Avoiding Credit Horror
Monday, December 6, 2010 at 11:25AM Avoiding Credit Horror
Sometimes it takes some effort to deal with your credit, good or bad, but the hard work pays off. Time and time again I have met with clients who have excellent credit, and they cruise through the mortgage process with no difficulty; it is as easy for someone with good credit to buy a house as it is to buy an X-Box, coffee maker, or any other household product.
When you have bad credit however, it’s a much different story.
Here are a few tips to ensure great credit:
a) If you are paying bills using online banking, and your payment due date is a Saturday or Sunday, don’t pay on Friday. The transaction won’t be processed until at least Monday—now it’s late and reflects poorly on your credit score.
b) Always keep your balance at 80% or lower than your credit limit(s). So if your limit is $1000.00, your balance on the next bill should be $800.00 or less.
c) Two credit cards with a $1000.00 limit each are better than four credit cards with a $500.00 limit each.
d) If you ever go bankrupt and you have a government student loan, this debt will not be included in your liabilities. Even if the bankruptcy trustee tries to include the student loan(s), you will be required to pay. If you don’t make monthly payments, it will come back to haunt you! Continue to make your monthly payments until student loans are paid off in full, no matter what.
e) Moreover, if you go bankrupt, make sure you are provided with a “Certificate of Discharge” showing the date your bankruptcy became official along with a “Statement of Affairs.” The statement will list all included debts. However, even if the statement lists a student loan, you must continue to make payments on the student loan.
Do you have a credit horror story? More questions about bankruptcy? Questions about qualifying, good and bad credit, or mortgages in general?
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Avoiding Bad Credit, Credit, Credit Horror
Reader Comments (1)
They Bad credit is worst thing these days. Most of the things of life depends on the credit history.
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