Raising your credit score can lead to more opportunities for loans at lower rates. The credit score is also used for employment, insurance and housing decisions. Consumers must be very careful on how they proceed because the world of credit and debt has its own rules. Bankruptcy Lawyers Omaha NE can help you raise your credit score naturally.
“Good Balance of Credit and Debt”
If you don’t have any debt, you don’t have a credit score. If you have the ideal amount of debt with a perfect repayment history, then your score is very high. These are credit basics known by Bankruptcy Lawyers Omaha NE.
You have the right to a free, accurate annual credit report from the three primary agencies. Order this and carefully search for any discrepancies. If you find errors, you must write a detailed “Dispute” letter with proof showing why the report is wrong.
“Credit Inquiries and New Debt Can Damage Rating”
When you pay your bills on time, then your credit score naturally increases. To facilitate this process it is wise to have extra money in savings for any bills that may come due. Make your payments a week in advance to allow the mail to reach the destination, so you don’t incur late fees.
Before you can raise your credit score, you must understand how it is calculated. The more old credit cards you have, the better. A new credit card gives you more access to credit but can lower your rating because it is more recent. You must balance these factors.
Whenever there is an “inquiry” into your credit score, the banks assume you are having problems making your payments. Thus, you must be careful about how many times you allow a company to access your credit records.
“Fair Balance of Credit Capacity”
Just like a bathtub, you don’t want your credit to be near the edge. This looks like you are struggling to make ends meet. Pay down your credit cards so you have about one-third capacity left on them for emergency purposes.
While it might feel good to close old accounts – it is better for your credit score to keep all your accounts open. This increases your “access” to credit. The more capacity you have for new loans, the better your rating will be.
Your credit score is very important and by paying bills on time, having a reasonable balance and controlling inquiries you can keep it high.
Brionna Kennedy is native to the Pacific Northwest, growing up in Washington, then moving down to Oregon for college. She enjoys writing on fashion and business, but any subject will do, she loves to learn about new topics. When she isn’t writing, she lives for the outdoors. Oregon has been the perfect setting to indulge her love of kayaking, rock climbing, and hiking.