Many individuals suffer from below average or poor credit scores. However, many don’t understand how to increase credit score or ratings, leaving them feeling helpless and confused. While it can be difficult to understand the way credit scores work, there are several credit management service tips that are simple and will help individuals keep their credit scores high, or increase their lower ones.
Obtain a Free Credit Report
All individuals should monitor their credit regularly. This helps them become alert quickly if incorrect information is entered, or if they are the victims of identity theft. In both cases, the individual can stop further damage by acting quickly, and one way to do this is by monitoring the credit score. When individuals monitor their reports, they can stay aware of activity and ensure that it’s legitimate, increase credit score and more. Individuals should visit AnnualCreditReport to receive a free credit report and make arrangements to monitor their report often.
Avoid Applying for Several Lines of Credit
One way to decrease a credit score is to apply for several lines of credit at once. Many individuals do this, trying to obtain a new credit card or certain line of credit. While it may not seem damaging, it is. The attempts to receive credit show up on an individual’s credit report, betraying to potential lenders that the individual has been seeking new credit actively. This makes the individual less likely to receive any new credit at all, and decreases the credit score. Get new credit only when needed, and apply only for one line of credit at a time.
About Credit Card Minimum Payments
One of the best credit management service tips out there is to pay more than the minimum payments. Individuals often become overwhelmed with lines of credit and end up paying only the minimum payments on high balances. This is a surefire way to decrease a credit score. Individuals should keep their balances as low as possible, and pay off as much as they can when the bill comes in each month. This lets lenders know that individuals are committed to paying their bills down, and makes them a safer credit risk, also helping to increase credit score.
Settling Older Credit Accounts
Older accounts that are in collections or still have due balances on them may negatively affect an individual’s credit report. One way to increase credit score is to settle these older accounts. Any individual can negotiate a settlement with a past lender simply by calling the accounts department and discussing the issue with a representative. Discussing the possibility of settling and informing the representative of what the individual is able to pay at the present time may be all it takes to have the negative account removed from the credit report. This should be done with all older accounts and can help individuals increase their credit score.
Individuals can learn more about increasing their credit score by visiting Bank Rate . With the credit management service tips above, individuals can increase credit score and keep their accounts in good standing.