quizzle's credit improvement basics

18
Quizzle’s Credit Improvement Basics

Upload: quizzle

Post on 25-Dec-2014

151 views

Category:

Documents


0 download

DESCRIPTION

Quizzle.com, the web's only true provider of free credit scores and reports, gives you the inside scoop on how to improve your credit.

TRANSCRIPT

Page 1: Quizzle's credit improvement basics

Quizzle’s Credit Improvement Basics

Page 2: Quizzle's credit improvement basics

Quizzle’s Credit Improvement Guidebook

Table of Contents...

1. Credit Improvement Tips2. Credit Cards3. Debt Management

GET THIS GUIDEBOOK!

Page 3: Quizzle's credit improvement basics

1. Credit Improvement Tips

Page 4: Quizzle's credit improvement basics

5 Steps to Improve Your Credit

1. Pay all bills on time every month

2. Use a small percentage of your available credit

3. Monitor your credit reports & scores and dispute inaccuracies

4. Don’t apply for numerous lines of credit in a short period of time

5. Don’t close credit card accounts you don’t use

Page 5: Quizzle's credit improvement basics

7 Credit Improvement Tips

1. Pay Bills on Time!

2. Pay old debts. You may have made a few mistakes, it’s OK, just pay off and stay current

3. Pay down cards. You often need credit cards to build credit, pay them down (and off) reliably

4. Spread it out. Spread debt across cards; try to keep balances capped at 30% of the limit

5. Don’t close old accounts

6. Don’t open new accounts you don’t need

7. Check your credit regularly

Page 6: Quizzle's credit improvement basics

6 Good Credit Tactics

1. Restrict your credit card use

2. Get a copy and review your credit report

3. Pay off any delinquent accounts

4. Keep credit card balances low

5. Open new lines of credit sparingly

6. Keep track of bills and pay credit cards off faster!

Page 7: Quizzle's credit improvement basics

Denied a Mortgage? Don’t Despair - Fix It!

First, ask the person handling the application why you were turned down. You’re entitled to know!

Second, a bad appraisal may be the issue. Banks don’t accept another, so look for a new lender.

Third, your DTI (debt-to-income) ratio may be high. Community banks may understand your situation better.

Fourth, it could be your credit—the classic problem. Get free credit reports & scores with Quizzle so you know what repairs to make.

Fifth, after you’ve done these things—re-apply!

Page 8: Quizzle's credit improvement basics

2. Credit Cards

Page 9: Quizzle's credit improvement basics

How To Deal with Card Debt

•It’s OK! It happens. You may have to pay gradually, but avoid minimum payments. Interest piles up, making mountains of mole hills. This wrecks credit scores over time.

•Pay cards with the highest utilization (balance compared to limit. Lower=better!). 50+% hurts credit scores. (Continue paying other cards if possible.)

•Next, pay high interest cards. Don’t charge more or open new cards! As always, monitor your credit. Most debts drop from reports after 7 years.

Charge card trouble get you into serious debt?

Page 10: Quizzle's credit improvement basics

Starting to Rebuild CreditSuffered through tough times or bankruptcy?

Most negative marks drop off credit reports after 7 years. Bankruptcies can last 10. ‘Devalue’ negative marks by paying them down and keeping current with bills, cards, and other debts.

Next, get a secured card with a low fee structure. The deposit is refundable and doubles as your credit line. You won’t get in over your head. Make sure the card you choose reports payments to the 3 credit bureaus—otherwise it doesn’t help.

Keep new balances below 50% of the credit limit.

Page 11: Quizzle's credit improvement basics

5 Reasons Store Credit is a Bad Idea

1. Interest is usually sky-high!

2. Too many cards or applications hurt credit

3. Cards can ONLY be used at that store

4. They lack traditional card perks like extended warranties, rewards, purchase protection, etc.

5. With less time to read fine print standing at the counter, you don’t know what you’re signing!

Applying for a store credit card to shave some money off a total? Consider this before you do!

Page 12: Quizzle's credit improvement basics

Does Closing Credit Cards Help Your Credit?

STOP! DON’T DO IT!

Sure, it seems logical: “I had major credit card debt, but paid it off. I’ll close my card to never deal with that problem again.”

Except credit doesn’t work that way! If you’ve paid off your card and want to avoid future issues, stick it in a drawer and forget about it—but don’t close it!

Your credit scores benefit from open credit lines—just not big debts owed on them or late payments. Keep the car - just pay it off and leave it be!

Page 13: Quizzle's credit improvement basics

3. Debt Management

Page 14: Quizzle's credit improvement basics

The ‘Snowball Strategy’: Paying Card Debt Faster?

Finance expert Dave Ramsey’s personal formula…

Contrary to most get-out-of-debt plans, you pay off the card with the smallest balance first, (while making minimum payments on all card debt).

After that first card is paid, you take the amount you were shelling out on its minimum payment and tack that onto the second smallest balance you owe.

Each time you pay off a debt in full, the amount you pay towards your next debt increases, allowing you to clear the debt faster.

Page 15: Quizzle's credit improvement basics

Bad Credit? Check Your Mirrors!

Besides costing you a home loan, bad credit can take a major toll on insurance rates—of all kinds.

1.Auto, homeowner, and renter insurance all review your credit score to inform their rates

2.Credit scores below 720 are in the most danger

3.Some surveys show upwards of 80% of credit reports contain errors

4.26 States have laws protecting consumers from unfair insurance scoring

5.To avoid getting ‘blindsided’ by auto (or other) insurance--monitor your credit regularly 

6.

7.

Page 16: Quizzle's credit improvement basics

4 Tips to Recover from Bankruptcy

1. Don’t believe those saying they’ll get a bankruptcy entry removed from your credit reports; Inaccuracies can be fixed, but only time scrubs bankruptcy from a credit history

2. Don’t give in to living a “cash only” life; You’ll need to rebuild your scores—use credit, just use it more responsibly this time

3. Start writing down what you spend; Build greater

self-control while re-building your credit scores

4. Keep an emergency fund; Set-aside some money for unforeseen financial shortfalls so you never go back into bankruptcy!      

Page 17: Quizzle's credit improvement basics

3 Quick Tips to Rebuild Credit 1. Get a savings-secured loan from local banks or credit unions. Give, say, $250 to a bank for

a savings account. The bank lends you that amount, freezing your account as collateral. As you make payments, that amount is freed in your account.

2. Open a secured credit card. Your savings account acts as collateral, but is not “unfrozen” as you make payments. Keep your balance low.

3. Have someone make you an authorized user on existing credit lines. If a family member has existing credit cards with positive payment histories and low balances, ask them to make you an authorized user. 

     

Page 18: Quizzle's credit improvement basics

5 Facts About Missed Card Payments 1. Missed a payment? Don’t panic. Unless you’re 30+ days

late, it won’t show up on your credit report.

2. Late payments: First, there’s a fee (usually $15-35). Next, it’s reported to the credit bureaus--lowering your score. Then,

after 60 days, your interest rate can be raised.

3. The CARD Act of 2009 banned “universal default”, (Card

‘X ’ could hike your interest if you were late paying Credit Card ‘Y’).

4. First offense? Ask them to waive your fees. It may or may not work, but it’s worth a shot.

5. Fix the problem—don’t run from it!