Good credit is one of the most valuable assets an individual can achieve. Recently I was able to close a real estate deal that profited me a great deal of money. I was able to achieve this because of my good credit.

My wife told me about a piece of real estate that was for sale in Montgomery. I called the realtor and asked him the price of the property. He told me the seller wanted a quick sell so he priced the property low. When he told me the price I bought the property over the phone, sight unseen.

I was able to accomplish this purchase over the phone, because I knew my banker would have a check ready for me the following day when I called him. Bankers will often make paperless transactions for their good customers. My banker had no problem with giving me the loan on such short notice. I borrowed the money for two months, but paid it back in thirty (30) days.

You too can have good credit. You must first understand how to achieve and maintain good credit. You will have good credit if you avoid missing credit card payments, defaulting on a prior loan, filing for bankruptcy in the past seven years or not paying your taxes.

If you should find yourself with bad credit you should take the following steps. First bear in mind that the law allows negative information to appear on your credit record from seven to ten years. Second you should check your credit report to see if the information reported is accurate. If you challenge something on your report as being inaccurate the company must prove it to be correct. If they fail to respond to your challenge the negative information is removed. You will be surprised at how many companies fail to respond. If you have been denied credit you can obtain a free credit report within thirty days of the denial.

Perhaps the worst thing you can have on your credit report is a property foreclosure. In terms of the effect on your credit history, a deed in lieu of foreclosure or a short sale is not as adverse an event as is a forced foreclosure. Pay your house note first!

Financial experts will advise you against filing bankruptcy in part because it could stay on your credit report for ten years. How many years depends on the type of bankruptcy you select. Chapter thirteen, sometimes referred to as the wager-earner plan, allows you to retain most of your property but requires a formal, court-approved plan to pay at least part of your debts over three to five years. This type of bankruptcy will usually remain on your credit record for seven years. Chapter seven, known as a "straight" bankruptcy, cancels most of your debts but may require that you forfeit some of your property to repay creditors. This type of bankruptcy will usually remain on your credit report for ten years.

If you find yourself in trouble with your debt you should negotiate with your creditors. You can buy some time or reach a settlement. I have personally known individuals that were able to negotiate and save thousands of dollars on credit cards. If the creditor agrees to discount the balance of your account in exchange for you paying a lump sum, you will most likely owe capital gain taxes on the forgiven part of the debt. Credit cards are very much a part of a person's financial problems because of the high interest rates. You can purchase twice as much if you pay cash. Some people pay the minimum payment on credit cards and consequently never pay them off.

My recommendation is that you only charge what you can pay off at the end of the month. You will be surprised at how wonderful your life could be if you cut up the credit cards. Credit cards can become a chain around your neck. They can keep you from obtaining financial independence.

If you are thinking about purchasing a new automobile then think again. How about purchasing a piece of rental property, a vacant lot, or a cosmetically challenged house. You can become financially sound!

Greg griffin is a free lance writer. You can read his previous articles by logging on to www.greggriffin.com (griffin speaks)