When you are young, it is important to understand that improper use of your credit cards will cost you a more than you think.
Credit Score—-Rebuilding Credit, Credit Cards
Defaulted payments and bankruptcy orders leave a black mark against one’s name. It is essential to start improving the credit score as soon as possible. It is tedious job demanding one’s time money and patience.
A credit score is a number used by lenders that indicates one’s capacity to pay mortgage payments, loan payments, credit card bills, car payments etc.
Steps to rebuild credit score—
• Deleting Errors in a short time is the fastest way to correct errors on the credit report. This can be done through a bank or a mortgage company. The credit will improve to a certain extent and allow loan at lower interest.
• Piggyback Someone’s Credit is a great credit score builder. This is done by putting someone else’s adds to one’s account. This can be done only when there is trust in the person whose account is added. It is difficult to find a trusty person.
• Playing Round Robin is one of the oldest strategies for credit building. This done by secured saving account or by secure credit cards. The credit score will improve because there are new perfect payment cards.
• Payment of bills on time will increase the credit score. Credit companies make lots of money when loans are not paid in time, but the credit goes down.
• Pay down Debts is a method that is not transparent. In terms of credit score, if debts are paid, it shows that there is an ability to pay. This will decrease the credit score. Paying off debt is different from managing the debt. Payment should be made only of the amount that will improve the credit profile.
• Never close accounts because the longer an account is open with no negative reports, as it reflects a better credit score.
• Credit score can be rebuild by possessing number of cards for different transactions. No new card should be taken as each credit will call for an inquiry that is added in the report. Possess 3-5 credit cards for different purposes to obtain personal credit. Credit limit can also be asked on current cards.
• Bankruptcy or Foreclosure should not be filed. These remain on the record for several years and always decrease the credit score. It is legally possible to delete a bankruptcy and foreclosure by advanced methods.
Try all means to keep a good credit score
Rebuild credit score by keeping several credit cards
Pay the bills in time to rebuild credit score.