What You Need To Build An Excellent Credit History

There are plenty of advantages to having excellent credit, not the least of which is being approved for better rates on loans and lower interest rates on your credit cards. But it’s not easy to achieve that coveted excellent status without doing some serious damage to your credit score in the process even if you have good intentions. To help protect your score while you work toward building an excellent credit history, here’s what you need to know about how credit scores are calculated as well as what factors contribute to your overall score and how you can improve it.

Never miss a payment, even if it’s just a few dollars or cents. Not paying your bills on time can negatively affect your credit score and make other aspects of your finances more difficult as well. Make sure that all of your accounts are paid on time and keep track of everything using tools. It’s also helpful to pay multiple times during each month; that way, should you forget or have trouble making one payment, it won’t hurt as much since there are others still coming through. To keep yourself accountable, consider making automatic withdrawals from your bank account on specific dates every month. That way it’ll become a habit before you even have time to forget!

In addition to short-term goals, set long-term goals for yourself. For example, if your short-term goal is getting out of debt, set a long-term goal of buying a house or getting a new job. Long-term goals can help keep your finances on track and give you something to look forward to. If your finances get off track, though, don’t beat yourself up; just pick up where you left off and remember that long-range plans don’t have to be fore ever they can be fluid. It’s all about flexibility with long-term goals as they are simply something that gets you moving towards your overall financial plan!

For many people, paying on time is a new habit that can be difficult to implement. Even if your payments have always been on time in the past, it’s a good idea to check your credit report before applying for a loan or lease. Even one late payment could drop your score substantially, which will make it more expensive when trying to get a loan. If your score has dropped due to something that was out of your control, dispute it with one of these best credit repair services. They can send letters disputing incorrect information and provide evidence showing when you were not late on payments.

This is one of, if not THE most important thing you can do for your credit health. If there’s only one number that matters, it’s your credit utilization ratio or how much debt you have compared to what your limits are. however, if you’re trying to rebuild your score after a bankruptcy or other negative event. In other words, don’t spend more than 80% of what’s available on any given card, and avoid carrying a balance from month to month. It may seem like common sense, but many people find themselves being charged late fees and over-limit fees because they didn’t know their limits. To make sure you always know what your limit is, set up text alerts with your bank so you get notified when it changes. It will also help prevent overspending by letting you know when you’re close to hitting your limit without having to check every time before making a purchase. You can also automate payments for recurring expenses such as car insurance and utilities so that money comes out of your account automatically each month. That way, you won’t be tempted to spend extra just because money was left over in your checking account from last month.

The dates for upcoming annual and quarterly reports are listed on each of your three major credit reports, but these don’t tell you what’s going on with your score. You can find out what’s happening by calling each of the main bureaus: credit repair technology (877) 248-1438. The company offer a credit report summary, which is a recorded message that tells you how long it will take for late payment or other negative marks to fall off your record. The time it takes depends on whether it is a paid or unpaid debt as well as its age.

One of your best tools for making sure your credit score is on track is awareness, you can’t fix a problem if you don’t know what it is. If possible, take a look at your report every few months and keep tabs on big changes as they happen. Two main things may affect your score and require special attention:

1) negative information

2) positive information. Negative information includes late payments, collections accounts, public records like bankruptcy filings, and so on; positive information includes new accounts (credit card opened or lines added to existing accounts), timely payments, and paid-off debts. As negative items come into view or disappear, start moving them toward resolution.

Events, that negatively affect your score often come as a surprise. That’s why it’s so important to be aware of upcoming events that may affect your score like moving addresses or scheduled court dates. Use Credit Reports feature (which not only provides you with scores for credit bureaus but also lists recent changes and upcoming events) to stay ahead of such surprises and ensure your good credit stays that way. Note: This is not a legal replacement for actual counsel from a reputable attorney experienced with consumer protection laws as they relate to consumer credit. The above tips are meant for educational purposes only, and should not be construed as legal advice in any sense. Do not do anything illegal!