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Boost Your Credit Score by Keeping Financial Records on Tract

By Andy Snyder
Published: Saturday, September 5th, 2009

Having a low credit score is one of the worst financial disasters that consumers may encounter. This fact does not only mean that there is a larger propensity for failing to secure a future loan. Also, this may mean the end of the convenience of spending by the name of credit. Surely, the reason why many Americans choose to spend using credit cards than hard cash is because of convenience factors. Also, many establishments have adopted the credit card as a means of transaction between them and consumers. One important thing to remember here is that financial responsibility is directly connected to good credit ratings. And getting the right credit report advice may mean the difference on a consumer’s credit rating.

One of the most common mistakes made by consumers who utilize credit is to take for granted the way that they spend. Because of the convenience of buying goods and services without having to pay cash, many actually spend too much. Credit ratings are heavily based upon credit history. Therefore, when one spends too much, then credit ratings would be very disadvantageous to consumers. Also, one of the main reasons behind excessive spending is because of unmonitored expenses. Of course, because we use credit cards, it is just so hard to remember and account for all our expenses. In fact, many people are not aware that they are already spending beyond limits. In this case, an effective credit report advice is to regularly monitor financial transactions.

One helpful step here is ensuring that one’s financial transactions are regularly kept on tract. This includes regularly listing down one’s expenses, and comparing it to credit reports. It is not uncommon to see cases where credit reports are full of errors such as invalid transactions or questionable credit information. Keeping financial transactions on tract also means invalidating wrong credit reports as well as avoiding excessive expenditures. Following such credit report advice may mean a significant difference on one’s credit rating.

Another thing is for consumers to focus on lowering their respective credit to debt ratio. Basically, a credit to debt ratio is the sum of all debt used, which is divided by the actual available credit. Simply put, the credit to debt ratio measures one’s financial situation, whether one is already nearing bankruptcy or not. Naturally, banks would react when they sense near-bankruptcy situations. Having a higher credit to debt ratio would actually lead to higher interest rates to be paid. That situation is truly a double whammy for any person. Following the right credit report advice that would focus on lowering credit to debt ratio may turn any financial fortune around.

An effective way to lower a credit to debt ratio is by availing of a credit card which has the highest interest rate. At first, doing this may seem illogical for many people. In reality, having a credit card with the highest interest rate would naturally provide lower credit to debt ratio; this is because such measures would lower available credits, due to closing an earlier credit account. Actually, there are already a lot of credit repair firms that has given such credit report advice.

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