subject: Eight Simple Ways To Fix Or Maintain Your Credit Score [print this page] It is easy to run into financial problemsIt is easy to run into financial problems. When these problems occur it is hard to watch as your credit score quickly deteriorates.There are things that you can do to keep your credit score from crumbling.
You want to maintain your credit score because it is vital to your current and future finances. When your credit score is bad it is hard to secure loans for new cars, homes, and other important investments.
But given enough time and financial restraint, it is possible to rebuild your credit and get your credit score to the level it needs to be.
To get you started, there are eight self help credit repair tips. Hopefully these tips will help you stay on track and keep your credit score right where you want it to be.
First, be sure to pay your bills on time. Always make timely payments on credit cards and installment loans.
Paying your bills on time is an important self help credit repair tip because a solid payment history will help improve your FICO credit score. If you can't make a payment, contact your creditors or see a legitimate credit counselor.
Often, having the option of online payment can help you get bills paid on time. Online payment makes paying bills quick and easy.
Second, be sure to take out low credit score loans when you need to secure a loan. This will assist you in paying off your loans.
Why are low credit score loans important? In general, having installment loans or credit cards and paying them off will boost your FICO credit score. That's because you've proven you can handle credit.
Establishing a good payment history on low credit score loans opens the door for better financing.
Third, don't transfer balances from account to account. You want to keep balances low on credit cards and other revolving credit. Work on paying off your debt rather than transferring balances.
Fourth, build credit with a co-signer when you first start out. A co-signer can be anyone that is willing to sign with you.
They help back up your promises to pay back the amount owed. Because of this, it makes it easier to get a loan or other financing.
Be sure that you ask a person to co-sign with you, only if they have good credit. After getting a co-signer, you will need to create a debt, such as getting a loan.
The only way this process will be able to raise your credit score is if you make sure you pay it off in full. Repeat until you no longer need the co-signer.
As you pay off the debts you owe, your credit will rise, and eventually you will not need a cosigner. Be sure to remember, the co-signer's credit suffers if you default.
Make sure that you hold up your end of the bargain and pay off what you say you will.
Five, be sure to rate shop for loans in just a small space of time. This is because a FICO credit score distinguishes between a search for a single loan and a search for many new credit lines. So if you are shopping around for the best car loan, do it quickly and do it all at one time.
Six, regularly check your credit report. You generally want to check your credit report about once a year.
Many people mistakenly believe requesting their credit report negatively impacts their FICO credit score. Order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers.
The three major credit bureaus are Equifax, Experian and Trans Union.
Seven, re-establish your credit with a secured card. Avoid high-interest credit cards. You can do this by getting a secured card instead. You set a predetermined sum from your bank account, which becomes your credit line.
Eight, make sure that you stay on track for at least seven years. Keep up with paying your bills and all the other previous steps.
Seven years is the key number because recent financial information is factored into credit scores more heavily than old data. Most negative financial information-such as late payments-are removed from your credit report after 7 years.
Also, be aware that bankruptcy information generally remains for 10 years.Don't wait to rebuild your credit score.
You can start working to rebuild your credit today. You can raise your FICO credit score by paying your bills on-time, every single time.
