman High School was produced as part of the 2009 Take Action Public Service Announcement contest to promote financial literacy among high school students. To see more videos, or to learn more about the Ohio Attorney General’s office, check out www.speakoutohio.gov.

]]> http://Credit-Blog.net/building-good-credit/building-good-credit/feed/ 0 Building Good Credit – Starting Out http://Credit-Blog.net/building-good-credit/building-good-credit-starting-out/ http://Credit-Blog.net/building-good-credit/building-good-credit-starting-out/#comments Sat, 12 Dec 2009 05:11:02 +0000 Credit Issues Admin http://Credit-Blog.net/catch-all/tips-net-building-good-credit/ TipsNet asked:

As you enter the world of adulthood you can start with a clean financial slate and start building your credit score. There are a few ways to do this, all of which if used in the right way can do much to bolster your score, but you need to approach these alternatives with a degree of caution so you don’t make financial trouble for yourself.

]]> http://Credit-Blog.net/building-good-credit/building-good-credit-starting-out/feed/ 0 Raise Credit Score – Best Ways To Raise Your Credit Score http://Credit-Blog.net/building-good-credit/raise-credit-score-best-ways-to-raise-your-credit-score/ http://Credit-Blog.net/building-good-credit/raise-credit-score-best-ways-to-raise-your-credit-score/#comments Thu, 16 Jul 2009 23:09:25 +0000 Credit Issues Admin http://credit-blog.net/building-good-credit/raise-credit-score-best-ways-to-raise-your-credit-score/
Howcast asked:


Repair your credit with these steps to financial fitness.

Many people are looking for ways to raise their credit score because after all having a good credit score is very beneficial. When you are looking for a loan you should have a high credit score so that you have the best chance you can to get a low interest loan. If you get into financial trouble or into debt then your credit score can suffer greatly form this. There are some things that you can do to raise your credit score and this is something you should follow to better improve your financial standing.

Find Free: Raise Credit Score Now

First you need to obtain a copy of your credit report so that you can check to see if there are any negative marks on it. If so then you can dispute those items with the credit agency and it is up to them to prove that those marks are valid. If the agency can not get confirmation within a 30 day period that in fact the negative items are accurate on your credit report then they by law must remove them.

You Can: Improve Your Credit Rating

Another great way to raise your credit rating is to always pay your credit card on time. We all get busy and sometimes we can forget to pay them on time but it is always better to never be late.

If you have large balances on your credit cards you need to work to pay these down because having a lot of high balances will keep your credit score low. One great way to do this is to pay extra payments on your bills each month and many people find extra money that they thought they did not have to pay this with.

Remember that raising your credit score is important and you should do something about it now. Get the help you need to raise your score today.

By: Bryan Burbank

About the Author:

Bryan Burbank is an expert in the field of Finance and Credit Ratings. For more information go to: http://www.bigloanguide.com

]]> http://Credit-Blog.net/building-good-credit/raise-credit-score-best-ways-to-raise-your-credit-score/feed/ 0 Tips To Effectively Raise Credit Score http://Credit-Blog.net/building-good-credit/tips-to-effectively-raise-credit-score/ http://Credit-Blog.net/building-good-credit/tips-to-effectively-raise-credit-score/#comments Sat, 31 Jan 2009 03:22:10 +0000 Credit Issues Admin http://credit-blog.net/building-good-credit/tips-to-effectively-raise-credit-score/
If you are of the many people suffering from bad credit, don’t worry about your bad credit rating. Instead, you have to work to raise your credit score. There are various steps to follow to raise credit score, where the first one is to get a free copy of the credit report.

You have to get a copy to ensure that the information on it is accurate. Inaccurate information can give you a bad credit score. Any errors have to be immediately informed to the three credit bureaus through dispute letters mentioning the said errors.

It is important that you pay your bills on time so that you raise credit score. Your payment history accounts for 35% of your credit score, where the latest payments you make carry maximum wait on your credit score. Even a single missed payment can lead to a decrease of your credit score by 50 to 100 points.

Work at reducing current debt

The next thing to do to raise credit score is to work at reducing your current debt as quickly and as much as possible. And if there is a large gap between the amount of debt your card carries and the card’s credit limit, your credit score tends to increase much more.

Though you may think that closing of old credit accounts help in raising your credit score, this is not so. This is because today’s credit scoring methods punish you when you close your accounts as it tends to reduce the distance between your credit limit and your debt. This thus reduces and not raises your credit score.

You can never raise your credit score by filing for bankruptcy as it only damages and at times, destroys your credit score. In fact, you will reduce your credit score by a minimum of 200 or more points which will be difficult to recover as bankruptcies remain on the credit report for a minimum of seven years.



By: wesvista

About the Author:

By following the tips and techniques here and on http://TipsforFastCreditRepair.com, you will be able to considerably raise credit score and get a good credit rating.



]]> http://Credit-Blog.net/building-good-credit/tips-to-effectively-raise-credit-score/feed/ 0 How to incorporate a start up to build credit? http://Credit-Blog.net/building-good-credit/how-to-incorporate-a-start-up-to-build-credit/ http://Credit-Blog.net/building-good-credit/how-to-incorporate-a-start-up-to-build-credit/#comments Sat, 13 Dec 2008 14:17:03 +0000 Credit Issues Admin http://credit-blog.net/building-good-credit/how-to-incorporate-a-start-up-to-build-credit/ build credit
tribe2437 asked:


I basically want to start my own commercial real estate company. I already work in this field. I want to start a corporation so I can build credit, but I’m not ready to even buy any property yet. Is there any way to incorporate a start up company with no assets, and no intention on doing business for another 1-2 years?

]]> http://Credit-Blog.net/building-good-credit/how-to-incorporate-a-start-up-to-build-credit/feed/ 2 How can i build credit by november? http://Credit-Blog.net/building-good-credit/how-can-i-build-credit-by-november/ http://Credit-Blog.net/building-good-credit/how-can-i-build-credit-by-november/#comments Fri, 12 Dec 2008 04:00:40 +0000 Credit Issues Admin http://credit-blog.net/building-good-credit/how-can-i-build-credit-by-november/ build credit
Albert s asked:


I need to build credit by november cuz i need to get a truck b4 the snow comes. I already got a credit card and i got 500 dollar in store credit (DOES THAT BUILD CREDIT?) Should i get a cell phone in my name? What else would build credit fast??? I want to get a truck financed of at least 16000 dollars.

]]> http://Credit-Blog.net/building-good-credit/how-can-i-build-credit-by-november/feed/ 3 Is it wise to pay your bills with a credit card to help build credit? http://Credit-Blog.net/building-good-credit/is-it-wise-to-pay-your-bills-with-a-credit-card-to-help-build-credit/ http://Credit-Blog.net/building-good-credit/is-it-wise-to-pay-your-bills-with-a-credit-card-to-help-build-credit/#comments Thu, 11 Dec 2008 18:52:10 +0000 Credit Issues Admin http://credit-blog.net/building-good-credit/is-it-wise-to-pay-your-bills-with-a-credit-card-to-help-build-credit/ build credit
stepcmpb asked:


My mother just decided to start paying her bills with a credit card to help build her credit history. Is that a good idea?

]]> http://Credit-Blog.net/building-good-credit/is-it-wise-to-pay-your-bills-with-a-credit-card-to-help-build-credit/feed/ 6 How do you get a credit card to build credit, when you have to have credit to get a credit card? http://Credit-Blog.net/building-good-credit/how-do-you-get-a-credit-card-to-build-credit-when-you-have-to-have-credit-to-get-a-credit-card/ http://Credit-Blog.net/building-good-credit/how-do-you-get-a-credit-card-to-build-credit-when-you-have-to-have-credit-to-get-a-credit-card/#comments Thu, 11 Dec 2008 16:46:37 +0000 Credit Issues Admin http://credit-blog.net/building-good-credit/how-do-you-get-a-credit-card-to-build-credit-when-you-have-to-have-credit-to-get-a-credit-card/ build credit
crzylaceyxdc asked:


I need to build my credit so i was going to get a credit card but in order to get a credit card you need credit so how can i get a credit card to buld my credit because i have no credit at all

]]> http://Credit-Blog.net/building-good-credit/how-do-you-get-a-credit-card-to-build-credit-when-you-have-to-have-credit-to-get-a-credit-card/feed/ 21