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I have written about 4 years of posts on ways to help folks understand/restore or build your credit. If you are considering the long term effects of maintaining debt, the sooner you understand the cost of poor credit on all your accounts the sooner you can benefit from a little work pulling up your FICO scores. The better your credit, the lower your rates and the sooner you can pay off your debt and free up your capital for better things...! (All these pointers are free information I've gleaned from my sources. I don't sell any credit services).

What can you do to improve your chances of getting a loan?
1. Live within your means: keep your monthly card account balances under 30% of the available or pay these balances down to under 30% and have no 30 day late payments (the 30-30 rule).
2. NOW is the time to be disputing errors on your credit report. Chances are there are so many people are overwhelming the credit reporting bureaus that the system won't cope and many will be given the benefit of the doubt.
3. Don't open new credit accounts and don't close your old ones!!! (old history is good history)
4. If you don't have any credit accounts now: establish three accounts over the next six months, say one every other month and follow the 30-30 rule...never go over 30% of the available balance and never miss a 30 day payment. The best accounts to have are a bank card, an auto loan or gas card, and a department card where you regularly shop. Three is all it takes. Manage them well. You need at least one to two year's history to create a solid report.

Live long and prosper!
Seriously folks, a solid credit history will serve you well and save you a bundle over a lifetime of borrowing even small amounts, regardless of the market. If you aren't buying a home then consider the effect of bad credit over your lifetime of owning cars, having credit cards with higher rates, paying higher insurance fees, being denied credit for important needs...all those fees and rates are higher if you have bad credit. What's bad credit? Anyone with a FICO Score under 680 will pay more for everything these days. Achieve 720 and you will enjoy the benefits for many years!

To your successs! Loannetter© copyright 2009 susan templeton loannetter

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