Strategies to Improve and Maintain Your Credit Rating

The importance of maintaining and improving your credit rating cannot be underestimated.   A great credit rating affords you a great cost savings on interest rates for credit card, automobile loans, mortgages and other consumer lending.  It can also reduce your insurance rates in most states. If you are one of the millions of Americans who can benefit from an improved credit rating, there are some strategies that can help you improve and maintain higher credit scores.

•    Always pay your bills on time.  Your payment history comprises a large portion of your credit score.  Pay all of your bills on time.  Remember utility companies, doctors and landlords report to the credit bureaus delinquent accounts.  Any delinquency will have a large impact on your credit score.
•    Pay down your credit card balances.  Do not use all of your available credit.  If your credit cards are maxed out, prepare a budget and begin to pay down your balances.  A low credit balance and a higher available credit limit will raise your overall credit score.
•    Check you credit limits and make sure they are being accurately reported on your credit report.  If your credit limits are not being accurately reported ask your lender to update your information with the credit bureaus and ask the credit bureaus to verify your account information with the creditor.
•    If you already have low credit balances, do not fall into the trap of maxing out your credit cards and affecting your debt to available credit ratio.  Maintain your rating and use your credit wisely.
•    Do not close unused credit accounts.   Keeping accounts open shows more available credit and if you have had those accounts for some time, it shows an positive and established credit history, which lenders view favorably.
•    Avoid opening a lot of new accounts in a short period of time.  Opening a lot of new accounts will make lenders less confident in your ability to pay and to establish a good history.
•    Rotate the use of your credit cards.  Inactivity will not help your credit score.  Even if it is just a small recurring amount of activity on your credit card, it will help maintain a payment history on your credit report.

Improving and maintaining your credit rating is possible.  If you would like more information or a free consultation to review and discuss your credit profile contact Step 1 Credit.