How To Keep A Good Credit Score

By Stephen Olson


One of our lifesavers when we go to malls and then suddenly we notice that the money we have is not going to be enough is our credit cards. Almost all people would not just bring money with them because what they bring with them is their cards. It is easy to use and all you can do is swipe it and all is already paid. But remember there are still rules which you have to remember in using your Credit Tradelines.

There are certain rules about borrowing money or purchasing something and pay it after a period of time. This is for the security of the business, in order for them to be secured which you will pay the money you had loaned from them. For you to be granted with the credit, you must first have a good score for it.

The credit score is a reflection from your previous loans. The business you had loaned with will rate you and this would result or add up to the score. This serves as the basis for other companies whom, in the future, you will be loaning with. If they found that it is bad there would be a big possibility that they will not do business with you, so better have a good one.

The thing which you have to do is to always to pay on time, this times is when you are scheduled to pay the due amount. This has been one of the greatest impacts on the credit scoring. When a customer would not pay on time they will directly give you a bad score, and could affect hugely on the future loans you plan to have.

You must learn to repay the minimum payment that is due. Even if that could only be a dollar, you should still need to repay it. This is also a great impact on the scoring. If you know how to pay the minimum payments you might get better scoring from them, and impact your future loans.

The positive reports that you have to receive from the tradelines you already had, you need to at least have three of them. Tradelines are what you have that serves as your instrument for crediting. If you happen to already have one positive report, then strive harder to have another two, so that you will be able to apply for major kinds of loan for future use.

Credit utilization is also one of the things you need to remember if you want a higher rating. The minimum utilization of it is only thirty percent. The lower you use it the higher chance that you will be granted with the loans you need in the future.

Never pay the collection that you have just because you want to be removed from the having a bad report. This actually is not the way it works. You have to inform first your bank before you do any move. So that they would be the one making the report because doing it on your own will not remove you from it.

Never close your account, this is a great impact for scoring. This would result on the drop of greater percentage. From reducing the age, account, and activity that are needed to make certain major parts of the score. If you do not really want to use it anymore, you can place it inside a drawer or just cut them up.




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