Credit scores and credit bureaus and FICO look like a three-headed monster living under your bed. Pull back the covers and see if you even care what your FICO score is this month.

So why does the average consumer worry so much about his credit rating? Brainwashing!

Credit – Buying things you don’t need with money you don’t have. Sounds like a country I know.

A high FICO/credit score can only guide you down the path to crushing debt. Living beyond your means is the American Way.

Here are 5 reasons to take a different approach and to tear up your credit report:

1. Credit Score Does Not Pay Bills.

If you have income to cover your bills, what do you need credit for? If you don’t have enough money to buy gas, to pay for groceries, or to handle life’s expenses, you have much bigger problems than a fluctuating number determined by a computer algorithm.

2. No Real Control Over Your Score.

No matter how many credit repair books you read, it is hard to raise your score except by paying your bills on time. And even then, which bills you pay can have more to do with your score than how much you pay.

Not all bills are created equal. Your credit score might improve if you pay certain bills on time, such as:

• - a POTS line phone (Plain Old Telephone Service – it’s a real term)
• - mortgage
• - gas
• - electric
• - and other utilities

But let your debt-to-credit ratio get too high on your credit cards and you can get slammed no matter how current your payments are.

3. Credit Bureau Mistakes.

Your credit score is like an idiot savant. It knows your payment history and debt-to-credit ratio. That’s it.

What’s missing? Your income. Someone who just landed a big paying job gets no higher FICO score. Someone who pays cash (credit ghost) who has no debt is treated like a leper. Mistakes also happen. Credit bureaus are notorious for confusing similar names and keeping bad information on file even after notification by effected consumers.

4. Too Much Debt.

All a high credit score can do is tempt you into taking on too much debt. For the person who lives debt-free within their means, a FICO score is worthless.

Use your credit card, carry a balance, and pay on time, and the banks will increase your limits and give you countless opportunities to take on more debt.

Lose your income or suffer a personal financial crisis, and all that built up debt just increases your woes.

5. No Legacy.

Death and taxes are inevitable. You can’t successfully avoid either. On the other hand, your credit score is left at the graveside.

Concentrate on living a wealthy life no matter what your income is.

Eat, drink, and be merry, just not on someone else’s dime.

And live within your means.

If your credit rating is shot, bury it. You will sleep better at night.

Look for more contrarian financial strategies at Burn Down the Freaking Mission.

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Other Related Articles:

• What Will A Good Credit Counselor Do For You – Part 1
• How To Repair Your Credit – Step By Step – Part 3
• How To Be Debt Free – Finally
• How Living Within Your Means Can Make Life More Enjoyable
• The 6 Dirty Secrets About Debt Consolidation The Banks Don’t Want You To Know

- Part 1 – Recognizing Your Debt Problem and Obtaining Your Credit Report
- Part 2 – Acting on Your Credit Reports
- Part 3 – How To Understand Your Credit Files
- Part 4 – Observing Your Bills and Other Debt | Secured and Unsecured Debt
- Part 5 – Creditors, Collection Agencies and Debt Counselors

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In Part 4 of this series of “How To Repair Your Credit” you were taught to use the most powerful tools you have - that being your own mind and the senses you were born with. We also talked about the fact that sometimes our “tools” were just not enough. In this case it may be time for outside help. If need be it is time to look for a good Debt Counselor to be on our side and help us with our debt load.

As with most things in life, there’s usually more than one way to “skin a cat” so to speak. This last post in this series talks about another alternative for you to think about in repairing your credit.

How To Use Pre-paid Cards To Build Your Credit

If you think about it, this credit repair alternative will not work so well if you are flat broke. If your debt load is so great that you are very low in funds, then seeking out a good Debt Counselor is still the way to go.

On the other hand, you may want to consider purchasing a pre-paid card if at all possible. This could come very handy if you have a low credit score or a bad credit rating or if you have difficulty obtaining a regular credit card. In this day and age, virtually everything can be paid with a credit card, even pizza delivery.

Pre-paid cards are offered by Visa as well as Master Card. They all work just like regular credit cards and no one will ever know the difference. All you need to do is deposit money into an account and you are set to go. The downside to pre-paid cards is that you need to pay a small fee when you open an account.

As with everything else in life, all is not equal. Some pre-paid cards are more expensive than others. Also, not only would you pay a fee to open an account, you may also need to pay another small feel every time you want to deposit funds into your account. This may be one good reason to deposit more funds in the first place to avoid constantly paying these fees for every deposit. Remember though, the reason you are purchasing pre-paid cards in the first place is to help you solve your credit problems.

Now…just because you purchased your pre-paid card, you still need to keep paying your bills on time and you need to avoid impulse buying. Do not start spending your extra money on items you really don’t need...(unless you want to buy some beer and pizza – just kidding).

You would not believe the small fortune that people spend in only one ten year period on things they never or seldom use. They may end up buying a pretty flower vase for $100 only to let it sit in the closet and then sell it at a garage sale for $5 a few years later.

Ask yourself how much junk you have in your house that you spent a lot of money on and never used. I admit that I’m also a pack rat. Of course I sold most of them on eBay and in some cases even made a profit. But don’t count on it…

…speaking of which…do you do eBay??? This may be something to consider.

SUMMARY:

Repairing your credit is not exactly easy, but it does not have to be hard either. Although you can find a lot more information on this topic, these 6 article posts should give you a good start.

In part 1, the most important thing you need to do to get your debt load under control is to recognize that you actually have a debt problem and that you need to do something about it. Once recognized, it is time to start setting yourself a goal and to initiate a plan. In getting your plan realized your next step is to obtain your credit reports from the three main credit bureaus.

After you have your plan at hand, Part 2 lets you discover how taking action on that plan is the next step in repairing your credit. Learn how to read your credit reports and how to take action on any charges you find on those reports. Sometimes these charges have no merrit and have no place in being on your credit reports. You need to take care of those charges.

They say that knowledge is power. In Part 3, knowledge is what you need to acquire. Here, you learn how to understand your credit files. The more you understand how your files work, the easier and faster will it be to fix any problems with them. You will also find the links to the three major credit bureaus you need to contact.

Part 4 of learning how to repair your credit is all about vigilance and observation. This post talks about how you need to be aware of any loans or bills you may have and the importance of each of them. If the loan is of the secured type, you need to keep on top of it or you could lose your shirt. Although important, unsecured loans, like personal loans, take a back seat in comparison to the secured variety.

What happens when you have bad credit? When your creditors or collection agencies come calling, do you know what to do to protect yourself? Part 5 discusses these issues. This article also talks about how and when the Internal Revenue Service gets involved when you don’t make your payments on time. Finally, we introduce to you the concept of debt counselors. A good Debt Counselor can be your best friend when everyone else is trying to get inside your wallet.

Finally, this final post, Part 6 gets a little into prepaid cards. Really, the only difference between pre-paid cards and regular credit cards is that you need to pay now rather than later.

I hope these six posts have given you a little bit of education in helping you repair your credit and lower your debt. Good Luck.  Write me a comment and let me know about your experience in repairing your own credit rating.

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Other Related Articles:

• How To Repair Your Credit – Step By Step – Part 3
• How To Be Debt Free – Finally
• How To Repair Your Credit – Understanding The Necessary Steps – Part 5
• What Will A Good Credit Counselor Do For You – Part 1
• How To Find A Credit Counseling Service You Can Be Happy About

- Part 1 – Recognizing Your Debt Problem and Obtaining Your Credit Report
- Part 2 – Acting on Your Credit Reports
- Part 3 – How To Understand Your Credit Files
- Part 4 – Observing Your Bills and Other Debt | Secured and Unsecured Debt

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Believe it or not, one of the best tools you can use to repair your credit is your own mind and your own senses. Stop getting into more debt and use your mind to think about what you are doing. Use your eyes to see and your ears to listen and pay attention to your surroundings. What are you using your debt for? Is it necessary? Do you really need to borrow to get into more debt? Remember that these activities can adversely affect your credit report.

In Part 4 of this series on “How To Repair Your Credit” you will discover the advantages as well as the disadvantages you will have as being a debtor.

Do you know what can happen when you have bad credit?

Do you know how to protect yourself from creditors and collection agencies?

It’s not just creditors and collection agencies you need to beware of. It’s the Internal Revenue Service, the IRS. If you are obligated to pay child support, or income tax the IRS can deduct your entire refund in order to repay your debt if you are in default. This can also happen with college tuitions you never paid. The good part is that, at least the IRS must contact you before they can deduct any fees from your tax refunds.

If you miss payments on Insurance Policies and you have conditions stipulated on that policy, you may be at risk of loosing your property.

If you still have any utility bills that are not paid up, most states, under the law, cannot just automatically cut service. This mostly applies to necessary utilities such as heat and electricity, especially during cold winter months. When they do disconnect service most of these states are required to give you prior notice.

This will buy you some time to find the funds you need to pay your utilities. Some insurance policies will also provide for a grace period for you to catch up with your payments. The time allowed for you to catch up with these payments is when you need to stop, think and listen. Use your senses and your mind. These are very powerful tools for you to use in helping you repair your credit. Use that time to review your bills and the amount of funds you have available to pay those debts. If need be, concede to the fact that you will be short of cash in the near future to allow you to contact your creditors.

Reviewing the amount of funds you have will also help you allocate your payments more responsibly. Remember that paying something is still better than nothing.

If one of your creditors happen to write off one of your debts, you may still be required to pay taxes on that bill. If they do decide to write that bill off, it is is sent to the IRS for review and if they choose to do so, you will still pay on that bill at the end of the year.

So…when you receive that first letter in the mail and your lender or other creditor asks you to pay your bill, write them back and politely explain your situation. Don’t forget to ask them for a possible extension on your payments. Most creditors still want you to be a returning customer, so they will try to help you if think that you are just suffering a temporary setback.

Keeping your creditors on the same side as you is always the best strategy and will help to ease any future complications. It still helps to keep them on your side by sending them what payments you can afford on your current overdue bills. Although the next bill will be higher, sending in minimal payments will still keep you in their good graces until you are able to catch up…and you will still avoid being flagged by the credit bureaus.

On the other hand, some creditors just don’t want to be on your side. They may want you to send in your payment immediately. In this case you may want to consider disregarding them as they are not doing you any favors except to add a further burden to your debt load. If you do have enough money to pay a bill, tell the creditor and send them the money immediately. Do not waste money on services that just charge you to send a bill.

Debt Counselors:

No! Not everybody is nice. There will always be creditors that just will not help you. If your creditor will not allow you the opportunity to extend your debt or they ask for proof of your situation, then it may be time for you to consider contacting a Debt Counselor. Debt Counselors work on your behalf. Yes, your Debt Counselor is on your side. They will do whatever they can to resolve your debt issues.

As mentioned in the above paragraph, debt counselors are on your side, so do not go against them or lie to them. Arguing with them and using foul language certainly will not help. If you had more than enough time to pay a bill, then DO NOT contact your creditor or collection agency. All this does is ring alarms and will just flag you as a risk. Let a Debt Counselor help you instead.

Use your mind and senses that were given to you. These are extremely powerful tools. When you set your mind to it, you will find the right solution to help you get out of debt. Understanding all the steps necessary to help you pay off your debts and to repair your credit does not have to be hard at all. You just have to take it step by step.

Next: – Part 6 – How To Use PrePaid Cards

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Other Related Articles:

• How To Repair Your Credit – Understanding The Necessary Steps – Part 6
• How To Repair Your Credit – Understanding The Necessary Steps – Part 4
• What Can Good Credit Counselors or Debt Consolidators Do For You – Part 2
• Can Credit Counselors and Debt Consolidators Cure Your Money Problems
• How To Be Debt Free – Finally

- Part 1 – Recognizing Your Debt Problem and Obtaining Your Credit Report
- Part 2 – Acting on Your Credit Reports
- Part 3 – How To Understand Your Credit Files

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In Part 3 of learning how to repair your credit you discovered that it takes more than just taking action to solve your problems with all that debt. It is just as important, if not more so, to know how to take action and the first steps you need to take to make that action effective.

You also need to be aware. Improving your credit rating and decreasing the amount of debt you have takes constant vigilance. In other words, you need to keep watching your back.

This next step is all about “Observing” and keeping an eye out to keep your debt under control. That’s right! Repairing your credit takes observation on your part.

Let’s look at the current bills that you are obligated to pay. Usually you will encounter two types of bills that require attention on your part – bills that are current and up to date and bills that are past due. Ignoring to pay your bills on time just makes things worse. You will never be able to repair your credit and improve your credit rating if you continually delay paying your bills.

If you happen to have both up to date bills with no charges on them as well as overdue bills, it is best to pay your current bills first. If the credit bureaus are already flagging overdue bills, then paying bills that have no charges on them will at least NOT make matters worse. Stay as current as possible. This is one way to have some semblance of stability in your financial situation. If your employer doesn’t pay you enough, maybe it’s time to look for another job…or…look for a second part time job to supplement your income.

You need to ask yourself what is worse for you. Do you find a way to supplement your income to pay off your debs faster, or do you do nothing and fall deeper and deeper into the hole of mounting debt and a terrible credit score.

Once your current bills are taken care of, your next task is to start paying off your overdue and other late bills. If those bills have not reached the credit bureaus yet, then take of them immediately or, at least, as soon as possible. A little tip that may help is that even a small payment towards your bill can go a long way to prevent credit bureaus from being notified. The fact is, if you are making any type of effort in paying off a bill it could keep you out of court.

As I’m sure you know by now, a very crucial step towards repairing your credit is to keep up to date with your bill payments as much as you can. However, if for some reason you are finding it very difficult to make a payment, you would be wise to contact your creditor and let them know that you need to delay on a payment. Creditors can be more forgiving if you call them if you are having trouble. This can make it easier for them to negotiate a payment scheme. They may even lower your monthly payments, or even your bill. The best solution then is observing, and making an effort to repair your credit.

Secured and Unsecured Debt

Most people have some type of payments that they always need to make. House, or mortgage payments, car loans, credit card payments and even utility bills are four of the most popular. Understanding the types of debts you have is a major step in achieving the repairs necessary to your credit.

Secured Debt:

Secured debts are any debts that have collateral attached. In other words your Mortgage is a secured loan, so if you end up missing your payments you could end up living on the streets. Car loans are secured loans and can guarantee that you will be walking to work or taking the bus if you miss a couple of payments.

If you are asked for collateral, even certain department store credit cards are secured as well. In other words when you buy merchandise, make sure you pay these off.

Unsecured Debt:

Unsecured debts are rental payments, utility bills, personal loans from family or friends, student loans, as well as most major credit cards.

What do secured and unsecured debt mean to you?

Simple! It means it is more important to pay off your secure loans first before unsecured loans. If you ignore for forget to pay off your unsecured loans, at least you will still have shelter and don’t have to walk if you don’t want to. You have much more to lose by neglecting to pay down your secured loans.

If you are finding it difficult to pay your mortgage payments, check with your mortgage provider and look into some options that may be available to help you. There might be a second home loan available that offers cash back or other great commodities that can help you to get out of debt and repair your credit.

IMPORTANT NOTE: Don’t wait until it is too late. I cannot stress this enough. If you are having difficulty making your payments, seek help. If things are bad but not so bad that you lose control, strive to gain that control back.

There are mortgages available that offer over-payments and underpayments. This will allow you to over pay your loan on one month when times are good, and underpay the next month when times are tough.

You may even be able to find a loan that can offer a vacation pay, where you can use the money to pay down your mortgage if you don’t want to go on vacation. This can be a great to help you pay down your loan faster than other types of loans.

If you have multiple credit cards, you should look into applying for a credit card that will allow you to pay off other cards. This can be a great way to help you repair your credit faster.

Where there is a will there is a way. A solution to help you in repairing your credit and get of of debt is always at hand if you are willing to do the work. Just remember that you need to keep a close watch on all your bills and understand the importance of each of them. Always pay down your secured loans first before the unsecured variety. And, most important, remember that getting out of debt is a step by step approach – One step at a time!

Next:  Part 5 – Creditors, Collection Agencies and Debt Counselors

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Other Related Articles:

• How To Repair Your Credit – Understanding The Necessary Steps – Part 5
• How To Repair Your Credit – Step By Step – Part 3
• How To Repair Your Credit Step By Step – Part 1
• How To Repair Your Credit – Understanding The Necessary Steps – Part 6
• How Debt Settlement Helps to Repair Your Credit Score

- Part 1 – Recognizing Your Debt Problem and Obtaining Your Credit Report
- Part 2 – Acting on Your Credit Reports

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In learning how to repair your credit, you first learned to recognize the fact that you actually have a debt problem and that you need to do something about it. In Part 1 you also learned a little bit about credit reports and how it will help you with repairing your credit. Part 2 tried to explain to you that you need to act on your credit reports and how to do it.

Part 3 is a little more technical, but is a crucial step in learning how to repair your credit. Although taking action on your debt problem is what you really need to do, knowing exactly HOW to take the proper action in the first place will make that action much more effective.

Step 3 – How to Understand Your Credit Files

Understanding your credit files may be especially important if you’re in debt and constantly contacted by creditors. Your credit score may be affected if you are delinquent in your payments to your credit card or other loans you may have. If left unattended, you may not be able to get a loan. Although there are exceptions, the credit that is extended to you may come at a greater price, such as higher interest rates. Your credit file will determine this.

If your credit file has a low score and you are looking for a loan or even an apartment to rent, your application may be turned down. On the other hand, if your credit files indicate that you are a low risk, your chances of obtaining a favorable reply is increased greatly.

Your Credit score is part of a ‘numerical’ system‘ that determines your credit rate and score. These Credit scores generally rate anywhere from ‘300 to 850‘. If you happen to have an outstanding credit rate, these scores can even have a higher rating. If you apply for a loan and your lender is unable to find your credit file, you may be viewed as a mishap. This means that you haven’t established a credit history.

This is why it is important to establish credit at an early age. If you apply for department store cards, credit cards, gas cards or other items that offer you credit, then you are on your way to establishing a credit history and your file will be on record. The problem with applying for credit cards or loans, or any type of credit, is that when you start out, your parents are often co-signers. The implication is that if you do not not make payments then your parents are obligated to make those debt payments for you.

Every time you apply for a job, apply to rent an apartment, or even to take out an insurance policy, you are establishing credit.

Your credit files are often stored in 3 major credit bureaus:

• - TransUnion
• - Equifax US or Equifax Canada
• - Experian

In the United Kingdom you can also go to CallCredit for your credit files.

Two other resources you may wish to check out if you live in the UK is called The Credit Agency. The other is a pretty good article on Article Base called - “About Credit Bureaus And Online Personal Credit Reports”.

Just so you know, there are laws that protect us to a degree when it comes to credit repair. To understand all the legalities, as well as how your credit file affects you, it is very important when it comes to repairing your credit history.

In the United States, Credit Bureaus are coordinated and monitored by the Federal Trade Commission beneath the requirements of the Federal Fair Credit Reporting Act (FCRA) and follows up with all the various State Laws. If you have credit files that contain inconsistencies, the Fair Credit Reporting Act protects you in the sense that it requires the credit bureaus to delete or make certain information obsolete on your credit file.

This protection can come be very handy if you find that you have become a victim of Identity Theft. It may also come into play for any false accusations made against you. The law requires that Credit Bureaus to list accuracies on credit files by gathering appropriate information against you or on your behalf.

It’s also good to know that this protection regulates these credit bureaus by:

• - only allowing them to list negative reports against you for a limited time
• - limiting who and who cannot access your credit files

You should also note that when applying for a loan, license, public assistance, insurance, apartment rentals and even courts, these entities can request your credit files without your consent. Utilities are different. Utilities such as heat, and electricity are a necessity and as such Utility providers cannot deny you service even if you have bad credit.

What have you learned here?

There can be many types of services that are able to check your credit files. But again, you need to be aware that every time your credit is checked, points that count against you are put on your credit files. These points can add up and if you have enough points your credit rating can certainly be affected, so you need to be careful what you want to apply for and to only apply for what you need.

Understanding your credit files is a crucial step to repairing your credit. If you do not have good credit and are trying to repair your credit rating, then it is important for you to obtain copies of your credit files. Learn to understand the credit score on your files and apply for credit only after addressing any risky issues you may find on your credit reports.

Next:  Part 4 – Observing Your Bills | Secured and Unsecured Debt

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Other Related Articles:

• How To Repair Your Credit Step By Step – Part 2
• How To Repair Your Credit – Understanding The Necessary Steps – Part 6
• Credit Scores – Are Your Credit Scores Worthless?
• How To Repair Your Credit – Understanding The Necessary Steps – Part 4
• How To Repair Your Credit Step By Step – Part 1

Part 1 – Recognizing Your Debt Problem and Obtaining Your Credit Report

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The lesson you should have learned in Part 1 (click the above link if you missed it) was for you to get your mind straight and to recognize that you have a problem with your debts and you need to do something to to repair your credit. This first step is crucial.

Once you recognize the fact that you do have a debt problem, this should be enough motivation for you to start acting on it. Of course, before you relieve yourself of your debts you need to get all the information you need first. That information is your credit reports. Once armed with these reports you can start to do something about it.

This second step takes you from the recognition phase to the action phase.

Step 2 – Acting on Your Credit Reports

As mentioned above, the first phase in repairing your credit deals with acknowledging your debt problem and then to obtain your credit reports. Once these credit reports have been received, you need to review these reports and see if there are any charges on them. If you agree with these charges then, of course you will need to act to solve these charges. On the other hand, if the charges on your credit reports seem suspicious or out of line, then you also need to act on them.

Contact the three credit bureaus (Experian, Equifax, and TransUnion) as soon as possible and petition these charges so that both you and the bureaus understand them clearly. Remember that these claims against your report affect you. Under the FCRA Act (Fair Crediting Reporting Act), you have the right to file a claim with them to help you with these charges. This could be a very important step in helping you repair your credit rating. The FCRA Act was passed into Us Congress to protect US citizens against claims filed onto credit reports that do not belong to you.

You would do well to take advantage of this law. Understanding the steps necessary to credit repair is essential if you wish to build up your credit rating. Once these credit report charge errors have been disputed and solved, you will need to wait at least six months before applying for a loan or credit card. After this time has lapsed, most credit bureaus will remove these errors completely.

You should also be aware that sometimes you may have to argue with the credit bureaus, as they may neglect to remove the errors. If you have, any delinquencies on your credit report be sure to take care of them as soon as possible. One thing I forgot to mention in the above paragraph is that while you are waiting for the six months to lapse you should do other things to continue being in good standing such as continuing to pay your bills on time, or at least make substantial payments on them to avoid any bad flags on your credit reports.

If you intend to apply for a loan later, make sure that you meet all payments required of you. In addition, it is wise to keep an updated copy of your credit report on hand if possible. It also good advice to monitor your credit reports on a regular basis so that you are always current on your credit rating. Remember that your goal is to repair your credit. Taking that first step is the important beginning to build a great credit score and credit rating.

Next:  Part 3 – Understanding Your Credit Files

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Other Related Articles:

• How To Repair Your Credit – Step By Step – Part 3
• How To Repair Your Credit – Understanding The Necessary Steps – Part 6
• How To Repair Your Credit Step By Step – Part 1
• What Will A Good Credit Counselor Do For You – Part 1
• Credit Scores – Are Your Credit Scores Worthless?

By – Joseph Nykoluk

If you have a credit problem, then your first step in repairing your credit is to just set a goal to solve it. Without setting yourself a goal, how can you ever hope to achieve that touchdown. Before you can solve the problem you have have with your credit, you must first recognize the fact that you do indeed have a problem and that you need to solve it.

Once recognized, you need to start considering all the factors you will need to start building up your credit. Don’t be afraid of credit, but don’t be complacent about it either. As with many things in life, there will always be Good, Bad and Ugly aspects of Credit. Much can be written on the advantages and disadvantages of having credit. Where good credit can help you get out of an emergency situation, it can cause you a lot of stress, and if you abuse or mismanage the credit that you worked so hard for you can lose…well…EVERYTHING.

All of us struggle through life at some point, some struggle more than others. Through human frailties, there may be many reasons we have a flawed credit rating. If we neglect or forget to keep on top of it, we end up paying for it. Someone once said that getting to the top of the mountain is much easier than staying there. Building a good credit rating is really not that hard but as you use that credit it slowly and relentlessly becomes harder and harder to maintain.

To get started repairing your credit rating you need to start searching for various methods to help you restore that credit.

Step 1 – Obtaining Your Credit Report

The first thing for you to do is to start getting copies of your credit reports. Under normal circumstances, the disadvantage here is that these reports will need to be purchased. Unless you can pay with cash, these reports may need to be paid using your credit card. Sometimes we just can’t win, can we? If you can pay by cash, ordering a credit report online may possibly be paid using PayPal.

Of course, you may not have to pay at all if you apply for a credit card or even a loan. However, be sure to avoid applying for cards and loans if possible, because the more you apply the more it affects your credit rating.

Once you apply for a loan or other credit, your lender will request copies of your credit report, which adds points to your credit score and it stays on your report for around 3 years. The more points you have, it takes away from your score, which is more important than your credit. Once you apply for a credit card or loan, then the advantage is that you are able to get all 3-credit reports for free.

It is very easy to apply for credit today and advertisements abound in just about every type of media. However, you must remember that this ease in applying for credit comes at a price. As noted above, that price is the effect your credit score will have every time it is checked by lenders who are so eager in giving you that credit.

So, the next time you want to apply for a loan to buy a vehicle or a ring for your better half, be aware of allowing any sales people from checking your credit, unless you are sure that your credit rating is in good standing. You may even wish to bring along your own updated credit report with you when applying for that loan. If the lender tells you that they cannot accept your report and that they need to check it themselves, then just tell them that they cannot check your credit unless you are sure that you want to apply for the said loan.

Next:  Part 2 – Acting on Your Credit Reports

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Other Related Articles:

• How To Repair Your Credit – Understanding The Necessary Steps – Part 4
• How To Repair Your Credit – Step By Step – Part 3
• Credit Repair Review – “37 Days To Clean Credit”
• How To Repair Your Credit – Understanding The Necessary Steps – Part 6
• How To Repair Your Credit Step By Step – Part 2

If you do a search on the Google search engine for the phrase - “average credit card debt”, you will find all kinds of answers. One thing is for sure. Americans and Canadians alike have way too much debt on their credit cards. Where one site has the average debt at $5000 another will have it at closer to $10,000.

One thing to keep in mind when looking at some of those figures is that the amount of debt placed on a single person may not seem as bad when that amount is placed on a credit card for a whole family. Also, a person with a high income can tolerate a much higher debt load than someone in a low income bracket.

One type of business that has become more wide spread with our love of credit are debt consolidation companies. These companies have come to the rescue of those whose debt problems have become insurmountable. New debt consolidation companies are opening in response to the demand made from our insatiable desire for ever more credit.

When it comes down to the average credit card debt, most people are not worried because they think of themselves as being “average”; therefore, they mix right in with everyone else!  However, if more and more people could take themselves out of the “average credit card debt” marking, the average credit card debt would be much lower; which would be better for everyone!  In recent studies, it has actually been proven that an ordinary household has an average credit card debt of $8000; which for many people is considered to be “nothing”!

Are you one of those people that carries a large debt on your credit cards? Do you also have a fair number of credit cards that you have already used to its maximum limit? Would you like to do something about it? If this is you, I’ll even bet that you wish you had the courage to cut up and burn all your credit cards so you wouldn’t be able to use them?

I would like to say that it would be a great idea to do just that – destroy your credit cards before they destroy you. But sometimes that may not be such a great idea. You see, by destroying your credit cards all you are really doing is suppressing the symptom. As soon as you need more credit, you will fall into that credit trap again. What you really need to do is to LEARN TO CONTROL YOUR SPENDING HABITS.

Of course, it’s not always easy to solve our own debt problems. In which case it’s time for some outside help. When seek help for your debt problems, it’s always a great idea to seek those that have expertise in debt relief. One of those debt experts is a credit card counselor. A good credit card counselor can help so you learn to pay all your bills and to handle any other financial commitment. Along the way, they will help you learn to control your spending by helping you to decide what is important and what is NOT important.

Besides a credit card counselor, you can also try seeking help from a credit card debt consolidation company. Not only can they help you to get all your bill payments lower but they can also help by consolidating all your your bills into one convenient lump sum payment. And…we all love convenience. After all, isn’t it much easier to make just one payment per month rather than several.

The one thing you certainly do not want to do, though, is to apply for another credit card and then pay off all your other credit cards on the new card. All you are really doing is just increasing your total credit card debt and in fact increasing the “average credit card debt” statistics. You may think you’ll be ahead if the new credit card comes with a lower interest rate, but you will be wrong.

Do not be part of the high credit card debt statistics. The average credit card debt is high and is getting higher every year. More and more people are applying for credit cards and more are getting approved. So, lower your debts by not falling into the credit card trap.

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Other Related Articles:

• Debt Relief Review – “Debt Free in Three”
• How To Be Debt Free – Finally

There are more people getting higher paying jobs than ever before, and most of those people just cannot resist the temptation to apply for a credit card. Like all temptations, we need to learn to stay away from that urge. Although there are reasons to have more than one credit card, most of us only really need one good major card.

So, if you happen to pass by a window or see a sign that says something like – “Apply Here For Your Credit Card”, or something like that, run as fast as you can in the other direction. Because if you don’t you will just run the risk of getting into more debt that you probably can’t afford in the first place. Don’t get me wrong. Like I said, there are reasons when it’s good or even wise to have more credit cards, but you need to study those reasons.

The store that offers you that credit card if you apply for it will even give you a discount on your purchases. Sometimes those discounts may be as high as 10% or even 15 percent less than the going rate.

Even though you want to go to the stores that have the “apply for credit card” in the window, there are many positive things that will come about by not going into them stores; even if you don’t see them right away!  In fact, one of the best things that will happen by skipping the “apply for credit card” signs is that you will not go into debt by using a credit card that you do not need!  Another positive thing is that your credit report will not have that store’s name on it, tainting your credit report as a public viewer.

If you are thinking about applying for a store credit card, one of the most important things that you can do for yourself is to read up on the store and how its credit card works, such as:

• - the percentage rate you will be getting
• - how much the monthly cost is
• - how much the late fees are
• - and how much the fee is if you are over the limit

An easy way to help yourself read up on any credit card offers is by getting a good credit card guide. You can also compare any and all credit cards you’re thinking of applying for to determine the best one for your needs. This personal credit card review will not only help you determine the best card for you to use, but also which credit card is the worst one.

Try visiting websites of various credit card companies and do a comparison of each. A good thing to do when visiting these sites is to print out the pages that have all the terms, conditions and any other relevant points. Then review each of the pages with those of competing websites.

Once you have done your homework and made enough comparisons of different credit card companies…and are really sure you want to apply for that credit card, then you next step is to simply to fill out that credit card application and hope for the best. Just remember that comparing credit cards and applying for them is the easy part. It gets a little harder when you have to discipline yourself enough to use your new credit card wisely.

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Other Related Articles:

• How To Repair Your Credit Step By Step – Part 1
• How Living Within Your Means Can Make Life More Enjoyable
• Credit Repair Review – “37 Days To Clean Credit”
• How To Repair Your Credit – Understanding The Necessary Steps – Part 6
• How To Repair Your Credit – Understanding The Necessary Steps – Part 4