Avoiding Bad Credit

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Avoiding Bad Credit

To further avoid bad credit and maintain healthy credit rating, you should:

request for a free copy of your credit report from Equifax or Trans Union before making any major purchases. When you read something that you believe is false or inaccurate in the report, write a letter immediately and ask for proof or ask that the report be corrected immediately. Whatever you say to the credit bureau should be executed in writing. This is the only way you can show proof that you acted in good faith. Don't wait for weeks before questioning your credit report.

Keep careful track of both expenses and income. Once you do this over the course of a month, you will doubtless find many ways where you can "trim the fat." For example, if you eat out every day at work, you can save yourself several dollars a day, or as much as $50-$60 a week, if you pack your lunch instead of eating out, and reserve lunch out as an occasional treat instead of an everyday occurrence. To best create your budget, first start by jotting down all of your "must-have" expenses. These include your mortgage or rent payments, any car payments, student loan payments, food and basic utility and fuel expenses, insurance, etc. *All* of these expenses should comprise no more than about 60-70% of your total take-home income, with your mortgage and home expenses comprising no more than 30 to 35%, or about half of your "must-have" expenses. The remaining 30% or so should be divided such that you're saving 10 to 15% in retirement and investments of your income every month if you're under 35 years of age, or 20% if you are over 35.

Try to only spend less than 10% on "frivolous" expenses. Those things that you simply "want", but don't really "need"!

When you pay off debt, pay off the highest interest rate cards first. To do this, make the minimum payments on all of your other cards, then take the highest interest rate card and put all of your available "debt" cash toward that payment. Do this until you have paid off your highest interest rate card, then go on to the next. Make minimum payments on all of the lower interest rate cards, then take your highest interest rate card that still has a balance on it, and pay as much toward that as you can. You'll soon see that you can be debt free very quickly, as long as you practice discipline and diligence.

Finally, make sure you pay your bills on time. Making mortgage, utility, tax and other bill payments on time shows that you are diligent and prudent in your spending practices and this will reflect positively in your credit report. So if you've got bad credit, don't panic. Simply taking some care to pay bills on time and be prudent in your spending, as well as keeping a careful watch on your credit reports from all three bureaus, will bring you back to good standing in very little time.

Article Source: Credit Card Bad Credit People

About the Author

Steven J. Talrechi has been writing about credit reporting and credit reporting practices for over 10 years. He specializes in helping people obtain a second chance checking account and second chance bank account when they have been turned down by banks

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To further avoid bad credit and maintain healthy credit rating, you should: 
request for a free copy of your credit report from Equifax or Trans Union before making any major purchases.  When you read something that you believe is false or inaccurate in the report, write a letter immediately and ask for proof or ask that the report be corrected immediately.  Whatever you say to the credit bureau should be executed in writing.  This is the only way you can show proof that you acted in good faith.  Don't wait for weeks before questioning your credit report. 
Keep careful track of both expenses and income. Once you do this over the course of a month, you will doubtless find many ways where you can "trim the fat." For example, if you eat out every day at work, you can save yourself several dollars a day, or as much as $50-$60 a week, if you pack your lunch instead of eating out, and reserve lunch out as an occasional treat instead of an everyday occurrence. To best create your budget, first start by jotting down all of your "must-have" expenses. These include your mortgage or rent payments, any car payments, student loan payments, food and basic utility and fuel expenses, insurance, etc. *All* of these expenses should comprise no more than about 60-70% of your total take-home income, with your mortgage and home expenses comprising no more than 30 to 35%, or about half of your "must-have" expenses. The remaining 30% or so should be divided such that you're saving 10 to 15% in retirement and investments of your income every month if you're under 35 years of age, or 20% if you are over 35. 
Try to only spend less than 10% on "frivolous" expenses.  Those things that you simply "want", but don't really "need"! 
When you pay off debt, pay off the highest interest rate cards first. To do this, make the minimum payments on all of your other cards, then take the highest interest rate card and put all of your available "debt" cash toward that payment. Do this until you have paid off your highest interest rate card, then go on to the next. Make minimum payments on all of the lower interest rate cards, then take your highest interest rate card that still has a balance on it, and pay as much toward that as you can. You'll soon see that you can be debt free very quickly, as long as you practice discipline and diligence. 
 
Finally, make sure you pay your bills on time. Making mortgage, utility, tax and other bill payments on time shows that you are diligent and prudent in your spending practices and this will reflect positively in your credit report. So if you've got bad credit, don't panic. Simply taking some care to pay bills on time and be prudent in your spending, as well as keeping a careful watch on your credit reports from all three bureaus, will bring you back to good standing in very little time. Article Source: <a href="http://www.allbestarticles.com" target="_blank">Credit Card Bad Credit People</a> About the Author: Steven J. Talrechi has been writing about credit reporting and credit reporting practices for over 10 years. He specializes in helping people obtain a <a href="http://www.badcreditnic.com/">second chance checking account</a> and <a href="http://www.badcreditnic.com/">second chance bank account</a> when they have been turned down by banks