Just paying your bills on time and staying below your credit limits are easy and legitimate ways to maintain a good score.
29
January
2012
Stacy B Miller's picture

Credit scoreIf you think you don't have to pay attention to your credit score as you’re not going to get a mortgage in recent future, you should think again. Credit score influences many aspects of our lives – more than what you can even think of. This is why you should always pay attention toward your credit score and keep it as high as possible.

However, this is not as hard as it looks. Just paying your bills on time and staying below your credit limits are easy and legitimate ways to maintain a good score. But there are some other strategies that people often overlook. Read below to know them.

1) Solve clerical errors: Check your credit reports for errors. For instance, if credit limit in one of your cards is understated, it can make a great difference to your score. Suppose you owe $5,000 and the credit limit is $20,000. This means that you are just using 25% of your limit. However, if your limit is erroneously listed as &15,000, then it’ll look like you’ve borrowed 33% of your limit.

2) Think twice before deleting history: If you’re thinking of closing a few credit accounts, think twice before taking on such a step. Though it’s always good to simplify your finances, but ceasing an old account can actually blemish your credit score. You won’t believe but many apparently sensible works can hurt your credit score – like using just one card for all your purchases.

3) Ask for favor: A simple strategy to solve your issues is asking for something – anything that is favorable for you to help you shed off your debts quickly. You can ask your lender to lower your interest rate. If he can’t make this available to you, see if you can take advantage of a zero interest balance transfer offer. If you have few late payments on your report, you can also ask the lender if they could be erased, as you have been a good customer. If you have not tried these, try these. Lenders often response to their best clients.

4) Fix errors in credit reports: When you fix errors or take necessary steps toward boosting your credit score, make sure all the three credit reporting agencies are aware of it. According to law, you’re entitled to receive a free copy of your credit report from each of the credit reporting agencies once a year. Avail those so that you can spot and remove errors.

5) Prevent bad marks from being added to your report: This is a useful tip for any individual selling his home for less than what he actually owes on it. If you try to settle in a ‘short sale’ but end up owing thousands of dollars to your lender, then it’s as costly as a mortgage. Therefore, get everything in writing before the sale closes so that the debt doesn’t go on your record.

If you are concerned about your credit score, you should always consider the financial actions that’ll affect your score.

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