There are a lot of factors that go into making up your credit score, from how often you pay your bills on time to the age of your various accounts.  When you’re trying to clean up your credit report, knowing which areas to focus on can make the credit repair process much easier and go by quicker than you may have initially thought.

This article will focus on the other side of the coin; the stuff you DON’T have to worry about.  Because while knowing what you do have to worry about taking care of is important, knowing what doesn’t matter as much to credit repair can free up any additional worries you may have.  With that said, here are 5 things you don’t have to worry about ever affecting your credit score.

• Your income.  You’ll typically find personal information like past addresses and employment info listed in your credit report, but one area of your finances that you don’t have to worry about showing up is your monthly income, both past and present.  Creditors and lenders are more interested in what you do with money than how much of it you have.

• Your rent.  While your credit card and car payments will routinely show up on your credit report, you won’t have to worry about your past rental history coming back to haunt you.  Unless you consistently are late on your monthly rent payments and your landlords are trying to evict you, this is another area you don’t need worry about.

• Account overdrafts.  If your bank account is ever in the red for whatever reason, you can rest a little easier knowing it won’t show up in your credit history.  While overdrafts are generally something you want to avoid anyway (those fees are a real pain), your bank won’t typically take the time to beat you while you’re down and report the overdraft to the credit bureaus.

• Your utilities.  Just like your past rental history, you won’t have to worry about utility bills showing up on your credit report, either.  Anything from electric and cell phone bills to insurance accounts generally stays off your report unless they fall into collections.

• Any type of credit counseling or credit repair services.  Some people are afraid to seek any type of credit counseling or credit repair service because they’re afraid it might show up on their credit reports.  You can rest easy knowing that no one reports your use of a credit counseling service to the credit bureaus; you’re allowed a cheat sheet on this exam.

(Especially if you’re not getting a bonus this year)

When you’re working towards complete credit repair, one thing that’ll make the journey easier is learning how to stretch your purse strings as far as they’ll go.  Finding debt relief is an important part of credit repair, and nothing can help you achieve that better than learning how to get the most out of your limited budget.

The following are a few tips to help you make the most of your money when attempting credit repair:

Start using your credit cards

Not as your main source of spending, but more as a back-up.  Evaluate which of your cards offer you specific rewards for using them, and use those to help you build better credit.

In addition to cash back rewards and other incentives to keep them in use, using credit cards for smaller purchases can help you in credit repair by re-establishing positive credit.   Always sure you keep the balance at around 30% of what’s available in your account, and to pay the bills as soon as they come in.

Watch your utility bills

Since this is one of those essential bills, like home and car payments, keeping these bills in check should be top priority.  In order to insure you’re getting the most out of your gas and electricity without paying the most on your bill, check with your provider and see if they offer any free energy check programs.  These can help you save a lot of cash and help in your long-term credit repair plans.

Start shopping for thrifty threads

If you consider yourself a fashionista on a budget, it’s time to face facts and realize you can’t afford the latest trends in threads while going through the credit repair motions.  Rather than heading to the nearest Gap and picking up whatever looks hot, consider sticking to clothing necessities for the time being and leaving those new Ugg boots on the shelf.  They look ridiculous anyway.

Dial that cell phone plan back

Paying more than $100 a month on your cell phone bill?  If you’ve overloaded your new iPhone or EVO or whatever the hell is popular these days with a ton of apps, text every hour, and accumulated more charges, it’s time to rein in.  Your DMV wait time might feel a little longer now, but at least you won’t be paying for it with ridiculous cell phone charges.

Work to settle old debts

Finally, for those of you barely able to tread water on your bills, consider working with a debt settlement or credit repair firm to help you lower your debt.  It can be tricky to find a good one, but these services are a big help for those who don’t have the time or know-how to deal with creditors.

Wondering what’s keeping you from landing that dream apartment you’ve had your eye on all this time?  It could be your credit history.

What went wrong?

Maybe you have student loans that were defaulted, a collection or two in your history, or are just in need of credit repair in general.  Whatever the reason, you need to improve your credit score fast to get that apartment you need.  Here’s how:

Tell them how you feel

Getting that right apartment may seem out of reach when you need credit restoration, but all hope isn’t quite lost.  If you already know your credit report isn’t in good shape, you might try being upfront about your situation.  After all, they do say honesty is the best policy.

If you let the manager know that your report isn’t in the best condition and you’re currently undergoing credit repair, they might be more inclined to give you a second look, so long as you don’t have a lot of outstanding debts to other parties.

Cash upfront

If your pleas of seeking credit restoration prove fruitless, consider renting from a private owner.  They’ll usually be more than happy to overlook your past misdeeds if you’ve got the cash in hand for a new apartment.

Try finding a co-signer

If your efforts at credit repair don’t impress the right people, you can try getting a co-signer for your apartment.  This can prove difficult, as anyone who co-signs a loan with you will be just as financially responsible for the property, but it might be the only way to get into your new home.

Start repairing your credit now

You can make your journey to a new apartment that much easier by paying off any outstanding debts that could show up and damage your chances of renting.  Consider opening a secured credit card to start building new, positive lines of credit to help you improve your bad credit score.  If you still need helping building up your credit history, consider using a debt relief service offering pay to delete negotiations or credit repair agency to bolster your chances of successfully obtaining your new apartment.

Credit repair is serious business. I’m sure you already know that, and so do thousands of companies vying for your bottom dollar online. Some of them make pretty far-out promises – a quick look at some of the hits for “credit repair companies” on Google brings up results for some companies that guarantee permanent results for your report. They’re basically saying all your problems will be taken care of – FOREVER – if you just pick their service. Boy, I wish my fairy godmother would fix all my problems whenever I charged myself into a corner…

Sorry if I’m the one to break it to you, but no matter what some credit repair companies may say, there is no such thing as a quick fix for your credit problems, let alone a PERMANENT one. Think of your credit like a baby: it requires constant care, attention, and one wrong move can leave you with a diaper full of crap. And, like that little bundle of joy, the only one who can really take care of your credit is you.

While it is certainly advisable to consult a firm for advice when looking to clean up your report — like you would consult a baby names book if the best you can come up with is Shiloh — finding the right one can be tricky. Generally, it’s a good idea to keep away from any company that guarantees you results of any kind. Nothing is certain when it comes to re, and anyone who tells you they can make all your problems go away permanently is outright wrong.

If you do need help, and who doesn’t with all the laws and acronyms floating around on the subject, your best bet is looking into any company that doesn’t just offer credit repair, but services that offer pay for deletion negotiations on outstanding debt accounts as well. Any credit repair company that offers to help you pay down your debts in addition to checking into your credit accounts is a real help, as any outstanding accounts you have on your report probably won’t be resolved with a simple dispute letter. Just make sure you keep an eye on them as well, as most companies charge a monthly fee for their services and some have the nasty habit of neglecting to keep in constant contact with you.

Sure it seems like navigating the web for the right credit repair company is like stepping into an online minefield, finding one that works for you can mean all the difference. Stay diligent, keep an eye on your report — and anyone you paid to eye it for you — and you just might make it out of this with your good name intact. Unless it’s Shiloh, that is.

This Week in Credit News

Credit Swaps on Bank of America, Goldman Sachs Jump on S&P Cut

“The cost to protect debt issued by U.S. banks from Bank of America Corp. to Goldman Sachs Group Inc. jumped after Standard & Poor’s lowered their long-term credit ratings as it revised criteria for the banking industry.”

A New Credit Score Exposes Even More of Your Financial Life

“Earlier this week, a company called CoreLogic introduced a new type of credit file, which is based on the giant repository of consumer data it maintains on, well, just about everything that most of the traditional credit bureaus do not: missed rental payments that have gone into collection, any evictions or child support judgments, as well as any applications for payday loans, along with your repayment history.”

Credit cards: How to avoid getting tricked this holiday season

“Credit experts say you need to resist the draw to pay low and instead shell out for as much as you can afford in order to break the hold of card debt. That attraction to pay less, Salisbury says, has a greater impact on people who have the money to pay the bill, because they could afford to pay the full amount, but don’t, and end up spending money on interest instead.”

This Week’s Credit Repair Blog

Credit Repair Tips for Keeping Your Holiday Budget Down

How Your Bad Credit Could Be Hindering Your Job Prospects

This Week’s Credit Repair Q&A

Debt Settlement vs. Consolidation: The Pros and Cons

Can More Than One Collection Company Collect on a Debt?

Will Paying Off Collection Accounts Re-Age Them?

With unemployment rates in America hitting a near all-time high, the number of applications being received per position is skyrocketing. Couple the unemployment rate with the increasing popularity of employers running credit & background checks on potential employees and the situation is creating a Catch-22 for many job seekers.

This is because your credit profile may be suffering because you lost your job and as a result you have gotten behind with your bills and allowed an increasing amount of debt to be run up; the predicament is that those same actions may currently be keeping you from landing a job with prospective companies. Many job hunters are unsure whether bankruptcy, credit repair, or simply applying to a myriad of job listings in the hopes that there is no credit check is their best alternative.

So where does that leave the rest of the workforce facing this issue? Well, there is very little that people can do to change their credit profiles over short periods of time. So in reality you need to understand the financial choices that you’ve made and demonstrate to potential employers that your credit reports do not define you. There are a couple of steps that should help if you are one of the many in this exact situation.

Know your credit reports

Job seekers can’t defend their financial history if they are unaware of what their credit reports are saying to employers. Credit reports are free every 12 months from each of the three major credit bureaus – Experian, Equifax and TransUnion. They will not show you a credit score, but they do list your entire credit profile over the last 10 years exactly as employers will see it.

As a job seeker you need to be prepared to answer any questions, this includes questions about your financial history as well as your work history. If you seem hesitant or confused in your knowledge of your own finances the hiring employer is going to question your reliability and your honesty.

Be honest

Once you’ve analyzed your reports and see what derogatory items are on there, you may be able to save yourself the time and stress involved with waiting for companies to run your credit & background check. Let them know straight away what they’re going to find. Any legitimate employer will tell you up front whether your infractions are going to cost you the position. Additionally, it demonstrates your desire to be honest with your potential employer. It also affords you the opportunity to explain yourself in a manner that abbreviations and codes on your credit reports won’t do.

Would bankruptcy or credit repair services help?

Yes and no. If you need the issue resolved before a prospective employer pulls your credit in the next few days, then neither of these solutions is going to help you get that job in that timeframe. Both bankruptcy and credit repair services are time consuming processes that need to be looked at long before they can be properly implemented.

While there are laws to prevent discrimination against those with a bankruptcy on their credit reports, the same cannot be said if you are simply in debt. Again, this is another Catch-22 since bankruptcy will generally ruin a credit profile for a minimum of 2 years, affecting the score for longer as it remains on the report for up to 10 years; but at the same time there are no laws against discriminating against those in need of just some simple credit repair, which can take anywhere from 3 to 12 months to have properly done while leaving your credit score intact.

Keep your chin up

Unless they’ve lived under a rock for the past few years, everyone is aware of the state of our economy, and accordingly, the state of individual’s finances. Perhaps you ran up a bit too much debt, perhaps you got a bit behind on some of your bill; so what? It’s likely that you’re not exactly in the best position to bring everything current if you’re out there looking for a job. Employers do understand. So, the better prepared you are to discuss with them your individual situation, and your strategy to get your finances back on track, the better shot you have over another applicant who comes across as just numbers and codes listed on a credit report.

People looking for credit repair options always appreciate tips to help them save money in any way they can (especially now that we’re heading into the holiday shopping season full speed ahead) so they can improve their credit scores quickly and reduce their debts as much as possible.  In the interest of helping those looking for credit repair services save another couple of bucks, here are a few more tips to stretch your budget out for all it’s worth:

Learn to say no to impulse gift buying

You can really save yourself some coin by cutting back on impulse spending.  If you’re the type to buy more than you intended to when you go shopping for anything, make a list for yourself of the essential items you need, and stick close to it.  Your wallet will appreciate not being gutted every time you step outside.

Refrain from going out to dinner every other night

If you can’t cook, acquaint yourself with the Food Network and learn some easy recipes online.  Anything’s better than watching your budget slowly being eaten away by eating out every chance you get.  Plus, your new cooking skills will impress your friends!

Keep your vacation budget down

Not every vacation needs to be a trip to Disney World or a Caribbean cruise (although it’d be sweet if it could), especially when you’re undergoing credit repair.  Instead of planning hugely elaborate, costly family vacations, check out other fun and inexpensive options for some R & R.  Go to a beach, or the park, play games around the house.

Don’t pay per view

These days there’s hardly any reason to pay a premium for your cable TV.  With sites online like Hulu and Netflix, and other on-demand services, your high cable bill should be the easiest thing to dump (at least for now).

Keep an eye on your debts

Pay close attention to your budget and the condition of your debts.  Come up with a plan to help you pay down each of your major debts systematically and remember to keep tabs on each of your accounts even after they’re paid off to make sure they’re reporting correctly on your credit report.  Do this and you will have gone a long way towards credit restoration.

Most people do all they can when it comes to credit repair.  They pay their bills and try to keep their credit cards from making the wrong charges, but for some reason, their reports and scores never quite seem to work out as well as they hope.

To help you make some sense out of what may going wrong with your attempts at restoring your credit, the leader in San Diego credit repair services has put together a list of 5 of the top mistakes just about everybody makes in their efforts to repair their bad credit.  Check these off as what not to do when getting your finances back on track:

Closing credit cards. Despite your initial instinct when faced with a poor credit history, closing your credit accounts is actually not the best idea for credit repair.  Doing so will switch them to inactive, which means they’re now essentially dead weight and will eventually fall off your report, leaving you with a smaller credit history.  Having a shorter history can make you look less financially responsible than you are; it’s like you erased that hard work for nothing.

Late or missed payments. The first step to total credit repair is making sure your accounts are current and up-to-date, and that you haven’t been missing too many payments on your accounts.  If you need help with this, set up a budget for yourself to help you manage your money situation better.

Credit accounts are maxed-out. If you use your credit cards to pay for just about everything in life, you’re probably teetering the edge of maxed-out accounts (assuming you haven’t fallen off already…).  If this sounds familiar, consider closing any excess accounts you have and rarely use, and start paying your existing accounts down to around 30% of the available balance.

Too much shopping for new credit. If you routinely shop around for new lines of credit – that is, if you fill out every credit card application that gets shoved in your face – you may be doing much more harm to your credit than you realize.  Each credit application counts as a “hard inquiry” on your report, and unless your credit repair plan calls for 25 new credit cards (hint: it shouldn’t), stop filling these out every time you see one.

Thinking you only have one credit score to worry about. Most people think of their credit score as one number, but it’s actually three separate scores.  When attempting to fix your credit, the scores you should watch closely are your FICO scores, the model used by most lenders to determine your credit risk.  Work on getting that as high as it’ll go, and you’re one step closer to financial freedom.

This post might not have much to do with credit repair services, but I thought we’d cover an area of personal finance often left unchecked.

It seems like every other day that I come home from a long day at the office to find at least two cards that proclaim in huge, bold letters “WE PAY CASH FOR GOLD”, with a little note at the bottom letting me know they also habla español.

Now I’m seeing all of these commercials and billboards with bright, shiny faces giving these glowing testimonials, as if they just couldn’t wait to tell you about how much they loved selling away their gold.  The gold buyers will even send you a “secure” self addressed package at no cost to you for your gold shipping needs.  And I’ve never seen a single person in these ads smoking a cheap cigar.

But I wonder if the part where they rip you off has changed at all.

Gold Prices Increase

Over the past 10 years gold prices have almost quadrupled topping out above $1,200 an ounce in December of 2009.  All the commercials for gold buyers will tell you the same thing.  It gets consumer’s brains to thinking that they may have an ounce in jewelry that’s just collecting dust.  Why wouldn’t you want to turn that into $1,200?

We Could Use the Extra Money

With the economy still struggling to get back on track many Americans need extra money to make ends meet.  Selling some excess gold seems like a good way to get money for something that you’re probably not even using.  With gold prices up and Americans needing money you would think this was perfect timing for consumers to hop on board with one of gold buying companies that tries to make the process so convenient.

The Price is Wrong

When you’re selling your jewelry its cost is not calculated by the ounce, but rather by the gram or, more than likely, by the pennyweight (abbreviated dwt).  A dwt. is one-twentieth of a standard ounce.    Now, the companies that buy gold can obviously set their own prices that don’t necessarily need to be in line with what gold is currently selling for.

These are businesses that are trying to make a profit.  Nationally broadcast commercials on TV and radio aren’t exactly cheap.  This expense and others need to be recovered somehow.  This will undoubtedly come at the consumer’s expense as opposed to cutting into their profit margin.  Not only will you be given below industry minimums for your gold, but once you tack on processing fees you’ll end up with a check that shocks you with just how little you’ve received.

Lastly, there’s no appraisal that lets you decide whether you want to accept their offer or not.  You simply send your gold away and they send you a check with an amount that they deemed appropriate.

I’d Rather Stick with the Seedy Pawn Shops

At least with the pawn shops you knew you were getting ripped off and had the option to say “forget it” and take your gold back home with you.  With these mail-in cash for gold companies, not only are you getting the raw end of the deal, but you don’t even have the option of cancelling the transaction.

From what I’ve gathered the best bet is shopping around and doing so with local jewelers and gold buyers.  Local companies pay consistently higher prices then do the national firms.  Plus, very often the local companies will purchase the entire item, gemstones included.  This isn’t something you get when you sell to wholesale gold buyers.  They simply want to melt the gold down.

Also, just because gold prices are at a ten-year high, doesn’t mean that you should run out and sell everything you own.  There may be more value in having some patience with your gold.  Contemplate whether getting a quarter of what your gold is actually worth really merits your time and effort.

This post might not have much to do with credit repair services, but I thought we’d cover an area of personal finance often left unchecked.

It seems like every other day that I come home from a long day at the office to find at least two cards that proclaim in huge, bold letters “WE PAY CASH FOR GOLD”, with a little note at the bottom letting me know they also habla español.

Now I’m seeing all of these commercials and billboards with bright, shiny faces giving these glowing testimonials, as if they just couldn’t wait to tell you about how much they loved selling away their gold.  The gold buyers will even send you a “secure” self addressed package at no cost to you for your gold shipping needs.  And I’ve never seen a single person in these ads smoking a cheap cigar.

But I wonder if the part where they rip you off has changed at all.

Gold Prices Increase

Over the past 10 years gold prices have almost quadrupled topping out above $1,200 an ounce in December of 2009.  All the commercials for gold buyers will tell you the same thing.  It gets consumer’s brains to thinking that they may have an ounce in jewelry that’s just collecting dust.  Why wouldn’t you want to turn that into $1,200?

We Could Use the Extra Money

With the economy still struggling to get back on track many Americans need extra money to make ends meet.  Selling some excess gold seems like a good way to get money for something that you’re probably not even using.  With gold prices up and Americans needing money you would think this was perfect timing for consumers to hop on board with one of gold buying companies that tries to make the process so convenient.

The Price is Wrong

When you’re selling your jewelry its cost is not calculated by the ounce, but rather by the gram or, more than likely, by the pennyweight (abbreviated dwt).  A dwt. is one-twentieth of a standard ounce.    Now, the companies that buy gold can obviously set their own prices that don’t necessarily need to be in line with what gold is currently selling for.

These are businesses that are trying to make a profit.  Nationally broadcast commercials on TV and radio aren’t exactly cheap.  This expense and others need to be recovered somehow.  This will undoubtedly come at the consumer’s expense as opposed to cutting into their profit margin.  Not only will you be given below industry minimums for your gold, but once you tack on processing fees you’ll end up with a check that shocks you with just how little you’ve received.

Lastly, there’s no appraisal that lets you decide whether you want to accept their offer or not.  You simply send your gold away and they send you a check with an amount that they deemed appropriate.

I’d Rather Stick with the Seedy Pawn Shops

At least with the pawn shops you knew you were getting ripped off and had the option to say “forget it” and take your gold back home with you.  With these mail-in cash for gold companies, not only are you getting the raw end of the deal, but you don’t even have the option of cancelling the transaction.

From what I’ve gathered the best bet is shopping around and doing so with local jewelers and gold buyers.  Local companies pay consistently higher prices then do the national firms.  Plus, very often the local companies will purchase the entire item, gemstones included.  This isn’t something you get when you sell to wholesale gold buyers.  They simply want to melt the gold down.

Also, just because gold prices are at a ten-year high, doesn’t mean that you should run out and sell everything you own.  There may be more value in having some patience with your gold.  Contemplate whether getting a quarter of what your gold is actually worth really merits your time and effort.