credit-score

 

Besides the obvious which is being denied additional credit when needed there is also another price to pay for having bad credit that is just as bad and that price can be summed up in three words HIGHER INTEREST RATES. When you have bad credit it is a guaranteed that you will be at a disadvantage and pay higher interest on credit cards, auto loans, and home loans thus making it more challenging overtime to make your payments, lower your debt and essentially improve your credit scores.

 

Good credit on the other hand allows you to pay less in interest thus increasing the likelihood that you will be able to manage your monthly payments which will ultimately contribute to a higher credit score enabling you to utilize the leverage that good credit makes available through the use of other people’s money.

 

There is good news and hope for those currently experiencing credit problems. No matter what your current credit score is the dream score of 800 or higher is still within reach with a little work.

 

If you have desires to be able to take advantage of the best deals on life’s largest purchases and have access to large credit lines to take advantage of opportunities that those with bad credit can’t a solution to make those desires manifest themselves is within your reach.

 

Although things are now different there was a time that I was a victim of bad credit, constantly struggling to pay bills and drowning in debt without a substantial income that would allow me bail myself out debt that I had found myself in as a result of living beyond my means.

 

After years of discipline I have been able to join the coveted 800 club myself and also assist clients in reaching the same goal by following a two-step sure fire strategy that I will share with you:

 

ALWAYS MAINTAIN LOW BALANCES AND HIGH LIMITS

 

Because a large portion of your credit scores with all three bureaus is calculated and determined by your credit utilization (used credit –v- available credit) a good rule of thumb is to keep your balances well below 50 percent of your limits although I personally suggest 35 percent. Once you reach the 50 percent mark, your credit scores will begin to decrease however the opposite applies when you keep lower balances meaning that the lower you keep your balances below that 50 percent mark, the higher your credit scores will remain.

 

LIMIT THE NUMBER OF REQUESTS FOR CREDIT (TOO MANY INQUIRIES HURT)

 

Credit inquiries are recorded so that you can know who has obtained your credit report. They also enable potential creditors and lenders to see when you have applied for credit. Too many credit inquiries will cause potential creditors to question whether you are seeking to obtain more credit than you can afford to repay. The credit scoring agencies have found that borrowers who request credit frequently tend to be higher risk borrowers. Thus, frequent inquiries on your credit report that result from frequent requests for new credit (credit cards, loans, etc.) will lower your credit score.

 

LATE PAYMENTS NOT AN OPTION

 

One third of your credit score is based on your payment history therefore it is imperative to MAKE PAYMENTS ON TIME. Missing one payment when you have a good credit score can cause your scores to drop upwards of 100 points. There are only five other factors that may affect your score more than a late pay and those factors are a debt settlement, a foreclosure, a judgment, a tax lien, or a bankruptcy.

 

 

KEVYN JEROME NELSON (The Hip Hop Credit Doctor) is the President/ CEO of WORLDWIDE CREDIT AND FINANCIAL SOLUTIONS INC www.worldwidecrediandfinancialsolutionsinc.com and MIDAS TOUCH ENTERPRISES WORLDWIDE LTD Published works include “Corporate Credit Unleashed” “Hidden Secrets The Credit Bureaus Don’t Want You To Know: An Insider’s Guide To Building and Maintaining Excellent Credit In Today’s Economy” and “When All Else Fails….Legally Create A New Credit File” Available On Amazon.com http://www.amazon.com/Kevyn-Jerome-Nelson/e/B00AQLQS22/ref=ntt_athr_dp_pel_1

 

For More information on the concepts discussed contact 323-769-6356 or email admin@wwcfsinc.com.