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Credit Score News, Tips & Advice « Credit Scores > Credit Score Tips > Gain and Maintain a Good Performance for Better Credit Scores

Gain and Maintain a Good Performance for Better Credit Scores

By George Hauser
Published: Tuesday, December 29th, 2009

High credit scores are one thing that rings a bell to its owners. Good performance on credit card use will result in high scores. These credit scores are instituted by Fair Isaac and Company, thus the tag ‘FICO scores.’ Advantages of having a good performance can be fairly rewarding especially when applying for loans, insurance and other investments.

Do a self assessment as a credit card user. Consider how well have you performed for the year. Have you paid the debts that you have incurred before it reaches the payment deadline? Paying debts before due date will help you avoid carrying extra charges or interest rates. Do you keep waiting to reach the credit limit before you pay your debts? Don’t make bank notices as alarms as to when you should already pay. Instead, make a schedule and know when to pay.

Gaining good scores can be a tough job since it takes time before you credit good performance. It may take several transactions and several positive actions that credit score tips can help you learn. Sometimes, these credit score tips can help you avoid negative actions in order to gain more. This is true since not many people know the consequences for every action.

Once you are able to gain confidence in your credit card performance levels, now comes the more difficult task—maintaining good scores. The best way to keep them high is to maintain what you have learned doing from credit score tips. Paying debts on time may have its rewards especially when consistency is added to the task. Raise your score from 15 to 20 points higher when you pay on time or before deadline. This doesn’t just account for your credit card but you may also do so for loans and insurances.

What happens when paying late becomes a hobby? Oh, everyone knows how cruel schedules can be and this may be a good excuse to forget due dates. Credit score tips will forever push to say that you should reconsider your priorities if you want to get the most out of your credit scores. You may have earned 20 points for being a consistent payer but what is that if at several consecutive points you forget to pay before deadline? This may lead to an impactful 100 points downgrade.

So everything goes well as you try and maintain your scores, but wait, something is wrong with your credit card report. Deficiencies are present such as change of address and a compromise on other fragile information. Did you find something that you did not take action for, such as loan applications denied or in process? Think. Is it a credit fraud or an identity theft?

Inquiry and reporting is the first few steps that you must take. Learning from credit score tips, fraud and theft poses great threats to your credit scores. This is because once your identity is in the wrong hands, thieves can exploit this information for the money advantages that they can get. Loan applications can be made and new accounts can be made. In these circumstances, they may take advantage and easily file for bankruptcy to avoid the debts incurred.

Be vigilant. Know your rights. Consider the best actions.

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