Credit Score Improvement|It’s Up To You

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Credit score management

Every new year is a new time for new resolutions and new habits.   If you correct some weak financial habits you may find that your other resolutions will fall into place more easily for you.

Money issues are always a big resolution.  We never seem to have enough money to do everything we need to do.  If we could only keep more money we always feel like we’d be better off or we could stay ahead.

One sure proof way to keep more of your money is to change a few of your financial habits.    If you improve credit scores you will see your interest rates and fees drop and you will stop paying more for everything, thus keep more money.   Your challenge this year is to improve your credit score.

Ways To Improve Credit Score:

Make Your Payments On Time.

Stop making your credit card and loan payments late.   Some creditors feel that late pays may suggest that you are incapable of being financial responsible.   It shows some creditors that you can’t handle debt; and that’s why your credit score drops if you continually make your credit card and loan payments late.

Your loan payments can be from auto loans or mortgages.   You are better off paying some amount of the payment than not making a payment at all.

Avoid High Balances.

When you carry high credit card balances in comparison to your credit card limits, you signal to creditors that you may be reaching your point of no return.   This makes creditors nervous; they think that you may not make your payments and they will have to write-off your debt.

Avoid Collections.

Credit Score ManagementIf your debt gets written off or sent to collections, it’s the worst situation for helping your credit score.   A debt sent to collections drops your credit score; plus it is hard to turn around a write-off mark on your credit report.

The best way to avoid collections is to make your payments on time and to not carry high balances.   If you carry a high credit card balance you are more likely to make a late payment; which could then lead to not paying at all; which then leads to a write-off.

Maxing-out.

When you max-out on your credit cards you do not improve credit scores, you actually lower your credit score.   The goal of credit score management is to increase your credit score as high as you can.   A good credit score ranges from 750 -850.

Take up the challenge, make this the year you improve credit score.

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