Building Credit Without Spending Money

Building Credit Without Spending Money

Building Credit Without Spending Money. You can “piggyback” to good credit if you have no credit of your own. Simply become An Authorized User on a well-established account that reports to the 3 major credit reporting agencies.

The 3 major agencies are Equifax, Experian, and Trans Union. Ideally, you should trust the person and know that they are “good with money”. If they have any derogatory statuses on the account so will you.

As an authorized user you will not need a card or access to the account because your sole purpose is to just gain the benefit of on-time payments, the age of credit, and credit mix, inquiry, and credit utilization. Without having to spend money.

This is by far the cheapest way to get a credit score boost. However, You are not the primary on the account so while you are boosting your credit you are not building any credit of your own. You must be the primary or have a joint account to truly build credit.

Be smart about your decision to becoming an authorized user. Adding yourself to an account that’s in good standing can get you one step closer to better credit scores as well as access to products and rates that you may not have otherwise qualified for.

How to become an “AU” or Authorized user and  building credit without spending money

Being an authorized user simply means you can use someone else’s credit card or account in your name. You can make purchases and use the card as if it were your own, but you’re not the primary account holder. That’s it.

To make you an authorized user, the primary account holder needs to add your name to their credit card account, giving you “authorization” to use it. You’ll receive a credit card tied to the account, though you won’t have every privilege of the primary account holder. For example, you may not be able to make changes to the account, request a credit increase or adding more authorized users.

As an authorized user, you are not legally responsible to pay the bill or any debts that build up. This is still the sole responsibility of the primary account holder.

Get a co-signing account. Like a car loan for example. Maybe your spouse or parents are going to get a new car. Being a joint applicant will certainly be beneficial for you. You get the balance, the debt pays down, the inquiry, the credit mix, and the payment history.

The hard part is getting someone to let you have a mutually beneficial account and not technically have to pay for it. In the event that they fall on hard times you are “jointly” responsible so there is a chance that you may have to pay in the future. Legally you are liable also.

If you and the joint account holder have a falling out, you’ll likely have to close the account. This may lower the average age of your accounts and ding both of your credit scores. It may be difficult to sell without the other “joint” account holder. You may need the joint account holders signature and authorization to even be removed.

You may not want to do anything jointly if you have any uncertainties. This is a very risky proposition. if you are not the one paying then It does make sense. The likelihood of becoming a joint account holder with someone is very small if you are not married.

This is not something that people normally do. Companies are no longer supporting this so you’ll have to find a company that does joint applications. Back in 2013, Chase scrapped its joint cardholder offering. Capital One stopped offering the option over 10 years ago, and American Express never offered it to consumers in the first place.

Partners who blend their financial lives often share a credit card account as a way to stay accountable to each other, track expenses, and build individual credit scores.

What are the benefits of having a joint credit card?

There are several benefits to consider. First, there’s the presumed transparency factor. If you have a joint budget in place, sharing a credit card can be a good way to hold one another accountable for what you’re spending and plan to spend.

A joint credit card can also take some but not all of the headaches out of paying bills. You can simply charge shared expenses to the card each month, rather than divvying them up between the two of you.

get a co-borrowing account

Get a mortgage with your spouse or friends if you are sharing finances and living quarters and want to do so for the long term. You’d both benefit from it so long as everything goes well. Keep in mind that this is not a small deal.

Getting a mortgage with someone else name on it has as many pros as it does cons should things go awry.

Now we have covered the three ways to get joint credit. Co-signing, Co-borrowing, and Authorized user accounts.

Joint credit can become an issue and concern in divorce proceedings. In these cases, the terms may give one partner responsible for certain debts and the other partner responsibility for other debts. It is also possible that following divorce proceedings, former partners may still affect one another’s credit.

Means of closing a joint credit card account can be difficult, especially in the case of an outstanding balance. Even if an issuer allows a credit card to be closed, the balance usually must still be paid under the original terms. One potential solution includes transferring a portion or all of the balance to a separate credit card.

None of these things is an easy feat. So be very careful when doing this. Being irresponsible in your decision to get joint credit can lead to having to deal with bad credit for years. Bankruptcy, divorce, and breakups are often a result of doing things jointly.

Are the benefits of piggybacking and joint credit worth the reward

Most will say yes assuming that everything went smoothly. Every person has a different experience. More and more companies are not wanting to issue joint credit.

Building Credit Without Spending Money

Make sure you have an agreement not to pay for any of these accounts in case things go south. The joint account holder should be well aware that you are building credit using these methods. They are essentially helping you do so.

Especially if you do not have the means to pay these accounts on your own. The legalities are many and you can be sued for shared or owed liabilities such as joint accounts. Not having an agreement in place hurts you much more than it helps you.

Keeping a good relationship with the joint account holder helps ensure that your credit building method goes smoothly. Many couples, parents, and friends have built credit this way. It works just the same as other credit-building methods however you simply won’t have to spend any money.

Additionally, if you are building credit get support. There are other ways to build credit without spending money. Instead of gifts of items ask family and friends to gift you credit such as credit builder loans. Some are as small as $500. They are basically savings accounts that report as loans to your credit report. Get two or three of these accounts reporting to all three major credit reporting agencies and your credit will go up.

Another way is to request gift cards & gift certificates for “easy to get” online credit accounts. Open an account and buy something with the gift card or gift certificate. Charge the items to your account. Make on-time payments every month using gifted cards and certificates.

Parents can add their child to the title or deed that they have had for a long time. Sometimes there are age restrictions so be sure to ask. Their child will build credit very quickly using this method especially if they have had a mortgage for several years or more.

These are the ways to build credit without spending money. If I missed anything will you let me know? If there are more ways than the ways I have outlined can you tell me so that I may add them to this post? I’d love to know if there are more ways to build credit without spending money.

Conclusion

There are 3 ways to build credit without spending money. Co-borrowing, co-signing and Authorized user. The bottom line is that linking your credit with another person’s credit always has the potential for risks and rewards.

Decide who pays the bill. Agree that if it is not you who has to pay the bill that you have no control over the account. If that’s not how bill handling works in your home, you need to decide upfront which one of you is going to pay the bill.

Thanks for reading if you enjoyed this blog post be sure to let me know!

The Key To Credit Building Starts With Credit Monitoring

The key to credit building starts with credit monitoring

The key to credit building starts with credit monitoring. I know this from experience. I stated in my last blog post that “I had a 774 credit score 2 years ago”. I went to the car lot and was able to get a 20K vehicle within 30 minutes and drove off as a happy newly financed car loan fool. What was I thinking? I chose to get a car over a home purchase.

before you think, “this is an idiots decision” that year I personally put 6k into a car worth 4k and rapidly depreciating. The vehicle is a 2006 lincoln zephyr with over 190K miles on it. Everything is failing on that car. It is costing more to keep it than it will to sell it. No car company will accept it as a trade.

For that amount of money, I could have easily gotten a 6k car. It was time for me to actually get the best car I’ve ever had though. I was tired of driving old beat up cars. It was time I drove something I could be proud of. Also getting a home at that time would’ve been the worst choice I had ever made. I broke my leg in 2 places and need full ACL and Partial MCL repair earlier in the year. Losing over 60% of my income. So I promised myself that if I could get myself to run in 7 months that I would get myself a nice car.

No mortgage company was willing to use my insurance money for the past 7 months as income. They said we don’t know if you can even go back to work. I did not have a return date either. They’d have been fools to give me a mortgage at that time. So a newer certified pre-owned vehicle it was.

Now for the key to credit building starts with credit monitoring.

In the 2 years since getting a car loan, I had not monitored my credit. I assumed it was good if I can get a 20K car in 30 minutes. If you follow my journey you’d know that I never knew much of anything about credit building. As you may have guessed I had some medical bills that I had not paid which went into collections. my student loans defaulted as I dropped out of school unofficially (still owing for the semester).

As the bills started to roll in I realized that I need to go ahead and get credit monitoring just to see what has been going on. I knew that several companies offered credit monitoring simply because of commercials. I won’t name them all but there a few that I’d stay away from altogether. I did not understand my credit reports from them.

I also had no experience reading a credit report but still, it shouldn’t be that hard. In a room full of fools I’m considered to be pretty intelligent. I did a few google and youtube searches and suddenly I found one credit monitoring service in particular that all of the “gurus” were using. I quickly saw why. Not only did I understand the credit report but I spotted inaccuracies on every single item on it including the car loan.

Dates were reported differently on all 3 major bureaus. Payments made, balances owed, all were reported inaccurately. So I looked up some DIY credit repair templates (also found in my research) and got to work on removing inaccuracies. My credit report was littered with inaccuracies of every type on every account that I ever had! Over twelve years of credit history that was all wrong!

If the company grants me permission I will add them to this post but until then they will remain nameless. If you join my social media site and add me as a friend I will tell you. Continuing the journey, I disputed for roughly 6 months to no avail. Things did get removed but I quickly realized that I did not have the stamina for DIY credit repair. I did not know what I was doing. Therefore I have little no confidence that it could work. I hired a professional. However, credit repair will be another topic for another day.

The criteria for credit repair with this professional was that I get and maintain credit monitoring for the life of the program. It was with the only credit monitoring company that I would recommend. They said they were the best I agreed. I have been monitoring my credit for about 3 months now and I cannot foresee a day that I will stop. The peace of mind that it gives me is priceless plus the additional perks like 1,000,000 fraud protection, identity theft protection, SSN monitoring, are just a few of the things they keep an eye on.

The credit repair professional told me that I can keep an eye out for alerts from my credit monitoring service which lets me know that things are happening. My scores have gone up drastically. Being aware of your credit profile and score allow you to take action. That what I did. It’s true that it costs money every month but so does everything else that we place a value on. credit monitoring is just as important as grocery.

keep in mind that you cannot get a car, mortgage, personal loan, credit line, or most other things without a decent credit score. Plus this service gives your scores and reports every month. I hate to sound like an advertisement but I’m being honest here. The 1st step to credit building is truly credit monitoring. I’d love to debate you on this topic.

Every company that claimed free credit report gives you 7 days to try to interpret it before they bring the charges on you. They have complicated reports purposely so that you can just peek at them and go away or become a paying customer. Can you believe that some credit monitoring services have inaccurate credit reports on top of being hard to interpret?

You can take my word for it or you can go out and find this out for yourself. I won’t waste a dime on any other company. Especially since they all charge roughly the same prices. Once you are aware of your credit situation like I now am. You too can take action. Join the social community I created for people in a similar situation to be amongst like-minded individuals. Everyone is seeking to either build or rebuild the credit score or credit profile.

This thing takes time. No one thing can cheat time. But I wasted 2 years by not having credit monitoring. I was blindsided by all the traditional mail I had been getting of past due bills, closed accounts, and collection letters. had I simply had credit monitoring I’d have known this two years ago and would not currently have poor credit.

I am at about 568 all across the board currently. I live in a crappy apartment but its functional. I have a decent income and can handle all of my bills and debts currently. I can still go out, hang out, and get things paid on time. I have no life complaints other than my bad credit and not having a mortgage.

I found ways to increase my income steadily. I’ve started my own business(es). I even have learned how to build credit for corporations also. Since I am a business owner it is my duty to wear all of the hats one of them is CFO (chief financial officer). Slowly but surely my situation is improving. If anyone out there reads this let me know that I am not alone by joining my website.

If you are in a similar situation with me I can help you. If you know more than me then you can help me. Lets commune and build together. I have a wealth of knowledge now that can help anyone going through what I have been through. Don’t ignore your credit get credit monitoring. It really sheds light on your overall personal credit situation.

Like I said before, I’ll say it again the key to credit building starts with credit monitoring. Don’t do what I did and turn a blind eye. Don’t let the creditors make you run and hide. Don’t let those bills cover you in shame. You can get through just like I am. Many Americans before me have overcome bad credit.

Let’s embark on our credit building journey together! Thanks for your time.

My Personal Credit Is Ruined!

MY PERSONAL CREDIT IS RUINED

Unfortunately, my family or peers never discussed the process or importance of credit.  Had I known that I needed credit in my adult life, I would have done better with it. Had I know what credit could get me, I would have done better by it.

What you don’t know can and will hurt you when it comes to building and maintaining credit. Here’s my credit story! My credit went from a 715 to a 458 over a period of 1 year. Going throw this process was stressful and very slow. I spent 1 year sacrificing many things to completely recover from my personal experience using and abusing credit. Here’s what not to do with credit!

What caused me to get and use credit

I started with one credit card. But I didn’t just stop at one. Being new to the credit world is like a gift that only gives once! Most times once one creditor approves you they all do. This was the problem all the creditors I applied for approved me.

I had just relocated Minnesota and found out I was expecting. I had little to no support so once I got approved with many stores that sold baby items I kept applying. the terrible thing is I had not realized I’ll be on maternity leave very soon, how was i going to pay all these credit cards back, with all the shopping I never thought of how I was going to pay it back, instead I thought I need it or the baby will need it, lets get it. My situation allowed me to overuse credit simply because I wasn’t in a good position financially to support what was happening.

Balling with air money

The sweet and sour part about this is walking into the store and believing you have the available funds to spend, credit is not cash and at the end of the month, you owe someone money. My baby had everything she needed including what she didn’t need.

The power of money is strong. I became this new woman knowing that I got approved for multiple accounts. I even brought maternity clothes. I enjoyed shopping and eating. When people had all of a sudden asked if I needed help or needed them to purchase anything for the baby I declined. I had already resolved my own problem or at least making it worse.

I refer to credit as air money, you can’t see it nor is it accepted in all stores. On the flip side, if you had cash, I’m sure every store in the entire world accepts cash because that was the world’s first currency. You will find that most major outlet stores accept credit now more than ever due to fraud and identity theft reasons.

The big flop in using credit, I couldn’t make the payments

So the big day came and she was born and the creditors came calling. They called so much I changed my number. Shortly while on maternity leave my job called to tell me they could no longer work with my new schedule, I had not even returned to work yet. After knowing this information, paying credit was the very last thing on my mind.

For several purposes, I was wondering how am I going to provide for my family at this point. The credit accounts were all maxed out. I had dung myself an extra large hole. I quickly started applying for new jobs, luckily something came through.

This was a good thing, however, my first priority was paying up all my living expenses, by the time I got caught you all those credit accounts were in the process of being closed if I couldn’t pay the full amounts when I had called. most accounts were closed, others sent to collections.

Reaction to closing notices from creditors throw the mail

I panicked,  when I first saw my credit score drop by over 150 points my mind went racing.  I wouldn’t be able to get a house or a car let alone get approved for certain nice apartments that require a credit pull. I wanted to call the creditors but it was way too late to call and say anything. At this point, I started researching and reading many books on how to repair credit.

As I found some credit repair companies, however, I couldn’t afford to pay hundreds for that. I found out there’s really nothing you can do about collections unless you 1) dispute them or 2) pay them. On my credit search, I was advised to not, ever pay collections. So I didn’t pay any collection accounts instead I DIY some dispute letters. On accounts that were closed, I was able to pay those off if they agreed to remove the negative remarks off my credit report.

My adventure of repairing my credit

I was so happy to know that I’m able to get a second chance at credit. I have learned my lesson. How to use credit and definitely how not to use credit, no matter what your situation may bring. It took me about 3 months to get a full understanding of how to repair my credit. I had to search for creditors that would accept me. Mostly secure credit cards where you have to put the money up front and that would be your credit card limit. I also found loan programs to be very useful for building payment history.

These programs would basically agree to put a loan amount on your credit report as long as you pay on time every month and at the end of the program, you would receive all your money back. I had then learned you will still need credit cards to keep building your credit. I found many unique programs that played a big role in improving my credit score.

I had also learned later down the line that assigning a specific function to each credit card is a great idea but only if you can be financially mature to handle multiple cards. If not, it is better to stick to one card. Some consumers assign a specific card for groceries, gas and other items.

This is a budgeting tool that allows them to see how much each cost item is being used through the credit card bill. This is useful but requires a lot of restraint and discipline. Restraint from using the credit card just because you feel like it and discipline in using the card for specific purposes only.

Conclusion

I hope this experience help you through the repairing credit process. Being patient is the best thing you’ll learn when rebuilding your credit. I would love to leave you these important credit facts. Credit monitoring will help you better learn and track your habits when spending on your credit cards.

Calling the credit cards you intend to apply to first will save you fewer credit inquiries. If you know their requirements you will most likely know if you’ll get approved or not. Last but certainly not least identifying why you need the credit you have and how it enhances your life will help you discover what you need the credit for; for example maybe you have a business you have to financially support or trying to get buy a home etc.

Credit Building for Beginners

Credit Building for Beginners

In this new generation, in order to survive in your everyday life, you need to have a source of income. If you think that having a job means you can support your primary needs and wants, then you are totally wrong.

Others who are now employed, still think about all of the ways they can evenly divide their wages into their expenses. It is so difficult for them to divide it without having a shortage. That’s why some people are in total debt and some are getting credit cards as a way to extend their finances.

Having this kind of alternative has a positive and negative effect. Positive because this can help make your life easier in terms of monetary issues. Negative because if you are not good at handling and using credit, you will be deep in debt and totally ruin your credit score. Thus keeping you from getting additional credit lines and loans extended to you.

Contrary to popular belief, not everyone can get credit extended to them. Hundreds if not thousands of people get their credit applications denied every single day. As for beginners, securing a credit card can be tricky at first.

You need to have at least one credit account before getting a new one and that is a need.  We call this a “starter” credit card. How can you comply with this need when you are a beginner in the first place?

Usually, for your very first card, you get a secured card. Meaning what you pay as a deposit of $49 – $500 USD and that will be your credit limit. Some people get lucky because there are bank companies that offer starter and student credit cards to beginners.

The personal loan has been a great help to everyone. It’s always there when you need it. It can save you from your problem when you run out of money. So long as you can afford to repay the loan.

For those responsible with money, borrowing money is more of a convenience than it is a loan. This is a big help, isn’t it? Being able to borrow money whenever you need it.

However, there is a new community that will help you to gain knowledge of credit issues. A community that aims nothing but the best for credit cardholders. Understanding related terms about credit are sometimes very confusing especially when you are new to it.

Credit and terms can be very confusing. Credit building school is kind of community that will help you to understand more about building credit, credit repair and the essence of having credit in general.

They will help you to know more information about starting a new credit up and fixing bad credit. Technically, this is perfect for everyone who is thinking about getting credit cards and most especially beneficial for beginners.

It will help you to be on the right path. It will help you and lead you and support you in every step you take towards it. As for others who now have their own credit and are now having problems related to it, this community will help you find a solution.

They definitely have a solution to every problem that a cardholder can have at the moment. Don’ t stress yourself too much because there is a credit coach you can consult.

A huge gratitude to credit building school for being there for everyone who needed their help. Can you imagine a situation wherein you are having a hard time with your salary? Can you imagine that you have nothing in your pocket? Do you even know where to get money to fulfill your material needs when you run out of it? Probably not.

If your salary is not enough for yourself, then you cannot maintain or care for others in your household. Most people have their own responsibilities in their life. Responsibility doesn’t only mean self-responsibility. It can be a responsibility to family and relatives. This is sometimes a huge burden for others.

You have to work hard to fulfill your responsibility, to eat three times a day, to give a convenient shelter for your family, to meet their primary needs and so on and so forth. Thanks to a credit card for supporting you and your family needs.

I net that this really means a lot to you and to everyone who decided to go to credit building school to have a consultation about this matter. From a total debt and doesn’t know exactly what to do, you can now stand straight, breathe in and breathe out all the stressful things that you carried for a long period.

If you wish to have a credit card, you have to bear in your mind that you can use it over and over as long as you are paying off your balance. As a beginner, you might be overwhelmed by the many terms correlated with credit cards but you don’t have to worry because credit building school will help you to start one.

There are some credit card terms that will sound new to you and that includes an Annual fee which refers to the fee you will be charged for each year if your card has it.

Second is the credit limit which means the largest amount you can use or charge in your credit card. Next would be the APR which stands for Annual Percentage Rate. This refers to the interest rate that would be added to your balances.

Therefore, if it is annual, you have to divide it into twelve parts to get the monthly interest rate. Bear in mind that APR may change at any time. One good thing about having a credit card is you can use their cash advance APR. This means that you can use your card to take out cash. But, be careful!

You may have to pay a higher interest rate than the usual to borrow that money. Next is Penalty APR, which refers to a higher APR compared to the typical rate. This is because of late payments or returned payment. These are just a few terms you will be encountering in the future.

You also need to be very vigilant when you buy something. If you think you can afford it, then buy it. But if you think your budget will be compromised then perhaps you should use discretion. Don’t buy for the sake of buying. That is irresponsible and not having a second thought about whether or not you can truly afford your purchase is also irresponsible.

Think before you buy. You can always buy it when you think you it will be more advantageous. Products aren’t going anywhere. Take emotion out of your ability to purchase. You may find that you don’t particularly need the item(s).

It will be favorable to you because you will not need to worry when the deadline for making a payment. When your due date arrives to try to avoid paying interest by paying the balance in full. The rule here is if you cannot ay the balance in full you cannot afford it.

Basically, bad credit means having a record of past failures to comply with your payments as stated in your term agreement. This results in failed renewal or inability to get approved by new credit issuers.

This kind of situation is the one you need to avoid. Because this will lead you to trouble. Nobody wants trouble, right? It is really hard to be in the situation wherein you really need that money but no one is there to help you.

Some think that having a credit card is having free money. If you continue that kind of thinking you will definitely fall into credit card traps. Do not take it for granted. Do not double the amount you spent on your credit card versus the amount of cash you actually have. You have to be very careful and observant.

You need to budget your money properly. If you are spending too much you can track your spending. Therefore, by monitoring your own spending habits, you can try to control yourself.

Sometimes, you need to learn to say no not only to others but also to yourself because you are your biggest adversary. If you have questioned yourself and having a doubt about your personal expenditures, consider cutting off your credit card to avoid the hassle.

Do not take a risk by doing things that you are not going to have a profit from. You are totally wasting your time and putting yourself in financial stress. Some people think that having a single job is not enough to make ends meet in this generation. You need to work harder to gain the material things you want or to provide basic needs for your household.

You need to be wise enough so that you can finance yourself properly. Prices of each product sold in the market or any other stores got higher because of inflation.

You are being marketed to at all times of the day. How can you afford the latest luxurious phone, the latest car or any new gadget? No car is better than a working car. No new phone is better than a working phone. No new gadget is worth having if it does the same thing the old ones do. Everything is really overhyped and the market for products is severely oversaturated. Keeping up with the latest trends when you know that your salary is not good enough will leave you broke.

Here is where the banks win. They win on your lack of knowledge and your frivolous spending. They win on your competitive nature and your desire. They really drive the point home by giving you easy access to money. They know you will spend it.

Some settle on having a business to get extra income. But what if they do not know where to get capital for their business? Basically, aside from borrowing money from family and friends, you must go to the banks to get capital.

This kind of credit will help you get started in building a business. First things first, you have to study the field of your business which is very important because how can you pay your business credit when your products that are going to market are not in demand?

Having a business is no joke. You are going to try to find a repeatable and scalable product or service. That is the ob of every startup. You either will create demand or provide a solution to an already in-demand product or service.

You always need to have a pivot prepared and the capability of marketing it in different ways. You need to have different kinds of strategic ways of explaining it to others. So that they can potentially try and hopefully buy your product. This strategy is the key in every business endeavor. It is the center of any business.

It is whether a convincing talk or a convincing demonstration of something. If you are unsure about your business, do not ask for business credit. Money won’t help you create a lasting business.

Customers are the lifeblood of any business or service. Your main focus should be on getting customers. Getting involved or being with a community that knows a lot about credit like Credit Building School is a plus for yourself. They are the ones who can guide and support you step by step. They will definitely assure you that you will learn every possible thing that needed to learn in the field of credit. From smallest details up to the biggest one.

Businesses will certainly benefit from the capital they will thank our business credibility course.

You will fully understand the entire process. Additionally, you will be fully aware of how things flow according to your decisions.

These communities are not just a big help for you but also for everyone who wishes to get any kind of credit. Not just because they will help you but also because they are eager to share their knowledge about it.

Members will help you understand that having a credit doesn’t always have a negative effect. It is just that, it really depends on you because you are the one using it. You just have to be very careful in every purchase you are going to make. Having a credit card does not mean that you have all the money to buy something. Be a wise consumer.

Sometimes,  people are experiencing a total financial disaster due to misuse of credit cards. Don’t let that be you. Join now to start your journey at credit building school. Refer a friend or family member to increase your capital pool.

10 Ways To Destroy Your Credit Score

10 Ways To Destroy Your Credit Score

In every mistake that you will do, there is always a consequence that awaits you. That is the reality. As stated in Newton’s third law, “For every action, there is an equal and opposite reaction” – you can compare this in real life some people live with this quotation because it is somehow true.

However, your mistakes serve as a lesson to you. You should learn from your experiences. The experience that you went through is the best teacher of all times. You should really be aware of the cause and effect of your actions. Always think that what if you did something?

Will, it harms others or not? Will it result in positive or negative? Just like in having a credit card. If there are ways on how to rebuild a good credit score, there are also ways on how to destroy a good credit score, and you need to be aware of it.

Having a good credit score can make your life affordable and more accessible. But what if you fell down to a bad credit score? That is big trouble and conflict. In this article, to be fully aware of the possible things, reason and ways on how to destroy or have bad credit, I will discuss it here.

Your credit score is significant. It will serve as a basis when you apply for a car loan, open a new credit line or acquiring a new investment. So first, If you missed the payment deadline, it will lead you to have bad credit.

It does not matter whether you forget to pay, missed the payment date or even have a legitimate reason, your credit score will be affected either way. This mistake is very obvious to everyone. If you miss the deadline for your credit, it will change the credit score.

In some cases, paying one or two late payments for your credit or loan will not totally damage your credit score. But if you do it repeatedly or numerous time, it will count against you.

Second, if you always spend your credit to its maximum limit. Spend on your credit card between 10 to 30% of your credit limit is advised. If you run your credit card debt above 50%, your credit score will begin to be affected. So, be vigilant in using your credit limit. You cannot just spend over and over again without understanding and studying the required percentage to avoid having bad credit.

Third, getting credit the card in your early life will affect your credit score. Getting a credit card at an old age does not mean you are ready. In this generation, as early as college level people are getting a credit card. Keep in mind that having a good start to create a credit history is substantial.

Before you apply for a credit card, you should have some financial basics first to pay your own debt. However, most of the people tend to be a poor borrower. They fell into poor spending habits and always maxing out its credit limit.

When this habit continues, expect to be in debt at an early age. Remember that falling into debt at an old age in your life makes it harder to get a new credit account later in your life.

Do not just get a credit card without having a stable job because you may not be able to pay your monthly credit balances and lousy credit may soon to follow.
Next is when you come up to a decision to close your credit card accounts.

If this happens, choose your newer accounts and take note that when you close your credit account, you reduce the amount of your available credit. Do not ever settle for closing your older accounts because of the 15% of your credit score determine by how long you are using credit.

The next one is if you are applying for a new credit card more often. Take note that every time you apply for a new credit card, an official inquiry into your credit history is made. Every time the inquiry is made, the higher the opportunity to earn a point against your score.

Opening up a multiple credit account in an ample amount of time is a symptom of bigger spending issue. Think first of the possibilities before making a move. In addition to that, multiple inquiries may also indicate credit history with problems and mistakes.

Sixth, if there are missing errors or ignoring your credit report – always check your credit report to see if there are any erroneousness. Most checked inaccuracy reason is medical payments. It is known to be a long process before they finally bill you and they tend to rack up errors. If you find any inaccuracy or errors in our credit report, begin to communicate with the credit bureaus and start alleviating them.

Similar to missed credit payments, a natural and continuous inability to make payments through a debit account or checking account, higher the risk of being reported to an agency of collection which will lead you to the in the ability to create and getting a new credit account in the future. If you do not want to accumulate a bad credit score, do not miss your credit or loan payments.

Eight, borrowing money just to boost you’re a credit score is not a good idea. It will also destroy your good credit score. While it is unbelievable in some parts, there are credit schemes that bill themselves as credit card boosters. Just keep your rate below thirty percent and pay your credit balances on time and your credit score will undoubtedly improve.

Next is paying your house rental, not in time may also affect your credit score. Some landlords ask for rental payment every first week of the month, but do not send it for several days. Just in case you think you can turn in your rental a little late, landlords can still report you for late payment.

If the house owner decides that he or she is sick with you slow or late payment, you can be reported to the credit bureaus. And if you are not able to pay your rent within the thirty days period of time even if you have a valid reason, your credit score will drop. Most especially if you get closer to an eviction notice, your credit score might hurt badly.

Lastly, if you are not able to alert creditors that you already changed your name. Not notifying them that you had your names may lead to credit report inaccuracies. While others do not require identification, still you have to inform them in different ways to avoid earning a bad credit score.

All of you have worked hard to build a reputation of a good credit score. Do not let ill-informed decisions and errors tarnish your good credit score. Most of the financially related action positively affect your credit score. Even if you are not asking or borrowing money, your financial actions can impact your credit score.

An abysmal score can make it impossible to have a loan to buy a house or car. Your financial developed actions and habits over time and the decisions you make could literally have an impact on your credit score without even realizing it.

You can ruin or destroy a credit card with a good credit score in a blink of an eye. One more thing about killing a good credit score is if you let someone irresponsible borrow your credit card. You are the one who is responsible for any transactions made in your credit card.

Even if it means you help someone important to you or a family member and let them be the consignee of your credit card, you are still the one who is responsible for it. Sometimes, there are straightforward ways that may affect your credit card without noticing it.

You can keep your limits low, but sometimes you may max it out. As long as pay the balance in full by the statement date you are in the clear. Credit monitoring can be a helpful resource. It can also cost you money that you are not willing to spend. Do not be also be a victim of identity theft. In this new era, the technologies are more high tech than before. There are a lot of ways to have your relevant information, and only pros can do that.

Do not trust others when it comes to this matter. Even if it is your closest friend. Always keep your personal information in yourself to prevent anyone from gaining access to your credit card accounts or just opening an account under your name.

Remember that there are extra and numerous benefits when you have a good credit score so why bother having a bad credit score? You are just giving yourself a problem and putting yourself in trouble. It is not easy to rebuild credit.

You just have to work for it really harder. Do not take advantage of using it. Keep in mind that you have to use it wisely. At some point in your life, circumstances would come that you did not expect.

You can use the advantage of having a good credit score to have a loan on the best terms. Because lenders use your credit score to evaluate and determine your creditworthiness, to see if you are a good payer and a responsible borrower.

The less you use your credit limit, the better. Be sensitive enough with the credit score you are earning. The key to having an excellent credit score is to follow credit guidelines and use it the right way. It is far easier to destroy a good credit score than rebuilding one.

It only takes a matter of days to destroy a good credit score but a long and lengthy process in trying to build it up again. Do not intentionally ruin your credit score because you will face a financial bleak in not only the future but also a long and challenging process of putting it back to its original score.

As you can observe, crashing through your credit card is not a difficult task at all. It is the process of rebuilding it that consumes your time and energy. I cannot see any possible reason why do you need to destroy your credit score. Unless you are not responsible enough to use it and it is only by accident.

This kind of incident only happens to young adults who are eager to use credit cards without knowing its guidelines, people who do not know how to handle money and adults who cannot control themselves when going out in a mall and always having a shopping spree like there is no tomorrow.

It is better to put your effort into building your credit a good score because of numerous benefits when you needed it the most than to destroy your good credit score that causes more trouble in your life. I hope that this article shows you and helps you in dealing with your credit card usage.

This aims to help you be more cautious and responsible in handling your money yourself. This also aims to help you understand more some points in using your own credit card and what are the positive and negative effects of using it correctly and overusing it.

Now you already understand something about this matter, always bear in your mind that whatever you do in life you have to think numerous times to have a positive outcome in every action you do and decisions you made. Do not make any decision unless you are a hundred percent sure about it.

Think always that when you have a good credit score means you have extra benefits in your life and you can have a loan on the best terms. You can never tell when you need these loan, but this will help you to have a lower interest rate compare to the usual and regular rate.