Saturday, March 19, 2011

Eliminate your Credit Score Woes

Many people worry about their credit score and for good reason. Credit scores are a means of determining whether to extend credit to individuals or not. If your credit score is good, you have a great chance to borrow with low interest rates. If your credit score is not good, you will either be charged high interest rates, or you may be declined for credit all together. If you have credit score woes, take heart. You can fix your score you are diligent about doing so. Don’t expect an increase in credit score right away, especially if your credit is in really bad shape to start off. But with time and responsible credit usage, your score is sure to improve.

 The best thing that you can do is to pay your bills on time- always! Or, if you are behind on your bills, catch up as soon as possible. Pay your bill in full each month when it is due. Then once you catch up, you must stay current. If you are having trouble paying your bills, talk to your creditors or with a credit counseling agency. Make sure that if you do go the credit counseling route, find a legitimate counseling agency who can really help you to find a way out of your credit troubles. As you eventually begin to pay your bills on time, your score will improve.

 Try not to open new accounts. The reason it is important that you don’t open new accounts unnecessarily is that credit is based on the amount of time you have an account. If you open a lot of new accounts the average age of your credit accounts is lowered.

 Use your existing credit responsibly. This means that you must resist from purchasing items on credit that you don’t have the money to repay at the end of the month. If you must use credit, use it sparingly. You should try to avoid charging large amounts on your credit cards. If it at all possible, pay off your credit cards as soon as you use them. If you use credit to purchase an item during the month, pay it off at the end of the month when your bill is due. Try to keep your accounts at a zero balance.

You can improve your credit score if you are diligent about doing so. Pay your bills on time, refrain from opening new accounts, and use your credit responsibly. With such responsible credit practices your credit score is sure to increase over time.

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