3 Easy Ways to Repair Your Credit

Worried about your bad credit? Don’t worry; you are not alone. Every year, thousands of Americans face the challenge of finding the best way to boost your credit score. So you’re not the only one carrying the burden of a bad credit. However, this does not mean you should celebrate and be happy because you still have to fix your bad credit. You will want to put your credit score back in good shape if you are planning to get a loan, buy a house, or purchase your first car. But how can this be done? Try the DIY guide at AAA Credit Guide or use these three simple ways you can follow.

1. The first thing you need to determine and find out is the major contributing factor to your bad credit.

Was it your credit card usage? Or do your late payments have something to do with your score? Or perhaps the way you manage your credit accounts contributed to the drop in your credit rating? There are a lot of reasons why you obtained bad credit, but the common factor for it is the way you handle your finances. If you can’t control your spending and keep on using your credit cards, your credit list will increase. If you are not able to pay your dues on time, this will pile up, and your credit rating will be affected. It’s all right to keep using your credit cards as long as you know your payment responsibilities, too.

2. Pay off your debts.

Now that you have identified the major culprits, you have to work on clearing your debts. You won’t be able to pay it off in one month; that’s completely impossible! So you’ll have to pay it slow but steady. Schedule a payment reminder so that you won’t forget what to do every time payday comes. This will help keep you on the right track until, eventually, all your debts will be erased.

3. Practice discipline in your spending.

You may have cleared and paid off your debts, but if you do not change your spending attitude, there is a big possibility that you will go back to your old ways. Therefore, it is important to learn to discipline yourself when it comes to spending. If you have several credit cards, choose only the ones that are essential to you. Leave only one or two credit cards. Also, right after paying off all your debts, refrain from making any credit card purchases first. Let it rest for awhile.

Are You or Your Finances Ready to Build a Home? Here Are 3 Signs to Watch Out For

Anybody would want to own a home. Anyone would want to have a house and lot under his/her name. It’s not easy, but if you’ve been planning for it for quite some time, it should not be that difficult anymore, right? Then again, it’s important to make sure that you are ready to build and own a home. If you have no idea how this should be done, here are some tips that might help point out the signs you need to watch out for.

1. You are debt-free.

This first sign can say, “If you have the money,” but that’s not really an assurance that things are all right regarding your finances. If you have money but are still paying off debts, owning a home should be out of the question. You need to work this out first and ensure that you are debt-free. If you’re still paying debts every month, this will add up to your expenses and will affect your capability to pay mortgage. Once you are debt-free, you have more financial freedom, and you’ll have more extra cash for whatever fees and expenses for your home you will need to pay.

2. Your credit rating is beyond good.

If you plan to purchase your house through a home loan, it is important to have a good – or beyond good – credit rating. You won’t be able to get a loan if your credit rating is low. In addition to this, your credit history should be good, too, because it will show a list of your previous loans and the outstanding debts you have, if there are any. A good credit history means all loans are paid, and bank accounts are active. A good credit history will give you a good credit rating. As such, you go back to sign number one and make sure that you are credit-free to get a loan.

3. You should be employed and receiving salary regularly.

It’s not enough that you are employed; you have to be a regular employee receiving salary regularly. If you work on a contractual basis, the tendency is that there will be times when you won’t have steady income, and this can hurt your chances of owning a home. So, find a good and steady job first before entertaining ideas of buying a house.