Five Tips To Build Your Credit TodayShould Christians even HAVE a credit rating? Some say no, but the reality is our society makes credit nearly impossible to avoid. Here's how to be a good "Credit Steward".By Andy Havens If you're just starting out, avoided the "credit issue altogether or you’ve recently paid off a lot of debt, you may be wondering where to go from here. Maybe you went through a divorce and got stuck with a lot of high interest credit card debt, or got behind on your payments after a job layoff. Or maybe you don't have any credit at all and find it wise to build a credit rating. Whatever the reason, your credit report is needs improving and you’re ready to get on track. Fortunately, it’s a lot easier to build or re-build your credit than it was to get out of debt. Here are some tips that will make your credit report sparkle in no time. First, you should expect to spend about a year building your credit. I can hear some of you groaning—after all it took a few years to get out of debt, right? Yes, but you must understand things from a lender’s point of view—they need to see proof that you are a good risk. You will need to establish some sort of credit, so that you can show your future creditors that you can be trusted. If you’ve had serious credit mistakes in your past, that may mean getting a secured credit card. These types of credit cards are secured by a bank balance, which will equal the spending limit on the card. The point of them is to build credit when no one else will issue you a card. If you can apply for a low interest rate card, you should get one and use it for the sole purpose of rebuilding your credit. Another credit reporting building method is to apply for a personal loan, and then pay it off early. You'll end up paying some interest, but you'll establish good credit in the long run. It's even better if you have the entire loan amount in the bank. You'll get a little of the interest back and you can sleep easily with the knowledge you can pay off the loan anytime. Plus when you do pay it off - you'll have the entire loan amount to put to use. The biggest thing you can do to rebuild you credit is to pay your payments on time. That means that you can’t be late—not even once. If you are mailing in your payments, be sure to give it plenty of time to not only reach the destination, but also clear the proper processing channels. If you think that you’ve cut it too short, overnight it. Nothing should stop you from getting those payments in on time! Remember that even one late payment can make a difference of whether or not you get that car or home loan. You should pay off your credit card every month. Remember your goal is to establish your credit, NOT to have "extra money" to buy stuff you don't need. As Christians, God supplies all our need, so we shouldn't be looking to be bailed out by a credit card. Does that mean we should NEVER finance something long term? No. I don't think there are any hard and fast rules here besides the obvious about dealing honestly. God knows our hearts. He knows we don't always trust Him as we should. He's not shocked by it either. And emergencies do happen. When the need arises, prayerfully consider all your options. God will honor a pure heart. If you must carry a balance on your credit card, resolve to pay more than the minimum. For example, if your minimum payment was $25 per month, try to pay at least $35. This will accomplish two things. First, it will make you look better in future lender’s eyes, and secondly, because by doing so, you will paying more toward your principle balance every month, (as opposed to interest), and that will reduce the overall amount that you’ll have to pay. Do all of these things will patience and determination, and you’ll soon find yourself with a credit rating that you can be proud of! Here’s to living debt free! In Christ's Name, Andy Havens Andy Havens is a writer, marketer and businessman who also happens to be a Christian...or is that the other way around?
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