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Getting Control of Your Credit Card Debt
Dated: December 1 2023
Your credit card debt can loom over you like a dark cloud that follows you wherever you go. It can influence everything from your ability to purchase a home, to getting a better car payment, it can even affect your rate with many insurance companies. It's not uncommon for some companies to look at your credit score before promotions or even hiring. Many governments and high level security jobs will look at your credit report yearly to see if you are a security risk when carrying too much debt.
Now more than ever the importance of managing and taking charge of your credit card debt can affect you in more ways than you realize. Typically, the more robust your credit stands, the more advantageous your loan conditions become, as well as your chances of landing that new job or promotion. In instances where your credit score is less than optimal, loan or mortgage approval remains possible, however that comes with a higher likelihood of higher interest rates, insurance payments or not getting that next promotion.
2. Exercise caution with new accounts: Opening too many new accounts can adversely impact your credit, so be mindful of the potential effects before applying for or accepting new credit card offers.
3. Avoid closing existing credit cards: It may seem like a good idea, but closing an active account can actually diminish your available credit, increase your credit utilization ratio, and shorten your credit history—elements that can negatively affect your credit score.
4. Keep credit cards active: While carrying a balance is not necessary, using each credit card regularly prevents automatic account closures and the resulting adverse effects on your credit. Pay off the balance promptly.
6. Seek guidance from a credit counselor: Enlist the expertise of a professional to assist you in navigating your financial journey.
CHECK YOUR CREDIT SCORE REGULARLY:
Legally, you have the right to obtain a complimentary credit report annually from each of the three major credit reporting bureaus. This action has no impact on your credit score, providing you with the chance to thoroughly assess your complete credit profile. Seize this opportunity to gain insight into your credit history.
You can access your free report at: https://www.annualcreditreport.com/index.action
DISPUTE ERRORS ON YOUR REPORT:
If you notice anything that's incorrect, you are able to dispute the error so it does not negativley impact your score.
CALCULATE YOU CREDIT DTI:
In addition to considering your credit score and credit history, lenders also assess your debt-to-income (DTI) ratio when evaluating your loan eligibility.
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Hello, I'm BJ Ersery, a realtor in Kansas City, and I'd like to provide some guidance on investing in rental properties. Despite the challenges posed by rising interest rates, investing in real