Learn how to manage your credit score and improve your
creditworthiness
Think of your
credit score as a picture of your credit risk. This picture
reflects your risk at a specific point in time. A picture does not change;
however, when you take another one, you will probably look a little different.
Similarly, when your credit information changes, your score will also change to
reflect the updated information.
There are steps you can take to ensure that each time
a new
“credit picture” is taken, it shows your best side.
By observing the following guidelines, you can influence your credit worthiness
for the better:
- Be punctual- Pay all your bills on time.
Late payments, collections, and bankruptcies have the greatest negative effect
on your credit score.
- Check your credit report regularly and take the
necessary steps to remove inaccuracies – Don’t let your credit health
suffer due to inaccurate information. If you find an inaccuracy on your
credit report contact the creditor associated with the
account or the credit reporting agencies to correct it immediately.
- Watch your debt – Keep your account balances
below 50% of your available credit. For instance, if you have a credit card
with a $1,000 limit, you should try to keep the balance owed below $500.
- Give yourself time – Time is one of the most
significant factors that can improve your
credit score. Establish a long history of paying your bills
on time and using credit responsibly. You may also want to keep the oldest
account on your credit report open in order to lengthen your period of active
credit use.
- Avoid excessive inquiries – A large number of
inquiries occurred over a short period of time may be interpreted as a sign
that you are opening numerous credit accounts due to financial difficulties or
overextending yourself by taking on more debt than you can easily repay.
Get your credit report and score
NOW!
