Having Good Credit in America Pt 2

Raising your credit score to a high limit is a task that requires that the individual makes certain commitments. In my previous post, I discussed how you are going to raise your credit. Well, in this post I have an example that comes close to heart. My sister and brother in law desire to purchase a home in the next few years. Here credit was decent and fair worst. The main problem was high credit balances which were hampering them from doing the things that were necessary to be successful.

For those of you who do no understand credit; it is like your Grade Point Average in school. Something which is easy to drop and very difficult to raise. Fixing your credit will require you to make certain sacrifices that will ultimately result in a better overall credit report. Many individuals who succumb to the challenge, simply lack the resolve necessary to put into action a plan which will give a boost to a low credit score or strengthen an already good score.

What will it take to be successful? First, you must obtain a copy of your credit report from one of the credit bureaus. It is not necessary to get all three at once. Remember from our Part 1, we said that you the plan is to order one credit report from one of the credit bureaus every four months so you will have a snapshot of your finances over the course of the entire year. All of this is what my sister put into action.

Secondly, the plan to raise her credit included gathering all of her credit cards and transferring them to a lower balance credit card. You can usually find a zero to low interest rate credit card when doing a balance transfer. As my sister Sylvia did, you are going to now hunker down and pay off that credit card before the honeymoon period expires! In essence, you will find a credit card company that will give you the lowest possible interest rate in order to nullify the interest rate in your quest to pay off the plastic.

Meanwhile, you will not apply for any new credit of any type. No gift cards, charge cards, reward cards,etc. Your lifestyle for a time period may be disrupted. As your plan develops, your automobile is the next item to take a look at knocking out. If you are financing as opposed to leasing your vehicle, continue to drive that vehicle. My sister and brother in law always drove late model vehicles. This time, she kept the goal of building her credit in front of her and kept her current vehicle which is now paid off.

Rebuilding your credit takes time and effort. It requires dedication to a plan for a period of time between six months and two years depending on the severity of your poor credit. For those of you who do not understand, high credit balances is also considered poor credit. It demonstrates to a lender that you are may be either just treading water or all together over your financial head.

In my next installment, I will conclude this series with how my sister repair and rebuilt her credit.