Good loans require very good credit scores. If you still want to borrow money in this tough economy, you better have very good scores. Below are some ways to maintain it.
Those paid monitoring programs are actually very good at helping you maintain a good credit score. What happens is that they keep a tab on your credit report for you and if there are any changes, they will send you an email so you can either “ignore it” if it was a legitimate change or dispute it right away.
The government has made it law that the credit report agencies need to give you a free report every few months. This not only allows you to stay on top of everything within your credit report but also give you a chance to dispute any changes to it in a timely manner. Just make sure you request it because it won’t be automatically sent to you.
One way to keep your scores high is to keep your credit utilization rate low. What this means is that if you have a maximum credit of $10,000, don’t use it all up! Since lenders may check your credit at any time, it doesn’t matter if you pay off your balance every month because at the time that they are checking it, your balance may still seem high.
Every time you apply for credit, they will ding your credit report. If there are too many within a short period of time, the score will be affected because no one with a good financial picture will keep apply for credit. If it’s not absolutely necessary, space out your applications so it doesn’t look suspicious!
Inactive cards will eventually be flagged by the credit card companies and be canceled. The credit report will just say canceled by card company without any explanation so use all your cards in regular intervals.
Having more than one credit card will actually help your credit. Lenders will sometimes look at your credit report and deny you because you don’t have enough different forms of borrowing. They see a lack of information as a negative so even though you may have a ton of cash somewhere to pay off any loan, the absence of proof is a big drawback.
Even though too much debt will curtail the total amount that you can borrow, having them will help increase the chances that you will get approved because lenders know that someone who have multiple forms of debt are used to paying them and won’t freak out when the bills arrive in the mail.
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Tags: bank, borrow, borrowing, car, Credit, credit cards, credit monitoring, credit report, credit scores, house, lender, Loan, mortgages