Installment Credit vs. Revolving Credit

Installment credit is based on a fix monthly payment such as am auto loan,student loan, or a mortgage loan, the difference is your payments are generally fixed so you must pay the same amount each month based on the amount of the loan and the interest rate. Being late on an installment loan can leave negative marks on your credit for a period of seven to ten years.

Revolving credit is usually in the form of credit cards, department store cards, and gas station cards, this type of credit has a pre-detemined interest rate and payments are basically whatever you want them to be with only a small monthly limit you must pay. Revolving credit accounts that become late pose a negative mark on your credit report on a monthly basis, it is important to pay at least the minimum amount due each month to maintain in good standing with the credit grantor although it is highly recommended that you always pay more than the minimum amount due monthly.

Fix Your Bad Credit, Become Debt Free

Step 1:

Obtain a copy of your credit report from the three major credit bureaus (Experian, Equifax, and Trans Union), goto www.annualcreditreport.com to receive your free credit reports, you are able to obtain your credit reports for free once each year.

Step 2:

Highlight the negative marks on your credit report and prepare to dispute these files to the credit bureaus and/or the creditors and collection agencies.

Step 3:

You will need to either write a letter to the creditors/collectors explaining that the debt indicated ony our credit report is false and you have no knowledge of the accounts. This step can also be done online using the credit bureaus dispute system.

Step 4:

Now you will need to wait up to thirty days to find out if the negative marks have been removed or updated, do not get frustrated if all or some of your negative marks are not erased from your credit report. The creditors and collection agencies have thirty days to reply to your debt dispute and provide proof that the debt is accurate. If they fail to do so the negative file will be taken off your credit report.

Step 5:

Repeat steps three and four until you get the desired results, please note that there is no guarantee that you will remove all or any of your bad credit.

Rob Peter to Pay Paul and Come out a Winner

This trick is an oldie but goodie, the idea is to create fast positive credit to further boost your credit score. First you need to shop around and find two types of credit cards, one with a low interest rate and another that offers an interest-free period each having the same credit limit although one can have a bigger limit than the other. Once you have obtained both the credit card you will need to max out the interest-free credit card, so go ahead and shop till you drop.

Next you wait until your credit card bill is due and pay of the full balance with the low interest rate credit card, then next month pay off the low interest rate credit card with the interest-free credit card and continue this process for at least six months and you will receive a positive boost to your credit score. This can also be accomplished using small personal loans obtained from local banks or even a mix of one credit card and one personal loan assuming they are both able to cover the full balance of the other each month.

Totally free credit reports

It seems like everywhere you turn these days your being offered free credit reports but unfortunately the majority of these free credit report offers come with a hitch. Well forget all about those companies and their greedy ways because now you are able to obtain your personal credit report online free through the three major credit bureaus.

Simply goto Annualcreditreport.com and you will be able to receive a free credit report from each credit bureau, it is fat free and simple. This offer is limited to one free credit report each year but you are also able to receive another credit report if you recently requested credit and were denied within 60 days. So what are you waiting for go grab your free person credit report and keep track of your debt.