ASK THE MONEY GUY: My Credit Is Horrible, Is It Too Late To Fix It?

  The most common question that exists when it comes to conquering debt and acquiring financial freedom is 'My credit score is too low, how can I fix get it back up higher?' Well, today ladies and gentlemen you will find out two simple methods that can when used correctly will help sky rocket that slumping credit score.  The two methods that we will look into consist of using a secured credit card and a personal loan.

  Let us jump right in here.  The secured credit card is a form of revolving credit that has is backed by an amount of cash as the collateral which becomes your credit limit for the card.  Most of your financial institutions offer this form of card, but you may not see it advertised as much.  The basis behind the card is that it is primarily used to help rebuild or establish credit for you if you have limited or none.  Simply use the card on purchases like groceries, gas, salon, etc. once a month, then pay the balance off once the billing cycle comes due.  Remember the point of the card is to help rebuild or establish credit so do not go over board and max out the card.  For those with low scores, secured credit card, can be a great approach to generate current credit history so future lenders or creditors can monitor your current activity with the credit relationship you have with 'xyz' financial institution.

  Depending on your current situation, a personal loan maybe a better option for you.  Taking out a personal loan for the total amount of debt you owe could be used to consolidate the things weighing your score down.  What happens when you do this approach, is that you payoff the many debts owed at the various company's you have a collection account with.  Clearing these company's off your credit report with this approach will cause your credit score to tip higher;  the personal loan that you just used for those balance payoffs is now consolidated down to one loan, with one monthly payment and fixed interest rate for a set monthly term.  Yes, the interest rate may be high but trust the Money Guy because in the end it will worth it once you see how high your score has gotten.

  So I ask you to take a second and examine where your credit score is currently;  Ask yourself could it be higher.  Just know one of these two methods can be a handy tool for your success.

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