The value of an individual can be easily reflect through his or her credit score. While it is not the best correlation, many institutions seem to agree with this. From banks to your landlord, everyone is checking credit scores to determine potential risks.
One major obstacle to a bright future these days is a low credit score. A low credit score can be the only thing standing between you and that new car, obtaining a credit card or that beautiful home. For this reason, here are simple ways in which you can intelligently build a long term credit score.
Ensure that you keep a reasonable balance as well as a credit limit. For individuals who currently have an active credit line and are hoping to responsibly grow their credit scores, it is important to be able to access credit and only small amounts to be used.
The ratio of used credits to that of the total revolving credit must not exceed more than 1 in 3 USD. If you have a credit but do not use it, it immediately tells lenders that you are an individual who is responsible. Although having a lot of credits which you do not use is considered bad, it is important that you keep your general credit balance on the low.
Dispute every incorrect charges. Most people never really look at their credit lines. This can be a very costly disaster. Failure to look into your credit report can lead to you missing out potential theft and fraudulent activities which may be damaging to your credit score. Every individual is allowed a free report in every six months. Ensure you examine your credit this often. If you find something in your credit which should not be there, ensure to dispute it immediately.
Make sure all your credit applications are timely. It is advisable that you do not bombard your credit with a lot of inquiries with a stated period whether you would like to shop for a new line of credit, a car or a new home.
Make sure your payments are done on time. Making payments late is the major problem that people with low credits make. Many companies and business nowadays report late payment behavior to the credit bureaus. Although it is understandable to make occasional late payments, be sure to completely avoid this. Keep track of your finances, you can set reminders or use auto bill payment service.
Start off small. Your credit score may be so low that you may not be able to borrow a large amount of money. If this is the case, start with small loans.