wtorek, 2 października 2012

Dealing with credit scores

I was always good at handling money and finances in general, but some credit scores gave me a little by of trouble, they were pretty mysterious. I knew about them that are important and everything revolves around them, the mortgage, and a new credit card and so on, and I thought I did pretty well when dealing with money, but I could not help to feel a little anxiety at seeing the credit reports. 

Now, I can say that I feel much better, I learned how to control my finances and here are some tips I used and hope you can also benefit from: 

  • You are supposed to check your credit report, it will not hurt you, and the couple of minutes will be well spending. Many people think that checking a credit report means damaging your credit score. That is not true at all, as in matter of fact; the government wants to protect your right to check your credit - you can do it at Credit Score Ranger Blog. They better understand that your credit report has the ability to control your life from the simple credit loan to getting a job and that is why they passed the Fair Credit Reporting Act, to make sure you can check your credit reports as often as you like.
  • Keep in mind that mistakes can happen at any time, researches show that 19% of the credit reports have errors, and about 1% of them show an increase of 20 points or more after they were corrected. Those errors make a great difference between an excellent credit and a “sorry” answer. You can avoid those errors by checking your credit report today. 
  • Do not be afraid to constantly check your credit because they have the impression that it is bad. There is nothing to fear. They have the impression that credit bureaus know everything about your financial life. Those credit bureaus do not care that much about your life; they are not interested in the age, savings account, recent payments and so many other things. If you start checking you will see that nothing wrong could happened and you will check it over and over again. 
  • Another fact is that if you avoid checking your troubled credit reports, the problems will not get fixed on their own. If you are aware of the existing problems you have the chance to fix them. If you start right now, you will better rebuild your credit to a score that will make you sing. 

When I took control over my credit I discovered a secret that I am going to share with you. Improving is not hard at all.

Credit scores are usually driven by a couple of factors like how and when you pay your bills, if you respect the deadline, the balance between what you owe and how much credit do you have, for how long have you been managing the credit, what time period you have between an old credit and a new one and last but not least, what types of credit you use.

If you can improve all the above, stay between the lines, pay your bills on time and so on, your life will get much easier.