iankq996pr's Space http://iankq996pr.posterous.com Most recent posts at iankq996pr's Space posterous.com Wed, 23 May 2012 07:50:00 -0700 When Debt is a Good Thing http://iankq996pr.posterous.com/when-debt-is-a-good-thing http://iankq996pr.posterous.com/when-debt-is-a-good-thing

After years of working for collection law firms, I decided that debt was the root of all evil and that I would dedicate my life to making sure people stayed out of it. Then one day I quit my job, became a credit consultant for a friend's business and learned about a completely different side to the dreaded debt.

Like it or not, debt is one a necessary evil in the world that we live in. Even if you are determined to live debt free and pay for everything in cash, there will still be instances where you may be subject to a credit check. Employers are becoming more and more likely to run a credit check just to decrease the number of job candidates. If you are renting an apartment, your landlord will almost certainly run a credit check. It has even come to the point where insurance premiums can be based off of your credit score. Everyone has heard many horror stories about debt and reasons that it can do you plenty of harm, but no one really talks about how it can work to your advantage.

Do you ever wonder why a person with no credit history has almost just as hard of a time trying to obtain credit as someone who has a bad history? If you look at those a person's report from each of those categories, you are likely to find one thing in common. Neither one has any available credit.

Available credit accounts for roughly 30% of the factors that make up your credit score. What I have found when trying to restore a client's credit is opening up a credit line or credit card (usually with a higher limit) does wonders for their score. I have seen scores increase close to 60 points as soon as the account is reported. The reason is that the report now shows that the individual has a decent amount of credit available to them.

The goal is to not let your high credit limits entice you into a higher spending habit. I am sure that you have heard that you should never use more than 30% of your available credit, but the truth is you really don't want to go that far. That being said, it is important to at least give the card some use. Having a card with a high credit limit does little for you after it is opened, if you do not use it. Making small purchases and paying your card off each month will help you keep your available credit high while building a great payment history.

To get your free, no-obligation credit repair consultation, contact Saving Grace Financial Solutions by requesting information at https://www.sgfsolutions.com/Request_Information.php. Set aside just 10 minutes for the consultation and you'll see just how you can benefit from credit repair.

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