Get Credit Where Credit Is Due
Here we go again...so what are the seven steps to establishing an excellent credit score that bankers and lenders will call you...and where you might even have a round robin session with Shark Tank? As always I am always "looking"...searching...not for deals; there are plenty...but for "sources" that provide funding.
I may just have found the answer to the "building capital problem" that everyone in real estate has or will encounter (like running into a brick wall). I found a web site that promotes seven steps to accelerating your credit profile beyond 600.
In so doing this search I first had to let go of ego; admit I am NOT worthy...and I became a student to learn how credit (not a course taught in finance class); but to know what one really needs to have and to attain low interest options for closing deals...if one considers this approach to buy property.
Resources » Credit Scores » How Do I Build My Credit Score Fast?
Learning how to build credit can mean the difference between qualifying for a loan with great interest rates and not qualifying for the loan at all. It can mean the difference between being approved for a rental and struggling to find a place to live! And with 60 percent of employers running credit checks, not knowing how to fix credit could cost you a job!
You can learn how to build credit by following seven simple steps:
Step One: Keep the proper credit card balance.
Did you know that your credit card balance affects your credit score? Having the wrong balance, even for a day, can cause your score to drop.
Step Two: Have the right number of credit cards.
Credit bureaus give higher scores to people with the right number of revolving credit cards (i.e., MasterCard, Visa, Discover, or American Express).
Step Three: Make sure the credit bureaus are reporting your proper credit limit.
Credit card companies often report the wrong credit limit to the credit bureaus, which interferes with the balance-to-limit ratio (See Step One). Learn how to correct this error.
Step Four: Learn the difference between helpful and harmful installment loans.
A helpful installment loan is one of the fastest ways to boost your credit score, but finance account installment loans will cause your score to plummet.
Step Five: Remove high-priority credit report errors.
Approximately 80 percent of all credit reports have at least one error, and those that occurred within the past two years can cause serious credit woes. By removing erroneous information from your report, you could see your score jump. But beware of spending too much time on this step. When learning how to build credit, make sure you know the difference between high priority and low priority errors.
Step Six: Address credit collections head-on.
Instead of waiting for a collection account to drop from your credit report, begin the process of negotiating to have it removed! And be sure you know the facts. For instance, did you know that each time you make a payment on a bill in collections, your credit score could be damaged?
Step Seven: Create a credit-monitoring plan.
Once you have learned how to build credit, be sure you maintain your high credit score. Create a budget, leverage advances in technology, pull your report regularly, and protect your marriage by learning when to have joint accounts and when to have separate accounts --
In this continuing blog series I will inform individuals on building business credit this topic alone is worth millions...and rightly so... BIGGER IS BETTER!
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