Since the global credit crunch took hold and economies worldwide have been in a slump, it’s tough to secure a mortgage. This makes it more important than ever to keep your credit score high. You can use credit restoration to put things right again if you run into financial trouble ? but it’s best to protect your credit from being harmed. Whether you’re new to using credit or have had multiple accounts for some time, you should keep a few things in mind about taking good care of your credit score and how to use credit restoration if you do run into trouble.
One important thing to keep in mind is that your payment history makes up about 35% of your credit score. Your credit report lists the last seven years of activity, but it is the last 2 years which matters the most when a lender is trying to determine your credit worthiness. How late your payments are also factors in. While a payment which is 30 days overdue is one thing and is seen as relatively minor, payments delinquent for more than 90 days are a serious problem. Remember, it’s easier to keep your credit in good shape than it is to repair it.
The best thing to do is to have different types of accounts and manage them all responsible. You should have a credit card which you keep a very small balance on (or keep paid off every month), along with an installment loan such as a car loan. If possible, you should have a mortgage too. Having several different types of accounts which you are managing well tells creditors that you are a good risk.
Never apply for credit which you do not need. Having too many accounts or making too many applications can negatively impact your credit score. You may also be tempted to use these accounts and get yourself into trouble. Try to avoid the need for credit restoration by only having accounts you actually need.
You should request a copy of your credit report. Look this over carefully and be sure to dispute any item which is inaccurate. You can request that these erroneous items be removed from your report. If there are any small balances outstanding, pay these off.
If you have some larger accounts which need to be paid off, get in touch with the creditor and offer a settlement. Your creditor may be willing to reduce your debt if you are willing to work with them to repay it. While a settlement is still a mark on your credit report, it is a lot better than an outstanding debt.
No matter how hard you try to take good care of your credit report, you may run into problems. Sometimes things happen which we can’t control for and our credit score is damaged as a result. Don’t let it get you down. If you are determined, you can make credit restoration work for you and get your credit back into good standing.