Your credit rating is rather an vital piece of recorded history. It tells something of your capability to manage debt to a possible bank who may have no other way of knowing.
You can feel that it is pointless to consider purchasing your own home if you happen to have got a less-than-perfect credit rating. But in-roads can be made into that issue, and patiently you could be house-hunting this time next year!
Let us suppose you feel that your credit record has been a little ‘off-color ‘ and that your record is not looking the way you would like it to. Many of us experience bad times, divorces, patches of unemployment, illness – there are several major reasons why someone can have a bad credit history.
Sadly these bad times can be mirrored in our credit rating. Failure to pay bills on time, or pay them at all, will be listed in the history.
But now life has been good to you, and things are in hand, so how to eliminate all of the black marks from previous years? Well, in reality you can’t! Sorry, that's the bad news – but there's good news too! There are 2 ways around that problem that are fairly simple.
Some banks will set you up with a way to give you a fresh chance! Many won't[**] there is however one national bank that will consider helping you.
They may issue you with a credit card that carries a low credit arrangement of say $200.00 to $500.00 and you will deposit the equivalent amount of cash in a new bank account at their bank.
Your cash won't be used by you, it'll sit there. It is like insurance for the bank. Every month you'll use your Mastercard (make sure you keep a running debt on it), and each month you will pay the card off, or pay the minimum payment or a bigger amount. This must be paid on time every month, as you are attempting to prove that you have control over your finances now.
The second way is this: there's a Visa card company that is always sending out application forms across the nation; they publicize that you do not need to have a great credit rating to get a card with them
If you get one of their cards, and pay off at least your minimum amount each month, you'll be building credit. Now you are trying to re-establish sound credit, there are 3 basic rules.
Pay all of your bills. Pay minimum balance when you can’t afford more. If you skip payments, get them current and do not let it happen again. I.e. Request direct debit payments.
Even the most lenient mortgage lenders require a great credit history for a minimum of a year, so if you follow these tips, you might be on your way to buying a home next year!