There are serious credit repair mistakes you can make that can kill your chances of raising your score.  Avoiding mistakes in credit repair can be fairly easy if you exercise some care. Make sure you have confidence in the organization you go to for help.

Here are five things that can negatively affect your score(s):

* Action Not Taken:

Probably the worst mistake of all. Most of us keep putting off taking action until it’s too late. Seven years  is how long most items that hurt your score will stay on your record.

You won’t be able to get loans or mortgages without clearing your report(s). You need to take action ‘Now’! It’s better to do something rather than nothing.

* Bills not paid on time:

Some people will ‘not pay their bills on time’ even if they can, in order to reduce their overall debt. Not paying on time becomes one of the biggest reasons we have bad credit.

Obviously it’s no secret that getting rid of debt is critical. But remember that late payments will have a negative effect on your report for a long time, which is even more important. Only worry about your overall debt when your monthly expenditures are taken care of.

* Multiple credit cards abound:

Many people do this in order to “establish credit.” This is not exactly a good strategy. Applying for too many cards will negatively impact your score. All those cards make it more difficult for you to pay on time as well.

Think about it: having five different payments is much harder to keep track of then one. And the higher your credit line is, the more likely you are going to spend money on things you can’t afford and therefore, very likely dig your credit hole deeper.

* Try not to shut down your accounts all at one time:

Try to pay off one at a time an then close it. Don’t use one card to pay off another! Keep at least one open. Shutting down all of your accounts while you still have bad credit, doesn’t give you the chance to build it back up.

* Going with dishonest companies:

There are a multitude of scams in the credit repair industry. And todays economy is bringing out more. Many of the companies that claim they can help you raise your score will just take your money and leave you in an even bigger hole.

Raising your credit score by disputing everything in your report(s) is one of the ways these companies claim to help. Avoid them. Many will have you believe you can reverse just about anything on your score. If it’s a legitimate item it will stay on the report(s).

Look for customer reviews to help you spot dishonest companies. Check with the Better Business Bureau. Do an Internet search for reviews of the company you are considering.

And remember, many metropolitan areas have non-profit organizations to help you with credit problems. Check thse sites – http://www.nfcc.org and http://www.aiccca.org

Here is a link to a Federal Government site that may provide useful information – http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm.

Remember, a great deal of changes have occured over the last 12 months or so, regarding financial organizations and your rights. And those changes are continuing. Always check for the most up-to-date information.

I’ve stated this before: You are entitled to a free copy of your credit report each year, from the three major agencies. Use This Entitlement! It is the first and most important step you need to take.

Hopefully this will help you easily avoid scams and locate the right company for you.

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There are all sorts of credit repair schemes out there. The reality is, if you have bad credit, there are solutions to repair that credit. It’s possible to improve or repair your credit in a relatively short time period. How?

Here are five strategies that can be effective in helping you correct your credit..

!) Before you do anything ‘Get A Copy Of Your Credit Report’. You are entitled to a free copy once a year. You need to see what’s there before taking any action. You can begin to correct obvious errors yourself by contacting the credit reporting agencies and having them investigate and correct those mistakes. Scan your credit report and looking for mistakes.

If you find errors, then contact the particular credit bureau and let them know. While I prefer doing so in writing via certified mail, they all have contact phone numbers. They will look into it. If they verify that indeed there is an error in your report, they must erase it from your report. Have them send you a corrected copy of your report.

This should instantly improve your credit score. And since mistakes are quite common, there’s a good chance this will work.

And don’t give up. If they don’t remove something the first time, keep after them. It may take two to three months, but eventually you can get that erroneous information taken off.

2) Pay on time

This is one of the simplest methods for raising your credit score. It’s so obvious it might not seem worth mentioning, but it’s one of the most important tips of all.

Can’t pay on time? Contact the creditor directly and see what king of terms you may be able to work out twith them. But do remember to stick with whatever terms you devise.

Creditors have been know to make ‘adjustment’ to terms more than once, as today our personal situations are very fluid.

3) Credit counseling

This will not only give you strategies for better money management, but the company can negotiate with your creditors on your behalf as well. In many instances they may be able to reduce the amount you owe substantially.

Look for an agency local to your area, where you can do things face to face. Try o getting a referral from someone you know.

Since they are very experienced in the industry, they may have a much better chance of negotiating better terms for you than if you were to do it yourself.

4) One of the least desirable techniques is obtaining a consolidation loan. This might make it easier for you to pay your creditors, leaving you with just one payment rather than multiples. But exercise caution here. Many have gone this route but began piling up more debt because they suddenly have more money! You need to be very disciplined to use this sort of strategy.

5) Build up your investments

Instead of spending on things you don’t need, start putting a certain percentage of your money away every month for investing. This is easily one of the best methods to repair your credit.

But be wary of scams.

Remember, there are many firms that come after people with bad credit. They claim they are going to help you raise your score. But often times they just take your money and disappear.

How do you spot those companies?

Charging you an up front fee is often an indication you should exercise extreme care in working with the firm. Also, telling you to dispute everything on your credit report even if it’s right, it’s certain they are not legit.

Implementing these tips can help you improve your overall credit rating.

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How you think about money is the single most important factor to determining whether you are wealthy or not. If more money in your life is what you want it’s crucial that you develop a positive money mindset.

However, many of us have been taught to think negatively about money. We’re told things like “money is the root of all evil,” It’s not! How you acquire/use it is – ‘Greed’. Another is “money doesn’t grow on trees”. Actually it figuratively can if you know how. No wonder we have such a difficult time thinking positively about money!

You may have even been taught that rich people are greedy and as a result you are subconsciously avoiding wealth and missing out on the great opportunities having money can provide.

As long as you hold on to negative and incorrect beliefs about money, you will never create the wealth you desire or deserve.

To change your money mindset, you must first recognize that money is not good or bad by itself. It is just a tool. In fact, money is more often used to do good than bad. Think about the wonderful charities that have been able to help people all around the world when they are given large donations of money. Appreciate all the good that money can be used for. It is important part of life and is used to make positive changes in the world. Money should be sought after, not avoided.

Recognize that money is abundant. When you were young, you may have been told by your parents that money doesn’t grow on trees. If you’re holding onto that belief now, your own mindset could be holding you back from attracting money. Money may not grow on trees, but there is an abundant amount of it for everyone, including you. However, if you believe that money is scarce, that belief will keep it far away from you.

Giving money away, such as charitable giving, is another way to develop a positive money mindset. Wanting to hang onto every cent you have is a sign of a negative mindset, reinforcing the idea that there is not enough of it. Giving reinforces the concept of abundance. Something I do every so often is pick a name/address randomly out of the phone book and. anonymously, send them some money – anywhere from$1 to $20 (or whatever you prefer). I find this a fun thing to do.

Finally, be happy for those who are successful and have money. Try to learn from them. We often remember being told that those who have money are greedy and are tempted to think negatively about them. In fact, the opposite is usually true. Rich people often accumulate their wealth by sharing what they have with others and believing in the idea of abundance.

When someone else has money, don’t resent their success. If you have feelings of jealousy, it will only hold you back from achieving your own wealth and success. Instead, be happy for them and remember that there is enough wealth for you too, and your turn will come.

Making these changes in how you think about money, will put you on your way to developing a positive money mindset. Once you begin thinking about money in a positive way, you will be on the path to achieving your own wealth.

‘The Jedi’s Grandpa’

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Whether you grew up in a household that was plagued with debt, or you simply want to make sure that your kids are money smart and make the right money choices when they grow up, you will discover helping your kids understand things like debt and how to handle money is something that should start early. Some kids have a knack for managing money, while others seem inclined towards being spendthrifts – like I was. But remember, money management is something that can definitely be taught, and when you are thinking about how to get the point across, keep a few things in mind.

First, there does not seem to be a right or wrong method to giving children money. Children who receive an allowance unrelated to chores, children who receive an allowance in exchange for chores, or children who get money only on special occasions don’t seem to have better or worse experiences with money. What is important is showing them where it comes from and how they should spend it. When a child has money, you can make suggestions about what he or she can do with it, but the important thing to emphasize is that there is a finite amount!

Parents need to instruct their children good money management by avoiding making money issues a secretive issue or one that is for the grown-ups. In my family, money was a subject that was held very close to the chest. It was never talked about when we kids were around.

While of course your eight year old may not grasp the intricacies of a mortgage or a loan, you can still explain things to them in manner they can comprehend. Many parents are surprised by how much their children understand. Have faith in your child and remember that they are part of the family as well. Being secretive is more likely to alarm them, and you will find that they can understand quite a lot if you are patient.

When you want to make sure that your kids are money smart, remember to set a good example. Even if you have issues with debt yourself, make sure that you are honest about how you got there and what you are doing to get out of it. Take some time to show them how good money management works, whether it comes with balancing a checkbook, or working with a household budget. Once again, you will be surprised at how interested a child will be in things like this, when presented properly.

When your child is a little older, explain credit cards and loans to them. If they can get a basic understanding early on, it will make further investigation much easier on them when they are young adults.

Many schools today have curriculum’s to instruct children about money management. If your school doesn’t have such a program, look into having the school institute one. Given todays financial climate it’s extremely important to give our kids as much financial acumen as possible. Had such programs been available while I was in high school, I would be much better for it today.
As a parent, you have a responsibility to help your child how to use money. A child who understands money will grow into an adult who is debt aware and money-savvy. So take some time and invest in your child’s financial future and outlook!

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