Michael Bishop/ June 8, 2016/ Finance, Loan/ 0 comments


1.  Check Your Credit Reports On A Regular Basis

You should check your credit report periodically to make sure there aren’t any inconsistencies or errors in it.  Sallie Mae and other companies are offering to provide all of their customers with free FICO credit scores.  They aren’t the only one.  American Express offers free FICO credit scores as well.  If you don’t ever look at your report, there might be negative information that is false appearing on your report.  These false negatives can make your score lower and stay on your report for as long as seven years.

If there are any errors appearing in your report that you happen to spot, then it’s very important for you to report them immediately since it does take time for the correction process to be completed.  

2.  Don’t Ever Use Over 30 Percent Of Your Available Credit

Whenever you do have credit available, it isn’t a good idea using all of it up at any one point in time.  It is recommended that you use only a maximum of 30 percent of your total available credit and that includes all loans, home equity lines and credit cards.

3.  Make Sure To Pay Your Bills On Time

Don’t ever pay your bills late since even one late payment may affect your credit score.  Be sure that you know what the due dates are on your bills, take the time to find out what they are and get them written down on your calendar.

Automatic bill pay is another very helpful tool.  It withdraws money from your account to pay your bills a few days prior to the due date.  This ensures your bills get paid on time and that way you don’t need to worry about missing any due dates.

4.  Limit Your Number Of Credit Inquiries

Remember when you applied for your car loan and they checked your credit report?  Then you went shopping to get car insurance?  All these inquiries can lower your credit score.  The more credit inquiries made on your account, the more points will be taken from your credit score.

If you need your credit score to be checked, be sure you limit the number of times that this happens be completely clear with why it is being run.

5.  Get a Credit Card

This might sound counter-intuitive, to get a credit card if you don’t have one.  However, in order to build credit, you need to have credit.  Opening up a credit card account is the best way of doing this.

If you open an account, be sure you use your card some, and then pay it it off and keep a zero balance.

6.  Limit The Use Of Your Credit Cards

If credit cards are open on your credit report, be sure to occasionally use the cards.  Doing this will help to build up your credit.  Don’t of course just use your cards for the sake of using them.  Always have the funds ready to pay your card off prior to making any purchases.

If you have a number of cards appearing on your credit report, be sure that you don’t start charging away on all of them at once. Use one and pay it off before using the next one.

Also remember you don’t want to ever close any of your credit card accounts.  The accounts should be left open so that they count positively in your favor.

If you happen to notice your credit score going down, spend some time checking your credit cord to determine what the problem is.  Make sure you  report any errors you discover and pay your bills on time to obtain the best credit score possible.

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