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Credit Score Do’s and Don’ts

By George Hauser
Published: Thursday, August 5th, 2010

The need to understand and analyze your credit score is intense because this will be the guide of lenders and banks when it comes to checking your credit status.  The risk they have to take should be minimal so as not to be disappointed with your worth as a credit card owner.  The higher your credit the score, the easier it is for lenders to trust you and give in to your application, whether it is for additional credit or a loan.  Here are some pointers on how to make sure your credit score is worth considering. 

DO pay your balances a week before your statement closes.  This will help widen the gap between your credit limit and its closing and will increase your credit score. 

DON’T pay your bills past 30 days from its due date.  If you can’t help but be late in making payments, try to make it before 30 days has passed. 

DO make sure you take care of your credit.  The better it is, the more impressive it will look when you are interested in applying for additional credit or loans.  It will be easier for them to trust you and qualify your request for approval. 

DON’T apply for credit cards that are more than you can handle.  This usually ends up showing that you might have some sort of financial issues or that you might have debt have accumulated.  

DO make use of your credit card lightly.  If you keep making your balances big, this may affect your score no matter how diligently you make payments. 

DON’T lie about your real credit score.  If you give out false information regarding your credit, you may have to deal with legal action posed against you.  Lenders and banks can always check if you have provided accurate information regarding your credit score. 

DO spend less than the limit of your credit card.  You can keep track of purchases by making use of a check register to help you record your spending history.  

DON’T forget to make use of your old cards.  Making small purchases with old credit cards may help your score by providing additional information in your credit history length.  Making use of it every now and then will keep making it appear to be an active account. 

DO check on your credit scores as often as you can.  This will make you understand why you are charged a certain interest or why you did not get the credit you have asked for. 

In keeping some of these in mind, you will benefit more from your credit card.  Higher scores will help you qualify for loan applications.  It may increase the incentives you get, and may lower the interest rate.  It is always a good thing to be aware of your credit scores to be able to control your expenses and your balances.  Take care of your credit scores now before you drop and lose the trust lenders and banks have invested on you. It is very rewarding to own a credit card, as long as you understand the transactions and processes that go with it.

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