| After credit problems or even bankruptcy, improving | | | | house, car, and any other big ticket item. |
| credit score is a goal that may seem unattainable. | | | | There is nothing wrong with that lifestyle. In fact, if you |
| If your score does not improve, you probably are going | | | | ever plan to really retire, even at 35 if not 65, the key |
| to pay more for everything that you buy on credit. | | | | is reducing your monthly expenses. Pay off your |
| How can that be? The interest rate that you pay on | | | | house. Pay off your cars. Get your "nut" - what you |
| financed purchases, from houses to cars to jewelry, is | | | | spend every month - as low as possible. By reducing |
| determined most of the time from your score. The | | | | your expenses, you reduce the amount you need to |
| lower the score, supposedly the riskier credit you are, | | | | have each month to pay your bills. |
| and the higher the rate. | | | | But when you need to buy a house and you don't |
| Think of paying a point more on your home loan. The | | | | ever borrow money, expect that your credit score will |
| difference between 6 and 7 percent - one percentage | | | | not be a 720. Your credit score is based on how and |
| point - will cost at least $50,000 more on a a $200,000 | | | | when you borrow. So if you don't borrow, you cannot |
| home. That is 25% of the base cost of the home. | | | | score well. |
| Money from your pocket straight to the mortgage | | | | What you can do is borrow responsibly. Use no more |
| company pocket. | | | | than three cards and pay them off each month. |
| So how can you improve your credit score? First, you | | | | Borrow to establish credit. |
| still have to use credit but responsibly. There are a | | | | You can do it yourself but if you are not experienced |
| number of financial gurus who recommend that you | | | | in these areas, you really should consider using a step |
| become debt free and stay there. Borrowing | | | | by step course to give you the exact way to get |
| becomes a big no - no. You can live that way but it will | | | | back to a 720 score. |
| mean that you will have to pay cash for everything - | | | | |