Keeping a high credit rating is an ongoing effort and one credit mishap can cause your score to fall, wherein it becomes difficult for you to get a mortgage or vehicle loan. Fixing a low credit score and maintaining a rating 700 or higher is doable. Don't expect overnight success, but by employing good credit habits, you'll eventually achieve a higher rating.
Get a Free Credit Report
Make a habit of checking your personal credit history a few times each year to protect yourself from identity theft and to quickly recognize reporting problems that can lower your credit score, such as unfamiliar accounts. Annual Credit Reports provides each consumer with one free report a year. You can also obtain reports by writing the three major credit bureaus: Equifax, Experian and TransUnion.
Use Secured Credit Cards
Improving credit after a bankruptcy is imperative to bouncing back and rebuilding your credit history. Because of the bankruptcy, many lenders will not entertain your loan or credit card application. However, this doesn't mean you're incapable of acquiring financing. Banks and credit unions offer secured credit cards, which are basically credit cards that require a security deposit of about $500. Secured accounts have helped people with no credit history or bad credit build a good score.
Due Dates
Managing credit and improving your score involves organization and promptness. Creditors assign due dates to credit cards, loans and other types of credits. There are consequences to late payments, such as additional fees, a higher interest rate and a negative note on your credit score. Habitual late payments will hurt your credit score. Pay everything by the due date to improve your score and maintain a good rating.
Get Rid of Outstanding Debt
The amount of debt your carry on your credit cards can also have a negative impact on your credit score. For this reason, it's wise to keep your balances low--and, if possible, pay off your credit card balances completely at the end of each month. The more available credit you have on your credit cards, the higher your credit score.
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