Personal Finance: Tips for Those with Bad Credit

In order to achieve financial success, everyone needs to start by building good credit. The best way to insure that you have good credit is to make good financial decisions and build good credit from the beginning, but sometimes, situations arise that make a bad credit score unavoidable. For those who have bad credit, starting to improve your financial situation may seem like a daunting task, but you need to realize that your credit goals are achievable.

Follow a Budget

This is probably the most basic tip to help anyone get ahold of their financial situation, but it is also the most curtail. In order to build a better credit score, you need to pay all of your bills on time and in full. The only way you can do that and still be able to save money and feed your family is by following a strict budget. You need to break any bad habits you may have, such as spending more than you earn or living on credit cards, in order to move forward, and you can only do this if you make the daily decision to stick to your budget. You need to find every possible way you can save money each month, even if that means saving $.25 with a coupon at the grocery store. Every little bit will add up to a lot of savings in the end. It may not be easy or fun, but it is the only way you can get your finances under control.


Pay Cash

If you find that you are overspending or that you have made a habit of not following your credit card purchases, use cash for all of your purchases instead. Most people find it much harder to part with their money when they physically see it leaving their hands, and when you always pay with cash, you will be more likely to avoid buying something you can’t afford. Set aside money every month for your savings and to pay all of your bills, and then keep enough cash on hand to cover your budgeted amount for other items (groceries, entertainment, etc.).


Keep Track of Your Credit Report

No one else is going to check your credit report for you, unless they are checking it when you apply for a loan, an apartment, or even a job. It is up to you to know exactly what others will see when they review your credit report, and do everything you can to make sure that that information is up to date and accurate. You can get a free copy of your credit reports every year, so you should have no excuse as to why you can’t check your credit. When you get your credit report, you will need to find the negative items, find out why they are negative, and fix the problem before more of these items show up. Most negative items on your credit report should be removed after seven years (ten years if you file for bankruptcy). If there is outdated or false information, you have the right to notify the credit bureaus and request that they fix the mistake.


Seek Outside Help

If you have tried everything imaginable and still can’t seem to get your finances under control, it may be time to seek help from a professional. There are many credit counselors who would be willing to help you find a way to get out of debt. It may take some time and money, but you will feel much better when you know that you are debt free. Make sure you find the best counselor for you, and be aware of scams and untrustworthy people who will try to prey on those with bad credit and debt.


This is a guest post by Amanda Clark who is an author who writes guest posts on the topics of business, marketing, credit cards, and personal finance. 

Forgotten Wealth Formula - Have You?

It is very funny that I read back my very old post: Health and Wealth and I basically mentioned that although many people aware of the importance of the health, it is still always being forgotten especially in long run. The funny part is this applies to me as well until I did my blood test lately.

I did my full medical body check up 3 years ago, that indicated my cholesterol level (HDL, LDL and Triglycerides) are beyond the range and also had a fatty liver – specifically my SGOT-AST, SGPT-ALT and GGT levels are beyond the range as well. So from that time onwards, I was very concern on health. I controlled my diet very closely and did exercise (twice a week) for maybe for about a year. After that, I think I made an assumption that my health problem was fixed without any further blood test. So 2 years later, which is today – I do my blood test again and the results are similar with like before. So the problem was not really fixed at all and I’m back to square one! :( Here is my my screw up result:

Well, this tells one very important thing. You need to do regular blood test to remind yourself the importance of health especially if your blood test result is not good and you can’t make assumption. If your blood test result is good, it is recommended to do a blood test once a year and do not exceed 2 years. So now, I’m back to the cycle 3 years ago but the difference that I plan to made this time is I will do the blood test every 6 months to monitor my progress until normal. Hopefully everything is fine. So, wish me luck! By the way before I forget, I think this is the forgotten wealth formula:

Wealth = Money + Health +  Relationship

What do you think? However, my previous very old post again on definition of wealth did not include health and relationship (happiness). Somehow I defined wealth is to measure how far you are from financial independence or financial freedom in time unit.  That probably covers only 1/3 of the equations. I used to think of health to be added into wealth formula but I think “relationship” should be included as well because it affects your happiness. Imagine if you have money and health but you screw up your relationship with others, this may not be what you’re looking for.

P/S: Okay, I'm going to swim now. People say I scare of death after getting my blood test result but anyway this is more on improving my own health. :) Let's share your thought on this on topic. What is your definition of wealth?