Build Credit for a Better Future

By Michael Benifez
Building credit is building a better future for yourself. Nowadays, it takes good credit scores to purchase just about anything, such as a home or car. If your credit is bad, your life will seem like it’s in a downward spiral. It takes time to find a solution that will repair your credit.
The fist step in repairing your credit is to take a look at all your bills, including the past-due ones. Make sure current bills are paid in full to avoid more negative credit reporting.
Once you have taken care of your current bills, work toward paying off your late bills. Some current bills, such as utilities or unsecured bills, can wait longer than others. You might want to payoff your secured bills first. Secured bills are those that require collateral. You risk losing more with unpaid secured debts, so take care of those first.
Most utility companies will delay a bill if you don't have the funds, and you may be able to get some help paying them. Social Services and some religious organizations offer this type of support to low-income families. If you have a loan with a bank, you might want to contact your lender to see if there are options for reducing your monthly payments.
Some banks wait for financial burdens to occur before they offer a solution. They may, for example, ask you to consider refinancing your home or car. Be careful in this situation because some loans have high interest rates. Some loans may have additional hidden charges, so read the fine print thoroughly.
When you’re trying to repair your credit, it’s important to find the best deal out there for you. To start with, though, figure out what you can cut back on. Reduce spending as much as possible. Delayed gratification may be your key to a better future. This will also allow you to begin repairing your credit.
Credit repair is the process of rebuilding your credit history, thereby reestablishing your life. You need to look at all angles to find a solution to repair your credit. When you are searching for solutions, consider all aspects of the resolution you choose. If there are additional charges, you risk getting further in debt instead of building a better future and repairing your credit.
Debt counselors, debt consolidation, bankruptcy and various companies offer credit repair solutions. These, however, should probably be the last resort if you really want to get out of debt and repair credit.
If you think bankruptcy is the answer, realize you will need a few hundred dollars upfront to even start the process. Lawyers are not cheap! On top of the high prices you’ll have to pay, you’ll also go through court proceedings and other headaches. The best solution is to find a way out of debt on your own.
If you’re in debt over your head and have nothing left to loose, it might be the time to ignore your debts completely. This sounds ludicrous, but it’s sometimes is the only solution to debt relief.
Before it gets this bad, however, you might ask your family or friends for a loan that’s enough to pay off your debts. You might have to pay them interest, but friends and family will often charge less and give you a longer time frame to repay your debt. This solution is often better than applying for a bank loan to payoff your debts.
Most bank lenders welcome people who are struggling and take advantage of their situation by offering high-interest rate loans. Your monthly installments are often lower, but your price in the end is huge. Search all options before deciding on a solution to repair your credit.