Rule of Thumb to protect your Credit

Trinity Enterprises LLC feels as though education is the key to helping consumers out of debt on a national scale. It’s not always a loss of income which landed them in debt, but many times the lack of knowledge. Credit can be a blessing and can also be a curse. It can be a blessing when it comes to the home buying process because the average consumer does not have the funds to purchase their dream home or even a car for that matter right out of pocket.

The side that can be a curse is when there is excessive spending on credit cards and not enough discipline to pay the debt on time or income to substantiate a payment. Rule of thumb to protect your credit when it comes to credit cards is never over exceed 30% of your available line of credit. With the way most interest is configured, you will end up paying more interest than you borrowed from the line of credit. Make your minimum monthly payments on time. After 18 months of good payment history, do not hesitate to call the creditor and ask them to increase the limit give you more to borrow from.

Many people do not know the difference between secured credit and unsecured credit. We will now take time to explain it and see which is best for credit scores. Secured credit is basically your own money which you have borrowed from. Banks will allow you a secured line of credit when your own personal credit history is not up to their standards. This can be because of delinquent items listed on your credit report or because of lack of credit. Most banks don’t want to be the first to lend to you. Beware of the start up credit cards, as they have high monthly fees and interest rates. However, not all start up or credit building credit cards work the same way.

Unsecured is just the opposite. There is no deposit necessary, unless maybe a small set up or annual fee, but it’s in no way compared to putting your own money in to get your own money out. If the bank gives you $500.00 in unsecured credit, then it’s money which you didn’t put in in order to get it out. This means you either had a decent credit history, made enough money, or show steady deposits in your bank account. Trinity Enterprises encourages unsecured credit as is has the most impact to credit scores and in most cases the dollar amount is far larger than secured lines of credit.

This boosts scores because it says there was nothing that you had to do great in order to receive credit or the funds that were extended to you. Another word of advice is to always have a steady bank account and not hesitate to ask your bank about their credit lines and investment accounts. There’s no need of having your funds in a bank in which the bank makes interest from your money and you do not see the benefits. Chase has an awesome money market account and is very reasonable with the interests rates on credit card.

If you were declined for a credit card from a bank, ask the bank what credit bureaus they pulled from. This can be Equifax, Experian and TransUnion. If you need help obtaining a copy of your credit report, contact us. We can pull a copy of your credit report and tell you what items need improvement so that you are no longer declined for credit in the future. Credit repair can be the difference between you getting unsecured credit or secured credit. High interest rate credit cards are a bummer and have a lot of people down these days, but it doesn’t have to be that way. Get educated and fix your credit. Fixing your credit can be as simple as hiring a professional or doing it yourself. We advise that if you don’t have the time or patience to do it yourself, to hire a professional. Many consumers make their credit reports worse by not knowing how to remove the negative items and then causing them all to be updated which drops their scores.

Remember, if you plan on challenging an account on your credit report, the dispute type “account not mine” is not the solution as it could cause the item to be re-reported with an earlier date dropping the scores nearly 30 points per item re-reported.

You do not have to be bothered by collection agencies at work. The Fair Debt Collections act says they must respect your privacy. Just ask them not to call and if they continue to call, please contact Trinity Enterprises’ Complaint’s department and we will aid you in filing a complaint.

 

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