Maintaining a good credit history is important if you want to buy a car, own your own home, or even have electrical or cable television services where you are renting.
Be sure you understand how to manage your credit history so that you aren’t limiting your possibilities for the future.
7 Helpful Hints on Maintaining a Good Credit History
1 – Pay on time.
Pay your bills on time, every time. Creditors might waive a late fee and not report you once if you call and explain a situation, but don’t expect them to do that for you time and time again.
2 – Negotiate if you need to.
Never let anything go into collections. That’s the worst – when creditors have to chase you down to try to get money from you. Instead, call and negotiate a payoff amount or new payment date.
3 – Consider consolidating.
Pay as much as you can or get a consolidation loan to give yourself one monthly bill rather than multiple missed payments. Do your best to avoid collection agencies.
4 – Pay in full.
It’s okay to use credit, but try to pay off your credit cards in full every month. If that’s not possible, make sure you keep your spending in line and don’t go overboard with charging up needless items.
5 – Don’t get more credit than you need.
Go easy on the new lines of credit. As your score and report clean up, you’ll start getting plenty of offers in the mail. Don’t open new ones unless it’s truly needed and necessary.
Every time you make an inquiry for a new line of credit, it shows up on your credit score. Having 1-2 inquiries is okay, but more than that and it starts to affect your credit score.
6 – Get the best rates you can.
Whenever you do apply for new credit, shop smart. If your score and history is cleaned up and rising every month, there’s no need for you to accept a credit offer with an unusually high interest rate or large annual fee.
7 – Ask for help.
You don’t have to be in serious trouble to go for credit counselling. There are many free services available where you can get good advice on how to manage your existing credit.
Take advantage of what is available to you. Maintaining a good credit history is more important than ever.
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