Take Steps To Improve Your Credit Score

Friday, February 4, 2011, AM | 10 Comments

In my family, we carry just two cards: American Express for travel related things such as gas at the pump. We also carry a MasterCard for groceries and clothes, etc. Amex used to give 5% rebate on gas, but, I guess because of the economy, they reduced the rebate to 3%. The MasterCard gives 2% in rebate on groceries and some other merchandise.

Take Steps To Improve Your Credit Score

Whenever we use credit card and we use it all the time, we pay our bills by the due date. If we can’t pay for something by the due date, we just don’t buy it during that month. So, we have good to excellent credit score.

A good credit score will make it easier for you to obtain credit and to qualify for loans at advantageous interest rates.

After receiving your credit report from any of the Credit Report Agencies (CRAs), if your credit is less than good, then take the following steps to improve it:

  • Pay your bills on time

    This is the smartest way to handle credit. Late or missed payments are a sure way to lower your credit score.

  • Avoid large credit card balancing

    Outstanding balances larger than about 25 percent of your credit limit are a red flag to financial institutions.

  • Don’t transfer balances

    Closing out an account and transferring the balance to another credit card is likely to lower your score.

  • Use other people’s money to make routine purchases

    Don’t charge more than you can pay off in full each month. When you pay the full balance on your bill, you are taking advantage of an interest-free loan from the card issuer – a huge financial advantage.

    fix-your-credit-dvdIf you make only minimum payments, it can take years, sometimes decades, to pay off the full debt.

    Once you fall into the minimum payment trap, it can be difficult if not impossible to dig your way out.

    For a look at how minimum payments might work in your situation, visit the free online-loan-calculator.

    This loan calculator is a free tool which, when used appropriately, can help you attain a better idea of where you stand financially.

    Because whether you plan on getting a new auto loan, or you are considering a second home mortgage loan, it is important to base financial and loan oriented decisions on sound mathematics.

  • Don’t cancel unused credit card accounts all at once

    If you carry several credit cards, but are only using a few, perhaps two or three, close out the unused ones. Be sure to keep the cards that you have had the longest and cancel the newest cards. CRAs like to see a long record of prompt payments. Too many new cards will tend to lower your credit score.

  • Eliminate pre-approved credit card offers

    Those pre-approved credit offers that find their way into your mailbox present a temptation for identity thieves. Once they get their hands on such a piece of mail, they can complete the offer by listing a different address. Then they have an account in your name without your knowledge.

    Fortunately, there is a way for you to opt-out of these credit offers. Just visit the official Consumer Credit Reporting Industry website at optoutprescreen.

  • Know the difference between debit and credit cards

    When you charge a purchase on a credit card, you have a minimum of 30 days to pay the bill. That’s called taking advantage of the “float.” You are using the card issuer’s money as a no-interest loan, provided you pay the balance in full each month.

    When you charge a purchase on a debit card, your bank charges your account immediately. There is no “float” time between the time you make your purchase and the time you pay for it – and no time for you to get to the bank to make a deposit to cover a purchase larger than your bank balance.

    Moreover, it’s easier to overdraw your checking account when you use a debit card. When you write a check, you have the register to enter the transaction. When you use a debit card, you must rely on your memory to deduct the purchase later.

  • Carry cash to pay for small purchases

    It’s more difficult to make frivolous – of little weight or importance – purchases when you have to reach into your pocket for cash. A pocketful of credit cards makes it too easy to lower your financial inhibitions.

    Don’t be like the shopper putting two magazines on a credit card, or the college student who regularly charges a half-dozen candy bars to take back to her/his dorm. Small purchases made regularly with credit cards can grow quickly to mammoth proportions.

In a nutshell
Credit in itself is not harmful. In fact, used skillfully credit can be a profitable tool for managing your business and personal finances. Observance of these tips will help to make credit one of your assets, not one of your liabilities.

Throw us a like at Facebook.com/doable.finance


  1. 10 Responses to “Take Steps To Improve Your Credit Score”

  2. By AGUIRRELORIE on May 3, 2011, 6:06 am | Reply

    When you’re in a not good position and have got no cash to go out from that point, you will need to receive the mortgage loans. Because that will help you for sure. I take car loan every single year and feel myself great because of it.

  3. By custom thesis on Jul 29, 2011, 8:19 pm | Reply

    Different scholars don’t care about their academic grades and they can complete not professional thesis papers. Nonetheless, I do know that every buy dissertation service will create professional thesis discussion, which can suit everybody’s demands.

  4. By buy essay on Jun 4, 2012, 11:34 pm | Reply

    A lot of people simply talks about quality! I claim that to buy essay primewritings.com seems to be reasonable.

  5. By sample term papers on Jun 22, 2012, 12:54 pm | Reply

    You are dreaming just about high academic grades? Hence I can state that the english writing service would make your dreams come true, writing premium quality papers. Moreover, you will be able to use free time for own needs.

  6. By buy an essays on Jun 25, 2012, 12:01 am | Reply

    Check out this Web site if you want to order professional essays from the recommended organisation. You will definitely be gratified with professional essays and paper writing help.

  7. By custom written term paper on Jul 2, 2012, 11:11 pm | Reply

    Very oft it occurs that you are only one with your academic writing problems. However, you’re not alone because you have a possibility to turn to professional writing company and buy custom college research papers essayslab.com. It is much better to utilize exterts’ support than to try to manage with academic writing tasks yourself.

  8. By custom essay writing on Jul 24, 2012, 2:48 pm | Reply

    I spoiled my reputation trying to cope with essay accomplishing and my job simultaneously. I became wiser at this time. I get help from paper services and order essays and my greades get better!

  9. By social bookmarking services on Aug 27, 2012, 3:19 am | Reply

    That is very important to get good page rank for your internet site in Google. It is also perfect to turn to forum posting services or submission company. Some of such firms have extra effective methods for traffic optimization. However, that is worth to match several optimization companies!

  10. By seo directory submission on Oct 10, 2012, 1:10 am | Reply

    You can use various kinds of advertisement, nevertheless, submit offered by manual directory submission service seems to be the most efficient method.

  11. By job for writers on Oct 13, 2012, 2:16 am | Reply

    I would like to thank you a lot for a nice topic and as well, would like to share with you the advice: if you trying to find writer freelance jobs (4writers.net), this service will helpful.

Post a Comment on Content of the Article

 

This is not a billboard for your advertisement. Make comments on the content else your comments would be deleted promptly.

CommentLuv badge