Ten Steps To A Good Credit History By: Drahcir Semaj Are you thinking of buying a house? Do you want to buy a new car to replace that old wreck? Trying to get insurance on you home, auto, or life? In each of these situations, what’s on your credit report will determine if you can get a loan or insurance and what rates you’ll have to pay. If you’re trying to build or repair your credit history, you have a daunting but not impossible task in front of you. Lots of people have been where you are and today they have good credit. With time, discipline, hard work, and by taking the proper steps, you’ll be able to build a good credit history too. To build or rebuild your credit history you need to take certain steps: Develop a budget and live by it. Whether your building credit for the first time or rebuilding credit, you need to know how much money you have coming in each month and how you’re spending it. Start by listing your income from all sources. Next list all fixed expenses (rent, mortgage, car payments…). Finally list all of your variable expenses (entertainment, recreation, clothing…) no matter how small they are. Writing down and tracking your expenses will help you to understand your spending patterns and you’ll be able to see where you can save money by making lifestyle changes. Open a checking account and use it responsibly. Lenders want to know that you have a relationship with a financial institution and that you have a checking account available to pay your bills. Don’t overdraw your bank account; in addition to possible damaging your credit record, you’ll be charged fees. Pay your current bills on-time and pay them in full. Paying your bill on-time puts positive information on your credit record. Late payments or missed payments count against you. Review your credit report annually. Contact Equifax, Experian, and Trans Union to get copies of your credit report. You should get a copy of your credit report from all three reporting agencies because some creditors don’t report to all three agencies. If you’re a member of a credit union, check to see if your credit union offers discounted credit report ordering for its members. Fix any errors on your credit report. If you find errors on your credit report, contact the credit reporting agency and the creditor (in writing) to get the errors fixed. Check your credit report to make sure that negative information like late payments, delinquencies, liens, and judgments against you have been removed after 7 years; bankruptcies should be removed after ten years. For more information on how to dispute errors on your credit report, visit the Federal Trade Commission website at: http://www.ftc.gov/bcp/conline/pubs/credit/crdtdis.htm. Apply for a credit card. If you’re rebuilding your credit history, consider applying for a secured credit card. To get a secured credit card, you’ll need to deposit funds with the credit card issuer and your credit limit is usually equal to the amount you deposit. A secured card can be used the same way as an unsecured card and your timely payments will help to improve your credit history. Apply for a department store or gasoline card. These cards are usually easier to get than major credit cards and they come with smaller credit limits. Establish an account at a credit union and take a loan out on it. This is a secured loan. You’ll have to pay interest on the loan, but if your payments are reported to the credit bureaus, the small interest fees will be worth the positive information that is added to your credit record. Don’t max out your credit cards. Maxing out your credit cards can hurt your credit score. Try not to use more than 30% of the credit you have available to you. Part of your credit score measures the amount of credit that your have available to you and how much you’re using. The more credit you’re using, the more negative impact on your credit score. If you get into trouble with your credit, get help. Don’t wait until creditors send your accounts to debt collectors. If you can’t make a payment contact the creditor and make arrangements to make the payment. If you feel that you’re over your head in debt get help from a debt counselor. About the Author: Drahcir Semaj is a St. Cloud, MN based freelance writer who writes about health and personal finance issues. He can be contacted at his email address: drahcir@drahcirsemaj.com.

Inside Finance Getting Bank Loans   Let's see how to getting bank loans if you are a self employee. There is a strong view that being self-employed offers less security than being employed by a well respected and trusted large company. However, this perception is also changing. Gone are the days when people were employed by the same company for their entire working life, where they would gradually work their way up the corporate ladder and retire to a secure pension.Banks are increasingly aware that the employment landscape has changed enormously in recent years and that self-employment, free lance work and other such ‘alternative’ working arrangements are becoming more and more attractive and necessary for a growing number of workers. Increase In Credit Card Payment   Will credit card payment increase is been discussed her. A recent change in Federal law requires the major credit card companies to increase their minimum monthly payment. The law was passed some two years ago, but the lenders were given a grace period to allow them to comply. Soon, several major credit card companies will begin charging a monthly minimum of 4%. This may not seem like much, but for those with large balances, a doubling of the minimum payment could be devastating. Apply For A Government Grant   Let's discuss about how to apply for government grant. The next step will depend upon the grant you are applying for. Usually, artistic grants will require you to submit past work, the present project you are working on, or the future piece you are trying to develop. Grants for new businesses are often dependent on business plans or an organization's commitment to community. Credit Counseling   The people who does not know about the credit will go for Credit counseling. The credit providers don’t offer much help. They offered you the credit. Credit card companies, banks, stockbrokers, stores, and other financial institutions make it sound so easy, who could resist. Credit Card Alternatives   The alternatives for credit cards is been specified. Debit cards have been used in many European countries for a number of years, but are relatively new elsewhere. In a nutshell, they are just like credit cards and are accepted in most places where credit cards are accepted. The biggest difference is that they take money directly from your bank account rather than you getting a bill at the end of the month.