There are several ways that one can build credit or improve their credit score. If you are tired of collectors hounding you, calling you night and day or if you are frustrated that no one will loan you money because you never had credit, it is time to learn how to play the credit game and win.

First, and foremost never purchase items you do not need. If you 'want', do not let your wants wear you down and get you deeper in debt. If you are searching to build credit and have no history at all, make sure you have your priorities in order and use credit to purchase things you are going to need anyway and would have spent your cash on to obtain.

Bad Credit Building Credit

If you have, bad credit get a DO-IT-YOURSELF-Kit and gets the balls rolling. There is an excellent, low cost kit offered at the end of this article that you should strongly consider. 

You can go to your public library and get books that will guide you through the steps of repairing and building your credit history. Most libraries allow you to copy and print the forms that you must fill out and send to your creditors. There are systematic guides available that have the tools and instructions for debtors to learn how to write letters to creditors.

Letters are generally better than phoning creditors, since some creditors could care less about your situation and may even threaten you over the phone. Another good reason for writing letters is that (copy in writing) is more valuable in a courtroom than a conversation on the phone.

If something is said or an agreement is reached and the creditor later tries to deny his or her claims then you can present this to the courtroom and they will listen to you. Any documents that pertain to your credit history should be stored away in a safe area. If you send letters to your creditors keep a copy of each letter sent and store it in a safe area too.  Never send anything that you do not have a copy of first.

If you notice any errors on your bills or credit reports make sure that you contact the appropriate agencies and dispute the charges immediately. If you have credit cards and used the card to purchase an item or use a service and this person sold you a defected item or else provided bad service, you DO NOT have to make payment toward the charges. You do however have to dispute the charges with the services or stores that sold you the product or service and notify the credit card company of your dispute.

If the seller refuses to give you a new item or else reimburse you for a faulty service or product you have the right to deny payment. Once you have disputed the charges with the sources you will then contact your card provider and let them know what occurred and they are obligated to work on your behalf with the merchant to correct the situation.

If you are lucky enough to still have a credit card with bad credit, use the card wisely to repay your debts and then meet the monthly minimum on the credit card when due. Ironically, you are getting out of debt while going in debt deeper due to mounting interest charges.

In other words, if you use the card to pay your debts each month and then payoff your credit cards the following month and then turnaround and use the card to pay that month bills you are staying current, but your total debt is rising monthly when the interest rate factor is added on....

Now you see where I am going with this. Credit cards have interest rates so the bills each month on the card will increase and eventually you will not be able to keep up, so use this only as a temporary solution while you get back on your feet.

No, Credit...No Problem

I do not need a credit line or credit card; I pay all my bills each month with money.  Does this sound like you? Well then, you have the obvious answer, but what if...  if is a little word with a real big meaning...

In today's world, we are moving into an era that requires us to have at least one major credit card. When you phone any business where you have debts, they will first ask you to pay with a credit card.  Have you ever tried to book a hotel without a credit card?  You can't!

If you apply for a job, apartment, mortgage, car loan, or any other credit line you will almost certainly get a rejection notice in the mail. Most lenders simply will not give credit to anyone that has no credit history. The reason is that we are expected to establish a credit line when we are teens, and if we do not banks and other lenders are often suspicious as to why.

The lenders do not have an idea and can only base their judgments of you on assumptions or patterns of other borrowers they have dealt with. Can the lender or bank assume this person will make monthly payments on time? Has this person taken for granted a loan from family members in the past and there are no records available for me to see? There are many reasons that lenders will refuse you a loan if you do not have a credit history and these are just but a few.

The best solution is starting up a line of credit as early in life as you can, pay off all your debts on time and avoid making purchases on items you do not really need. Staying out of debt means managing your money each month and paying your bills when they are due. 

Additional Articles that will greatly assist you with your credit and obtaining financing.

Barter Credit Repair
Credit Repair and Avoiding Court
WARNING Credit Repair
Credit Repair for Identity Theft Victims

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