Experts Agree: Three Ways To Stay
Away From Bad Credit and Three Ways To Get Good Credit
by Robert Sawtelle
Many times the most well
meaning people seem to develop bad credit. Those who had
perfect credit in the past seem to go through periods in
their lives where debt piles up and paying bills on time
becomes more and more difficult.
Why does bad credit
seem to occur so often to good people with good intentions?
Here are three circumstances in life that regularly turn
good financial situations into bad ones:
1. Many
people never really learn how to manage their money and
build good credit. It might be because their parents
themselves did not know enough to teach them, or that they
just never were interested enough to pay attention and learn
how money worked.
2. When people start to make decent
money for the first time in their lives, they start to
become confident in their abilities to be independent. This
ability to make money will always be with them. They start
to feel like they can treat themselves to more and more of
the finer things in life. To them, the money will continue
to come in forever. They start to spend more and accumulate
greater debt.
3. It's a fact that bad things happen
regularly in life. Whether it's job layoffs, serious
illnesses in the family, divorce, or any number of
unfortunate occurrences, these setbacks do occur in life.
When they do pop up, either money quits coming in, or more
money starts going out.
Since spending habits and
lifestyles have already been established, it is very
difficult to overcome the financial difficulties. The
inability to pay off debt leads to bad credit. Credit scores
start to spiral down, and lifestyles are changed
dramatically.
 Fortunately,
there are some ways to improve credit scores and get
financial situations back in order. Here is a three-step
process that can quickly get back good credit standing and
allow anyone to start enjoying a comfortable, secure
lifestyle again:
1. Get $500 from somewhere. Sell
something or earn it somehow. Go to your bank and buy a $500
certificate of deposit with that money. A couple of days
later go back to the bank and ask for a $500 loan, using the
certificate of deposit as collateral. This "secured" loan
will be granted because the bank knows it will get its money
back. Your cd guarantees that.
Pay off the loan,
making regular payments on time. The payments will be made
using the money from the loan. It will cost a small amount
of interest, but that will be well worth the expense for the
improvement in credit.
2. Once that loan is paid off,
go back to the same bank and now ask for a $500 "unsecured"
loan. With this loan, no collateral will be asked for. You
are now in good standing with the bank because of the
previous loan, so this loan should also be approved. If not,
go through the process of the secured loan again. If the
unsecured loan is granted, pay off the loan on time using
the loan money as before.
3. Once the unsecured loan
is paid off, you now can apply for an unsecured credit card,
either through your bank or through another company. The
terms of the credit card should be very favorable, and it
should have a fairly high limit attached to it. The main
thing is to keep this credit card paid off and clean. From
there, your credit score will show a vast improvement over
where it was just a few months earlier.
There are
many ways to get into debt and develop bad credit. Unplanned
financial problems and unfortunate occurrences happen to
everyone. Fortunately, for good people, there are always
ways to get back to a happy, financially secure lifestyle.
 About
the Author: Robert Sawtelle is an author, teacher, and researcher. If you would
like more information for DEBT RELIEF send for his FREE newsletter at the top of
this page. You may contact Robert at
RobertSawtelle@digitaldataplease.com
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