Request a Copy of Your Credit Report Annually:
Order a copy of your credit report every year on a date that you will remember.. like June 1st.. or on your birthday. The place to order your FREE annual credit reports is www.annualcreditreport.com
When your reports arrive.. sit down with a red pen in hand and thoroughly review your credit report.. circling anything that you feel may be reporting inaccurately.
Write a letter to each of the three credit bureaus.. disputing any inaccuracies you have found in their specific report.
If the inaccuracy lies with the creditor.. contact them in writing to dispute their reporting of your information. Always keep copies of all correspondence.. and send the letters by certified mail so the recipient cannot claim they never received it.
Manage Your Credit Card Debt Responsibly:
Be sure you are never using more than 30% to 35% of your available credit. Maintaining a low debt to credit ratio will insure your credit score remains as high as possible.
Always Make All of Your Payments on Time:
Your payment history is the most important thing in determining your credit score. If you put off making your credit card payment until the last minute because your paycheck isn’t due until the day before your payment is due.. then call your credit card company and request that your due date be changed to a more convenient date.
Always Try to Pay More Than the Minimum Payment Due:
If all you ever pay is the minimum payment due.. you could be paying on that credit card for years to come. Whenever you have some extra cash.. apply it to your credit card bill. Creditors love customers who show responsibility in paying down their balances as quickly as possible.
Don’t Close a Credit Account Just Because You Have Paid it Off:
Closing available credit lines lowers your available credit.. making your debt to credit ratio higher. This has the potential to take a huge hit on your credit score. If you feel you don’t have the willpower to keep from running the balance up again.. simply stop carrying the card in your wallet. Lock it up in a file cabinet.. or cut the card up for now.
Never Apply for More Than 1 or 2 Credit Cards within a 90 Day Period:
Each time you apply for credit.. points are deducted from your credit score. For this reason you do not want to frivilously apply for credit here and there. Only apply for the credit you really want and the credit cards you feel will benefit you the most.
The only time when you can make multiple credit applications without having it negatively impact your credit score is when you are shopping for a car loan or mortgage loan.
So long as the credit applications are coming from several creditors for the same purpose.. such as competing car dealers or mortgage brokers.. the credit bureaus realize that you are shopping for the best terms.
Each separate application will not deduct points from your credit score.. so long as the applications are all made within a 15-day period.
After that time.. in most cases.. additional applications will once again begin to impact your credit score. Try to plan your loan shopping accordingly so as to have everything completed within the customary 15-day period.
For additional tips and information on restoring your credit and improving your scores please visit our Credit Card News and Tips section.
Article Courtesy of Credit Card Approval Center
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