Cash Living and Credit Ratings and Credit Scores
You may ask yourself why I would write a blog about Credit Scores and Ratings.
Well I am going to tell you the truth everything I learned about credit I learned the hard way..
5 Years ago I decided I change my life and go cash only.
I managed to have this lifestyle for 4 out of 5 years until I had to get a loan for a auto.
I still kept everything else the same with no loans no credit cards and I managed to also build a savings in stocks.
However in 2020 I decided to buy a house something I do not have cash for.
A loan it is, and in this experience I learned some valuable credit lessons from credit experts.
THE TRUTH ABOUT BAD CREDIT:
First of all if you messed up your credit with bad decisions or your credit got bad from circumstances you can rebuild and fix your credit reports.
Most people do not understand the laws and regulations of credit scores and credit reporting.
REPORTING AGENCIES:
First of all the 3 major companies in America that report credit are:
Trans Union, Experian,and Equifax.
You can ;look them each up for address or sign up for service on line with the companies.
Legally you are entitled to ONE REPORT PER YEAR FOR FREE from these companies.
There are many services out there that offer to see your scores from all 3 agencies.
I love CREDIT KARMA personally.You can find many online or sign up for.
If you applied for credit and got denied you are entitled to the reason why, and you can also get a copy of your credit file from the agency used to make the decision on your denial.
WHAT HURTS YOUR CREDIT SCORE:
Collections,credit cards that are maxed out, late payments, to much credit, and not enough credit, bankruptcy either chapter 7 or 13 or 11.
COLLECTION DEBTS WHAT CAN YOU DO:
One thing you can do is try to pay off collections , a lot of times the collection agency who purchased the debt will be willing to negotiate pay downs.
You can dispute the debt on the report.
If the collection is yours try to work out a payment plan with the collection agency and keep the deal and have them report it.
Ask the collection agency to remove the account from your credit report once it is paid in full.
Paying down or paying off collections will increase your credit score.
MAXED OUT CREDIT CARDS OR MAXED OUT CREDIT:
It is funny how the credit agencies look at credit maxing out credit cards can actually be a bad thing. Try to leave some room on credit cards and keep your minimum payments on time.
Try paying a little more to move balances down.
If you have a lot of credit cards try to reduce down to a few cards,sometimes you can transfer balances.
Closing Cards can also hurt credit scores as well.
NO CREDIT or REBUILDING CREDIT IDEAS:
Just getting started and want to build credit try these ideas.
Secured Credit Card is offered by many companies you place a deposit in the bank and they issue you a credit line based on that deposit.
My experience lately I had to this because I did not have enough credit,
Just doing this can add 25 points to your credit scores.
Once you have the account maintain it and the payments on time.
Secured Loans are other option as many banks like a secured card will issue a loan on a deposit like a CD or other types of secured loans.
Pay Day Loans or Title Loans usually do not report to credit agencies and are not recommended.
BANKRUPTCY:
Many people have survived a bankruptcy.
Any type of bankruptcy will stay on your report for 7 to 10 years.
Once the bankruptcy is discharged you will find rebuilding credit is your best option.
HOW COMPANIES REPORT and HOW THE AGENCIES UPDATE:
Each company that offers credit reports differently,but usually all companies report on a monthly bases.
Each agency is different as well but usually update scores on a monthly bases as well.
Well I am going to tell you the truth everything I learned about credit I learned the hard way..
5 Years ago I decided I change my life and go cash only.
I managed to have this lifestyle for 4 out of 5 years until I had to get a loan for a auto.
I still kept everything else the same with no loans no credit cards and I managed to also build a savings in stocks.
However in 2020 I decided to buy a house something I do not have cash for.
A loan it is, and in this experience I learned some valuable credit lessons from credit experts.
THE TRUTH ABOUT BAD CREDIT:
First of all if you messed up your credit with bad decisions or your credit got bad from circumstances you can rebuild and fix your credit reports.
Most people do not understand the laws and regulations of credit scores and credit reporting.
REPORTING AGENCIES:
First of all the 3 major companies in America that report credit are:
Trans Union, Experian,and Equifax.
You can ;look them each up for address or sign up for service on line with the companies.
Legally you are entitled to ONE REPORT PER YEAR FOR FREE from these companies.
There are many services out there that offer to see your scores from all 3 agencies.
I love CREDIT KARMA personally.You can find many online or sign up for.
If you applied for credit and got denied you are entitled to the reason why, and you can also get a copy of your credit file from the agency used to make the decision on your denial.
WHAT HURTS YOUR CREDIT SCORE:
Collections,credit cards that are maxed out, late payments, to much credit, and not enough credit, bankruptcy either chapter 7 or 13 or 11.
COLLECTION DEBTS WHAT CAN YOU DO:
One thing you can do is try to pay off collections , a lot of times the collection agency who purchased the debt will be willing to negotiate pay downs.
You can dispute the debt on the report.
If the collection is yours try to work out a payment plan with the collection agency and keep the deal and have them report it.
Ask the collection agency to remove the account from your credit report once it is paid in full.
Paying down or paying off collections will increase your credit score.
MAXED OUT CREDIT CARDS OR MAXED OUT CREDIT:
It is funny how the credit agencies look at credit maxing out credit cards can actually be a bad thing. Try to leave some room on credit cards and keep your minimum payments on time.
Try paying a little more to move balances down.
If you have a lot of credit cards try to reduce down to a few cards,sometimes you can transfer balances.
Closing Cards can also hurt credit scores as well.
NO CREDIT or REBUILDING CREDIT IDEAS:
Just getting started and want to build credit try these ideas.
Secured Credit Card is offered by many companies you place a deposit in the bank and they issue you a credit line based on that deposit.
My experience lately I had to this because I did not have enough credit,
Just doing this can add 25 points to your credit scores.
Once you have the account maintain it and the payments on time.
Secured Loans are other option as many banks like a secured card will issue a loan on a deposit like a CD or other types of secured loans.
Pay Day Loans or Title Loans usually do not report to credit agencies and are not recommended.
BANKRUPTCY:
Many people have survived a bankruptcy.
Any type of bankruptcy will stay on your report for 7 to 10 years.
Once the bankruptcy is discharged you will find rebuilding credit is your best option.
HOW COMPANIES REPORT and HOW THE AGENCIES UPDATE:
Each company that offers credit reports differently,but usually all companies report on a monthly bases.
Each agency is different as well but usually update scores on a monthly bases as well.
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