Endless vicious debt cycle might come to an end. Here are the Top 5 credit repair ideas for you and me! There is no legal shortcut to fix credit but certainly the right approach in personally managing your finances. Be a good borrower in the eyes of lenders by adopting these five best credit repair suggestions..
Consumer lesser than what you can afford
Spending within your means is one of the best ways to get out of debt, or should one say not being implicated into financial distress. Do rationalize your decisions before taking up a fresh new mortgage, credit card, bank overdraft, personal investment or a car.
If you’re receiving a monthly earning of $5000 or 60000 a year, do not apply for such services:
- Mortgage requiring about 100000 a year of income
- Car loan of more than $2000 monthly installment
- Any furniture plan combined with your existing college loan
The problem is on the cost of ownership over a period of time. When the maintenance kicks in (such as renovation costs), impromptu expenses (such as medical fees), or a sudden financial crisis (such as Lehman Brothers Global Financial Crisis), you’ll be overwhelmed by the costs.
Consumer lesser than what you can afford – it is the same as not spending beyond your means financially. Get out of the debt trap as soon as possible. Liabilities only create more businesses for credit repair companies. Service costs only increases due to inflation.
Note: Never once did anyone get out of debt by increasing credit limits.
Use debit cards not credit cards
Debit cards serve as a function of controlling financial risks. Most consumers settled for credit repair services not because of poor spending habits, but mainly due to overleverage in credit utilization ratio (more than 30% of utility ratio).
Credit cards are not exactly a bad investment. A good cardholder exercises prudence in buying necessities (such as credit cards for grocery planning), basic items (such as local brands) and dining out with rewards cards. Nothing wrong for small indulgences at a fraction of total costs (card rewards offset bills via rebates and incentives).
However, using debit cards surpassed that of credit card spending. Only use cc to make payments when someone (like your company) is planning for a trip/expense. There is no other shortest route to financial freedom when credit repair is not required. Interventions from legitimate sources could be costly in the long run – credit bureaus, creditors and lawyers.
Note: You can perform DIY Credit Repair on your own without hiring an agency.
No cash advances or overdrafts
One major factor influencing credit score is your choice of borrowed money. Avoid the hassle of daily interests compounding plus rollovers that increases your gearing ratio. Cash advances and bank overdrafts incurred high fees due to unsecured lending facilities.
If you do not repay the debt on time, negative items might appear on your credit report. Bad (verified) information (such as late payments and missed payments) will impact your credit score. In fact, you might take a hit on future lending decisions when a home mortgage is required or any credit line.
Like all other credit repair companies, the best advice given to you is to repair your credit the right way. Never assume any personal loans, cash advances or payday loans. Prevent such financial problems from occurring before legal letters mailed to you.
Note: Prevention is always better than cure – never lose your money.
Credit repair companies and credit repair
Avoidance of debt implosion is the only way to financial freedom. You have to take action in hiring the best credit repair companies. Paralegals and case advisors are allowed to provide you high quality debt repayment advices (such as credit counseling and debt settlement).
There is no better service than the absence of credit repair. Even the most prominent credit repair agencies (like Sky Blue or Lexington Law) agreed on the need of organically improving your credit report and credit score. Such services worked out to help reduce financial frictions on your report cards only.
Good financial planners often advice you to start off with proper money management techniques:
- Paying off your credit card bills and loans
- Settling your disputes internally with creditors
- Asking for discounts for bulk purchases or expensive goods
It is the discipline that builds up your credit report. No other way is doable in scoring points the fastest way than credit control. Lower your risks in the eyes of lenders too. Credit repair services can help you to speed up the process of debtor’s solutions but never a remedy.
Sign up for group buys & incentives
Another method to improve your credit rating is to participate in group buys. Incentives are (normally) given out to crowds in attempt to entice quick sales. Once you spotted an incentive to put your money to good use, you naturally avoided the risk of delinquencies or bankruptcies.
Do not spend too much time investing on finding the cheapest products in Walmart or Amazon. Good debtors invest their time wisely in picking up a few choices and ask for help from previous owners or users. The fastest way is to consult friends and relatives. Group buys could potentially save you a lot of hassles, sometimes coming with guarantees of defect-free items.
Therefore, apply for the best incentives (such as couple discounts) if you’re looking to fix bad credit score using professional services. Credit repair companies do offer some discounts from time to time. Apply with a spouse to receive couple’s discounts too.
Note: Check out the best credit repair reviews and websites too.
Sell off any unwanted goods or low-quality assets
The goal is to be financially free, not looked rich. Develop a list of items at your house that don’t bring quality value to you. Similar to what investors known as value investing, you can adopt the approach of value discounting by pricing your assets fairly for sale.
Go ahead to the nearest bargain stores to dispose your items for some quick cash. You can too visit a bazaar or set up an online store for sell off. It’s alright to keep important memories with you but not good to hold on to any assets that were bought just for entertainment purposes. Plan for what is necessary to sell and what not to dispose.
As you can see, credit repair is not difficult at all. It begins from your personal financial discipline and up to the point of limiting your spending habits. You can avoid the risk of losing money if there is a goal to financial freedom.
Note: The goal is to become rich, ultimately.
Good to know about: Top 5 credit repair ideas
Asking for credit help is not going to be cheap. Never assume credit counseling services, debt consolidations, settlement plans or whatsoever can get you out of debt safely. Bankruptcy laws (such as Chapters 7 & 13) dealt with bad debtors harshly. Stick to the above mentioned top credit repair methods. You’ll be fine in the long term.
Note: Don’t forget to invest in a credit shield plan; identity theft monitoring and credit protection.
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Quote of the Day: “Your discipline leads to freedom, one way not the other – KIG Hall [2013-2018]”
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This article was originally published on April 06, 2014. It has since been updated.