Your credit rating controls a whole lot in your financial life. If you have a family, it could affect your life even more so. You need credit to buy a home. You need credit to purchase a new car. Some employment agencies are even looking at credit ratings when choosing new employees. Your credit shows whether you can be financially trustworthy or not.
If you’re not familiar with your credit score and what is actually on your personal credit report, then you should be! This is the sneakiest way identity thieves can ruin your financial reputation. Here are a few ways you can improve and maintain your credit rating in a safe and effective manner.
Credit cards and balances
The most important thing you should know about your credit cards and your credit rating is that your credit rating is heavily weighed upon just how much available credit you retain versus how much you are currently paying for. The more “revolving” credit you have, the better. You should keep any standing balances you have as low as possible, and pay them off as quickly as you can. Even though you may pay your bill on time, you may still have just too much occupied credit availability.
Make sure to pay your bills on time
The consistency with which you pay your bills on time will account for about thirty five percent of your overall credit rating. Most finance agencies don’t play around with reporting slow or late payments. It WILL show up on your credit report, and it will affect your score in a negative manner if you are consistently late on your bills. So hold true to those payment arrangements, and definitely keep them in your name. If you’re going to do something right, then you want to make sure that you are the one grabbing up the “credit” for it.
Get a full listing of your credit report
Here’s the thing. If you don’t even know your credit score, you won’t have any idea what you may need to change financially to improve your credit rating. You won’t be able to see if someone has falsely charged you, either. It’s absolutely pertinent that you see a full layout of your credit report from all four agencies. You can’t actively pursue the betterment of your credit if you are not armed with the proper materials and knowledge.
Dispute any old or unnecessary charges
This is the part that will really make a difference. More than a quarter of the population of the United States has some sort of charge on their credit that they did NOT put there themselves. Do not allow yourself to suffer for someone else’s bad deeds. Check your report! If you need assistance disputing unnecessary charges, there’s plenty out there. Just make sure to do thorough and proper research. After all, this is YOUR life!