Checking Your Credit

I recently stumbled upon this website called Credit Karma. Its a free credit checking website, and by free I mean FREE. Unlike the three major credit bureaus that require a $1 hold with your credit card this one does not. You simply sign up for a free account and they pull your credit info for you. Credit Karma gives you helpful tips on how to save more money. They have a credit simulation page where you can pretend to add different things that will effect your credit like a new credit card, a loan, or closing a credit card, or raising your credit limit on a card. When you click on these certain things it will then tell you how its going to effect your credit, either negatively or positively.

I currently am working hard to improve my credit. I eventually want to have outstanding credit, because it is so important to financial success as well as success in life.

If you have poor credit banks view you as a risk, so this means no mortgage loans, no car loans, no student loans etc. Some banks, however, will be willing to give you loans with an incredibly high interest rate. Yeah it gets you the money you need but you spend the next 30 years paying off the interest.

Some corporations only hire people with great credit, because it shows that you are responsible. Regardless of the situation that got you into debt, corporations don't look at the why, they look at the numbers.

Another important reason to have good credit is that rental places, if you aren't planning on buying a house just yet, look at credit scores too. They, like the corporations, use it as a way to view how responsible you are. If you pay your bills on line and aren't head over heels in debt, then you will have enough money to rent from them. Ask yourself, do you really want to be sleeping on the streets because of your credit score? I sure don't!

Below are a list of ways your credit can be damaged. If you fall into any of these categories I suggest checking your credit score and then re-evaluating your finances!

• Your "identity" or social security number has recently been stolen.
• You own multiple department store credit cards and they are all maxed out.
• You have been late on credit card payments in the past.
• You haven't paid your student loans
• You late on your car payments
• Have been turned over to collections for money issues.
• Are behind on mortgage or rent payments
• Have had to file for bankruptcy in the past 10 years.
• Late on child support

If you find that you fall under anything in the list above, don't freak out. First go to Credit Karma, make a profile and find out if your credit is in serious trouble. Second, grab all your bills and sort through them. Even tho you have back payments due on your credit cards it is important to not get further behind, so make sure you are paying the minimums on all your cards, this will protect your credit from becoming worse. Once you have paid the minimums, find the biggest thing that is effecting your credit at the moment. Whether its your mortgage, car loan, or Macy's store card, find the one that is most deliquent. For the next 5 months you should then try your best to pay double or tripple payments on this card. It will be amazing to you how much money you can put toward a deliquent account if you put your mind to it.

Now, this may mean that for the next 5-6 months you wont be able to buy those adorable green suede pumps you have had your eye on, even if they just went on sale. It also means that you might have to pass up on dinner with friends, or going to the movies. But if you let them know that you are trying to be responsible and get some "things" paid off. They will most likely understand. Whats more? Just think how great you will feel once you can finally proclaim "I PAID OFF MY CARD!" It will be a great feeling, a mountain of stress will be lifted off your shoulders.

After you tackle your first deliquent account, then move onto the next one. It may take you a few years, but hey! Once it is all paid off you will finally be debt free and your future will be bright once more. So again I say, get your credit check on at Credit Karma, and start tackling that debt today!