Friday, January 21, 2011
How To Keep Your Credit Score High
Credit cards can be an incredible thing to posses, but also a nightmare in disguise. The changes in 2009 to the credit game brought lots of tension and nervousness to millions of plastic users, but how do you know how do you keep you score high and in good health? Well, let's take a look at what can keep the score high and your worries low.
Rule number one, obtain a copy of your current credit report.
Check to be sure the accounts open are yours. Make sure the information is correct. For example, the report may indicate you owe Macy's $500 when you never opened a Macy's account before. It's important to be sure this is correct since this is the exact report that determines whether you get the new car or home you want.
Rule number two, create a calendar and mark the due dates of each bill.
Be sure to pay them and check off when this task is complete. Cell phones now have a function that alerts you when bills are due. If you're ever late on a bill, you're decreasing your chances of getting the loan you need.
Rule number three, open a credit card.
Even if you don't intend to use the credit card very often, keep one open. This will show the creditors that you are not a risk because you don't need to maximize your account. It is also important to open a credit card as early as you can. The longer you're a borrower, the better your credit score. Let me rephrase that. The longer you're a borrower in good standing, the better your credit score.
Rule number four, learn about credit scores and how they affect you.
Most people don't know how obtaining a quality score can really help you in the future. There are several websites that can advise how much money you will save over time, depending on your credit score.
So now that you know the four rules, what is your next step? Whatever it is, make sure you keep an eye on the bottom line and most important, on your credit score.