If you are trying to get out of a bad financial situation, then you don’t need to be worried anymore. No matter what kind of problem you have, there is a solution waiting for you out there. You just need to know about it. There are so many people who did everything right and planned ahead of time and they still got hit badly by the economic crash. People lost their homes to foreclosure and credit companies began harassing their debtors for missed payments. Everything turned worse because people were unable to even keep a roof over their heads, let alone pay off their loans. And since then they have been using alternative methods of debt management like credit card debt settlement, debt consolidation and what not to help them get out of that downward spiral.
Bankruptcy is not the easy way out. Many people see bankruptcy as an easy way out of their debts; however, it is detrimental to your credit for 7 to 10 years. When you file bankruptcy, you might be relieved of your obligation to pay certain debts; however, that comes at the price of your credit. You will not be able to get credit cards, mortgage, car loans and even some jobs with a bankruptcy on your credit. A bankruptcy will follow you for a very long time and is oftentimes not worth it in the end.
Remember to look for an experienced specialty mortgage broker. They will need to be familiar with the sort of lenders who are willing to make this kind of loan. Be sure to give all the pertinent details to your broker as soon as you start doing business. That way, there will be no time wasted with companies who won’t be willing to give you the loan you need.
High tech way: set up one of your bills to automatically charge to your oldest credit card. It does not matter how small the amount. Any new balance will update that credit card at the credit bureaus so that all that great long creditwise history is showing up on your credit report.
If you have a job and can show proof of income, then you can apply for a card in your name. If you are able to obtain a card, then you are the only person financially responsible. You must pay your bills and pay them on time. Ideally they should only be used for emergencies. If you make purchases just because you have the card, when you truly have an emergency you won’t have the funds available to take care of your situation. Live within your means!
There are calculations made by the credit bureau companies to come up with a number that represents your credit rating. They use details on missed payments, on time payments, quantity of loans, number of credit cards, outstanding balances, and bankruptcies to come up with a number that is typically between 330 and 850. This number represents the quality of your credit.
Remember…if you are relying on credit then you may be relying on trying to live a lifestyle that isn’t ready for you just year. Live within your means!