Updated: Mar 9
There are a lot of different challenges with building your credit or maintaining a good credit score but it shouldn't be difficult.
In my line of work one of the most COMMON issues I see are that either someone does not have enough credit or old challenges not addressed. Here are some simple rules to follow:
1. Work with your debt collectors - Now this can be a challenge because we all know this heavily depends on the debt collector and company. Sometimes they can be difficult to work with! BUT remember that you get more results with honey than vinegar. Negotiate a settlement - and be persistent. They already have you in collections. You can call everyday until someone works with you! They have zero issue calling you everyday, don't be shy!
2. Create positive credit!! Sometimes clients are so scared of credit they have 1 $500 credit card, student loans, and old collections. There is literally NOTHING reporting positively to their report. A good way to start is with an installment loan or secured credit card. Some credit unions offer what is called a credit builder loan! This would count towards having a variety of debts.
3. Never pay anything LATE! Paying bills show other creditors you are "irresponsible" or unable to manage your money! If you do have one missed payment call your creditor right away, apologize, and see if they can reverse the late payment as a courtesy!
BONUS: Do not max out your credit cards - For the maximum benefit keep cards at 30% or below their available balance. You should always aim to pay MORE than the minimum so that the payment does not go all the interest!
Michelle Lugo with Trulee Residential - Your absolute favorite REALTOR.