Good Way To Help Your Credit !
Am new to the forum and thought i would give a bit of my experience that has helped me increase my credit scores.
First off, four years ago, i had terrible credit due to losing my business back in 1994. Did not have to file BK, though was still hurt very badly.
After learning to use cash for everything my wife and i needed, we began to build a small nest egg. We did this by first putting $50.00 every week into a saving account. Then as we were able we would throw a little more in. Within a few years, we had saved up some $2500.00.
The first credit card we recieved in 1999 was one that we had to place a deposit of $300.00 then recieved a credit card with $600.00 line.
The very first thing we did was go out and buy a new bed. Though, we new we could pay cash for this item, we also figured that if we used the card and payed off quickly, we then could begin to bring our credit scores up.
After paying this debt off immediately. We again purchased another item and payed off quickly. Then we got the bright idea of using the credit card for all of our purchases and paying weekly against the credit card. Knowing we had only a $600.00 limit, we had to be carefull not to overspend, so we came up with a budget and determined that we were paying out every week in cash around $75.00 - $125.00. So, we then set up with the bank to pay our bills online and set the credit card up on automatic weekly payments of $125.00. I sent the first $125.00 out immediately without owing anything on the credit card. This of course would give us another $125.00 towards my credit card. Of course credit card companies do not like for you to have a credit amount on your card so if you do not use the credit quickly, they will send you a check for that amount of credit.
To make a long story short, by doing this we were not only able to raise our credit score, we have been able since 1999 to increase our available credit from $600.00 to over $40,000.00 worth of credit from various credit card companies and personal bank lines.
We still use a credit card to pay all of our everyday needs, (one that pays a dividend) and have all of our credit outstanding on automatic weekly payments, including our vehicles.
Hope this helps.
You are doing the right thing - learning. I am a buy and hold guy. However, I have done some minor rehabs. My friend does only rehabs and is very experienced. However, where he makes his money is by doing 80% of the work himself. Labor will be 50-60% of your repair money - so keep that in the back of your head when looking around.
I know it has been said several times throughout TCI - but joing a REI club really helps - you can get contacts and swap ideas/ Might be worth looking into.
No problem - let us know how the seminar went.