Tips to Avoid Bad Credit and Repair

By Michael Benifez

Pay your bills on time to avoid getting bad credit. Research the marketplace before coming to a purchasing decision, and continue on your way to reestablishing your good credit.

Understand all applications, including credit cards, student loans, mortgages, and car loans carefully to avoid being overcharged. Make wise decisions ahead of the game as the ultimate solution to maintaining good credit. Most people are not aware of the options available to them when they take out a home mortgage loan. Many walk into the bank, fill out an application, and accept the terms & conditions when offered to them without concern for the fine print.

People are filing bankruptcy because they can’t afford their homes anymore. This is because these people did not take the time to check the marketplace for options available to them. Millions are, instead, in debt and searching for a way to repair their credit. The real solution is to avoid bad credit in the first place.

Research, invest wisely, make good decisions, and budget. Information and education are two of the best tools offered to us. Some mortgage loans offer overpayments and underpayments.
These loans include vacation packages and lump sum payments to the borrowers. Other loans offer low mortgage monthly installments and low interest rates with attached insurance policies that will pay your mortgage if you are sick, unemployed, in an accident and so on. On the other hand, some mortgage loans have high interest rates, high mortgages, and balloon payments attached. When balloon payments are attached to home mortgages, it’s almost guaranteed in a few years you will be searching for a solution to repair your credit.

There are very few home lenders willing to tell you the truth about all the home loans available. Most of the lenders are making money off the loan. Your debt is their source of income. Scope out the terms & agreements carefully, and read all the fine print on any loan contract before you sign.

If you want to avoid bad credit and repair, stay on the right path. Loans are agreements that are made between two parties. Interest rates and other fees are always attached to those agreements. If you are applying for a home loan and want to avoid bad credit, learn what fees are included and how much those fees are. You will be charged fees up front any time you take out a mortgage loan. In some cases, however, you can get a home for little or no money out-of-pocket. Search the marketplace to save time and money.

Some home loans offer an “acceleration clause,” which covers missed mortgage payments. Lenders apply the clause by allowing leniency for one month, providing you make payments the following month on time. This type of loan is great for avoiding bad credit, foreclosures, and repossessions.

The marketplace is swarming with realtors and other resources that will help you get an affordable mortgage loan with benefits included. One tip to consider is painting your home and adding a little landscaping to increase curb appeal and property value.

If you are applying for a car loan, it is also important to search the marketplace carefully before agreeing to terms & conditions. Make sure that your find the best deal affordable to you. Most car dealers increase fees on cars 15%. This means if you can negotiate a price reduction with the dealer up to that amount. Stay away from credit cards that have fees attached and high interest rates. Avoid credit card offers that have upfront fees or offer a high line of credit. Consider a student loan. You may be qualified for a student grant from the government. These lower-rate options should be considered before you commit to a loan agreement.

Michael Benifez demonstates the financial advantages of landscaping in How to Increase Property Value. Learn more on plants and landscaping from the growing library of advice online at www.Plant-Care.com