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Keeping Good Credit Scores and Maintaining Them

By George Hauser
Published: Wednesday, December 23rd, 2009

What does it take to gain good credit scores? How important is keeping a good score and maintaining it? Credit score tips post importance to every credit card holder because irresponsible handling can cause you more than you can incur for a debt. With penalties that can amount up to as much as $200, 000, your financial life can end in the jurisdiction of the court. What you need to know is to use your scores to your advantage.

Credit scores merits for higher gains if you are a responsible credit card holder, or in credit terms, one that has a ‘good performance.’ It was Fair Isaac and Company who first employed the use of these scores, called FICO scores. 800 is said to be a very good score but you can gain more. The calculation of your score will be based on your credit report which is the files that are kept by the big three in credit report bureaus: TransUnion, Equifax and Experian. Each of which work individually, thus, different credit scores can be given for you to compare.

This document is a soul basis for whether you are a ‘good market’ to invest in. Lenders must have an eye for people that they lend money to. The risk is high and so it is impossible not to be strict in approving for loans or accounts even. Your credit report is their proof of how you can handle debt, based on your history and your current income. Everything that you did in the past will be recorded as a consumer file, thus, you have to be careful with decisions and actions.

There are factors that affect your scores such as payment history, the balance on your current account/s, recent inquiries and your loan applications or account openings and closings. Most credit card holders do not just spend on shopping and appliances of course. In many circumstances, one may apply for car or house loans and such. Having a good credit score before these applications can really help speed up the approval.

Credit consultants offer credit score tips that will help you fully understand the scoring models that credit report agencies use. Credit score tips can do you a favor by helping you make good decisions with your accounts. Such as when deleting bad accounts will only decrease your score and keeping old accounts establishes a good management, thus better performance. If you want a boost, then keeping good credit score tips on the side would be much helpful.

One of the common credit score tips is to pay your bills on time. A lot of people tend to take it easy with the deadlines. You should know that in paying on time, you do not just get a fairly good score in the long run, but you also spare yourself from the extra charges for missing your deadlines. A bigger balance incurred while applying for a loan will only give you a lesser chance for approval or you may have to wait months before your application may even be given attention to.

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