Maintaining a Good Credit Rating
There are a few good rules of thumb to maintaining a good credit rating. If you are able to follow them, then you will have no trouble getting credit or keeping your balances down.
Pay your bills on time. Even one late payment can negatively affect your credit rating.
Always pay the minimum amount due. Otherwise, not only will you lower your rating, but also you will incur added fees.
Occasionally, if not consistently, pay more than the minimum amount due. This helps to keep your balances down, so that you can continue to come up with the minimum payment due.
Avoid opening several credit cards at the same time. Many stores offer incentives such as percentages off the total purchase if you open a new credit card with them. This has a negative impact on your credit rating.
A few simple reminders:
Bills include not only your credit card bills, but also your mortgage and or home equity loans. Your payment history is a major factor in computing your credit rating.
It takes longer to renew your credit rating than it does to destroy it. Paying bills late consistently does more harm than you know. It may take up to three on-time payments before a company no longer lists you as delinquent on payments.
A little bit of credit card use over a long period of time is better than a spate of large credit card use in a short period of time.
In general, pay your bills on-time, charge only what you can truly afford, acquire new credit cards sparingly, and enjoy the benefits of a good credit rating!
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