Re: She's beautiful
09-07-2012 12:44 PM
WOW!!! Congrats Razeus, Having one of those cards is still a dream to me lol. Hopefully one day soon I will have my score high enough to apply for one and achieve that reward! I am in the middle (towards the end) of repairing and building my credit, since you have pretty much 'been there and done that' do you have any tips or hints that worked in your favor that you would like to share?
Tip #1 If you see a problem, deal with the problem head on - it's not going to go away simply because you ignore it. Call somebody, make arrangements, ask a family member for help. Whatever you do, just deal with it like a man (or woman). You're not special. That's how collections and late payments get on your report and kill your score.
Tip #2 Cash is king. Be all over your finances. Budget to the penny. Know how much cash you have left after paying the bills. Have 3 months of cash on hand in savings at the minimum. Have 1/2 months cash available in your checking/bill paying account at all times. This helps when due dates get "off" due to the number of days in a month changing and number of days it takes your bank to due a bill payment. For example, car payments and auto insurance, and now my mortgage are automated by a 2nd checking account. I don't have to worry about those bills, plus I have a bit of extra cash in the account that build up over the year, so at the end of the year, I can make an extra payment or apply it to student loan debt, or just flat out spend it.
Tip #3 Know your due dates. Use Google Calendar, iCal, whatever. All your car/student/mortgage loans, pay one day before. Know your credit card statement close dates AND due dates. Pay them 2x a month, one day BEFORE each date (that way if you "miss" paying, you have an extra day to get the payment in).
Tip #4 Never carry a balance for CC. If you need to (ie high dollar purchase that you NEED), make it a point to get it paid off over a period of months IF you have a 0% interest card. Use your cash savings for "emergencies". Just work with whatever your situation is. The point is don't carry a balance for more than a few months, especially if you're getting hit with interest.
Tip #5 Don't over spend. Think twice before you buy something you THINK you need. Just because you have $100k of credit available, doesn't mean you need to spend it. Just because you have $1k cash left over, doesn't mean you have to spend it. Credit is just a tool. Remember, credit cards are designed to get you to spend more (ie rewards/cash back/miles/etc). Don't spend more just because your getting rewards. Remember, it's YOU that's in control. Credit cards aren't to be use to upgrade your lifestyle, only to enhance.
Life is SO much easier when your credit is good. This is a fact. It's really easy to tank your score, but it's SOOOO hard to get it back up.
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