If you've ever been denied credit, there's probably a good reason. Maybe you've forgotten to pay a bill or two, you've had late payments or you owe the library money to replace a book you lost.
You may think it's no big deal, but even the most seemingly trivial of debts will lower your credit score. Most companies report your payment history to the credit bureaus monthly. So each time there's a problem, it will count against you, even if you're just a few days late with your payment.
Once there are blemishes on your record, it'll take time to restore your good name, but it is possible if you follow this advice from cashbuzz.com, a Web site with a wealth of resources for people with less than perfect credit.
1) Always pay your required minimum monthly payments on time. And pay more if you can afford it.
2) If you normally send checks through the mail, try to send in payment at least 10 days in advance. On average, it takes at least a couple days for your payment to be received and anywhere from three to five days to be processed.
3) Spread out balances on existing credit cards. Ideally, each of your cards should have no more than 20 to 30 percent of their available credit limit in use. Being close to your credit limit on any of your credit cards looks bad to other creditors and could potentially lower your score.
4) Sign up for the Express Gold Card, a unique tool available to people trying to restore their credit. Everyone who signs up for the card at expressgoldcard.com is guaranteed an unsecured $7,500 line of credit with no credit checks or employment verification.
The card works much like a 'store credit card' because the line of credit can only be spent in one placeat the card's online shopping mall. Express Gold Card members can find great deals on everything from clothing and jewelry to electronics and sporting goods.
If, for example, you wanted to buy a Sony PlayStation, one of the site's featured items (they change daily), you could pick it up for just $199.99 with $71.58 down. The rest ($128.41) would be financed through your card.
'Every time our customers make a payment on their account of $10 per month or 5 percent of their balance, whichever is greater, we report the positive outcome to Equifax. In turn, their credit score can go up,' says Phil Huston, director of business development for Cubis Financial, Ltd., the Express Gold Card's parent company.
'We have a number of products that help consumers with less than perfect credit regain control of their finances,' says Derek LaFavor, CEO of The Selling Source, a partner of Cubis Financial. 'In addition to those products, our site cashbuzz.com is dedicated to providing information to consumers to help them establish or rebuild their credit.' |
