When it comes to getting or keeping a good credit rating, many people are unaware of anything until it is too late for them. In fact, most people do not think about their credit rating when they are applying for a credit card or loan of some sort! Because of that, there are many things for people to do and read before they get their credit rating too bad!
One thing that many people do not know is that once they have bad credit, there is still a way for them to get back to having good credit. In fact, there are many things that people can do to keep a good credit standing! One of the most important things that people should keep in mind when trying to keep their credit good is that paying your debt on time is the best thing they can do (as 35% of your credit score is your payment history).
Another thing to stay away from when keeping a good credit is not making a payment at all! Because many people can’t make their monthly payments, they are getting closer to having their accounts charged off (which is worse than not making a payment). Another thing to watch for with your credit is not to have any thing sent off to a collection agency.
A couple other things to stay away from when trying to keep your credit rating good are defaults on loans, filing bankruptcy, home foreclosures as well as judgments. Despite of what many people think, having high balances on their credit cards as well as having maxed out credit cards is just as bad for your credit report. In fact, having a maxed out credit card is one of the worst things for your credit score!
If you are a person that has large amount of debt, there is also a way for you to get your credit score better, as well! In fact, some of the best things that you can do to get your credit report cleaner are most importantly stop using your credit cards!
Once you’ve stopped using your cards then you will be able to clean up your report as well as get all your delinquent account current. In fact, the best thing anyone can do is keep paying regularly on all accounts; even if it is a small amount!
When it comes to having and keeping a good credit score, the best thing that you can do for yourself is to make sure that you do everything in your power to prevent yourself from over using the credit that you do have as well as not exceeding your limits.
In fact, many people have such problems following that rule that they say to themselves if they don’t need the credit card then they aren’t going to get it; which is an excellent way to keep you free to debt!