There have been plenty of times that the phrase “your credit is your life” has been said. Essentially a good credit rating really is the doorway to whatever your heart desires. Making timely payments on your loans is on key part in keeping a good credit rating.
Establishing a Good Credit Standing
When first opening a credit card of any sort or trying to obtain a loan you don’t have intentions on not making payments. Establishing good credit is done by making timely payments. Try your hardest to pay off your credit card bills or loans as soon as you are able to. This will in turn raise your credit rating and save you a ton of money in interest.
If something happens and you are unable to keep your payment agreement with the credit card or loan companies give them a call. If you have been making payments on a consistent basis for a long period of time they can sometimes lower the amount due or even give you an extension. These options will not reflect poorly on your credit since you are still making an attempt to pay. If your loan company is unwilling to work with you don’t stop making payments. Pay as much as you can every month on the due date on your bill and this will also show an attempt to pay so it will not reflect poorly on you.
Keeping a Consistent Credit Rating
Keep on paying those bills. There a few fairly common knowledge things to keep you on track with your good credit standing. First thing is first, keep paying your bills on time. On time payments are a must to keep up your credit rating scores! Next is try to stay in your means spending wise. If you only use your credit cards for emergencies it will keep your bills and interest rates at a manageable payment amount. Next is stay away from any kind of loan defaults such as; foreclosures, bankruptcies, charge offs and any other financial delinquency judgments. Even if you start to fall behind on your payments try to pay as much as you can because this will at least keep your accounts out of collections.
Getting Back on Track
So you have made some bad financial decisions as far as credit goes. Don’t worry because there are a few things that you can do to try and gain back a few points toward your credit rating. Since about 35% of your credit score is your payment history you should start to pay up. If you have active credit card accounts start paying on them. You don’t have to pay the whole thing at once but paying on it little by little can get you closer to that good credit standing. Most credit card agencies will even work with you if your credit card is way past due. The will often times settle for a fraction of the amount owed to them. They figure that getting at least some of the money back is better than getting nothing at all.
There are numerous credit counseling agencies to help you figure some things out. Credit standing can be an overwhelming thing. There are numerous resources all over the internet that can help lessen your debt and counsel you on how to possibly get back up to that good credit standing!