How To Improve Your Credit Score

A few years ago I purchased a 2000 sq ft. home for $138,000 at a 7.5% fixed rate. My mortgage payment was about $1340 a month. At the time I thought that $1340 a month was pretty manageable. I figured cutting back here and there on other luxuries would allow me to cover the mortgage, as well as my other monthly expenses.

Then reality set in...

What I've learned over the years is that most of us make many of our decisions based PURELY on EMOTION. Logic tends to take a back seat and this is where MANY of us get into financial trouble. We end up jumping into loans that ultimately will cost us in the long run and that is EXACTLY what was in store for me at the time.

$1340 monthly...

Seemed simple enough at least until I saw what I would ACTUALLY be paying for my house over a 30 year period. After calculating the numbers, I found that over the life of my loan I would be paying an extra $345,400 dollars for a $138,000 dollar home! I couldn't even pretend to be shocked because all of that information was provided in the documents at closing!

Emotions can get you into BIG TROUBLE...

Although the facts were right IN FRONT of my face, the overall excitement of purchasing a home clouded my judgement. You may have encountered this same scenario, but not necessarily with your home. You probably have a car that's parked outside right at this moment that you're paying WAY TOO MUCH for OR a credit card(s) that you're behind on due to the fact that your interest rates are TOO HIGH and your monthly payments aren't even putting so much as a DENT in the balance that you owe.

Do this for yourself...

Take your current car payment and multiply that number times the number of months that the life of your loan is. Now, subtract the sticker price of the car from the amount that you just got from your calculation. Shocking isn't it? The fact is that MILLIONS of Americans pay an average of $8,000-$12,000 dollars EXTRA on their cars because of their ridiculously high interest rates. You may ask yourself why anyone in their right mind would basically GIVE AWAY $8,000-$12,000 dollars, but MILLIONS of people do it everyday.

You're not in the clear yet...

Mortgages and auto loans aren't the only things that are affected by your poor credit score. You ever wonder why your electric bill is outrageously high every month? You adjust the thermostat temperature AND make a consistent effort to keep your energy usage down, but your bill is STILL $200-$300 dollars a month? That's because you credit is JACKED and the electric companies know it and charge you a HIGHER rate because of it.

It doesn't stop there...

Landlords, Cable, Cell phone companies, AND Employers also pull your credit to determine just exactly what kind of risk you are. And if you're a high risk, it will prove VERY COSTLY. The problem is that YOU may not know where to start when it comes to understanding what your credit score means and until you do, you will be throwing THOUSANDS of dollars away in your lifetime.

The solution starts with YOU doing something about it. The first step is to accept that you have bad credit. The fact that you are still reading this shows that you DO actually give a crap about your credit and that you want to do something about it. Improving your credit score isn't an overnight process and if that is a PROBLEM for you, simply click the X at the top right corner of the page. It didn't take you overnight to screw up your credit, so why do you think it would only take overnight to straighten it out? I'm not going to lie to you, improving your credit score CAN be a lengthy process, but through determination it can be done.

There are 2 options available which will help you improve your credit score%u2026

The first option is to do it yourself. You'll need to obtain the latest copies of your credit report from all 3 credit bureaus (TransUnion, Experian, and Equifax). You have the RIGHT to dispute any information on your credit report that you feel is inaccurate. You can grab a copy of the Fair Credit Reporting Act (FCRA). The FCRA consists of 22 laws and 100 subdivisions to each law which in over 2200 laws in your possession to correctly dispute inaccuracies on your credit report. This option is definitely the cheaper of the two, although you may lack the know how needed to effectively dispute inaccurate items on your credit report. If you prefer the second option, continue reading.

2200 Laws? As I stated earlier, improving your credit score CAN be a lengthy process. The second option for improving your credit score would be to hire a credit restoration company to do the heavy lifting for you. While there are many fraudulent credit repair companies out there, many of which are being shut down by the FTC, there are actually others that have an outstanding track record. I'd say Lexington Law and United Credit Education Services are two of the best in the industry. Lexington Law charges a monthly rate, while UCES offers a one-time upfront fee for 1 full year worth of service. If your credit is in shambles, you can't go wrong with either one. With all of these lenders tightening the reins on loans, I'd advise that you do not procrastinate on getting your credit restored.