Your credit score is important for your future endeavors and it could be handy for your future spending. This is why it is important that you maintain a good credit score, because your creditors would base on this score if you are still worthy of giving credit. Featured in this article are 5 simple ways on how you could improve your credit score and keep it good.
First on the list is that you must get your copies of your credit report. Why? Because this is the only way you could see if you have wrong information on your report. Incorrect information on your report could hurt your score. So to check your credit report, you could visit the authorized online source of annual credit reports. Don't worry, it is free. Under the law, you have the right to have a copy of your credit report from any of the 3 national credit reporting companies.
Next on the list is that you must pay on time. This is quite obvious. There is no simpler way to build and keep a good score than to pay your bills on time. Always beat the due date of your bills. You could opt to set up automatic payments from your bank accounts so you do not have to worry about the dates and lose track of them. But be sure you always have enough money on those accounts that you wish to put an automatic payment system.
Next thing you have to do is to understand how your credit score is determined. You must know what factors affect your credit score. In order for you to know those, you could answer these simple questions: do you pay your bills on time? If you are, then you are in good shape; what is your outstanding debt? Scoring modules usually compute your score based on your outstanding debt and credit limits; how long is your credit history? A short credit history may cause negative effect on your score, but it could still be over-weighed by other factors like timely payments and low outstanding balances; have you applied recently for a new card? If you continuously apply for new several accounts, it may do damage to your credit score; how many and what kinds of credit accounts do you have? Scoring modules also base their computation on the number and kind of your credit accounts. Having a mix of different loans and credit cards can improve your score but having too much of them may cause a negative effect, especially if you have several delinquent accounts.
Next thing you should do is to learn the legal steps to take to improve your credit report. The federal trade commission has programs that could help you such as the "Build a Better Credit Report". You could have several useful information from them.
The last on the list is that you must be wary of credit-repair scams. You could repair your report on you own and you would not need the help of those who would just want money from you.