Credit Score News, Tips & Advice
Website CertifiedPrivacy Protected

Things to remember about your credit score

By George Hauser
Published: Monday, November 15th, 2010

Repairing a damaged credit score isn’t like an error done with a pencil; is an eraser, put in the right answer then errors are corrected. With a credit score, you have to invest money, effort and time. And the worse thing about a real poor credit score is that it takes years before you can have your score as good as new again. In America alone, a large percent of consumers have felt a sudden drop in their credit scores seeing the recession as one of the factors. Some people don’t worry that much about their credit scores because for them, there is always a way to fix them. Yes, true there are legitimate ways on fixing them but you have to be real patient.

Your credit score will tell the lenders whether you are credit worthy or credit risk; credit scores are all they need to ‘judge’ you. So if you have plans of taking a loan for a small business, home renovation or car loan then start working on your credit score now; do your best to keep it up.

If you like to learn some ways to have a good credit score then here are things you can do:

You have to spend only on things that you need. When you use your credit card for purchasing something costly then you could end up paying 10 times its original amount. Buying it cash still is the best way. It sure is a good thing for your credit score if you only use like thirty percent of the total credit limit given to you. Also, try not to carry a balance in your account. Be reminded that thirty-five percent of your credit score comes from your payment history so carrying a balance over the next month will not do well for your credit score. Make on-time payment and you don’t have to worry about your credit score.

There are also instances when you suddenly find out how low your credit score has become. While you made sure that you aren’t exceeding your credit limit and using your card only on small purchases it makes you wonder why the credit score decreased. You could be a victim of ID theft. Damages due to fraud could be prevented and would spare you time and money if you do a regular checking on your credit report. A lot of fraud can go undetected for months and even year and unfortunate for the account holder that he has to pay for purchases he can’t make. While it will be very hard for you to convince the credit bureau of your innocence, be it a lesson to you next time. As the classical adage goes; an ounce of prevention is worth more than a pound of cure. Before your credit score and reputation gets affected negatively, do something to prevent it from happening.

The only person who can make your credit score impressive is you so if you read some ads telling you that they can do the job for you, think of it as a gimmick.

No Comments »

No comments yet.

RSS feed for comments on this post.

Leave a comment