Start by building a money diary.  Write down every penny that you spend all day.  This includes the postage stamp that you bought for that letter.  It is important that you write down absolutely everything.  If you did not do this before you have found why your first budget didn’t work.  The money diary needs to be done for everyone in the family.  If you give your children a weekly allowance than just write that down.

Do not do anything differently then you have been doing just make sure that you write everything down.  Doing this for at least two weeks will give you an accurate picture of where your money is going.  You might be surprised where some of your money is going.  I found that my wife and I were spending 20 to 30 dollars per week on gourmet coffee.  That was between 80 and 150 dollars per month.  We determined that we could use that money to reduce our debt.  We still treated ourselves to coffee but we only did that once a month.  We were putting 70 to 140 dollars a month to reducing our credit card debt.

We also found several other things that we were able to redirect our money to.  This helped us stay on track with our budget and hopefully can help you.  The money diary is a critical step in building a successful budget.  Reducing your debt and building your savings account should be your primary goals with the budget.  This will help you improve your credit and your credit score.  Good credit is very important in today’s economy so maintaining your budget and keeping on track is crucial.

The best way to do this is to start with your budget.  If you don’t use a budget maybe it is time to start.  Begin by making a money diary that will show your complete spending for at least two weeks.  It is better to do a money diary for one full month but two weeks will give you a pretty good understanding.  This money diary will help you know where your money is going.  Then you can build a budget that will help you pay all your bills, save a little money and maybe even have some fun.

Once you have your budget built then take the time to check out your debt.  Start with your revolving credit such as credit cards, department store cards and gasoline cards.  Most gasoline card require that you pay the balance in full at the end of the month.  But if you have a card that you carry a balance on make sure your balance due is at least 30% or below of your available credit.  If you have any card debt that is carrying more than 30% then you need to reduce that debt as quickly as possible.  Once your debt is below 30% your credit will begin to see improved credit scores.

Now you have a budget and you have reduced your revolving credit debt it is time to start building your savings or emergency fund.  You should have at least three to six months worth of living expenses in your fund.  If you have a two income family then your fund should reflect that amount.  No one expects you to have your fund overnight.  But you’ll want to build it up as quickly as you can.  Having this much money in savings will protect you from life’s little emergencies.

Finally, you should review your retirement account.  If you don’t have a retirement-plan then you should investigate getting one.  Many companies offer retirement plans and most will contribute those plans.  You’ll need to check out where your contributions are going.  If you had most of your contributions in the higher risk categories then you lost quite a bit of money recently.  Choosing a less risky option will take you longer to build a solid retirement account but odds are you won’t lose money as rapidly.

This will help you get on the right track financially.  Review your credit history report and dispute any inaccurate information.  Good credit is so vital in today’s economy so you should monitor your report at least once a year.  If you need additional help then look to hire a legitimate credit repair company.  Good credit repair companies will dispute as you instruct them to.  Good financial management begins with knowing where your money goes and maintaining good credit. 

Begin by giving your children an allowance.  As they grow older teach them that their allowance is similar to having a job and getting paid by their employer.  Once your children are receiving an allowance, you can begin to teach them how to save money. Learning to save money to purchase the things that they want is a great habit to get into.  For example, if your child wants a video game, teach them save their money to buy the game.  You can even use this same example to teach your children about credit.  Offer to pay for the video game and allow your child to make payments from their allowance.  You can even set up a fee to make the loan similar to an interest payment.

You can even teach your children how the real world works.  Show what it’s like to have to pay daily living expenses.  You can even charge rent, utilities and other expenses so that your children can learn good financial habits.  By teaching your children how to save money and control their debt you are giving them a solid footing for their future.  Additionally, should teach your children as they approach the age of going out on their own about their credit report.  Show them how to get it, how to read it and finally, how to dispute any information that is inaccurate.  My daughter found errors on her credit report before she turned 18.  We disputed the information and got it corrected before she started out.

Good credit is hard to come by so teaching your children is very important.  Take the time to make sure they understand how important this is to their future.

You can get a free copy of your credit report at annualcreditreport.com once a year.  This is truly a free copy of your credit report.  Other web sites tell you that you can get a free copy of your credit report if you sign up for their monitoring service.  Using a monitoring service is not necessary unless you do not want to monitor the work yourself.

Once you have a copy of your credit report highlight any errors that you see.  Make a list of any errors by the individual credit bureaus (Equifax, Experian, TransUnion).  Write dispute letters to each credit bureau listing 2 or 3 items per letter.  Keep disputing until all items on your credit report are deleted or corrected.  This will take more time if you have never disputed before.  Do not be discouraged if you have never done this before.  Your credit did not get that way overnight and you certainly won’t get it fixed overnight either.  It may take from six months to one year to get your report completely accurate.  An accurate report is critical to having a great credit score.

Now that your credit report is accurate you can start building up your credit.  Simple things like paying your bills on time and in full will help your score continue to rise.  Then by reducing your revolving (credit card) credit, your credit score will continue its upward path.  Having installment loans such as car payments or mortgages will also help your score but they must be paid on time every time.  It is best to setup automatic payments on your credit cards and installment loans so that you never have a late payment.  Late payments make up over 30% of your credit score.  Even if you set up automatic payments to only make minimum payments then you go back and pay however much more you want at least your payments will never be late.

 By using tax time to remind you that it is credit report time you can stay on top of any problems that might appear on your credit report.  Good credit is vital in today’s economy and having errors on your credit report will hurt your credit score.  If you need someone to assist you in disputing errors on your credit report don’t be afraid to hire a professional.  There are legitimate credit repair companies out there who can help you.

1.       Have a major credit card.  Gas cards and department store cards can help build your credit but without a major credit card you will have problems getting into the 700 plus scores.  Major credit cards include Visa, MasterCard, Discover and American Express.  If you don’t have a major credit card then you need to get one.  If your scores won’t qualify for a regular card then you need to look into a secured card.  A secured card will require a deposit into the issuing bank.  Verify that the bank and the card will report to all three credit bureaus.  Additionally, try to get a card that can be converted to a regular card after so many on time payments.

2.       Make payments for every credit card and loan on time.  The best way to confirm that is to make arrangements for automatic payments.  By setting up automatic payments you will never make a late payment again.  You also can setup automatic payments to take the amount you specify, either the minimum payment, a set dollar amount or the balance in full, every month from your checking account.

3.       Never let an account go to collections.  You dispute any amount on a bill then communicate with your creditor.  Because if you have an account that goes into collections you will have a negative mark on your credit report.  The best way to handle it is pay the account and take it to small claims court.  If you have accounts that go to collections and then become judgments against you will really hurt your credit score.  These may take up to seven years to no longer affect your credit score.

4.       Reduce your debt.  pay large portion of your credit score is based on how much of your available credit are you using.  The credit bureaus use a formula that likes to see large gaps between your available credit and your balances.  The scores will improve dramatically when you pay down your credit card debt.  So having a small balance on several cards better than a big balance on one card.

5.       Monitor your balance on your credit cards.  Even if you pay your cards off in full each month that may not be the balance being reported to the bureaus.  By monitoring your credit report you can determine on each credit card what number is being reported as your balance.  For example, if you have a credit card with a $10,000 limit and you charge $8,000 to the card then pay the complete balance in full, the credit card company may report your balance as $8,000.  This would show that you are using 80% of your available balance.

6.       Use less of your available credit for better scores.  Keeping your credit card balances below 30% is good for your credit score.  But getting your balance below 10% of your available credit will help you even more.  Using several cards is better than using one card for everything.  Additionally, make payments on your credit cards prior to their statement date.  Because this will lower your balance that is being reported to the credit bureaus.  You can also set up a automatic payment just before the due date to avoid any late fees.

These are just a few suggestions to help you improve your credit score. Having a good score is very important today with the current economy. Getting some help to correct your credit report can help you get on track more quickly. Don’t be afraid to hire someone to assist you in getting your credit report accurate. We can all have good credit if we want and work hard to do things properly.

If your credit score is below 740 then you will have problems with the following:

·         Insurance companies – setting premiums and evaluating applicants.

·         Getting an apartment – landlords and management companies check credit on applicants.

·         Employment – employers today check credit to protect themselves from employees with troubled finances.

·         Buying a home – without good credit buying a home will become almost impossible in today’s economy. 

But you can be taught proper techniques to improve your credit score.  In America, 50% of all Americans have a credit score below 720 and 50% of all Americans have a score above 720.  Only 13% have scores above 800 according to Fair Isaac, the company that created FICO scoring. 

You can have a good credit score if you are willing to work hard for it.  Here are some basic tips to help you:

1.       You can’t fix your credit score if you don’t have control of your finances.  This means can’t pay your bills you can’t fix your credit.  Fixing your credit will have to wait until your financial problem is resolved.  You must be bringing in more money then you have in expenses.

2.       You must use your credit if you want to raise your score.  If you are living on cash only then you can’t raise your credit score.  Your credit score tells lenders how you manage your credit.  If you don’t use it then your credit score will never go up.

3.       You don’t have to carry a balance to use your credit.  Many people who have achieved 800 plus credit scores do not carry a balance and pay off their balances regularly.  Charging items to your credit card and paying them off completely each month will help you build your credit score.

4.       Your credit score did not get this way overnight and certainly can’t be corrected overnight.  Once you begin to reduce your debt then you will notice improvement in your scores within 30 days.  But if you have serious problems such as bankruptcies or foreclosures, you may have to wait until those negatives are deleted from your credit report. 

Dispute any items on your credit report that are not yours or any reports of late payments when you paid on time.  Any information over seven years old except for bankruptcies should also be disputed.  Any accounts listed that were included in the bankruptcy should be reported that way but if they are not dispute them.  The seven year clock usually begins 180 days after the account went delinquent.  By correcting your credit report and working hard on following the tips given to improve your credit, you should say improvements in your credit score.

Paying your bills on time and in full is how your creditors respond to the credit bureaus. If you make a late payment or only a partial payment, your creditor reports that to the credit bureaus. This information makes up 1/3 of your credit score. So if you start paying your bills on time and in full you will begin to improve 1/3 of your score right away. Late payments are reported from 24-48 months depending on the bureau. You might even be able to discuss with your creditors about re-aging your account. This means that you have to make so many payments on time (and in full) and if you keep that agreement, they will change the reporting to show that you have always paid on time. This will remove your late payments and immediately improve your credit score.

Setting up a budget is completely the cornerstone of good financial management. If you have planned on all of your expenses and found ways to cut them you are on the right path. In fact, finding ways to cut your expenses is essential in reducing your debt. Businesses are known for downsizing and cutting back. You need to think of your home as a business. By doing this, you will have the right attitude for saving money.

If you want to see your credit score rise, then follow those two tips. Your score will begin to rise. Review your credit history report and dispute any errors. That will help your score rise. If you have bad credit, then by following the first two tips, your score will start rising and all of your bad credit will drop off your credit within seven years. Most of the negative information reports for only seven years and each year counts less and less to your credit score. Good credit is within your grasp if you are willing to reach out and take it. If you need help in correcting your errors hire a professional. A legitimate Credit Repair Company can help you dispute those items that are reporting incorrectly. They will only dispute what you tell them that are reporting inaccurately. They will continue to dispute that item until you tell them to stop.

Don’t be afraid of having bad credit as it can be repaired. Dedication is necessary to make the changes you need to have good credit. Bad habits are hard to break but not impossible.  Take the time to dedicate yourself to having good credit and you will be surprised what you can do.

Good credit has to do with good financial management. It does not have anything to do with how much you make. You don’t have to be Bill Gates to have good credit. Many 18 year olds have good credit, especially if the parents have taught them good financial habits. Improving your credit is not impossible either, it just takes more time if you have some bad marks.

Here is the thing that you can do to start helping your credit score. Pay all of your bills on time and in full. If you have credit card debt then you need to start paying it down. Most people don’t have the money to pay them off in full, so you have to be committed to getting them paid down as quickly as possible. If you are only making minimum payments, then the only one benefitting is the credit card company because you will be paying them for many, many years.

The next thing you should do is setup a budget and stick to it. Making adjustments is fine in the first few months but if you are adjusting your budget every month then you don’t have a budget. You have a guideline and you may or may not follow it. Having a guideline is not controlling your finances. You must build a budget and stick to it. This will help you start contributing to reducing your debt.

Paying your bills on time and in full, then reducing your debt is best way to start fixing your credit. Finally, you should pull your credit history report from the three major credit bureaus. Then review each credit report carefully. If you find mistakes or inaccuracies on the report dispute them. Disputing them is asking the Bureaus to check with the creditors to make sure the information is accurate. If you know that the information is inaccurate then disputes it until it is fixed. It makes take several disputes before the creditor actually finds the mistake.

Having good credit is not impossible but it takes dedication. It is much easier to have bad credit because it simply means you don’t care about your finances. Repairing your credit takes the willingness on your part to fix some bad habits. Fixing your credit report can be done by yourself or you can find someone who is willing to do the day to day work for you. Good credit is so necessary today and if you have bad credit, then you should devote yourself to learning new habits and breaking the old ones. Everyone can have good credit if they want it. Good Credit is within your grasp.

Tip #1 – Have a realistic budget. Many people setup a budget but find that they can’t stay on track because they really did not have a good budget to begin with. For example, if you give yourself a weekly allowance of $20 for things like a candy bar here, a soda there and you find yourself going over every week then that figure is not realistic. You may want to take money from somewhere else to pad this figure every week. Another idea is to buy things like soda or candy bars instead of paying for them through a vending machine. You can easily save money and stay on budget.

Tip #2 – If you have a spending bug and find yourself buying things you simply don’t need, and then stop carrying cash or credit cards when you go out. You can do all the “Window” shopping that you want and won’t be able to spend any money. If you find something that you simply can’t live without then you can go and return for your purchase.

Tip #3 – Don’t let your budget control you, you control your budget. I know people who actually review and adjust their budget each and every month. It surely is time consuming but if you need to adjust for special occasions such as birthdays or holidays, then adjusting the budget to fit your needs might work for you. The secret is to make sure that your budget is meeting your long term goals. Paying off your credit balances, making your credit payments on time or any other goals that you might have can be met with attention to your budget.

Staying on budget is hard work. Finding a way to help you stay on budget is up to you. You must want to stay on budget to make it happen. Take the time to review what options are out there for you. Find out what works for you and stay on budget. It will help you by keeping your bills paid on time and in full. This will help you in the long run with your credit. Good Credit is critical in today’s economy.

Look at each of your credit cards and determine which card has the least on it compared to the available balance. That means if you have a card with a $5000 limit and you have $1500 balance on the card compare that to your other cards. If another card has $5000 limit and has $2500 balance on it, you will want to use the card with the $1500 limit. By keeping your balance below 50% of your available limit you will keep from too much damage being done to your credit score.

If you have several cards and you plan well, you might even be able to keep your credit score from going down too much during this Holiday season.

Additionally, keep in mind that you really want to try and pay off (or at least down) your credit card balances to get them below 30% of their available limit. By getting them paid down to below 30% of their available limit you will have them working for you by increasing your credit limit. If you want your credit cards to help your score get the balance due below 30% of the available then start making monthly payments. Don’t just make the minimum payment but a bit more than the minimum will help show your creditors that you know how to manage your credit.

Once you get your score where you want it pay off the balance on your credit cards. This saves you from paying the interest being charged by your credit card companies. Good Credit is important for you in so many ways today. If you want to buy a car or a home, looking for a new apartment or even finding a great job needs good credit.