When you think of your reputation you think of things like honesty, sense of humor, generosity, punctuality, your love life, and the way you treat other people.

They’re all personal habits, and so is the way you handle money.

The difference is, while all the rest of those attributes are tossed around between your friends and acquaintances, your money management reputation is also made public record for any potential creditor, landlord, employer, or insurer to access.

Unlike some other things that might have gone on in your life, you can’t move to a new community and escape your financial reputation. Your credit report and your credit scores tell all – at least for 7 years.

The worst of it is – that financial reputation affects things that you might think have nothing to do with your bill-paying or borrowing habits. Things like qualifying for a new job.

That’s why it’s worth your effort to protect it, and to keep it accurate.

If your credit right now isn’t so hot, it’s time to take steps to rebuild it. I know, 7 years seems like a long time to completely erase blots on your reputation. But if you wait, that 7 years will just keep moving further into the future.

So, get started. Here’s what to do first:

1. Start paying down your bills! Even if it means finding a small side job to boost your income, or cutting back on something you enjoy, just do it.

2. Pay off any collections on your record. Many of these collection agencies will negotiate with you, so see how low you can get the balances, and then take care of them. Be sure you get the payoff agreement in writing, so if they don’t remove them from your record you can contact the credit bureaus and take care of it yourself.

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WHAT IS A TRADE LINE: The answer is simple: Any account reported to your credit file is considered a trade line. They can include Mortgages, Your credit cards, Auto Loans, Furniture stores, Jewelry Stores, Gym memberships, and any other account that you have been granted credit for that reports to the bureaus.

WHAT IS SEASONING: Seasoned trade lines are again simply, accounts that have been posted for a period of time.

THREE POINTS MAKE UP A GOOD SEASONED TRADE LINE
Accounts with a history or seasoning. Top FICO scores are given to accounts with 2 to 6 years of history. Anything less or more barely effects your score.
Accounts with a perfect payment record. If your account has any 30-day or more late payments recorded, it will adversely effect your FICO scores. One late 30-day late will effect your score between 25 and 50 points.
Keep the Balance Low. To get a good credit utilization score on your FICO report, you need to keep your balances below 9% of your credit limit. Having no balance can also adversely effect your score. Try keeping a small balance on your accounts to keep your credit card companies from lowering your Credit Limit for non-use.

TWO KINDS OF TRADE LINES

The AUTHORIZED USER or cosigner type trade lines are the most common. Your Father, friend, boss or who ever, with a good payment record can add you to their credit file. This is normally done with credit cards. The Primary user, will call their credit card company, and ask for an additional card who then becomes an authorized user. The AU (Authorized User) will have the payment and history record of the Primary user added to his or her credit file. Remember, if the primary user has 30-day late payment, so will you. The new FICO 08 scoring has largely reduced the credit score for the Authorized user.

Investors have been "piggybacking" for years to help raise their scores and get approved, and up until recently the technique has been considered a "best kept secret". With the influx of companies promoting these accounts, many creditors have decided to no longer report authorized users.

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The credit card has been known for quite some time now. When you are on a shopping spree, this may be the ultimate gear. This little plastic card may be your best friend.

This card may be the most convenient thing to use during your shopping and when you lack cash. This card at the same times tempts you to spend a lot.

So you may be wondering if there are ways to save money when you have a credit card. Of course you can.

This little piece if plastic may be very helpful. You actually can save money with the credit card.

A 0% balance transfer:

If the credit card you are using at the moment has high rates of interests, you can shift the balance to a card which has lower interest rates or may be even to those who might have no interest at all. Some of them may offer you a 0% interest rate for a while and then go on with charging you on lower rates which may be regular. If you were paying an interest of 19% you can shift down to one which provides 16.1%. this little difference will mean a lot to you in the long run.

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You’ve just got your first credit card. What do you do with it? Well you use it of course. That is what millions of students are doing. Everything from gig tickets, to text books and groceries go on the card.

The wonder of having your own plastic is just too much. It is like an emblem of adulthood. Once you have that little piece of plastic in your wallet you seem to be a free and independent person.

Students and the interest they pay are making a fortune for the credit card companies. Students may have great grades in every subject but no one ever thought of teaching them about personal finance.

It’s no good being moralistic about student debt. Debt is a way of life for students. They take out loans to pay their fees and living expenses. They know that their parents have debts. These kids were raised on credit and they expect to be in debt when they graduate.

But credit card debt needs to managed carefully. Credit card debt is different to other forms of debt. It grows and grows.

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The Credit Bureaus exist for one reason, and one reason only…to make money! Each and every one of the bureaus is is a publicly traded company. They make most of their revenue by selling information to lending institutions, insurance companies, utility companies, credit card issuing banks, and employers.

They DO NOT make money by researching your disputes…in fact, it costs them time, money, and resources to investigate them. Is it any wonder then who the bureaus ultimately serve?

Bureau Secret #1 Credit Bureau Reports – Your 92 Scores

Reports and scores are created "on the fly" whenever they are requested by you, a creditor, or a lender. In fact, you can have up to 92 different scores…23 different scores for each Bureau: Trans Union, Experian, Equifax and don’t forget the little known "other" bureau named Innovis.

Remember your credit scores can vary drastically depending on who pulls the report and the particular profile applied to you. This Bureau process is especially problematic if you are thinking of getting a home loan or mortgage. The score you see if you request it from a major reporting bureau or an on-line service WILL be different – and probably much higher than the score you receive from a Mortgage Broker.

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