Personal Finance

# 1 – Do not apply for brand new bank cards – When you apply for new credit cards too quickly and too often, it’ll decrease your average account age. This could negatively have an effect on your credit score. Avoid opening new bank cards till your credit rating has improved.

# 2 – Do not close old credit card accounts – You need to build an extended credit history of paying your expenses and the use of credit responsibly. When you close your oldest credit card accounts, it’ll shorten your credit history. This will lower your credit score. In fact, use one of your oldest credit cards once in a while and repay the balance. That will display that you have an extended credit history and that you’re accountable with the credit line.

# 3 – Do not ask your creditor to cut back your credit limit – If your balance rises above 35% of your available credit limit, your credit score ranking will move down. Be certain not to ask your creditor to reduce your credit limit. This might elevate your balance over 35% of your available credit.

# 4 – Avoid consolidation – While you need to pay off your debt, don’t do that by consolidating the debt into one account if the consolidation causes the balance to rise above 35% of your available credit limit. As discussed earlier, if this happens your credit score ranking will move down. Having a couple of credit lines with balances below 35% of your credit limit will likely be more beneficial to your credit score.

# 5 – Some things take time – Be conscious that paying off collection bills or paying off delinquent debts is not going to do away with the negative report out of your credit score report. It is still part of your credit history. Your credit score will improve over the years as you rebuild a high-quality credit score history. Delinquent debts stay on the credit score report for 7 years.

# 6 – Avoid credit score repair companies – Credit repair companies can’t do anything else you can not do yourself. They can not make the credit reporting agencies remove or change the information in your credit report.

Helpful Tip # 7 – Shop for credit within a short time – Most credit score ratings are not affected by a couple of inquires from creditors related to student loans, car loans, or loan companies provided they’re made within a short timeframe. Most credit score rankings will consider these as a single inquiry, and will not have much affect for your credit score.

Helpful Tip # 8 – Check your personal credit record – Contrary to popular belief, you may also check your own credit report as repeatedly as you want. This is not going to negatively have an effect on your credit score.

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