Here Are Great Ways to Raise Your Credit Score and Keeping It In Good Standing

Brought to you by: Breez DeGuzman

People considering a large purchase may be concerned about their credit score and how it might affect their eligibility for a loan. Don’t despair; there are ways to raise your credit score. Try following some of these ideas to bring your credit score up.

Many people don’t realize how important their credit score is, especially if they’re just starting out. Like your social security number, however, your credit score is intrinsically linked to your name for your entire adult life. If you want to borrow money of any amount the creditor will check your credit rating.

* Each year, order copies of your credit report and check it for errors. Knowing what is in your report will enable you to get any errors corrected which could increase your score dramatically. If you have extenuating circumstances concerning anything on your credit report, you have the ability to write a letter explaining your situation and have that included in your report. Depending upon the reason, this information could encourage acreditor to approve a loan request.

* Pay your bills on time. Each time you are late on payments your credit score is adversely affected, often within two months after the payment is missed. The reverse is also true; if you pay on time your score goes up; however, it can take six to twelve months for the good reports to be added.

* Avoid opening accounts you won’t use. No initial discount offered for opening an account is worth the potential black mark on your credit score.

* Transferring balances is risky business, so try to pay your credit cards off rather than transferring the balance to a lower rate card. The reason being, transfers may change the ratio of credit owed and open credit lines which hurts your credit score.

* If you do use credit cards, pay them off every month or use them sparingly. Your goal is to have as small a balance as possible when compared to available credit. Keeping the balance owed below 25% of the total available is good for your credit score.

* Choosing to close older accounts you no longer use could have a negative effect on your credit rating. Creditors want to see a long credit history, so you may want to leave older accounts open – at least until you’ve received the loan you’re seeking.

* Do everything you can to avoid having to file for bankruptcy. Even though you may have an immediate reprieve, in the long run it will be disastrous for your credit score.

* If one or more of your credit accounts is past due, bring them current as soon as you can.

Ultimately, if you know you’re going to have problems making payments at any point, it is better to call your creditor immediately and discuss your situation with them. They may be able to reduce your interest rate or postpone several payments. The important thing is to let your creditors know so you can work with them to keep your credit in good standing.

There are ways to raise your credit score if you’re going to be making a large purchase such as a house or a new vehicle. Remember to keep an eye on your credit report and correct any errors as soon as you find them to ensure your credit report is accurate and your good credit is maintained.

How to Build a Good Credit History While at College

Brought to you by: Breez DeGuzman

Many college students yearn to be considered as adults, despite the fact they’re barely out of high school. They often think having a credit card will give them the status they seek. Unfortunately, college students sometimes make bad financial decisions. Here’s how to build a good credit history while in college rather than ruining your credit.

Good credit is so important. Not only will it help you receive decent interest rates when you’re trying to buy a home – having a good credit rating can also affect whether or not you get hired for a job, since some employers are now looking at your credit history. It can also affect what type of deal you can get for a cell phone and how much you’ll pay for insurance.

Check your credit report even if you don’t think you don’t have a credit history. You can order a free credit report from each of the major credit bureaus once a year. The report is used to determine your credit score, which is what creditors look at when deciding to extend credit to you.

If you don’t think you have a credit history, it’s still a good idea to get the report to ensure there aren’t any errors. You could be a victim of identity theft or there could be an error where someone else’s information has been added to your report. It’s better to get the report now rather than wait and have your entire credit history ruined because of an error or identity theft. This will also give you an opportunity to get any errors corrected before they do too much damage.

Think about opening checking and savings accounts. Lenders see these types of accounts as signs of stability. They are also the only accounts you can have as a minor that can affect your credit history. You’ll have to wait until you’re at least 18 before you can apply for a credit card.

How is your credit score determined? It is determined by comparing how much of your available credit you use and whether or not you pay your bills on time. If you have a credit card with a $500 limit and you have it maxed out, your credit score may take a dip. Paying your bills late will also make the total score go down.

To ensure you pay your bills on time you can either set up automatic payments or mark them clearly on your calendar so you’re not late. One missed payment can affect your score and it won’t be taken off your report for seven years.

Try to keep the balance you owe on credit cards less than 30%. This will keep you from getting into credit card debt you can’t pay, and will help you maintain a good credit score. Paying off your balance each month is also a great way to build your credit history while at college.

Remember, credit cards are like a double-edge sword. With one edge you can build your credit history. With the other you can tear it down. Once you’ve learned how to build a good credit history while at college, don’t neglect it. You’ll want to get your credit report each year and ensure your credit history stays good.