RSS
Home
Edit your credit
Print
Email
RSS
Subscribe
Although few will admit it (for fear of seeming unpatriotic in the midst of an economic crisis), now is a great time to buy - if you’ve got money and good credit. There are unbelievable deals in the housing and automotive markets, and interest rates are lower than ever.
But with the financial market in limbo, obtaining credit of any kind will be difficult. Experts say you’ll need a credit score in the range of 720 to 750 just to get a credit card. And for the best rates on auto loans, you’ll need close to 786.
Know your credit score.
.jpg)
Credit scores (also called FICO scores) range from 300 to 900, and are designed to help potential lenders determine the risk associated with giving individual loans. The nation’s three major credit bureaus (Equifax, Experian and Trans-Union) collect and record information about your borrowing history that can affect your score such as past delinquency, the number of credit cards you have maxed-out and the number of years you have had credit.
The government allows you one free credit report each year. Review your borrowing history annually and identify weak spots. By law, negative remarks from lenders can only remain on your credit report for seven to 10 years. If you find something outdated, contact the bureaus directly and ask that it be removed.
Pay bills on time.
This is often easier said than done, but it’s the one tip that can make the most difference in raising your credit score. If you’re knee-deep in debt, consider consolidating your bills into one loan. Doing so will help you get a lower interest rate. For those that have trouble keeping track of due dates, consider setting up a direct withdrawal from your bank account to take the hassle out of paying bills.
Budget!
Write out a plan detailing how you will spend each paycheck before you get it and stick to it. Having a plan can help you curb impulse spending. Be sure to allocate money for saving, investing and spending.
Use online tools like a debt calculator to determine how long it will take you to pay off your credit card. There are also plenty of budget templates available online that can help you get started.
