http://www.creditreboundinstitute.com/
Build better Credit. Fast:
http://www.creditreboundacademy.com/
How To Avoid Getting Bad Credit
A bad credit rating is hardly anything you want to be associated with. Here are some things you can do to avoid that from happening to you:
Find more ways to generate income
Your paycheck can run very short if you're spending money in the wrong places. You want to channel as much money as you can into savings and debt repayment—and NOT into toys and items that won't help you meet your credit repair and business goals.
If you've cleaned up your spending act and still need more cash each month, you might want to consider a second form of income. A second income of even just a few hundred more dollars a month more can mean that you get your credit into shape faster.
Having a secondary form of income can also keep your credit safe - if you lose your job, you can use the money you make from a secondary source to repay your bills until you find another form of employment.
Whatever you do, finding an alternate source of income can help your credit immensely. By the way—that alternative income source doesn't need to be a second job—In fact, I'd rather you start a small online business where you can work at home (and be home with your family) and build something that might ultimately replace your first job!)
Prepare for financial emergencies
Financial emergencies happen to almost everyone at some point and they can have devastating impact on your credit. In fact, most people who declare bankruptcy do it because of a huge financial disaster such as sudden unemployment, huge medical bills, a lawsuit, or divorce. Despite this, few people plan for these situations, even though they can happen to anyone.
If you want to keep your credit score in good shape, you should know exactly what you would do in case of an emergency. Developing an actual written plan can help you by helping you take action to save your credit as soon as an emergency occurs. Some items that could be on your financial emergency plan could include:
1) A list of all assets you could liquidate if you had to.
2) A list of all extras or luxuries you could cut out of your life right away if there was a problem (these might include newspaper subscriptions,water delivery service, Friday nights at the movies and yes, dare I say it--cable television. If you're in the USA, get a Netflix account and watch all the movies you want for less than $10 a month! Watch your favorite TV shows online for FREE—whenever you want--just like I do!)
3) A list of any resources you have that could help you in case of an emergency. Maybe you know a lawyer who deals in financial law. Maybe you have insurance that could help you when disaster strikes (and if you don't have it, you might want to look at those options—before it's too late!). Maybe your employer offers a severance package. Whatever it is, write it down. Keeping a list of these resources will make them easier to access in case of an emergency.
Though challenging it may be, especially during a financial struggle, in many cases, you can avoid a bad credit situation. By preparing early and anticipating emergencies, you'll be steps ahead of 99% of the population. Here's something else to keep in mind.
When there's a natural disaster—and they seem to be happening a lot these days—often your mortgage lender will offer you a payment holiday for a while so you can get back on your feet. And when they do that, it won't appear as a negative item on your credit report.
That's what I did a few years ago after I was victimized by a major hurricane. So never assume that you've got to be a victim—always ask your lenders for help!
No comments:
Post a Comment