Maintaining a Good Credit Score

Maintaining a Good Credit Score

If a person pays their bills on time and is responsible with money, they have done a great job. A person will want to learn more about how to keep a good credit score. In this article, a person will find out how to avoid high balances on their credit cards, make minimum payments, and pay their bills on time, and know their score to avoid being declined for credit card applications in the future. Alexander Djerassi knows how to keep an excellent credit history.

Their credit score tells future creditors about their responsibility with money. It shows whether or not a person pays their bills on time, has responsible credit habits, and does not have too many late payments on their credit report. The higher their credit score, the better a person will be if they look for a loan, new credit cards, or a new apartment. Their credit score is a valuable asset that needs to be protected and kept up to date.

First, a person should start by knowing their credit report. Each major credit bureaus (Experian, Equifax, and TransUnion) provides a free credit report once a year at an affordable cost. Go over their information with a fine-tooth comb to look for errors or inconsistencies in reporting. A person can also check for themselves online if people are concerned about a discrepancy. Paying a small fee to have their copy of their credit report is a wise investment in their financial future.

The second step is to avoid having too many late or missed payments. Late payments are reported to the credit bureaus and hurt their credit score. Missed payments show up on their statement in the future, too, unless a person gets approved for a loan in the future. In this case, paying off some of their high-interest bills now will help improve their credit score in the short term.

Next, a person may want to consider dropping their credit cards. Many people have multiple cards, which makes them look a little overextended. Although having multiple cards is not bad, a person needs reasonable control over their spending, and a person needs good control over their debt to increase their credit score. Once a person has debt, a person can then consider expanding the number of cards a person has.

When a person has their credit reports and sees any errors on their credit report, contact the reporting agency and dispute the item, explaining the incorrect thing, and a person has proof of the claim. After the dispute is received, the reporting bureau must investigate the claim and make sure it is accurate. If it is not, the item must be removed, but only for that one time.

Finally, a person can save money by closing their credit cards. Some lenders require a person to close their accounts because they view this as a sign of someone irresponsible with their finances. This, too, can raise their score if their accounts are closed and the rates on those cards decrease. If a person cannot keep the account open after a person closes it, consider paying the balance before the account is closed to help maintain a good credit score. Their ability to pay their bills, maintain a good credit score and close their credit cards will affect their interest rates. If a person does not keep a good credit score, lenders will notice, and their interest rates will increase. If a person pays off their debt quickly, lenders will not be as likely to drop their interest rates. Ultimately, a person wants to try to maintain a decent credit score to be trusted to borrow money. Do not let bad credit scores hold a person back from lending money to get ahead and improve their life. Alexander Djerassi has had good credit for most of his adult life.