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8 Very Interesting Credit Score Advices that You Must Follow

By Brian Anderson
Published: Thursday, February 4th, 2010

Most individuals are misguided by certain credit score advices. Always remember that it is a fact that a higher credit score means better interest rates. Therefore paying for car loans, mortgages, and other debts would be easier. Here are some tips that you should take note:

  1. An estimate of 35% of your credit score is actually based on past debts that are more than 30 days late. If you are going to be late for a payment, heed this credit score advice: do not let it reach 30 days.
  2. Contrary to popular belief, canceling credit cards will hurt your credit score. More so if the cancelled credit cards are old and an established part of your credit history. Cancelling old accounts will make your credit history look younger which is bad for lenders.
  3. A person with no credit card means bad credit for lenders. Yes, purchasing with cash and not being bound by interest rates are a good thing. However, there will be a time when you cannot buy something using cash. An example of that is when you are going to buy a brand new car. Try to open at least one credit account and use it occasionally.
  4. If cancelling credit cards is a bad thing, applying for too many credit cards at once is also bad for your credit score. Also, when you suddenly start applying for a large loan, it gives the signal that it sends up a red flag that you are enduring some financial trouble you are prepared for or that you are accumulating too much debt.
  5. Do not be scammed by Internet websites claiming that they give credit score reports at a low price. In reality, getting a credit score report is very easy.
  6. Another credit score advice is to try to get your child a credit card early in life. This can make a significant difference in the long run because the hardship of getting a teenager a credit card is paid off in time. Try to search for good options for low-limit cards and prepaid cards. This will both help your child start building a good foundation for their future credit and loans.
  7. Always be diligent in checking your credit score. Update it every month or so. This gives you an idea of how you are coping with your limits and will also give you an idea as to how to improve your credit score.
  8. Finally, never lie or falsify information about your credit score. Credit scores are very easy to check and anyone can do that. This is the most important credit score advice. When you falsify information about your credit score, you might face legal action for lying about it when applying for loans.

These are just some of the credit score advices you need to take into account. We all know that paying stuff up is a big burden but then again, the world revolves around it. Knowing how to keep it safe in the credit game can save you a lot of money in the long run.

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