How to Really Improve Your Credit Score

By: IndustryReview.Net

Related Links:

Improve Your Credit for Less Than $50

CNN Money’s Debt Reduction Planner

There are many companies, both online and offline, who claim to be able to increase your credit score by hundreds of points. So, do these systems really work? We look at some tried-and-true methods for improving your credit without spending a fortune.

Hire a Credit Improvement Company or DIY

Let me first tell you that these companies can and do improve credit scores. The problem with this industry isn’t that they are ineffective; the problem is that they are very expensive. To give you an idea, IndustryReview.Net contacted several credit repair companies to compare prices. We found that a full service firm will charge between $250-$1,000 with no specific guarantee of how much your FICO score will improve. Thinking about this logically, it seems clear that those who are the most in need of credit help probably don’t have an extra thousand bucks to drop. The other consideration here is that this is not magic. These companies have simply figured out who to call, what to fax, and how to dispute negative credit items. This information is available en masse via the Internet and, with a little legwork, you could probably buy a book

for a lot cheaper and get the job done yourself.

Don’t Close Unused Credit Accounts

Many people will make the error of assuming that if they consolidate debt and close accounts, this will improve their credit. In fact, this could actually be harming your credit. Banks and credit bureaus use your debt-to-limit ratio as part of the criteria in rating your credit worthiness. For example, if you have two $5,000 limit cards and each has $2,500 charged to it, your total credit limit is $10,000 and you have used 50%. Now, if you consolidate those both onto one card, and close the other, your credit-to-limit ratio just went from 50-100%. Your best bet is to reduce the debt, rather than reshuffle it.

Make Sure You Know Your FICO Score

Many people will check a credit report and assume that’s enough. The fact is, different negative items on your credit affect your credit score in different ways. For instance, having a late mortgage payment can reduce your credit score much faster than a late car payment. Knowing your score will give you the best chance of understanding your true credit status. For now, only Equifax offers your actual FICO score. The other two agencies, Experian and TransUnion have their own, proprietary scoring systems. You may have to spend a few bucks for a report, but it will be worth it.

Understanding how credit works is an important step towards repairing bad credit. Once you crack the code, you’ll be well on your way to getting the best rates and the credit you need.

Links:

Improve Your Credit for Less Than $50

CNN Money’s Debt Reduction Planner

Brian is a small business owner, Web design professional and Internet marketing veteran. He blogs at IndustryReview.net. He has worked with small businesses in dozens of industries to help them develop online marketing strategies. You can contact Brian at BrianforHelp@industryreview.net.

5 Steps to Building a Home-Based Business on the Internet (Without Getting Ripped Off.)

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Search Engine Optimization Software

Finding Wholesale Products

So, you’ve heard that there are millions of dollars to be made on the Internet from the comfort of your home. The thought of working in your pajamas while your kids nap, or of working on the beach in some exotic location has you energized. You’re not alone! But how do you avoid the pitfalls of this billion dollar industry? How do you make the most of the opportunities that exist without throwing your hard earned cash down the drain? How do you choose the right home-based business?

Let me tell you first, from the perspective of an actual Internet professional and small business owner, that it is possible to make money from home, using the powerful reach of the Internet. Are you going to become a gazillionaire overnight? Probably not. Are you going to get rich spending 30 seconds a day? Definitely not. But with a little savvy and some due diligence, you can make a respectable income with little or no capital as a home-based business owner. So here we present our five tips to get you started on your quest to work from home:

Step 1: Choose Your Business Model Wisely

There are many business opportunities to be had online. Work from home is a dream for many people. So, how do you choose? First, make sure that whatever you choose is not going to cause you any financial hardship. If a program costs more than you can afford, it’s a bad idea. Just like any business opportunity, don’t expect to recoup your costs in the short term and don’t count on any income for a while. If your expectations are low, your financial planning will be better. Don’t quit your job with the expectations of sitting back and watching the money roll in. In fact, there are many Internet business opportunities that you can start with no money at all. If you decide to sell a product, try using a service that provides you with wholesale sources so that you don’t have to spend a ton of capital and time finding inventory.

Step 2: Do Your Research

If you decide to work with a company offering a money-making program, make sure you understand what you are getting. Most of these are worthless. A good question to ask when deciding whether or not to try a ready-made home-based business opportunity is this: Am I getting an actual product or service for my money? I know, that can be difficult to determine. Let me give you a concrete example. A company offers to sell you a DVD that will show you how to become rich beyond your wildest dreams for only $99.95. Does a hundred bucks sound like a reasonable price for a DVD? What actual product or service are you being sold? Information? The Internet is full of information about home-based businesses that you can get for free. If the package includes some kind of software, perhaps to assist in Web design, or some period of free phone support than it might be worth it. Be wary of someone who is selling only information unless you’re relatively certain that it’s good, unique ideas or the price is pretty low. Usually $10-$20 bucks is reasonable for a book or DVD, the price you’d pay at your local book store.

Step 3: Plan Your Marketing Strategy

In almost any Internet business, the key to success is driving traffic to your site(s). This is definitely true in a home-based business. Without a large advertising budget, you’ll have to rely on free or inexpensive advertising techniques, sometimes referred to as guerrilla marketing, to get your message out. But how do you do it? By now, you’ve probably heard the terms Search Engine Marketing (SEM) and Search Engine Optimization (SEO). Search engine marketing refers to the practice of making your sites as visible and relevant to as many searchers as possible via Google, Yahoo and MSN. These three search engines account for the vast majority of worldwide searching. So how do you do that? Truth be told, it can be somewhat cumbersome. In all reality, this is probably one of the biggest roadblocks to startup home-based businesses. The good news: ultimately search results are free, so this medium gives you the opportunity to compete with large companies with huge ad budgets. If you don’t want to spend a lot of money hiring a professional search engine marketer, consider purchasing software such as SEO Elite. These software programs are sometimes designed to make grundles of money for Internet Marketers and can be very effective at boosting search rankings.

Step 4: Work from Home Like You Work a Job

Understanding that the purpose of the working from home is to give you freedom that you never had at your 9-5, it will still require work. Just like anything else, the more you put into your business opportunity, the more you’ll get out of it. If your income becomes enough to make it your full time job, great! Treat it like a full time job and you’ll get the most out of it.

Step 5: Manage Your Finances Like Any Other Business

Just because you’ve decided to make your living with a home-based business opportunity, doesn’t mean that you should manage your earnings any differently than if you owned a brick-and-mortar business. Pay your bills, personal and business, first. It may be that your new income source allows you to buy that new car you’ve been eyeballing, or finally take the vacation you’ve dreamt of. That is great. After all, that’s why you decided to pursue a new business opportunity in the first place. Before you go out and start spending extravagantly, make sure you’ve stored some of your earnings away to prepare for a downturn. Don’t count on a continued, sustained revenue stream. If your home-based business provides that continuous revenue you’ll be pleasantly surprised and all of your bills will be already paid.

Working from home can be a gratifying and lucrative endeavor. Owning a successful, home-based business can provide you with the freedom that you’ve always wanted. Make sure to do your research, plan your strategy and exercise financial street smarts and you’ll be well on your way to making money on the Internet!

Brian is a small business owner, Web design professional and Internet marketing veteran. He has worked with small businesses in dozens of industries to help them develop online marketing strategies and is currently writing for www.IndustryReview.net. You can contact Brian at Brian@IndustryReview.net.