How can you better manage your credit even in an age of recession and massive inflation? We’re going to give you a few tips and then one revelation that’s sure to help you build yourself up to a healthy 750 rating. For starters, make sure that you understand how credit works. For example, do you know all of the factors that can negatively impact your credit score?
Obviously, you know that delinquent payments and accounts in collection are bad things. Repossessions, civil judgments, tax liens and wage garnishments will also injure your credit in a hurry. Bankruptcy status, of course, is the leprosy of credit. While everyone knows to stay clear of these threats, have you ever considered the importance of credit to debt ratio? If your debt is greater than your available credit then this could also count against you.
A common mistake made by beginners is to open too many credit cards at once and to charge them to the limit. Just because you’re current doesn’t mean you have a good credit rating. Avoid taking automatic limit increases and avoid applying for an abundance of credit cards and loans, as even this action could bring down a credit rating. Try to pay your bills on time, as late payments do appear on a credit report. Credit history also accounts for a percentage of the score, so maintain your old credit cards (even if you don’t actively use them) so that you can keep that good history.
The best tip we can offer you is to keep apprised of changes and charges made on your credit report. You can check your credit file as often as you want by working with a credit-reporting agency. Such a service allows you to check your credit report at any time. The best way to prevent against fraud and to keep track of your credit repair mission is to be aware of what your credit file says about you!