| Discover how you can supercharge your credit | | | | poor credit. |
| rating by being a 'deadbeat'. Be the credit card | | | | An easy way to understand this is by looking at |
| company's worst customer and enjoy your | | | | how teachers grade you in school. If you have |
| excellent credit rating. | | | | never taken a quiz, test or completed and |
| Do your absolute best to have credit card | | | | assignment then how can the teacher grade you? |
| industry insiders refer to you as a 'deadbeat' or | | | | It's the exact same thing with the credit bureaus. |
| 'freeloader'. It may not sound like something you | | | | It's your responsibility to prove to the credit |
| want but for those of you interested in a high | | | | bureaus that you have the ability to repay debt. |
| credit rating those terms are music to your ears. | | | | So by using your credit card and paying it off in |
| 'Deadbeats' are people that pay their credit card | | | | full each month you are rewarded with a higher |
| balance off in full each month. | | | | credit rating. |
| To know why these financially savvy customers | | | | To use credit cards to raise your credit score |
| are referred to as 'deadbeats', lets look at it from | | | | there are some simple steps you can take. First, |
| the credit card company's point of view. The | | | | once you have a working budget and money |
| CEO's of credit card companies ideal customers | | | | saved, build up $25,000 to $45,000 worth of |
| are 'revolvers'. Revolvers are customers that | | | | available revolving credit. Then use your credit |
| carry college debt and credit card debt; that's | | | | each month and pay them off in full. Make sure |
| how they make their money. A perfect customer | | | | not to carry any balance over otherwise you will |
| in their eyes is one that makes the minimum | | | | have to pay interest on the amount you owe. By |
| payments. These people will have carry credit | | | | paying it off in full before the next month you will |
| card debt for a long time. Depending on the | | | | not have to pay interest charges to the credit |
| interest rate, if you make just the minimum | | | | card companies. |
| payments, it could take you more than 15 years | | | | Before starting to build your credit scores it is |
| to pay credit card debt off. | | | | important you take the necessary safety |
| Credit card companies also like customers that | | | | precautions. Make sure you are financially secure |
| frequently make late payment and go over their | | | | before starting to use credit cards to build your |
| limit. Just by paying late, credit card companies | | | | credit score. Before you go apply for a credit |
| can jack up your interest rates and charge you | | | | card you must have: |
| additional fees. Going over the limit can have the | | | | 1) Six month of bills saved. You should have an |
| same consequences. The credit card companies | | | | emergency fund that is equal to six months |
| may force you to pay the balance below the limit | | | | worth of your monthly bills. Set this money aside |
| or you risk having these fees add up month after | | | | in your savings account. To illustrate, if you have |
| month. | | | | bills of $1500 a month you should have $9000 in |
| So strive to be a 'deadbeat' and 'freeloader'. Be | | | | your savings account. That way in case anything |
| the credit card company's worst customer! This is | | | | unexpected occurs you will avoid the credit card |
| the first step to long term financial success | | | | debt plague. |
| planning. | | | | 2) A working budget. An easy test to see if your |
| Use credit cards to build your credit score. Before | | | | budget is working is if you're able to save money |
| you empty your wallet or purse and destroy your | | | | each month. In other words, check to make sure |
| credit cards, it is important to understand the | | | | that you bring home more money than you |
| benefits of having open revolving credit. Of | | | | spend. |
| course credit cards make it easy to reserve a | | | | 3) Automated bill payment method. Set up an |
| hotel room, rent a car and are a convent way to | | | | online automatic bill payment for all your bills that |
| pay. It's important to understand that they do a | | | | are reported to the credit bureaus. By having an |
| lot more. Credit cards are an important tool in | | | | automated system in place you won't have to |
| your financial toolbox. | | | | worry about forgetting a bill. It can happen easy |
| Credit cards offer you an effective way to raise | | | | and one late pay will haunt you for 7 years. |
| your credit scores. Most already know that by | | | | You're in complete control of your budget. If |
| having good credit scores it will help you qualify | | | | you're the type that will spend money if you have |
| for loans easier. What's more you could receive | | | | it, you probably should consider waiting to get a |
| lower rates and lower closing cost. A side benefit | | | | credit card. Get your spending habits in check |
| of higher credit scores is that it will help you avoid | | | | before signing up for a credit card. |
| the embarrassment of being denied for a loan. | | | | 5) Protect your identity. Make sure to destroy all |
| Credit cards can raise your credit score becasue | | | | financial statements. Shred all sensitive documents |
| of the way the credit bureaus grade you. The | | | | before throwing it away in the trash. There are |
| credit bureaus determine customers credit scores | | | | plenty of dumpster diver that would love to get a |
| based on their ability to repay debt. So if you | | | | hold of your personal information. Also be careful |
| never established or maintain credit transactions, | | | | when submitting personal information online. |
| your credit scores will be lower. So if you always | | | | Those 5 steps will help you to become a great |
| pay cash and don't have any loans you will have | | | | 'deadbeat'. A 'deadbeat' with a great credit score! |