Your credit score and credit profile are linked to you for your entire life. The lower your score, the more your frowned upon.. Without some sort credit control lenders won’t lend, home management companies could turn you down for an apartment, you can get turned down for employment. More and more employers, especially places that deal with high amounts of cash volume, will not even think twice about giving you a chance. You could even be turned down for utility service.
At the moment, there is high percentage of Americans going about their day not knowing what their score is and how its effecting them. In order to save the hard earned money we make, we must start practicing some credit control. As you already know, the lower the score, the higher the interest, and vice-versa. Extra interest that would not have to be paid, if your FICO score was better. Think about it you could save thousands on a car loans, home loans, college loans and car insurance. Not to mention the rates on any credit cards you own would go down.
Manage Your Score
You are allowed 3 free credit reports a year, one from each of the 3 credit bureaus. One of the best ways to manage your credit throughout the year is to space out the times when you pull your report. Once you have them, be sure to review them and look for anything that shouldn’t be there. The longer any questionable things on your report, stay on your report, the more it will be impacting you negatively.
When looking at your report, be sure that any and all credit card limits are being reported accurate. Sometimes credit card companies may not have have reported any changes to your credit profile, such as a credit increase. If it looks like your almost maxed out, this could bring your score down, and you could be turned down for more credit else where. Typically 35% of the credit limit per card is the magic number to stay at or below. Again credit control is a necessity.
Most of the time this is over looked, but be sure your positive accounts are being reported. For instance, if you have a car loan and it is in good standing, make sure that account is being reported. Having an account with good standing will only be a benefit to your credit profile, as it will show your full on-time payments.
Protecting Your Score
Once you have done the things necessary and learned some credit control, and your score is in good standing, you are going to want to protect it and keep it that way. Obviously continuously making on time payments will help ensure that your score stays where you want it. The amount of credit you have and the history of the payments make up a big portion of how your score is calculated.
Credit history is also one of the factors looked at that help determine your score. But the history is just that, history. Concentrate on good credit practices, and the history will stay there. Using a service that allows you to check your score on a daily basis and alert you of any fishy business, should also be used and is recommended.
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